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frankiriri (m)
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Oga Frank ,thank you for the way you have been helping us here ,now i have me some questions too .
1, prior to buying shares for me ,my broker had registered me with the CSCS and gave me the registration number and the account number ,but after buying the shares ,i wanted to log into my cscs account so i could monitor the stocks there ,but my broker told me that i would be able to do this in about a month time , so do you think this is ok or should i be concerned ? should i as an individual investor be able to log into my cscs account at anytime i want or should this be done by my broker only ?
2 , my broker "bought " shares for me more than the amount i deposited with them ,when i got the statement i asked why and was told that they did that because the shares (first bank ) is scarce ,so i asked what if i don't have the money to pay for it,what will happen ,she said that in that case they would sell it when the price go up and take their money back,i don t really like this because i don't understand how shares that i didn't pay for should be bought in my name, is this normal ? is it legal ? should i be concerned ?
3,now that i have scsc account number ,if i buy IPOs ,and asked that it be credited to my cscs account ,how long would this be done ,i ask this so i should know which is faster between crediting my cscs account and waiting for the certificate to get to me if i had chosen to receive the physical certificate .
4,what is the average transaction days from the day that i ask my broker to sell my shares and the time the money would hit my bank account ?
I think it is ok. As long as you get a contract note and a monthly CSCS statement of account its all good. On the excess share purchase ask them what are your rights in respect of those shares and what are the corresponding obligations. The money they have loaned you to buy the shares is it interest free or are they going to charge you interest. What is their benefit there. Once they give satisfactory explanation there will be no cause for alarm. What they have actually done is to buy shares for you on margin It is faster to have your CSCS account credited with your share purchase. Before any share is sold the transaction must go through the CSCS. If you have a physical certificate it will be sent to the registrars for verification and this may take two weeks or more. After verification the certificate will be sent to CSCS where it will be demobilised and then your CSCS account will be credited with the value of your shares. So you can see that having it credited straight away saves time. You are supposed to get a cheque fpr sales 3 days after the transaction is closed. |
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pamit (m)
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Frankiriri thanks a bunch. I have settled for BGL.
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naijafresh (m)
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@Tmoni
@Loverbwoy
If a stock was sold at N18 weeks or months ago, it can not debut on the market at anything less than N18 (IPO price)
It is market forces and company fundamentals that will determine on its debut whether it will raise or even fall. You are always warned that stock prices can either rise or fall so beware and do not think the only way is up. So do your research before you buy or leave it to professionals
Just out of interest, how many people who purchased Dunlop shares know that dunlop has not posted a profit for 5 years running? catch my drift?
Happy Investing
Oz
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frankiriri (m)
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I personally did not invest in dunlop because It did not meet my set criteria for investment. Moreover there were better alternatives as at that time. But part of the reason for the offer is to reduce their debt obligations which had been eating deep into their profit.
The ban on tokunbo tyres and the closure of michellin factory has made Dunlop somewhat of a monopoly and expanded their market. Thus their prospects are better.
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egoldman (m)
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The ban on tokunbo tyres and the closure of michellin factory has made Dunlop somewhat of a monopoly and expanded their market. Thus their prospects are better. i bought dunlop because of the above reason and though the price is on the downward for now,am sure that it will go up with time . |
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egoldman (m)
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Hey guess what?
I am a FAN, are you? in wrong thread  |
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naijafresh (m)
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@Frankiriri
@eGoldman
I am pleased to see you did your research before investing. Some people think the cheaper the shares the better the value etc
Dunlop is for now a long term investment. I didn't have spare cash to salt away when the IPO was open but i will continue to follow this stock. At least you can access their accounts etc to follow their progress
Lets hope the Government does not scupper their plans by lifting the ban on importation of tyres etc
Oz
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Tmoni (m)
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will follow suit,
any other "bull stock"
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nkc (m)
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frank,please please, can u tell me what u understand in kakawa income fund, and what u think there prospects could be,is a worthwhile short or long term investment.
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pamit (m)
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Kakawa Income Fund in my own opinion, is good for an investor gunning for capital preservation. You may not experience a drastic increase in your investment, but their is an assurance that your money will be preserved. So the question here is whether to play safe or take greater risks for more capital appreciation.
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nkc (m)
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pamit, thanks for replying, say they come out on the market at 1naira, what do u think will be there increase in a years time, say eveything is in order considering there prospectus plans
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naijafresh (m)
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@nkc
The opening price of the KGIF is N1.
This means there is room for growth, the price may fluctuate but it generally continue to grow as they accumulate assets, profits etc
Look at similar investment funds like the IBTC equity fund, the price also fluctuates depending on what the stock market is doing but the intrinsic value rises as the stock marlet rises and also dividends are paid in.
The KGIF maintains base value as they are geared towards the money market IE treasury bills and bonds which always repay the original investment at maturity. The fund will increase in value as interest and other sundry payments from dealing in the money market accumulate
a guaranteed 14% is a good return for the cautious investor or aging investor who wants to limit wild fluctuations in their asset base
I am personally subscribing to the fund but i aim to reinvest my profits until i need the cash.
Hope this helps
Oz
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nkc (m)
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thanks oz, so r u saying that some one should acquire as much as he can say putting 500,000 into it is it too much.
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nkc (m)
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mr oz, say u invest 500k, what do u think will be your interest in a years, time using ibtc's fund as a measure.
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pamit (m)
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@nkc
I think it depends on your plan for investing in the first place. If you want to keep your 500K and later come back to meet it intact, the fund can guarantee that, considering that the fund is directed more (I think 70%) at the money market (@naijafresh has done good justice to that). However, you can not totally compare this with IBTC equity, because the investment focus of IBTC equity is in stocks. If I have 500K, I would rather buy some oceanic and put some in the KGIF, But still it depends on one's choice!.
