Nampack Nigeria Plc is the manufacturer of metal containers and crowncapps and quoted on the Packaging sub-sector of the Nigerian stock Exchange. The equity is currently trading on the floor of the Exchange at about N8 per share.

Nampak is not spared the downturn that shows up in both the stock market and the larger economy. But the shareholders find the stock in a more worrisome situation in the understanding that recovery may not come easy even with the expected stock market rebound.

Factors - some internal and others external have worked to strip the equity of attraction but the factors will supposedly challenge the dexterity of management to turnaround a bad situation.

Nampak is grappling with almost total loss of market confidence, even with the lifting of the full suspension imposed on it by the Nigerian Stock Exchange.

The other challenge is of course how to contain escalating input cost that is eating deep into earnings and plunging the business to losses.

It will be recalled that soon after the 2007 financials of the company to September 2007 was released to the Exchange, the figures were discovered to have been manipulated and presenting false account balances.

The report at the time showed a profit after tax of N39 million compared to a profit after tax of N130 million declared for financial year 2006, which presented a mere drop in net profit by about 70 percent.

The discrepancies dictated in the books earned the company full suspension on the Exchange.

The genuine version of the result was presented to the stock market recently. The bottomline was in the red, registering a net loss of N149 million as against a profit after tax of N130 million recorded in the previous year-end 2006.

Turnover stood at N2.9 billion, about 6 percent on positive variance compared to the N2.7 billion recorded in the previous year.

Nampak's management attributed the loss declared in the genuine version of the result to excruciating business environment.

The company's chairman, Mr Mathew Akinlade told shareholders at the last annual general meeting (AGM) in Lagos that the firm's operations were disrupted by short fall in gas supply, of course arising from the unrest in the Niger Delta region.

A way out of the quagmire for the company is to work hard towards regaining investor confidence. Investors will be expecting timely and authentic quarterly and audited reports from the management, post suspension.

Investor confidence is bound to ginger a "buy in" culture of the company's shares and thereby boost capital gains.

The infrastructure -induced cost is another big challenge and calls for solutions. The management needs to source alternative infrastructure that can support production at a comparatively low cost.

Nampak for now remains a weak hold pending a time the company will show recovery. That is definitely not in the short term but from medium to long term as the quarterly reports of the organisation reach the NSE and posting impressive figures. The numbers have to be steadily on the upbeat to win back investor confidence.

It is however analysts' opinion that with the benefit of turnaround, Nampak will begin to create value again for shareholders. The stock used to rank among the top equities at the NSE after a run down of the share price performances of the quoted companies. It was also a delight among the penny stocks.

Should the management build on past performance trend, those investing now particularly at the relatively low price will have no cause to regret their investment.

Formally CMB Plc, Nampak's business interest is the manufacturing of metal containers and crown corks. Its fortune improved in the past following the renewed efforts of the off- shore investors to enhance capacity, accelerate productivity and earnings.

The foreign investors that own 57 percent interest of the organisation have been expanding its production facilities.