Nigerian Stock Market Tips

I have developed recent interest in stock analysis and I guess a forum on evaluation of stocks and market trends would be a nice to have.

I have interest in stock and I have my own stock analysis, mathematical extrapolations and all the stuff that I will be willing to share with others

People will learn and hopefully invest in NSE because there are great and unbelievable opportunities in it.

shares and stock biz are becoming interesting and profitable these days but some people are still skeptical due to inadequate info. As Seun suggest we can be managing NSE tips. Please lets start, time is not waiting for any body, we are getting old every day. All of u out there that have some calcultions should start giving us the analysis immediately.

Do you own shares in a company listen on the Nigerian stock exchange? Do you have Nigerian stock market tips for others? Then this is the thread for you! Stock brokers are also welcome to participate.

At last Seun, you've finally woken up! I thought you didn't believe in stocks(your past posts says it all), I guess you changed your mind.

I hope to participate more and give useful tips, my challenge will be time though but I will create time- so help me GOD

I am particularly interested in investment the Warren Buffet's way and asset management as well.

No long waiting sharp intelligent decisions and your money grows!

TIP 1- Realise that when you work you work for money but when you invest money works for you! So even when you're working for money don't let it end there, go a step further by making sure money starts to work for you too. That way you'll arrive at Financial Freedom fast.

stock is a big way of making money. i got to know about it so late myself. you could tripple ur salary however meagre if you invest in shares. one of the rules is to buy shares when the companies would have closed their financial books for the year. at this time prises fall as everyone already knows what profit and all that they have made. before the close of financial books, there are too much speculations as pple don't know how good the results would be. so rumours or expectations of good financial results make the stock prises soar in the market. hope this helps a little.

This is a site that could be of help http://www.zenithsecuritiesng.com/

You will always know the stocks that are performing, gainers and losers and more on daily basis.

In summary there two ways to buy- The primary market and the secondary market

Example of how to buy from primary market- Dangote shares is on (IPO)you can just buy directly

Example of how to buy from secondary market- let's say you are interested in First bank, since there is no public offer right now, you will contact your broker and let him know (u must know the right time to buy though, I will find time to send a post on that later) he will then buy for you usually from those selling theirs.

When you buy from the primary market it is cheaper but on the secondary market it is higher. The advantage the secondary market has over the primary is that you can easily sell once there is a rise in share price and you feel you're comfortable with the profit you've made. Unlike the primary where you have to wait for like six months or more to even have access to your cerificate e.g Union Bank shares.

ronkebaby:

stock is a big way of making money. i got to know about it so late myself. you could tripple your salary however meagre if you invest in shares. one of the rules is to buy shares when the companies would have closed their financial books for the year. at this time prises fall as everyone already knows what profit and all that they have made. before the close of financial books, there are too much speculations as people don't know how good the results would be. so rumours or expectations of good financial results make the stock prises soar in the market. hope this helps a little.

Very true Ronkebaby, stock is it and knowing when to buy is the main thing. In a situation where you can't figure out when to make a buy decision just make sure you have a competent broker who gives you quality advice from time to time. Or better still opt for Asset Management/Portfolio Management, it could be discretionary or non-discretionary.

thump up 4 u guys,i am enjoying this stock forum,it shows that we have plans for the future,i hope u guys have bought the ongoing dangote sugar shares,the chairman dangote promise to pay at least #1 as dividend next year.

more so,Trancorp IPO too will be coming out by dec and another dangote owned cement company ''obajana'' is warming up for a public offer, guys watch out.

we will get there!

Or you may buy before the books are closed and before the steep price rise , for example, a good buy right now is Oceanic bank, , the EOY results is expected to be superlative, results due anytime now, and by early Jan, should be trading at N19 or more.

On TransCorp, has anyone been able to figure out what will be a fair value for the shares (especially as there is no trading / track record)? Any idea when the TransCorp IPO will begin?

Seun has not said he believes in stock acquisition, trading or whatever.

Let us be very analytical and open minded about this stock business; unlike those people that are assured of eternal prosperity while they are alive by possession of just 1 oil block even if it is producing only 1000 barrels per day, this stock business in not so.

Just a question from a novice. Do I need the service of a stockbroker to buy shares from the NSE? What's the charges of a stockbroker like? They charge in percentage of your deals or how? Which stockbroker would you recommend for me?

Thank you as your help me grow in the share biz.