Hope this also helps.
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naijafresh (m)
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@nkc
Further to our detailed discussion, for the benefit of others i recommend young investors should have at least 25% of their investment portfolio in the money market eg KGIF, bonds etc, 50% in blue chip stocks and 25% or more depending on your attitude to risk in high risk growth stocks
For the older investor (thinking of retirement in the next 5-10yrs) your exposure should be at least 50-75% money market and 25% stocks. That way you won't have a heart attack if there's a sudden downturn in the market just before your retirement party
The Bottomline is that in the money market your capital is guaranteed but the appreciation is less
I don't expect the KGIF to appraciate more than 20% a year unless the fund manager is very shrewd and aggressive
Oz
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frankiriri (m)
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@ Naijafresh
I agree with your analysis.
Just want to to point out that these are general guidelines which should be adjusted after taking into situation each investor's peculiar situation. What is good asset allocation for a single 25 year old is not necessarily good for a married 25 year old with 2 kids to cater for. The latter should, ceteris paribus, take less risk
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arizona (m)
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i need an opinion on this, is it good to operate account with two different stock brokers. i have one already but i am not ok with their performance although they are reputable. i decided for the past 4months not to put in more money into my account with them rather i decided buying when there is an offer from a company.
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naijafresh (m)
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@arizona I have the same predicament. Supposedly good reputation but very slow customer services. It takes at least 2 days to get a reply to any email. The online trading facility is a farce and non functional Any instructions to buy shares take at least 2 days My instructions not followed strictly to the letter Funds not credited to my account several days after i know for sure they have left my account I hold my hands up!  I am seriously contemplating setting up another account with another firm but then it starts to get messy with account numbers, CSCS numbers etc Does anyone out there use multiple brokers? Do you use the same CSCS account numbers for both or different ones |
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Tmoni (m)
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i was told using another broker is like getting a second bank account so it shld not be too tedious or iterative in setting up and using  i am inviting to use my broker, Wall Street Trust Company (WSTC Financial Services Ltd.) @ least, i have personal interaction my broker which me thinks cuts across all customers all the best  |
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arizona (m)
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@naijafresh
if your broker use two days to reply your mail, then they are even better than mine. up till today i have not gotten any email from mine as regard my instruction to sell some of my shares and buy new ones.
if operating two account is ok with cscs, i will open new one with either IBTC or BGL any time i am in the country . my problem with IBTC is whether they have time to interaction personally with their customer as regard buying and selling shares. for BGL i noticed that most people in this room like their services.
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frankiriri (m)
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You can operate as many CSCS accounts as you like as long as they are all different brokers.
Big time investors sometimes place orders through as many as 10-20 brokers
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wizup (m)
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new topic
« #312 on: March 15, 2007, 12:47 PM » |
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@ Seun
goodday bro, can you kindly tell me how i can start up new topics on this forum. i simply cannot find the start a new topic icon.
thanks
wizup
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SavvyLanre
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@ Frankiri
Oga Frank & Other gurus - what are your impressions about Afrinvest - i am based abroad, and still looking for a reputable stockbroker, that would have a good capability and support for international traders.
I haven't open an account yet, and already noticed that response time is slow - but, when they do respond - they show great professionalism.
Thanks for your input.
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frankiriri (m)
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Dont know much about Afiinvest.
Have you tried IBTC or Zenith Securities
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egoldman (m)
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Hello Guys , Some questions , I understand that it takes several months before certificates actualy gets to someone that bought shares during the IPOs,i heard it could take even up to a year sometimes .
now here is my question, the IPO of Dangote Sugar closed on dec 22 2006, so here is my question, if the certificates takes several months or even over a year as to be sent to those that buy shares during the IPOs ,how come that dangote sugar shares is being traded on the exchange today which is less than 3 months from the closing date of the their IPOs ? As we know that its not possible to trade your shares until you receive the certificates for them and also submit it for verification, these also take sometime to happen .
Does this mean that those who are trading their shares have already received their certificates already ?could it be that these are those that asked that their certificates be credited to their cscs account, as i understand it might make things faster ? if any of the above questions is true,so it would mean that they got their certificates in less than 3 months .
i ask this because i am being discouraged from buying shares during the IPOs because of the delay that comes with the posting of the certificates . would like some stock gurus to give some info about this matter .
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LoverBwoy (m)
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I think if you are buying with a stockbroker, they can sell your shares without a certificate, they jsut do an exchange probably with your cscs account
not too sure but the whole system is way too slow!
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egoldman (m)
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I think if you are buying with a stockbroker, they can sell your shares without a certificate, they jsut do an exchange probably with your cscs account
not too sure but the whole system is way too slow!
i don't know if thats is very correct as i understand you can't sell shares that u don't possess the certificate yet ,i may be wrong though ,wish someone with better info would help here . |
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egoldman (m)
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i realy wish i could have better info about this so that i would know if i should go for UBA and Oceanic IPOs .
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LondonCool (m)
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@ Frankiri
Oga Frank & Other gurus - what are your impressions about Afrinvest - i am based abroad, and still looking for a reputable stockbroker, that would have a good capability and support for international traders.
I haven't open an account yet, and already noticed that response time is slow - but, when they do respond - they show great professionalism.
Thanks for your input.
I use Afrinvest as my Stock brokers and I have recently sent them all of my Share certificates for CSCS registration/verification. They used to be known as SECTRUST Ltd before they were bought over by AFRINVEST which has lots of International Branches around Africa. When I went to Nigeria last year I went to their plush 12th Floor Office at Ikoyi to fraternise with the Stock Trading staff/manager and sign Transfer forms. I have been allocated a personal Stock Trading account manager and have developed a personal rapport with him albeit I only transact on an Execution only basis. |
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