Stock Market Tips For Nigerians

wema share holders have been protesting the delay in result according to proshare. the corporate manager says people should calm down that the results have been submitted to the CBN and would be made public soon.

can i open a cscs account with two different brokers,is it possible?.

fcmb looks like a good offer.forecast eps of 1 in 2008 and that is attainable with their triple digit growth rate, should be 26 naira in 18 months time if u ask me. i think the bank is going places.

For me, I am not enamoured by any of the offers so I am not participating. A rash of offers like this shows that the market is over valued hence the rush by all of them. This is evident in the forward PE's of those offers.

Sincerely, you are better off buying on the floor than tying down money with these offers. Just my thoughts.

The smart money is still on Insurance. The big questions is 'when this plane will take off?'.
Many insurance companies are taking advantage of the favourable govt policy of underwriting for the oil and gas sector and the bottom line is already being impacted.
The impressive growths of 400-1000% profit increases in half year profit have happened without the release of the escrow funds. If this growth continues in the next quarter of their earnings, this sector will create a new batch of billionaires. The fact that Crusader, mbenefits, wapic, lasaco et al all posted exponential increases in earnings without reciept of the funds hints at the opportunity inherent in the sector.
The industry is still a gold mine waiting to happen. The trends of the next results released will indicate whether the growth is sustainable so i am looking at march 2008 onwards for the returns. Btw do you know that the Abbey society intending on listing on the NSE is 20% owned by Mutual Benefits. Some of the smarter md/ceos in insurance are pulling some major strings into making their firms fully fledged insurance firms with life and non-life assurance, oil and gas, asset management, medical insurance etc. I see more prospects in the sector abeg. The market will not react immediately but this is where one must definitely consider taking a significant position if one does not already have a stake (obtained at a reasonable price). The gap between insurance and banking is Nigeria is too Huge despite the fact that insurance is growing at an alarming rate. The economics of it will catch up eventually.
When the funds then get released, it can only create more value.

FCMB PUBLIC OFFER DOCUMENTS
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Temmie, while I share your optimism, certain things also need to be put into consideration.

Firstly, some of the exponential increase in profit is due to mergers and in some cases the investment returns of those insurance companies. Some are heavily exposed to the capital market.

Secondly, I think the amount with CBN is sometimes exaggerated. What I thought was that only 10% was kept with CBN. That was the initial plan though I stand corrected on this.

While the local content policy in the oil and gas industry is good, even with the capitalisation, the companies are not ready for that. Things can only get better though.

Life insurance, health insurance are going to be the money spinners. Hope they are ready for this. Pension is another one. Crusader seems ready for this.

The insurance industry will do well. The regulators however need to step up. Their handling of the consolidation exercise is at best shoddy. Just compare with the banking consolidation and the difference is as clear as day!

Thank u,thank u and thank u.

which of them(insurance stocks) do u now advice us to plunge into.

I can only say what I have in my portfolio.  And these are the ones I have personally done my home work on, and they are:

• Crusader
  Mutual Benefit Assurance
  AIICO
  Custodian & Allied
  Wapic
  Cornerstone
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(Long term in view, because before the foreign investor into it, though large, but was not profitable)

@Mr Risky
Very well said.
It is definitely up to you -the investor to do background research/check on any company stock that you are thinking of even investing in. Never listen to the advice of anyone alone.Because everyone buys for various reasons.

My Peace,
Sorry, my last statement in my earlier post concerns ONLY CORNERSTONE, not Mutual Benefit, Crusader or others.  Cornerstone is a great insurance company relatively speaking, but their profitability has not been impressive like its peers.  For instance here is their performances so far:
MUTUAL BENEFIT (six months result = N448m)
CRUSADER (six months result = N593m)
WAPIC (Though no result yet, but they are expanding even beyond the Nigerian shores)
AIICO (recently merged with two others, and promises to do fine, and they are generous with bonus and dividend)
Cornerstone (six months result = N276m)
Staco (six months result = N301m)
Standard Alliance (six months result = N301m)
Sovereign Trust (six months result = N222m)
LASACO (Six months result = N560m)


This is what I have personally gathered from my findings about them.  Although they all do not have the same figure as their shares outstanding, but you can even see that Staco, a new comer to the market did better than Cornerstone in their 6 months result.  Methinks their profit results matters in one's analysis.

Thank you Mr Risky, its well understood now.  But do you think crusader price will still crash down wards?? l pray it does so in the meantime, so that l can partake.

My Peace,
If not for the hyperactivity at the Primary Market and the non release of the insurance funds in the Escrow account with CBN, Crusader should be trading in the region of 7-8 naira by this time.  So at the current price of between 4 - 5 Naira, it is ok by me.  Indeed my average pile up price so far has been N4.52.  And yet NO SHAKING.  

It is rewarding to believe in what one is doing.  My philosophy of life is BE GENUINELY CONVINCED IN WHAT YOU ARE DOING AND THEN THE RESULTS COULD BE EITHER WAY.  In that case I could proudly tell myself "You have acted rationally afterall".

I bought some 100,000 of LASACO at N3.75.  STILL NO SHAKING.  I heard someone shouting that he/she bought LASACO at more than N3?  Why?  You need to do your home work before buying into any company.  You buy the COMPANY not the units.  What is the company going forward?  That for me is the most important question.  A company may not have been doing well in the past etc, but having now rebranded and with accompanying results, what is the company going forward?  Some of the insurance companies are seating up now, soon it will become unavoidable for them to aligned their practices to global best practices as it now happening in the banking sector.  GTB is now on the London Stock Exchange, after passing through very stringent rules.  Last year it was not there,   GOOD TO BE POSITIVE AND REALISTIC.

well said. very well said

Spot on. the market in the short term almost always seems irrational (the truth behind most huge movements only appear after the movements). remember when i said that First Inland would not take a beating for its pathetic result and the stock has held its own.

I think the folks who did the mopping up of the Access shares pre-po are vommitting what they took. I see Access shedding some more weight nevertheless it remains attractive going forward.