A friend who works with UBA Capital invested 4 million Naira on the shares of UBA in January 2012. He planned to hold the stock for 36 months that is till January 2015. The average purchase price of the stock was between N2.35k and N2.50k.

The guy got a dividend of 702k from his stock in June 2013, after which he sold 90% 0f his shareholding for about 10.5 million Naira. With the sale of 90% of his UBA shares and the dividend received he has over 11 million Naira. He is now contemplating what to do with the money considering the various alternatives that are available.

Firstly he does not have a country home in his home town, that is Odogbolu in Ogun State. His younger brothers all have a country home at Odogbolu and he is the only one left out among the 3 of them. He is therefore thinking of using the money to build a house at Odogbolu.



Secondly he has a fenced plot of land at Ajah, he stopped in 2009 at the foundation stage. He is considering using the 11 million Naira to build a moderately finished 2 units of three bedroom flats that will give a minimum rental income of 1.1 Million Naira.I currently charge my tenants 550k per annum, he may decide to charge same or higher rate.


Thirdly, he believes stocks like Zenith Bank, FBN, UBA, UBA Capital, Access Bank and ETI are currently undervalued, investing in this stocks should give an average dividend yield of 6.5% is over 700k and an upside potential of 30% to 40% that is 3.3 million Naira to 4.4 million Naira in the next 12 months.


What will do you if you are in Supo's shoes.

Advise him to put 8m in the Ajah project,while the project is ongoing he should reinvest the 3m in those mentioned stocks and see if he can make another kill on the stocks.

janykute: Advise him to put 8m in the Ajah project,while the project is ongoing he should reinvest the 3m in those mentioned stocks and see if he can make another kill on the stocks.

That is a good idea. But I do not think that 8 million will complete the project. I think completing the 2 units of 3 bedroom flats and letting it out is a better idea.

By completing the house, he can let each flat out for 550k to 600k per annum. I just got a new tenant that paid 2 years rent advance. If he can get 2 years rent advance from each flat that will be 1.1 million to 1.2 million Naira per flat, the two flats will give a combined income of about 2.2 million to 2.4 million Naira that can later be invested in stocks.

[quote author=manie]


That is a good idea. But I do not think that 8 million will complete the project. I think completing the 2 units of 3 bedroom flats and letting it out is better idea.

By completing the house, he can let each flat out for 550k to 600k per annum. I just got a new tenant that paid 2 years rent advance. If he can get 2 years rent advance from each flat that will be 1.1 million to 1.2 million Naira per flat, the two flats will give a combined income of about 2.2 million to 2.4 million Naira that can later be invested in stocks.[/
If the rent can yield such amount(2.2-2.4m) he should then finish up the house,rent it out and reinvest the rent collected into stocks.

manie:


That is a good idea. But I do not think that 8 million will complete the project. I think completing the 2 units of 3 bedroom flats and letting it out is a better idea.

By completing the house, he can let each flat out for 550k to 600k per annum. I just got a new tenant that paid 2 years rent advance. If he can get 2 years rent advance from each flat that will be 1.1 million to 1.2 million Naira per flat, the two flats will give a combined income of about 2.2 million to 2.4 million Naira that can later be invested in stocks.

The guy is currently a tenant at Surulere, where he pays 650k per annum for his apartment but he prefers Surulere to Ajah. Surulere is less than 20 minutes drive to his office at Marina Lagos.

janykute: Advise him to put 8m in the Ajah project,while the project is ongoing he should reinvest the 3m in those mentioned stocks and see if he can make another kill on the stocks.

There are kills to be made on the stock exchange, provided you can identify undervalued stocks and having a year to 2 years investment horizon.

manie:


That is a good idea. But I do not think that 8 million will complete the project. I think completing the 2 units of 3 bedroom flats and letting it out is a better idea.

By completing the house, he can let each flat out for 550k to 600k per annum. I just got a new tenant that paid 2 years rent advance. If he can get 2 years rent advance from each flat that will be 1.1 million to 1.2 million Naira per flat, the two flats will give a combined income of about 2.2 million to 2.4 million Naira that can later be invested in stocks.

