@ ALL,
How it going? My favorite website, I see the bone being chewed on now is insurance, Flour Mills and the benefits of Bonus offers. Enlightening,
My question today for the gurus is, FCMB looks nice, with some foreign injection of funds into the Bank and top-flight management. However, I hear that Bank PHB is about coming out with an IPO. As an investor with very little money, which would you recommend? or if you recommend a split which should have more preference? I was thinking of ploughing all my money into insurance ( MBenefits, Crusader, NEM, Law Union and Rock) but these Bank offers seem interesting ( just look at IBTC Chartered Bank's rise!!!). Can anyone help me out?? Thanks!!
[size=8pt]
Please do not ignore, [/size]

akyn:

right now one of the best shares to buy now is japaul oil it's under maritime.their shares has been discounted from#6 to #4,which means as soon as their public offer closes it automatically jumps back to #6(meaning on a unit u av gained #2).
and as for u people that needs broker i suggest cashcraft.

I'm for Japaul but thread carefully with your analysis.

1. When TS is lifted you will not have anything to sell if you bought from the PO. You gain nothing until you are in a position to sell (even if you don't).

2. The "discount" is huge. I suspect strongly that Japaul will issue bonus shares and those that bought from PO will not be entitled to them. So the "discount" may be watered down.

@ wanajo,
you said flour mills has the best fundamentals but what about costain? forecast epsof 2.9 for a 20 naira stock gives a forwardpe of 7(yes 7), thats almost too good to be true, i know they arew coming out with a po and rights that will dilute the earnings but what do you think about costain ?

2) also, you pointed out earlier that you feel longman has more value than university press, but why do you think so? longmans half year result shows growth of 27% while UPL shows 95%, the only sentiment i put to longman is that it has fewer shres and has not declared bonus for quite some time to my knowledge.
pls holla.

Hi does anyone know of any good and reputable investment bank/wealth management institution in Nigeria? where one can invest like 10million naira in a mutual fund with?

can someone tell me how inflation or deflation affects the stocks and shares?

@ wanaj0

and ALL

1) Pls, tell me which one attract bonus & dividend is it Primary market or Secondary market?
2) And how often do company come out for P.O and Rigths?
3) For hw long can i hold a stock for it to be due for bonus or dividend?
4) Does date of collecting bonus & Dividend expire, if it expires what can i do to get the dividend back?
5) How does inflation or deflation affect stocks and shares?
6) What is the duration N.S.E and S.E.C give to the company(ies) to issue out thier SHARE CERTIFICATE? cos i heard that it is 3 monthMAXIMUM.
7) i ve little cash and i am eyeing FIDELITY, FCMB, JAPAUL OIL and hopefully UNITY BANK what do u suggest i should do, cos need the money back soon, and SHARE CERTIFICATE is taking too long to be issued, what do u think? shoul i just buy from the SECONDARY MARKET or P.Os?


And to all GURU's in the house PLS I NEED A REPLY URGENTLY !!!.

Some answers,

1. Both attract dividends and bonus. With the primary market you may not be entitled to bonus or dividends or bonus the very next time it is declared. This varies from offer to offer. Eg. FCMB will be paying dividends and on bonus on new shares from its PO.
2 . The company decides. There is no limitation.
3.You need to buy the stock at least 3 days before the closure of the company's register or if you already own the stock, you must not sell until at least 2 days before closure of the company's register.
4. If you qualify for the dividend or bonus as in 3 above, it does not expire. If you are missing yours you should contact the registrer for the company.
5. I'm not sure of what you  mean here. Inflation reduces the value of your stocks. If you mean how stocks will respond to inflation I don't know really. The tendency may be for the price of stocks to rise generally. I'm not sure about this theory though.
6. I don't have this information at hand. Just note that this is on paper. Companies are not meeting up.
7. If you need your money back soon stick to the secondary market if soon. I don't know what soon means for you but I am assuming you are talking of less than 6 months. If you get paper certificates verification will take it's time too and you will be stuck if you need the money before this is completed.

Pumping777

When dividends are declared in a company where one has shares, how does one claim the dividends.? Does it get credited directly to CSCS account or it has to be applied for?

The dividend warrant in the form of a cheque should be posted to the address the registrars have for you. It can also be credited to the bank account you specified when buying the PO for example. Ensure the registrar has your current address or that you can retrieve mails at the address the registar has for you.

This is payment money so it can't really go to your CSCS account. It is bonus shares that can be automatically credited to your CSCS account.

