How Do You Know When To Buy And Sell Stocks In Secondary Issue

What you need is a stock analyst. I offer this service on subscription basis at http://www.nairastocks.com

My personal experience has shown that many brokers do not know how to analyze stocks. They simply make buying and selling decisions based on market and personal sentiments. Whether you win or lose, they collect their commissions.

A broker had made a relation of mine lose close to N150,000. I came in and remedied that situation by selling that stock at a loss and putting the money in another stock that not only covered the loss, but made more money on top. That initial losing stock has not made any appreciable progress in the last 18 months! (See the story on http://www.nairastocks.com)

Trading stocks (buying low, selling high) or speculating stocks is where the money in the stock market is, not buying long term and waiting for bonus or dividend.

Let me illustrate this.

A client of mine had 70,000 units of NAHCO. He called me to find out whether to sell this stock, or hold it and await the three for two bonus and 30 kobo dividend that had already been announced. I told him to sell, based on a simple calculation:

The choice was between these:

Sell 70,000 units of NAHCO at =N=70 (the price then) = N4.9 million. Remove commission charges, and that comes to N4.7 million.

                                          OR

Hold 70,000 units; get three for two bonus (that is 3 X 70,000 units/2 =105,000 units). Total after markdown =175,000 units. Get 30 kobo dividend per share (N0.30 X 175,000 = =N=21,000).

NAHCO was marked down eventually to N26 per share. Therefore, worth of shares after markdown = 175,000 units X =N=26 = N4.5 million. Add value of dividend (N21,000)
Total is now N4.521 million.

Now subtract this figure from the pre-markdown figure, i.e. N4.7million - N4.521million = N179,000.

So by holding on to this stock, a guy with 70,000 units will lose =N=179,000.

Now at the time, I did not know the mark-down level, but after using his holdings to calculate his breakeven point using several possible mark-down prices, I asked him to sell, which he did, and the above calculation is how it all worked out.

I advised him to re-enter the stock after it had initially got down to a low of N26. He re-entered at =N=29.00. This stock is currently N36.69 and will still rally before the intended public offer comes up.

This is what you will get from someone with a sound knowledge of how to analyze stocks and how to maximize gains from them. You will hardly get this from brokers, especially if you are a small player who doesn't bring in millions.

That is why I set up http://www.nairastocks.com, so that the ordinary Nigerian can take advantage of the opportunities that are found on the NSE.

That is exactly how to maximize your gains from stocks.

So if you need to know when to buy or sell, subscribe to http://www.nairastocks.com. You will get the following services:

1) Stock buying and selling decisions
2) What to do with public offers
3) How to Make Your Share Certificates Functional
4) How to benefit from private placements
5) Get access to a whole lot of insider information you may never get elsewhere, among others.

Cheers.

People dey wonder dey wonder dey wonder, left - right, left - right, left - right (one more time)

I don't use enolase's services but based on his webiste and previous posts on nairaland, he is clearly more educated about buying/selling stocks than most stockbrokers I've met. I'D encourage you to take his challenge and sign up for his services if you have not had much success on our own. Most importantly, educate yourself.

I lost money of my first market deal based on bad advice from my broker. I have since educated myself and managed my own portfolio. I'm up more than 100% since this January!

@Enolase,
This is my email add lawtycoon325@yahoo.co.uk,i need your advice on two stocks to buy as you said.

hello, i'm new to the stock market o! and i need quite a lot of advice on what stocks to invest my money in (because it is really hard-earned) I like the analysis and precision of enolase and crazyt. i wouldnt mind advice from you two and any other person thats willing to help. thanks a lot