I think it makes economic sense to first of all build an income generating property in the city, and then use the income derived from the income generating property to build a house in the village if need be.

I need ur advice on shares & stock please!!
How easy is it to sell it off when u already made gains?
Will it take time or you can get buyers instantly?

First, congrats to your friend for the great profit from his investment.

Now, I'm happy your friend has VAST KNOWLEDGE in stock investment. In my opinion, I will advise that he buy the lands and secure them while he reinvest the remaining back into shares. My conviction is that the shares on the NSE still have a lot more to offer right now than real estate. In the next 2 years, most of the stocks on the NSE will deliver at least 100% on investment based on my observation of the behavioural pattern of stocks on the NSE. In a BULL ERA, stocks outperforms real estate.

Above is my personal submission. You should look at it critically but let YOUR conviction be your guide.

Happy investing and best of luck.

Royal Roy: I need ur advice on shares & stock please!!
How easy is it to sell it off when u already made gains?
Will it take time or you can get buyers instantly?

Who are your stockbrokers? Which stock do you want to sell? What is the volume of the shares you want to sell?

jamace: First, congrats to your friend for the great profit from his investment.

Now, I'm happy your friend has VAST KNOWLEDGE in stock investment. In my opinion, I will advise that he buy the lands and secure them while he reinvest the remaining back into shares. My conviction is that the shares on the NSE still have a lot more to offer right now than real estate. In the next 2 years, most of the stocks on the NSE will deliver at least 100% on investment based on my observation of the behavioural pattern of stocks on the NSE. In a BULL ERA, stocks outperforms real estate.

Above is my personal submission. You should look at it critically but let YOUR conviction be your guide.

Happy investing and best of luck.

We have been together in the stock business together for 20 years.

I share your optimism about the market, if I have 100 million Naira cash, be sure that 75% of the sum will be invested in shares based on the current valuation of some stocks.

manie:


Who are your stockbrokers? Which stock do you want to sell? What is the volume of the shares you want to sell?

I just want to go into it!!!
I have some good funds, but am an impulsive investor!!
I see something trending & I look left & right & I invest!!
So am wondering if I tie my money into stock, do I sell off as at when I need the money or I have to pass through a process & time frame?

Royal Roy:
I just want to go into it!!!
I have some good funds, but am an impulsive investor!!
I see something trending & I look left & right & I invest!!
So am wondering if I tie my money into stock, do I sell off as at when I need the money or I have to pass through a process & time frame?

Why do you want to invest in stocks. Hope you know that stock-market investment is not for everybody? This is an intellectual form of investment. You need relevant knowledge in order to succeed in stock investment.

Go to Universities around the west, Land are always very cheap cos they are located in bushy areas. buy half a plot and buils like a 10 rooms hostel. with 12m am sure you can do two schools. build are you will earn an average of 60k per room if you can do self contain.

tempex88: Go to Universities around the west, Land are always very cheap cos they are located in bushy areas. buy half a plot and buils like a 10 rooms hostel. with 12m am sure you can do two schools. build are you will earn an average of 60k per room if you can do self contain.

I will not ask anybody to invest in what they do not understand, or areas they are not conversant with. Among the 3 options available to Supo, which one should he go for and why?

Thirdly, he believes stocks like Zenith Bank, FBN, UBA, UBA Capital, Access Bank and ETI are currently undervalued, investing in this stocks should give an average dividend yield of 6.5% is over 700k and an upside potential of 30% to 40% that is 3.3 million Naira to 4.4 million Naira in the next 12 months.

Step 1:He should simply invest as stated above and cash out before June 2014.

Step 2:Then use the proceeds to fully build (within 6 months) his rental property in Lagos which should be ready by December 2014 as explained below;

Secondly he has a fenced plot of land at Ajah, he stopped in 2009 at the foundation stage. He is considering using the 11 million Naira to build a moderately finished 2 units of three bedroom flats that will give a minimum rental income of 1.1 Million Naira

Step 3: Use the rental income to reinvest in the NSE in the 1st/2nd quarter of 2015 (the NSE will definitely be bearish as a result of the 2015 elections).