Oga Pumping,
Could you please answer my question on Bank PHB vs FCMB? Also, did you say that FCMB PO buyers will participate in the dividends/bonus?
THANKS,

I

Rob-roy:

Oga Pumping,
Could you please answer my question on Bank PHB vs FCMB? Also, did you say that FCMB PO buyers will participate in the dividends/bonus?
THANKS,

- I can't comment on Bank PHB because I have not seen the prospectus. I have digested FCMB prospectus and I consider it a good deal if the bank can meet up with projections. The projections are realistic and if these are met the earning potential is very good. The quarterly results so far indicate that the projections can indeed be met but there is no guarantee of this.

- Yes, with FCMB you will particpate in dividend and bonus issues for the financial year end in April, 2008.

- For me, I think you can spread if you have enough. I usually will not recommend facing only one sector. If I had only one choice right now though, I will go with Insurance. The prices are good at the moment and the quarterly results we are seeing are good, I think this is where the money will be next, You already mentioned 3 of my favourites, MBenefit, Crusader and Lawunion. Do you own analysis to determine which ones to go for even if it to confirm what others have said.


If you have long term investment plans for part or all your portfolio you can consider FCMB all the same. It's one of the better offers in the last few months,

IBTC Chartered, hmm, very tempting, well you should know this is not an indication of what is going on in the banking sector right now. IBTC is peculiar because of the merger with Stanbic. The way all these bank are coming out to raise funds, it won't be a surprise in the near future when they start swallowing themselves up and this will mean mega bucks for owners of the stocks,

OGA PUMPING 777 YOU SOUND VERY INTERESTING.

PLEASE, I WILL LIKE TO KNOW WHAT YOU HAVE TO SAY ABOUT CASHCRAFT ASSET MANAGEMENT'S MUTUAL AND EQUITY BASED FUND. THE IPO IS CURRENTLY IN THE MARKET.

DO YOU THINK IS A VIABLE INVESTMENT?.

TONYJON.

hello investment Gurus,

Is there anyone in the house who have anything to say about MANINVEST ASSET AND MANAGEMENT LTD?.

A friend of mine introduced me to them but I still want to seek second opinion as per there services and effectiveness.

Waiting to hear from you guys.

tonyjon.

@easimoni
You are spot on about ins coys coming to the market 2008

See this-->http://www.punchng.com/Articl.aspx?theartic=Art200710191243665

I see  the next BIG THING _{where is BIGBOY LARRY with his crystal wotsit?}  in the Insurance/Mortage sector 2008

Watch this space for Abbey building society (Nig) MBenefits have 20% stake in this company

Potential investors both local and offshore still circling round this company for a piece of the action and is to be listed on the NSE next month!

Roughcut, Temmie 10, Shigidi et al,
Is it better to wait till next year for the INS COYS to come out with offers in '08 so that one can shoose the best or is it better to buy right now ( secondary market) because it would suck if one bought now and then they come out "at a discount" lower than I bought, meaning i'd have to scramble to sell and buy at that lower price, so what d'yall think?

and still on what shigidi and Temmie 10 were saying, IS FCMB the next Zenith bank Is it that good of an offer?? Thanks again.,[tt][/tt]

pumping777:

.
4. If you qualify for the dividend or bonus as in 3 above, it does not expire. If you are missing yours you should contact the registrer for the company.

Dividend warrants, like all other cheques, have a life span of 6 months after which they become stale and would have to be revalidated.

jehosaphat:

Roughcut, Temmie 10, Shigidi et al,
Is it better to wait till next year for the INS COYS to come out with offers in '08 so that one can shoose the best or is it better to buy right now ( secondary market) because it would suck if one bought now and then they come out "at a discount" lower than I bought, meaning i'd have to scramble to sell and buy at that lower price, so what d'yall think?

The problem with PO's is when you need to sell next year for example when TS is lifted for whichever of the ins coys that come to the market you cant sell until you get your cert and it's verified you may have missed the boat on the post-suspension bull run and all that.
Classic case in example ACCESS and OCEANIC the prices are dipping meanwhile those who bought on the secondary have cashed and can actaully re-enter now the price is going down south. Expect a bit more more downsouth movement for those stocks when those who bought into the PO's get their certs and they have been verified there will a glut of shares on the market and this can only depress the prices further and only the stocks with strong fundamentals will weather the storm and rebound.

This is not to say you shouldn't buy into the IPO/PO and by the way talking discounts the prices are affordable now and you should get in next when the results start dripping out and if they are exceptional(from what i have seen so far they are) the prices will shoot up and that's when they will approach the market so i dont think there's a better time than now.

