enurayce:

@Frankiriri
I need you all to please help me with a list of possible low priced stocks with growth potential(in the short term of between 300-500%) and why you think so.Indicators could be provided also.
Waiting for your response
Thanks

I am not a magician. Eveb Dangote sugar has only done 311% and no body ould have said that it would be that high within so short a period. If you are thinking short term the target like 40-50% so that any excess will be a pleasant surprise.

@ frankiriri
ok even with that projection,what could the list of low priced stocks possibly be,and indicators ro watch out for

thanks all for your replies. I just taught of looking into the mutual funds thing just for general info.

@windywendy
thanks for the earlier info,


@allcorrect
Did you get any NIWICABLE?


@Frank
I have been with Zenith for 2 weeks now, still highly recommendable.

@Everyone
Any tip or advice on how i can pursue my UBN share certificate?

@Allcorrect
Charges on verification actually depends on the stock broking firm itself. Mine charges nothing but they have their faults.

enurayce:

@Frankiriri
I need you all to please help me with a list of possible low priced stocks with growth potential(in the short term of between 300-500%) and why you think so.Indicators could be provided also.
Waiting for your response
Thanks

Ah Ah now, 300-500% ? That one is too much o. You wan kill person? In my opinion, most equities are becoming overpriced and the probability of get such percentage returns is really slim. As Mr Frank said, you should aim really low, and when your choice of stock performs better, you begin to feel like a guru. If it performs poorly, nothing spoil, We all learn from our mistakes.

A friend in school once asked me for a stock that would yield about 300% in 2-3 months and i got so irritated that the first thing i told him was that the nigerian stock market is not a money doubling scheme or get rich quickly scheme .We should all try as much as possible to balance the drive to make quick money with qualitative and quantitative info regarding the companies we are interested in. Try talking to people who bought nigerian breweries about 2 years ago at 100 naira plus and they will tell you. Personally, i bought at about 50 naira and i have not still recovered from it cos the price keeps oscillating between 30 naira and 40 naira. It is all good.

@ Cheexy - Do you ever use technical analysis to choose stock or is it just fundamental or both?

@Mr Frank,
Thanks for the info on the duration of a public offer.
@everyone,
I heard from a friend's stock broker that Dangote Flour Mills public offer is coming out in June at between 20-22 naira. Not sure of how concrete the info is.

A common mistake in investing

With the advent of online banking and online trading, the stock market has opened its doors to virtually every person willing enough to grow their money.
And yet, despite this, not everyone has joined the bandwagon. The biggest factor being the potential risk involved in trading stocks. The stock market is among the most volatile financial institutions in business. And it’s this volatility that tends to be the biggest problem with the stock market.
Almost any reason, real or imagined can cause these extreme fluctuations that often affect the stock market’s credibility. Real factors such as the weather, political instability, political decisions, war, terrorist threats, boycotts and strikes, economic trends and international trade or even company scandals also become factors to the stock market problems.



Bad weather such as hurricanes affects certain industries such as oil production. This then drives the cost of petroleum products higher as production gets limited. This causes a cascading effect that drives stocks of oil companies higher.
Political instability in a country can affect investor confidence thus lesser investing is done. This causes the shares of local companies to slide downwards. Boycotts, strikers and terrorist threats have also proven to be the bane of the airline industry.
Shares of airliners have tumbled throughout the years with every terrorist attacks all over the world. But aside from uncontrollable factors such as natural disaster (or war), the common underlying link that allows these other reasons to affect the stock market so significantly is investor psychology.
Humans are prone to herd mentality. Often, people confirm with the actions and directions of other people. This is a common mistake in investing. An example of this is during the early 90s when dozens of dot com companies sold their stocks in the stock market. It created an artificial demand for stocks of companies that did not even provide real and concrete services.
These stocks soared in value as more and more enthusiastic investors bought them. This happened up until the time it was realized that these companies did not actually post any considerable profit to sustain the value of the shares. The stocks then tumbled and virtually lost value as investors frantically sold their shares.
This tendency to panic and depend on the direction of others is among the real causes of problems with the stock market.
There are two actions arising from this mentality:
a.) panic buying - b.) panic selling
Of the two, panic selling causes the most harm since it causes a steep and quick drop in the value of shares. The best way to avoid causing these problems is to practice due diligence and to keep a level head while investing.


Source: http://gold-finance..com/2007/05/common-mistake-in-investing.html#links

@Horus,
That was a wonderful post. I really enjoyed reading it. Keep it up

Cant wait for online trading on the NSE, i'll quit school   

cheexy:

@everyone,
I heard from a friend's stock broker that Dangote Flour Mills public offer is coming out in June at between 20-22 naira. Not sure of how concrete the info is.

Cheexy, my broker told me to get ready for dangote too but he did not mention price.

Which Dangote again ?

@egoldman,
Dangote Flour mills

ok, we are ready again for midas and his companies,

with the way, these offers are comming, all my money would go into stock and i still feel the money market cause i dey see my money straight for account.


well, any how we will go through,

is it possible for me to take a loan on my existing stocj to purchase more stock?

caution is the key people, dont get too greedy optimistic

I hope the dude asking for a return of 300-500% hasnt taken a loan

Hmmm, Dangote flour mills to be out in June? Thank you all for the information -- means we have to start gearing up again for another offer . . .

Any takers on how the flour mills will do compared to Flour Mills of Nigeria (I'm referring to the one already quoted on the NSE)? It seems competition in that market is tougher than what obtains in Sugar. Also, Flour Mills of Nigeria has been at the business much longer and is more popular in the market (probably has a larger market share than most of the other flour mill operators). So how does any one foresee Dangote flour mills' share price doing after the IPO?