Step 4: He can now think of a country home once the market (NSE) becomes bullish again after the 2015 elections.

Royal Roy:
I just want to go into it!!!
I have some good funds, but am an impulsive investor!!
I see something trending & I look left & right & I invest!!
So am wondering if I tie my money into stock, do I sell off as at when I need the money or I have to pass through a process & time frame?

yes you can sell whenever you want , we have a resident stockbroker and we offer portfolio management service, to help you determine what stocks to buy. you can PM me

@OP... I'M FROM ABEOKUTA AND I ALWAYS WONDERS WHY PEOPLE IN LEKKI/AJAH AXIS USE SO MUCH MONEY TO DO CONSTRUCTION...

WELL, I CAN DELIVER HIM 2UNITS OF 3-BEDROOM FLATS AT 7-8MILLION WITH QUALITY CRATFSMEN THAT HAVE WORKED FOR ME ON SEVERAL BUILDING PROJECTS.

THE ONLY THING THAT WILL COST HIM MORE MONEY THAN NECESSARY IS WANTING MARBLE OR OTHER EXQUISITE FINISHING...

WELL, THE COST ALSO INCLUDES USING STEP-TILES ROOFING, POP FINISIHING AND OTHERS.

YOU CAN CONTACT ME FOR MORE INFORMATION IN THAT REGARD.

THEN CONCERNING BUILDING A COUNTRY-HOME, ITS TOTAL WASTE OF TIME AND MONEY... I HAVE A LOT OF THEM HERE IN ABEOKUTA, WHY WILL YOU BUILD HOUSE FOR LIZARDS AND RATS

IF YOU ARE BUILDING AT ALL, IT SHOULD PUT MONEY BACK IN YOUR POCKET AND NOT THE OTHER WAY ROUND!!!

SO MY ADVICE IN THAT REGARD SHOULD BE...

1. FINISH AJAH HOUSE (WHICH I CAN HELP HIM WITH)
2. BUILD A RENTAL PROPERTY (TENEMENT HOUSE) IN AGO-IWOYE FOR RENT TO STUDENTS OR BUY HIS STOCKS... THANKS.

olushowunm: @OP... I'M FROM ABEOKUTA AND I ALWAYS WONDERS WHY PEOPLE IN LEKKI/AJAH AXIS USE SO MUCH MONEY TO DO CONSTRUCTION...

WELL, I CAN DELIVER HIM 2UNITS OF 3-BEDROOM FLATS AT 7-8MILLION WITH QUALITY CRATFSMEN THAT HAVE WORKED FOR ME ON SEVERAL BUILDING PROJECTS.

THE ONLY THING THAT WILL COST HIM MORE MONEY THAN NECESSARY IS WANTING MARBLE OR OTHER EXQUISITE FINISHING...

WELL, THE COST ALSO INCLUDES USING STEP-TILES ROOFING, POP FINISIHING AND OTHERS.

YOU CAN CONTACT ME FOR MORE INFORMATION IN THAT REGARD.

THEN CONCERNING BUILDING A COUNTRY-HOME, ITS TOTAL WASTE OF TIME AND MONEY... I HAVE A LOT OF THEM HERE IN ABEOKUTA, WHY WILL YOU BUILD HOUSE FOR LIZARDS AND RATS

IF YOU ARE BUILDING AT ALL, IT SHOULD PUT MONEY BACK IN YOUR POCKET AND NOT THE OTHER WAY ROUND!!!

SO MY ADVICE IN THAT REGARD SHOULD BE...

1. FINISH AJAH HOUSE (WHICH I CAN HELP HIM WITH)
2. BUILD A RENTAL PROPERTY (TENEMENT HOUSE) IN AGO-IWOYE FOR RENT TO STUDENTS OR BUY HIS STOCKS... THANKS.

The finishing affects the cost of building the house, the finishing also affects the type of rental income the investor will get. The rental income stated above are very conservative.