Forgiven:

Capital assets. this one used to be at martins street in the great nigeria insurance building. it is now at cms bookshop. there are lots of brokers around, so just ask or try and google them or visit stock exchange building at somewhere around off broad street, lagos, they should be able to recommend some to you. and nope the charges due to the brokers are very minimal. it is nothing expensive at all!

well u guys just woke me up. i was on the verge of selling off my shares @zenith well i'll start watching it now

Another question from a beginer: I've been buying stocks for a little while now & I decided to change my broker when it took him 2 weeks to effect my sell order during the bull period in July. My new broker now effects my buy order in 2-4 days. However, he never buys at the closing price! I asked to explain why & the reason he gave is that they (the stock broking firm) slots in the customer's order in the day bidding process. Thus, they end up buy somewhere between 'Today's low' and "Today's High'.

My question now is, is this normal or am I being ripped off? My formal broker always buys at the closing price. I always confirm from the newspapers and daily stock quotes from CTSL.

Seun, other, pleaseeeeeeeee.
I'm new in share-biz, please help me, how do i get a good broker, and how easy with it be for some of us that don't stay in Lagos to be good in the biz.

alexitotee:

Seun, other, pleaseeeeeeeee.
I'm new in share-biz, please help me, how do i get a good broker, and how easy with it be for some of us that don't stay in Lagos to be good in the biz.

Well, I know for sure that many stock broking firms have offices (or at least agents) in most of the state especially state capitals like Akure (I guess that's where you are). The broking firm I now use is part of group of  companies with a popular bank in Nigeria and I guess they should have a branch office in many parts of the country.

You can also go to zenithsecurities as adviced by Kg I'm sure they should be virtually everywhere

kg:

This is a site that could be of help http://www.zenithsecuritiesng.com/

You will always know the stocks that are performing, gainers and losers and more on daily basis.

Every firm has its rules in terms of minimum investment (N250,000 for my new firm) & the amount they charge as commission.

Advice, ask and be certain on the commision they charge and how soon they can effect your orders. Never be in a rush, take your time and do your home work.

@gists

Kindly let me know d NAME & ADDRESS of the stock broking firm u are using now.

Thanx

CSL Stockbrokers Limited, its a subgroup of First City Group. You can check them out here http://www.firstcitygroup.com/newfcmb/csls.asp

For those staying outside Lagos, you can go to any branch of FCMB and ask for the nearest office of CSL arround your area

Thanks ronkebaby and others that have replied and helped me in looking for a broker. I checked the zenithsec's website and emailed them on the contact email they have on their website but the mail was returned undelievered. Do anybody knows any other means I can reach them?

Thanks once again.

forgiven:

Do I need the service of a stockbroker to buy shares from the NSE?

Yes, you need a stock broker to buy/sell shares on the NSE. Individuals are not allowed to trade directly on the floor of the exchange

forgiven:

What's the charges of a stockbroker like? They charge in percentage of your deals or how?[/b]Thank you as your help me grow in the share biz.

Yes they charge in percentages, typically about 4% of your deals, sometime less than that depending on your broker.

A list of the dealling members of the NSE can be found at: http://www.nigerianstockexchange.com/exchange_members.jsp

[b]But pls always do your home work and check very well before you give your money to the firms listed on that page.

Good luck

forgiven:

Just a question from a novice. Do I need the service of a stockbroker to buy shares from the NSE? What's the charges of a stockbroker like? They charge in percentage of your deals or how? Which stockbroker would you recommend for me?

Thank you as your help me grow in the share biz.

Yes you need a broker, the percentage charge by law is (4.5%) of your money either going in(about to buy) or coming out(when you have sold). The 4.5% does not belong to the broker alone, part of it goes to the NSE, CSCS etc

Recommendation:  Lion Stockbrokers Limited at Marina, Lagos Island.

If you need a personal touch combined with professional touch then I'll give you the phone number of my broker

sorry guys i know i sound like a confused human being. i bought the last zenith ipo now sum1 wants to buy it should i sell and what should be my asking price or can i sell part of it plz help urgently

The recommended charges for buy or sell transactions is 4.065%. For transactions above 250,000 It is supposed to be lower though some brokers dont apply graduated commissions if the value of the transaction is less than N1m.

@ Adewaleafolabi
If you want to sell you will have to contact a broke and get the stock verified.
When ithas been verified you can check the dailies or zenith securities website for the current price and sell at that price if it is favourable to you.
I dont think you sgould sell for anything less than N24.

bless u i guess my asking price wud be 30000

@Kj, can i have number of stock broker, i am interested in buying but i don't live in Nigeria.