All views welcome 

Tmoni:

ok, we are ready again for midas and his companies,

with the way, these offers are comming, all my money would go into stock and i still feel the money market cause i dey see my money straight for account.


well, any how we will go through,

is it possible for me to take a loan on my existing stocj to purchase more stock?

This is an interesting question and i would like to know if anyone has some answers on it , if one takes loan on an existing stocks and fail to pay up in time (God forbid ) which one of the debtors stocks would the bank take over , the old stocks that was used as collateral or the new stocks that was bought with the loans ?

@egoldman
if you dont pay the loan they will issue a margin call especially if the shares you bought with the loan drops beyond a specific price.As regards which stocks will be sold , i dont know how that works but i imagine you can reach some agreement with your brokers before taking the loan. All your broker is interested is in is getting the loan back.

@enurayce,
you would do well to keep your expected return on investment between 30/50%,within a specified time frame,you will need to make some decisions like which stock to choose,the purchase price ,the timeframe before exiting , your expected returns etc I am a beginner myself, but you can educate yourself so you can interprete the financial statements of the companies you want to invest in.You can start by reading THE INTELLIGENT INVESTOR by Benjamin Graham or check this website About dot com. Goodluck!

As regards Dangote flour, i will be digging for infos . Will post anything i find.

@egoldman,
i should have answered that you can take a loan ,obviously from my earlier post, but you need to know the interest rate and other conditions. My broker told me the interest is 20 something percent ,cant remember exactly.Think it through, because you have to add slippage and commissions to the cost of the loan. You have to be pretty sure about the prospect of the stock.If you got any stock like that , let us in on it . Cheers !

@ everyone - Is there anyone in the house that uses technical analysis to choose stock? Especially the gurus in our midst, Mr Frank, Windywendy, cheexy and others.

On a different note, Windywendy raised a very valid issue:

Any takers on how the flour mills will do compared to Flour Mills of Nigeria (I'm referring to the one already quoted on the NSE)? It seems competition in that market is tougher than what obtains in Sugar. Also, Flour Mills of Nigeria has been at the business much longer and is more popular in the market (probably has a larger market share than most of the other flour mill operators). So how does any one foresee Dangote flour mills' s

Regardless of Dangote's midas touch how does he intend to out do Flour Mills? What is his game plan? How will he capture /command a good slice of the existing market? Will herd mentality push up his stock price/ Oversubscribe the IPO?

What do you all think?

@cheexy
You are welcome

Quote from Omoba3

@ everyone - Is there anyone in the house that uses technical analysis to choose stock? Especially the gurus in our midst, Mr Frank, Windywendy, cheexy and others.
I use fundamental analysis to determine which stock I want to buy and technical analysis to determine when to buy it.

Posted by: windywendy
Hmmm, Dangote flour mills to be out in June? Thank you all for the information -- means we have to start gearing up again for another offer . . .

Any takers on how the flour mills will do compared to Flour Mills of Nigeria (I'm referring to the one already quoted on the NSE)?
b
I am not expecting it to be as sweet an offer as DSR. DSR is a monopolist and enjoys (or enjoyed pioneer status. Dangote Flour mills has a major competitor on the exchange already. There are also a plethora of unqouted flour mills in the market so I dont expect them to do that well. The offer will be (or rather should be )assessed strictly on a value on the table basis. I dont think the Dangote Magic will count for too much here. Cant expect the stock to do as well as DSR. After seeing the prospectus I will comment more.

Posted by: Tmoni
Insert Quote
it possible for me to take a loan on my existing stocj to purchase more stock?

Many stockbroking firms offer margin facilities. For instance Zenith will require that you deposit stocks worth at least N2.5m and then you can get a facility of N2.5m.
I think all the houses owned by bank have margin facilities

barge:


@egoldman
if you don't pay the loan they will issue a margin call especially if the shares you bought with the loan drops beyond a specific price.As regards which stocks will be sold , i don't know how that works but i imagine you can reach some agreement with your brokers before taking the loan. All your broker is interested is in is getting the loan back.

Very true. I just want to add that many brokers require that the value of the stock covers at least 150% of the loan amount. If the stock value falls below this amount they will ask yo to pledge more stocks. if it rises above this amount you can redeem some. But the margin call thing does not work the way it does abroad.

@SavvyLanre,
What are d requirements 4 registering with Zenith Securities?.I mean the process. How much is thier interest?

@ Frank - Thanks for your reply. I'm interested in TA but access to data is problematic, is there any possibility of sharing your data, that is open/close, high/low and hourlies?

@Frank,
i agree with you on the use of both fundamental and technical analysis, however like Omoba,i find difficult accessing infos to make timely decisions,moreso that am based in spain. Frank, thanks for explaining clearer the situation about margin.I am one of your betta clubbers, it would be nice to have your contact details.

Here is wishing all contributors a fruitful week !

@Frankiriri and all other pros
I want you all to do me favour.I want to know from your experience some of the coys in the NSE with cheap prices i.e undervalued as compared to their intrinsic value
DOES ANY ONE THINK THAT JOS BREWERIES IS WORTH THE BUY.PLS PROVIDE INDICATORS

@ barge
ok at 30/50%,which likely low priced stocks would you recommend.can you throw light on using fundamentaland technical analysis in picking stocks

@ frankiriri
Pls for starters like me,how do i make use of both fundamental and technical analysis in picking and sales of stocks.
I need to catch up.so i will greatly appreciate it if you can send findings to my enail
enurayce@yahoo.com
this invitation is open to all others that want to contribute
thanks