YES, I KNOW... BUT WHAT TYPE OF FINISHING ARE YOU TALKING ABOUT?
I WILL DELIVER IT... IN FACT TO START BUILDING FROM WHERE HE STOPS NOW TO ROOFING STAGE WILL NOT TAKE MORE THAN 2MILLION... THE REST IS FOR FINISHING...

olushowunm: YES, I KNOW... BUT WHAT TYPE OF FINISHING ARE YOU TALKING ABOUT?
I WILL DELIVER IT... IN FACT TO START BUILDING FROM WHERE HE STOPS NOW TO ROOFING STAGE WILL NOT TAKE MORE THAN 2MILLION... THE REST IS FOR FINISHING...

@ 2 million is small. How many blocks will he need to set up to lintel level, how many bags of cement will he need, what about the reinforcement for the lintel and pillars, what about workmanship. Since a plot of land cost an average of 10 million naira in that axis, it will be better to deck the house. Decking should take about 2.5 million Naira.

The initial 2 flats is to secure the property, get a cash flow that that can be used to build the other 2 flats on the first floor. This is the strategy used by me, and I recommend this to real estate investors with modest source of income.

manie:


We have been together in the stock business together for 20 years.

I share your optimism about the market, if I have 100 million Naira cash, be sure that 75% of the sum will be invested in shares based on the current valuation of some stocks.

Pa manie, if you purchase 75m worth of stocks only to see it lose 20%, you go fit handle am? Isn't it safer to buy small small so u may average down?

shigidi:

Pa manie, if you purchase 75m worth of stocks only to see it lose 20%, you go fit handle am? Isn't it safer to buy small small so u may average down?

Why not? The dividend is enough to live on pending the time normalcy returns to the market. The most important thing is to invest in stocks that meet your specification.

"Thirdly, he believes stocks like Zenith Bank, FBN, UBA, UBA Capital, Access Bank and ETI are currently undervalued, investing in this stocks should give an average dividend yield of 6.5% is over 700k and an upside potential of 30% to 40% that is 3.3 million Naira to 4.4 million Naira in the next 12 months."

Can someone please explain this for me? I want to understand how this stocks/shares work. Thank you.

Gud work.

Build a house in Ajah & let it out. Reinvest with money made from Ajah rents.

INVESTING IN STOCKS!!!! How do i know which companies to choose, the better rates, NSE, dividends,......etc. Someone pls fill me in, i need to understand this subject better bcoz am looking @ investing very soon. Oya!!!!!! teach me oooo.

Finish what u hv started already. The Ajay house complete its first .

U have 11 million yet u don't know what or how to use your money and it's here u need advice. That's a shock

manie: A friend who works with UBA Capital invested 4 million Naira on the shares of UBA in January 2012. He planned to hold the stock for 36 months that is till January 2015. The average purchase price of the stock was between N2.35k and N2.50k.

The guy got a dividend of 702k from his stock in June 2013, after which he sold 90% 0f his shareholding for about 10.5 million Naira. With the sale of 90% of his UBA shares and the dividend received he has over 11 million Naira. He is now contemplating what to do with the money considering the various alternatives that are available.

Firstly he does not have a country home in his home town, that is Odogbolu in Ogun State. His younger brothers all have a country home at Odogbolu and he is the only one left out among the 3 of them. He is therefore thinking of using the money to build a house at Odogbolu.



Secondly he has a fenced plot of land at Ajah, he stopped in 2009 at the foundation stage. He is considering using the 11 million Naira to build a moderately finished 2 units of three bedroom flats that will give a minimum rental income of 1.1 Million Naira.I currently charge my tenants 550k per annum, he may decide to charge same or higher rate.


Thirdly, he believes stocks like Zenith Bank, FBN, UBA, UBA Capital, Access Bank and ETI are currently undervalued, investing in this stocks should give an average dividend yield of 6.5% is over 700k and an upside potential of 30% to 40% that is 3.3 million Naira to 4.4 million Naira in the next 12 months.


What will do you if you are in Supo's shoes.

What I will say is that this post is nothing but a disingenuous advert for UBA stocks. We are not all fools you know!

Am glad you re even a yoruba man my advice is for you to complete ur ajah house and as you starts geting the rent, you can now plan on geting a country home .I did same .must country homes are not occupied and unkempt so put ur money were u can rip some benefit