Stock Market Tips For Nigerians

Thank God we dont have to wait forever again after IPOs and POs.

In a bid to improve the efficiency of the Nigerian Capital Market, the regulatory authorities - The Nigerian Securities & Exchange Commission and The Nigerian Stock Exchange; held a meeting with stakeholders (Issuing Houses and Stockbroking Firms) in the market today and the following decisions were AGREED UPON:

1. Henceforth, all public offers would be alloted via electronic means into Investors' CSCS account, this presupposes that before investors apply for public offers they are expected to have brokerage account with a stockbroking firm.

2. Certificates would ONLY be issued if investors fail to supply their CSCS account details on the application form.

3. Central Bank of Nigeria will no longer have to go through the verification process before allotment of the shares as was the case in previous offerings. This has been a bottle neck in allotments for previous public offers because of the beureaucracy involved. However, if there is any need to verify or investigate any application this would be done after the shares has been alloted.

The above decisions have thus been taken to strengthen investors confidence in the market.

Proshareng

@akin
an aggressive company is also a more risky company. I am not asking you to shun aggressive companies, rather i am asking you to understand the risk fully, that way u are prepared for whatever outcome. I would.


I have been hearing rumour of union bank for a while, one fellow even said they are merging with gtb. We have not heard anything from the bank itself but it is not impossible that union bank give a bonus especially with their miserly performance in recent years

@all
One sure sign of an overvalued market is one with lots of rash low quality public offers. Yes! low quality offers and that is what we have in the market right now.
These offers need the market to remain hugely bullish to justify a good performance. INtl breweries has not paid any dividend over the last 5 years and they dun expect to pay any in the next 3 even by their own ambitious forecasts, and the offer is overpriced jus like the other ones in the market currently

Be careful what you buy at this time.
Having said that, Cornerstone is back on my buy list. Its not 3 months tho but its very promising.

True That!
In no particular order; Mutual Benefits, Crusader, Standard Alliance, Wapic and Niger.

I have no info on Acen. It seems to have been on suspension for a long time.

Acen was not part of the merger. Only NEM and Vigilante merged.

Though the (new) NEM quarterly result was impressive. I will be wary until all figures as per success of the rights issue, share exchange for Vigilante is out.

For now, the information available on insurance companies are so scanty and unreliable that it is difficult to make  reasonable deductions.

Guys, you have all been doing a great job! Cant quantify how much positive influence  your different analysis have influenced my investment decisions, pls keep it up. First am I right in assuming that trading on access bank will resume say 12th sept, i.e. two wks after closure the PO. Secondly in my portfolio I have 50K units of Access I bought in March @11.05 naira and during d PO I did not have spare cash and had to borrow to buy 70K units with d mind of selling my old stock to pay my loan within two months so my question is what will be a good price to sell when trading resumes? (I am looking at 25naira). Lastly I have 50040 units of Dangote sugar of which my broker (Leads Capital)has dropped my certificate with d registrar for verification since Aug 8th and yet d verification is still pending. Does it take this long to verify certificates? Thanks once more!

@Tmoni

Union diagnostics offer closes today.

I bought into the Globe Reinsurrance PP would want to know if anyone knows when they will be listed.

Given the court injunction obtained by Barr. Jimoh Ibrahim preventing NAICOM from carrying out a re-certfication of NICON Insurance and Nigerian Re-insurance (which has a substantial stake in Globe Re-), it may be wise to actually carry out a check to know how the whole affair will affect Globe Re-Insurance, viz-a-viz listing, etc.

Wonderful!!!

Throughout today, its been saying Closed, and at 12:11pm i decided to try again, and it now say open. . .  NNNAAAIIIIJJJJAAAAA!!!!!!

You'll have to watch trading carefully to know when the buying momentum ends. I expect it'll get to 25 but it could easily do 30 based on the amount of time it's been on net bid in the secondary market. Once it does not gain 5% on a trading day, you know the momentum is over.

easimoni,

I was looking at your insurance spreadsheet again, I am trying to understand the how to compare the current PE and projected PE.

Some of the companies has reduced projected PE while some have increased projected PE,  what does this mean ? is that the stock becomes cheaper at a future date or more expensive at the future date.

I have done the ratios for a few companies, but I cant seem to intepret the ratios to determine a good buy or the best price to take a position - kindy provide more insight.

 NBCThe price will hit the roof. 1 for 2,

I wish I had funds to buy some, those are shares for keeps.

Well, depending on your definition of low PE.

BOC was facing serious competition hence decline in profitability. However, they're consistent in paying dividends/bonus. From the interim result, they seem to be doing far better this current financial year. The year end is September and the result should be out next year January/February.

ON UPL, good stock. Not liquid. Flunctuating results depending on government intervention in education. They got huge contract from ETF at a point. Steady growth is expected. The rights issue may have distorted the EPS and PE a bit. Fundamentally sound company though.

The current PEs in that sheet are trailing PEs (calc. by FSDH) based on NSE shares. My projected PEs includes my estimate of shares that are yet to be listed thus they may be higher than current PEs even as PAT grows! If you include the new shares and the forward PE is less than 20, I'd call it a buy unless there's some ambiguity about the recapitalization exercise.

Go to crusaderplconline.com

Hi everyone!, I want to invest in my motherland(say 5000 dollars). I have been reading alot on investing at home but I've lost my Nigerian Nationality and I don't reside in Nigeria. Is it possible to still open a domicilliary account with internet access and deal with nigerian shares. I do go homeonce a year though. Do the Gurus on this Forum have any Tips on stockbrokers or banks which offer the best services. Sorry that the Question is a bit off topic. Thanks in advance.

I believe that Access should peak between 25 and 35 Naira, by february my prayer is that certificates be issued within time.