Stock Market Tips For Nigerians

Hey I just got the following from Proshare. Some of it makes sense

                 
Stockpick for the week May 14-18, 2007                        
Posted Monday, May 14, 2007                        
                        
BUY RECOMMENDATIONS                        
Stock   Basis for Stock Pick   Current Price (N)   Fair Value (N)   Price Forecast (N)   Fwd EPS   Fwd PE   YTD Price Mov't (%)   General Commentary
Union Homes   F   7.85   7.2   9.8   0.48   16.35   124.29   Good earnings. Set to take advantage of favourable policies
Flour Mills   F   74.1   66.29   90   5.73   12.93   14.26   Expanding revenue base through cement. Bright outlook
Wapco   F   64   62.46   82   4.68   13.68   18.54   Looks cheap in view of earnings expectations
Oando   F   73   72   90   5.26   13.88   4.29   Cheap, given past and future earnings.
Mutual Benefit Assurance   F   2.85   5   5   0.26   11.92   330.56   2-3 month investments time-frame.
Costain W.A.   F, T, MP   16.63   23.2   30   1.16   12.4   884.93   Agrressive Buy.
Afroil   T   4.27   1   9   n/a   n/a   988.24   Specualtive.
Diamond Bank   F, MP   10.7   17   17   0.85   12.58   43.24   Undervalued. Limited Supply.
African Petroleum   F, MP   65.85   87.3   87.3   4.85   13.57   42.26   Agrressive Buy.
                        
                        
SELL RECOMMENDATIONS                        
Stock   Basis for Stock Pick   Current Price (N)   Fair Value (N)   Price Forecast (N)   Fwd EPS   Fwd PE   YTD Price Mov't (%)   General Commentary
OKOMU Oil   F   35.28   27.1   27.1   0.83   42.51   3.61   Overvalued
7UP   F   50   37.83   37.83   2.14   23.36   25.82   Overvalued. High operating costs, low margins.
                 
                 
           
* Opinions and estimates constitute CSL's best judgement and are subject to change without notice     
**Price as at May 11, 2007                 
                 
Price forecast is our expectation of where the market will likely push the price to.       
Fair value is the actual worth of the company at the present time i.e. the ideal price to take position in stock if the market price is higher.
Forward (Fwd.) EPS & PE ratio are based on expected figures for the next financial year end.     
____________________________________________________________ ________________________________________________________
Explanation of Basis of Opinion               
F: Fundamental                 
T: Technical                 
MP: Market psychology

I need answers to those  questions too, I bought the Dangote sugar share rather late.

Also can anyone pls explain to me what the process is to get a S/broker,

to get the CSCS account and all that stuff. I've just been buying shares, ('bout five companies now)

and I think I need a S/broker and really need to watch my shares.

I can be mailed (bukkyjil2004@yahoo.com) to have the lay man understanding of shares and stockbrokers.

Thanks

thanks all for your contribution
@windywendy,
The information you posted was really insightful

Going forward there may be no way that you can dodge these firms. The smaller one's that may be able to give personalisedd services may not be able to meet the new capital requirement. However I beleive that anyone that is owned by a bank should be able to.

Can anyone please tell me when the suspension on UBA will be lifted?

Even my broker seems not to know. Untill all the stocks in banking will go on technical suspension, worse still most stocks there are not readily available for purchase.

I tire o

What beats me is the fact that they have stated that the fair value for the stock is N1 and yet suggest a buy 

The only reason they would be doing so is that they see the demand for the stock on the floor and feel that money can be made from it.
I beleive in short term investment but such investments must still make sense. Some brokers advised people to buy Nigeria Cable and Wire even when the company has not been in operations for a year. ;

Oh and we're back to the greater fools theory  . Anyway, different investors have different investment styles. I personally wouldn't touch Afroil with a foot long pole, but some other person who's into speculative buying may buy it and make tons of money (or lose tons of money if he's the "greater fool")

Does this surprise you?? What then would you say of transcorp being allowed to do an IPO and professionals actually recommending it to investors?? _{Anyway, let's not go there}

I don't know too much about wema bank but the first things I look for when I want to invest in a bank in today's banking environment is innovativeness (which to a large extent depends on management quality), technology infrastructure (which makes customers' lives easier and could therefore potentially attract new clients), visibility (at least to the foreign world) and branch network. I don't see too much of these in Wema. Furthermore, I'm not comfortable with the affiliation with Odu'a group. So I would hesistate to invest in Wema unless I have real info that could help me make money in the short term. I personally don't see them as a good long term buy, and I wouldn't really buy in the short to medium term either. I'm just not comfortable with the company.

@ Windywendy and Frank - I appreciate your candour. My broker presented it to me as a short term buy and sees it appreciating based on their fundamentals and financial report, so there you go.

Oh you mean the sleeping giant?? How many nitel lines did you have in your house that were working?? Even the one in my grand father's house had stopped working for like 10 or so years _{Ok i'm exaggerating}. But by the way, did you hear that MTN (or some south african company) is bidding for MTEL? where will that leave transcorp?

@ Windywendy - This is what I was told by my broker when I asked for the reasons she considered Wema a good buy. She's with Cashcraft. I personally haven't seen any financials.

Some stocks that were laggards has performed very highly, check out NATIONAL SALTS, BCC, COSTAIN, IPWA etc

We all know its the interference of ODUA GROUP that has been affecting Wema negatively.

Besides, for short term investors, some has reaped up to a hundred percent appreciation on the stock this year alone, the rest as they say is history.