FCMB PO is recommended because if you are alloted shares from the PO you are guaranteed at least dividends of 50K(may be more depending on how they perform) by the time they report full year ending April 2008

jehosaphat:

Roughcut, Temmie 10, Shigidi et al,
Is it better to wait till next year for the INS COYS to come out with offers in '08 so that one can shoose the best or is it better to buy right now ( secondary market) because it would suck if one bought now and then they come out "at a discount" lower than I bought, meaning i'd have to scramble to sell and buy at that lower price, so what d'yall think?

Discounts don't actually mean much because the rate at which a lot of these companies on the NSE do stock splits(bonus and rights) has the effect of depressing the share prices to the value by which these PO's are discounted

Having said that i have to qualify my statement in view of the peculiarities of the NSE in actual fact stock splits have the effect of increasing the share price (still trying to work that one out) which may one of the reasons some peeps invest in the first instance. My statement therefore has to be interpreted in context

Stock trading is good business but of course like every business must be approached wit caution n u must be armed wit adequate information. i bot my first shares wen i was in my 3rd year in the university. So start now! but tread softly to avoid expensive misatakes.

pumping777:
1. ,  [b]You gain nothing until you are in a position to sell [i](even if you don't).[/[/i]b]

Incorrect statement, and could be very costly. No gains have been actualised/realised until sold (not counting dividends etc,  which may still not be a gain),  A position to sell does not guarantee gains. To sell, someone must be willing to buy. If noone is willing to buy at that price, then that sale position you are proud of means nothing, and you could even see the position erode to a point of loss. A lot of people think this way, but luckily they are trading in the NSE where there is a little protection,  If that way of thinking is applied in other developed markets, the consequences could be very dire ( but thats why they have calls & puts and other instruments to help protect them). I believe Ericsson recently lost 25% in a day just a few days ago,  Enron lost over 90% in a day when that issue happened, (a lot of people's "perceived gians" wiped away in one trading session),  No cause for alarm though,  these are very rare & the NSE is somewhat investor friendly,

esco399:

Incorrect statement, and could be very costly. No gains have been made until sold (not counting dividends etc, which may still not be a gain), A position to sell does not guarantee gains. To sell, someone must be willing to buy. If noone is willing to buy at that price, then that sale position you are proud of means nothing, and you could even see the position erode to a point of loss. A lot of people think this way, but luckily they are trading in the NSE where there is a little protection, If that way of thinking is tried in other developed markets, the consequences could be very dire. I believe Ericsson recently lost 25% in a day just a few days ago, Enron lost over 90% in a day when that issue happened, (a lot of people's "perceived gians" wiped away in one trading session)

While I get your point, in Nigeria maximum you can lose in a day is 5%. Also, stocks that are not liquid are always difficult to sell. That's why one should be careful on those illiquid stocks!!!!!

Does anyone has the oustanding shares of Crusader? Does this take into consideration the five companies acquired by Crusader? Anyone seeing the scheme of merger document? How many shares were issued to the insurance companies? Most figures seems to only consider the PO shares alone. The five companies acquired by crusader are
1. Refuge Insurance Company Limited
2. Golden Insurance Company Limited
3. Royal Trust Assurance Limited
4. Admiral Insurance Limited
5. Trust & Guarantee Insurance company Limited

wanaj0:

While I get your point, in Nigeria maximum you can lose in a day is 5%. Also, stocks that are not liquid are always difficult to sell. That's why one should be careful on those illiquid stocks!!!!!

My point exactly,  To add to that, one also needs to be careful of the distribution of the shares in a company (this info is quite difficult to come buy),  That is a major factor in the illiquidity. This is easy to control during the IPP/PO stages (primary market,  during allotment), but is more difficult to control on the secondary market (where groups, fund mngrs etc mop up a good share of the market cap in that company to be dangerous). It may not be good when one or a few people/ groups have enough power (a larger share of the market cap than most others) to cause irrational movements in the price. The more even the distribution (not necessarily the larger the nmbr of shareholders), the more rational it will be. Less chances of the kind of thing that happened to NASCONs price (falling) happening after what Dangote did with his shares. We will get there though,  hope to see the SEC be more proactive to this. Nice one,


*** just to clarify ,  I'm not saying that everyone should have an equal or close number of shares ooo. Someone could very well have one million times the nmbr of shares that I have, and that's fine, as long as there are enough people like him/her to compete, and enough like me, and enough of every other block inbetween,  that's what I mean by a nice distribution.

