After peaking at N34 per share earlier in January, Guaranty Trust Bank (GTB) shares were cut in half and hit a March closing low of N16.75.
Now however, it seems investors are remembering why they pushed the tier-one lender as high as N34 per share in the first place.
Being the most efficient lender in the country with a cost to income ratio below 40 percent, consistent dividend payout with yields around 12 percent and a solid management team means the stock was selling at a huge discount to fair value at less than 1 times book value.
It is no wonder that the stock is up 28 percent in the past one month, rallying from N18.35 per share hit on April 21 to the N23.30 per share it closed at yesterday.
The stock still has a long way to go to reach the highs hit earlier in the year but should find resistance at the round number support of N20 in the event of a retrenchment.