The verdict is in!  It seems NCB investors are happy with the recent changes, as the stock is finally coming back to life!

The market has been responding positively to all this NCB news in the past week. The stock’s price finally made it back to the $70 range last week for the first time in over a month.

It ended trading on Monday at $74.95.

That’s up 15% since last Monday when news broke that NCB’s top two executives were being kicked out.

NCB stock price had been on a constant decline over the past three years.  Just before COVID, the stock had traded as high as $210.  So its fall to just $65 represented a nearly 70% decline!

That means that if you bought $100,000 worth of NCB stock at its high in 2019, up to last week, it would only be worth about $30,000.  Ouch!

Now part of the reason for the decline is that ALL stocks fell during Covid, and financial stocks were especially hit hard.  Some have begun to bounce back as the economy recovers, but 2023 is still an overall rough year on the stock market.

But beyond that, NCB stock in particular has been hit much harder than others.  And that’s partly because they haven’t paid dividends in two years.  NCB is one of those stocks that investors loved because it paid them regular dividends.

Stock market investors make money in two ways – dividends and when the stock price goes up.  But with no dividends and the stock price constantly falling, NCB stock has been a bad investment these past two years.  And as some people shed the non-performing stock for little a nothing, the price has continued to fall.

Until last week!  When Chairman Michael Lee Chin ousted his top two executives, declaring that he’s not happy with the lack of return for shareholders.

And now, the stock price is trending up.  It seems investors are eagerly awaiting the return of dividends from a company that made J$40 billion in profits last year.

Will the trend continue? Let’s see what happens when the new board of directors meets and decides on the next move.

And that’s the bottom line.