Subscribe and be a regular visitor to www.stockmarketnigeria.com , www.stockmarketnigeria.com/forums and www.ticn.com

Hello people, read tru and tell us wouldbe investor what you think,

DANGOTE SUGAR THE MARKET LEADER IN THE NIGERIAN SUGAR INDUSTRY

HISTORY/BACKGROUND OF THE COMPANY
Dangote Sugar Refinery commenced business six years ago as the sugar division of Dangote Industries Ltd (DIL). The Company, in 1978 initially entered the sugar business through importation and trading of white sugar. In March 2000, the company commenced active production of white sugar and commissioned the sugar refinery located at Apapa Port, Lagos state in 2001.

The sugar division was spun-off as Dangote Sugar Refinery Plc through a scheme of arrangement in January 2006, which transferred all the assets, liabilities and undertaking attributable to sugar division of DIL to Dangote Sugar.

The company's operations comprise two business areas, refining process, marketing and distribution. The company's objective from on-set was to expand local sugar production by refining raw sugar for direct consumption and industrial needs; thereby, reducing the company's dependence on refined sugar importation.

Dangote Sugar is in the business of sugar refining. The company imports raw sugar and refines it into VITAMIN A fortified white sugar at its Apapa factory and sell its products under the brand name “Dangote Sugar” across Nigeria.

Interestingly, Dangote Sugar is one of the very few sugar refined in the world that produces VITAMIN A fortified white sugar under strict (National Agency for Food Drug Administration and Control (NAFDAC) policy.

PERFORMANCE SCORE CARD
DSR Plc has improved on key performance indicators during the immediate past year ended 31 December 2005, continuing the stable growth outlook of the company over the years.

The company balance sheet grew by 2610 percent from N1.28billion in 2001 to N34.7billion in 2005. The company emerged with better assets quality; capital adequacy and strong liquidity position, thereby reducing possible threats from vagaries in the sector. Expectantly, the company also grew gross and net earnings; critical evaluation however shows the profitability of the company is appreciably.

PBT stood at N 8.4 billion half-year results of 2006, while N11.6 billion was recorded for the year 2005. The management is of the view that barring any unforeseen circumstance PBT for 2006 financial year will hit N17.9 billion representing 54.3percent increase as against PBT N11.6billion in the comparable period of 2005. This estimate is achievable if not surpassed.

The management deserves some credit for appreciably reducing interest expenses to N636million in the half of the year 2006 as against N2.22billion in the previous year 2005.

The company operating expenses for the half year is still within acceptable margin given the huge expansionary project the company has embarked on.

EARNINGS PROSPECT
The future outlook for the company in terms of earnings is highly promising. As the largest sugar refinery in sub-Saharan African it is capable of meeting growing national demand for white sugar, given that Nigeria has one of the lowest sugar consumption rate in the world (sugar consumption rate 7.5kg per capital). Source: ISO Statistical bulletin.

Again, the company's plan to take advantage of ECOWAS free trade zone would definitely increase turnover, with strict control on operating expense and favourable pricing, investors returns would be on the high. The management also planned to improve overall capacity by acquiring and developing savannah sugar, which currently has capacity to produce up to 600,000 metric tons of white sugar from own grown sugar cane.

Earnings capacity would be driven essentially by the aggressive marketing and sound distribution network. However, increased demand and favorable government policies are crucial for its products and operations. There is no doubt that the company's projected earnings for 2007, 2008, and 2009 will be achieved if not surpassed.

It is worth mentioning that earnings prospect depend on a number of Bearish/Macro-Economic facts such as:


Political threat - Smooth transition of power in 2007.
Currency threat - Fluctuations in the value of the Naira.
Regulatory threat - Change of the regulatory environment.
Business threat - Production shut down, fluctuation in raw material prices, competition from importers, shortage of raw materials, potential new entrants' threat.
Specific threat - Access to only a single market - Nigeria market.
Environmental threat - Industrial pollution, product contamination, natural disaster - flood and fire.
TECHNICAL OUTLOOK OF THE STOCK
SHORT TERM: Over subscription
INTERMEDIATE TERM: Bullish
LONG TERM: Bullish
FORECAST RESULTS

N'000

2006 2007 2008 2009

PBT 17,930,597 23,665,328 27,094,542 30,168,553

TAXATION - (5,916,332) (6,773,635) (7,542,138)

PAT 17,930,597 17,748,996 20,320,906 22,626,414

DIVIDEND PROPOSED (10,000,000) (12,000,000) (15,000,000) (17,000,000)

