johnie:

I am even wondering if there isn't insider trading involved given that he works with UBA Capital and "made" all that money from UBA stocks.

Secondly the OP has given too many personal details about the person.

His name: S _ P _
Where he lives:S _ R _ _ E _ E
His hometown: O _ O G _ _ _U
How much he has now:You all know now!

I hope he doesn't get kidnapped!

I no know book:


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

You are a good man!
Not only UBA but i think he has some stock in his portfolio that he wants to generate interest/demand in thus pushing prices up. He tried.. Too hard, maybe.

Peterwins:

Insider trading? Plausible. The OP should be discreet next time.

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.

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.

O Greene: "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.

Peterwins:

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;



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.

I no know book:


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

I no know book:
Hype it, then when it becomes hot, dump it. It's nothing but a hype and dump thingz, it's an ageless, well practiced system of hyping stocks. And trust me, it's gonna work, because there will always be suckers. How could shares you bought with N4,000,000.00 in 2012 pay you a dividend of 702k in 2013? How much did UBA declare as dividend? Please, people look before you leap because I know that so many people will be rushing off to buy UBA stocks after reading this clever advert. DON'T BE A FOOL!

Peterwins:

Insider trading? Plausible. The OP should be discreet next time.

EasternLeopard: 1st) Seperate d money into 5 and put them into 5 diff banks one yr fixed deposit accts. 2nd) Acquire financial wisdom by studying starting with books like Rich Dad Poor Dad, Cashflow Quadrant, etc 3rd) Once steps 1, 2 & prayers are taken u will be able 2 make wise decisions.

horlla: This may or may not be a hype.But I can read between the lines that OP has some interest in UBA,Zenith and FBN shares.Possibly planning a cash out.Trust me NL is enough generate demand that can push the price up.

let's calculate what UBA has given as dividend since he bought the stock if the value will be close to 720k......
I keep my finger crossed like Abayomi Obabolujo would say.........

horlla: This may or may not be a hype.But I can read between the lines that OP has some interest in UBA,Zenith and FBN shares.Possibly planning a cash out.Trust me NL is enough generate demand that can push the price up.

let's calculate what UBA has given as dividend since he bought the stock if the value will be close to 720k......
I keep my finger crossed like Abayomi Obabolujo would say.........

Peterwins:

You must be objective (and fairly knowledgeable) in any investment decision you take. Get in touch with any reputable stock-broking firm and seek professional advise.

However, if you must invest in the NSE as a novice, just make sure you only invest in stocks of a few multi-nationals such as: Guinness, Unilever, Cadbury and Nestle. These companies have good/strong corporate governance.

You can start investing in other stocks once you fairly understand how the NSE works.

olushowunm: @OP... YOU ARE DISCLOSING TOO MUCH!

IF YOU WANT TO LEARN ABOUT HOW TO INVEST EFFECTIVELY, PLEASE CHECK MY THREAD ON "HOW TO INVEST EFFECTIVELY" AND "THE ART OF PERSONAL LEVERAGE"... CHEERS!

Jarus: Good job, man. I think we have similar orientation.

In my family too, it is the tradition to do countryhome first i.e build your first house in our town before thinking of any other place, even though we work in Lagos (our parents are at home). After the first house at home, you can then start elsewhere. This is despite the fact that we go home just twice or thrice a year (only the sallah visit is guaranteed) and we don't spend more than 4 days. But there is this sense of fulfilment that comes with having a countryhome. By God's grace, I'm close to rounding up mine too (https://www.nairaland.com/784501/building-house-kwara-state-journal/2.

Next plan after completing teh countryhome is city house (wherever you are working permanently, for most of us Lagos.


None of these however stops investing. You can put say 3m into further investments. It's not compulsory for you to finish the house at a stretch. You can do it over 2 years. You don't need to spend all your income on teh project.

It depends on a number of factors, but based on my own orientation/upbringing, if I were in your shoes, I would:

1, Put 4m back into further investments
2, Put 3m into your countryhome project immediately
3, Put 4m into short-term investments (e.g money market) and liquidate over 2 years, to continue your project at say 3 months interval or milestones e.g up to lintel, roofing, etc) . That way, you still make little money while continuing the project. Remember you're not living in your village, so no urgent need to rush.

As for Ajah land, that's very great. I stay in that side too (we have things in common) and a colleague just got 6m to acquire a plot in Badore (Ajah). Thankfully, your land will continue to appreciate. So you can come back to it later.

manie:



I do not think this is inside trading, if you know how to calculate the intrinsic value of stocks you will know that UBA was undervalued at N2.50k even at the current price of N8.30 it is still undervalued. The stock should not be selling for anything less than N10.00.

Anybody with the requisite knowledge, patience and multiple streams of income will make more money on the long term investing in undervalued stocks than in real estate.

manie:

Fundamentals do not support the current prices of the listed stocks, I have sold all my Nigerian Breweries, PZ, Nestle, Unilver and Nestle.

They are all good companies, but they are not selling at good prices, Price/earning ratio, Price/ earning growth rate, Net asset per share, profit margin do not support their current price. I foresee a stagnation in the price of the listed stocks in no distant future.

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.