Online

Re: Stock Market Tips For Nigerians
« #3395 on: Yesterday at 10:56:11 PM »

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@ wanajo,
you said flour mills has the best fundamentals but what about costain? forecast epsof 2.9 for a 20 naira stock gives a forwardpe of 7(yes 7), thats almost too good to be true, i know they arew coming out with a po and rights that will dilute the earnings but what do you think about costain ?

2) also, you pointed out earlier that you feel longman has more value than university press, but why do you think so? longmans half year result shows growth of 27% while UPL shows 95%, the only sentiment i put to longman is that it has fewer shres and has not declared bonus for quite some time to my knowledge.
please holla.

shigidi:

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Re: Stock Market Tips For Nigerians
« #3395 on: Yesterday at 10:56:11 PM »

--------------------------------------------------------------------------------
@ wanajo,
you said flour mills has the best fundamentals but what about costain? forecast epsof 2.9 for a 20 naira stock gives a forwardpe of 7(yes 7), thats almost too good to be true, i know they arew coming out with a po and rights that will dilute the earnings but what do you think about costain ?

2) also, you pointed out earlier that you feel longman has more value than university press, but why do you think so? longmans half year result shows growth of 27% while UPL shows 95%, the only sentiment i put to longman is that it has fewer shres and has not declared bonus for quite some time to my knowledge.
please holla.

Flour Mills is well diversified hence they can weather rough and tough times better than Costain. There are certain 'facts behind figures' that you need to look at. Put in another way, while I can speculate with Costain, it will not be my LONGT TERM holding.

On Longman, the seasonal nature of the business means that they will earn more profit in the last quarter of the financial year while it is the opposite for UPL because of their end year. Now UPL can grow profit by 95% but by how much have they grown the outstanding shares?

good day all gurus in the house, am new to stock market.
1)i just need to if it is adviseable to buy capital oil shares because for the past one week they have being gaining but the the no of deal are small it is either one or two.so i think there is no speculation abt its stock.
2) i brought the last IPO of Access banks and the have being droping every day.please what is the cause of this.?
3) i have alreday brought this japaul oil IPO but it advisable to buy more in the secondary market?

hey, stock market is indeed a place of money making ,stress and pains-taking.
what i think is that the market is been moved by the forces of demand and supply, fundalmentals of the company you are investing in which include the financial performance for the year of previous as the case maybe.
it is always better you make you own very (Practical) analysis of the stock you want to trade in, so as not to allow your self to be jilt by these funny and dubious Brokers. there were complaints post on the website Security & E$xchange Commission SEC about all these borkers and there firms.

To enable you give instruction and sound like you ve more knowledge about the market espcially for NEW INVESTORS, i recommnd this book by Ayo Arowolo- 'Fire Your Share Analyst'.

frankiriri:

Dividend warrants, like all other cheques, have a life span of 6 months after which they become stale and would have to be revalidated.

Yes, the warrant will expire but what I mean is that you will still be entitled to the dividend. Your right to the dividend does not expire with the expiration of the warrant.

pumping777:

Yes, the warrant will expire but what I mean is that you will still be entitled to the dividend. Your right to the dividend does not expire with the expiration of the warrant.

Your right expires after a certain number of years. Not sure if it is 12 years again.

esco399:

Incorrect statement, and could be very costly. No gains have been actualised/realised until sold (not counting dividends etc,  which may still not be a gain),  A position to sell does not guarantee gains. To sell, someone must be willing to buy. If noone is willing to buy at that price, then that sale position you are proud of means nothing, and you could even see the position erode to a point of loss. A lot of people think this way, but luckily they are trading in the NSE where there is a little protection,  If that way of thinking is applied in other developed markets, the consequences could be very dire ( but thats why they have calls & puts and other instruments to help protect them). I believe Ericsson recently lost 25% in a day just a few days ago,  Enron lost over 90% in a day when that issue happened, (a lot of people's "perceived gians" wiped away in one trading session),  No cause for alarm though,  these are very rare & the NSE is somewhat investor friendly,

You are spot on.  

Just to re-emphasise the misnomer you highlighted above which many  people have about the restriction that a share can only drop by 5% daily.

Even if a stock is liquid, if the stock is on net offer, you may not be able to sell your stock until it has lost multiples of 5%. This can be very costly. So while you won't lose 50% overnight you may still end up losing as much because there aren't enough bids for the stock compared to the offers.

wanaj0:

Your right expires after a certain number of years. Not sure if it is 12 years again.

Thanks, you are right. I just checked and CAMA has it as 12 years.