RETAINED PROFIT 7,930,539 5,748,996 5,320,906 5,626,414

EPS (KOBO) 179.31 177.49 203.21 226.26

DPS (KOBO) 100.00 120.00 150.00 170.00
PBT means Profit before tax, PAT - Profit after tax, EPS - Earnings per share and DPS - Dividend per share.
BULLISH POINTS/STRENGTH OF THE COMPANY ARE:

Robust clientele
Talo-phosphatation and ion exchange capital
1.44million metric tons installed capacity per annum
75% factory capacity utilization.
Tate & Lyle's technology
Capital adequacy, sound Liquidity base and Good Assets quality.
Sound marketing strategies and distribution network.
Excellent expertise and human capital.
THE COMPANY SHAREHOLDERS FUND:

As at 30 June 2006 stand at N19, 131,959, while the Company capitalization is N18billion.

PRICING: The offer price at N18.00 per share is well valued, considering the earnings in the company's report.

At investors' forum held on Wednesday 15th November 2006 in Lagos, Nigeria. The Chairman of the company Alhaji Aliko Dangote announced that the company would pay a dividend of N1.00 each to the shareholders for its year ending December 2006 and that the new offer will qualify for the dividend. This in effect indicates that the new IPO is being sold at N17.00 or simply put; an upfront yield of 5.56 percent is available on investment.

It is a fact that the offer is the biggest in the market and the first to be underwritten by eleven (11) big financial institutions.

Dangote Sugar Refinery Plc is offering by way of an offer for sale of 3,000,000,000 ordinary shares of 50k each at N18.00 per share payable in full on application listing opens 15th November and closes 22nd December 2006.


The IPO is being undertaken to give investors an opportunity to become part owners of Dangote Sugar Plc which is currently 99% owned by Dangote Industries Plc. Also, the IPO will also enable the company meet the requirements for listing on the Nigerian Stock Exchange (NSE).

RECOMMENDATION:

In our opinion, Dangote Sugar Refinery Plc, being the only refiner of sugar in the West Africa Sub-region and the second largest refiner company in the world after Dubai, investment in a sugar refinery company is a big investment with minimum risk We strongly recommend the stock for your consideration.

A PUBLICATION OF CREDIT AND MARKETING DEPARTMENT

MISSION SECURITIES LIMITED

152/156 BROAD STREET,

LAGOS.

P.O. BOX 960 MARINA, LAGOS.

hi, will read that publication.I believe in tried and tested
companies. am not saying pple shldn't buy but I would rather wait and see their performance in their 1st financial year, see what they ve for their investors,then I can decide on putting my money or not.

I reduce my risk by buying companies I trust.and not just buying because every Tom,Dick and Harry are buying.

For pple that are into shares newly, dont be deceived with companies' publication cos this is Nigeria anything can happen.

All the best in ur decision.

cool4ny:

@Kj, can i have number of stock broker, i am interested in buying but i don't live in Nigeria.

I have sent you an email

have not really buying shares, i do procastinate but now since you don't know any broker and you want to buy when any offer comes out how much minimum can you buy, i really miss the last one from ocean bank or something i got the advert N1 per share minimum you can buy is 1000 so can someone do please tell me,  i don't mind if i get more info on this here my mail ucee85@yahoo.com

@kg i would need your response to this

I am happy about this forum, a million thanks to Seun and all the contributors.

Actually, I dont hv a good idea of this share business but I hv interest in it . Plz can someone explain in more details to me? Let me know as a beginner, how do I start? How do I know or calculate my profit in it. What is the minimum no. or amt someone can start with? How do I know when there is a good offer to invest in?

Yes, you need a stock broker to buy/sell shares on the NSE. Individuals are not allowed to trade directly on the floor of the exchange

Do they sell and make gain on the shares on daily basis?

Plz can someome help me? My personal contact is agaezim@dulbin.com

teena:

I am happy about this forum, a million thanks to Seun and all the contributors.

Actually, I don't hv a good idea of this share business but I hv interest in it . Please can someone explain in more details to me? Let me know as a beginner, how do I start? How do I know or calculate my profit in it. What is the minimum no. or amt someone can start with? How do I know when there is a good offer to invest in?
Do they sell and make gain on the shares on daily basis?

Please can someome help me? My personal contact is agaezim@dulbin.com

[b][/b]Please, help me too, I need to know about this stock thing. Please help oooooooooooooo.I need a broker too, is any one here in the house?
alexitotee@yahoo.com