Hey I just got the following from Proshare. Some of it makes sense

                 
Stockpick for the week May 14-18, 2007
Posted Monday, May 14, 2007

BUY RECOMMENDATIONS
Stock Basis for Stock Pick Current Price (N) Fair Value (N) Price Forecast (N) Fwd EPS Fwd PE YTD Price Mov't (%) General Commentary
Union Homes F 7.85 7.2 9.8 0.48 16.35 124.29 Good earnings. Set to take advantage of favourable policies
Flour Mills F 74.1 66.29 90 5.73 12.93 14.26 Expanding revenue base through cement. Bright outlook
Wapco F 64 62.46 82 4.68 13.68 18.54 Looks cheap in view of earnings expectations
Oando F 73 72 90 5.26 13.88 4.29 Cheap, given past and future earnings.
Mutual Benefit Assurance F 2.85 5 5 0.26 11.92 330.56 2-3 month investments time-frame.
Costain W.A. F, T, MP 16.63 23.2 30 1.16 12.4 884.93 Agrressive Buy.
Afroil T 4.27 1 9 n/a n/a 988.24 Specualtive.
Diamond Bank F, MP 10.7 17 17 0.85 12.58 43.24 Undervalued. Limited Supply.
African Petroleum F, MP 65.85 87.3 87.3 4.85 13.57 42.26 Agrressive Buy.


SELL RECOMMENDATIONS
Stock Basis for Stock Pick Current Price (N) Fair Value (N) Price Forecast (N) Fwd EPS Fwd PE YTD Price Mov't (%) General Commentary
OKOMU Oil F 35.28 27.1 27.1 0.83 42.51 3.61 Overvalued
7UP F 50 37.83 37.83 2.14 23.36 25.82 Overvalued. High operating costs, low margins.
                 
                 
           
* Opinions and estimates constitute CSL's best judgement and are subject to change without notice     
**Price as at May 11, 2007                 
                 
Price forecast is our expectation of where the market will likely push the price to.       
Fair value is the actual worth of the company at the present time i.e. the ideal price to take position in stock if the market price is higher.
Forward (Fwd.) EPS & PE ratio are based on expected figures for the next financial year end.     
____________________________________________________________________________________________________________________
Explanation of Basis of Opinion               
F: Fundamental                 
T: Technical                 
MP: Market psychology

Anyone: How long does it take to get your money returned if you could not get all the shares you wanted, i am thinking of the oceanic IPO because i went for it rather late and will like to get my funds back pronto if they can get me the shares, at least i can buy other shares.

Okay from what i have read so far, cashcraft, Zenith, BGL all have k leg in their customer services, i was just in the process of going for Zenith.

So where can i get a reliable broking firm?

dollyp1cute:

Anyone: How long does it take to get your money returned if you could not get all the shares you wanted, i am thinking of the oceanic IPO because i went for it rather late and will like to get my funds back pronto if they can get me the shares, at least i can buy other shares.

Okay from what i have read so far, cashcraft, Zenith, BGL all have k leg in their customer services, i was just in the process of going for Zenith.

So where can i get a reliable broking firm?

I need answers to those  questions too, I bought the Dangote sugar share rather late.

Also can anyone pls explain to me what the process is to get a S/broker,

to get the CSCS account and all that stuff. I've just been buying shares, ('bout five companies now)

and I think I need a S/broker and really need to watch my shares.

I can be mailed (bukkyjil2004@yahoo.com) to have the lay man understanding of shares and stockbrokers.

Thanks

@brownbaby,
Register and download the free ebook from www.stockmarketnigeria.com. That should give u the basic gist.

thanks all for your contribution
@windywendy,
The information you posted was really insightful

windywendy:

Hey I just got the following from Proshare. Some of it makes sense


Stockpick for the week May 14-18, 2007
Posted Monday, May 14, 2007

BUY RECOMMENDATIONS
Stock Basis for Stock Pick Current Price (N) Fair Value (N) Price Forecast (N) Fwd EPS Fwd PE YTD Price Mov't (%) General Commentary
Union Homes F 7.85 7.2 9.8 0.48 16.35 124.29 Good earnings. Set to take advantage of favourable policies
Flour Mills F 74.1 66.29 90 5.73 12.93 14.26 Expanding revenue base through cement. Bright outlook
Wapco F 64 62.46 82 4.68 13.68 18.54 Looks cheap in view of earnings expectations
Oando F 73 72 90 5.26 13.88 4.29 Cheap, given past and future earnings.
Mutual Benefit Assurance F 2.85 5 5 0.26 11.92 330.56 2-3 month investments time-frame.
Costain W.A. F, T, MP 16.63 23.2 30 1.16 12.4 884.93 Agrressive Buy.
Afroil T 4.27 1 9 n/a n/a 988.24 Specualtive.
Diamond Bank F, MP 10.7 17 17 0.85 12.58 43.24 Undervalued. Limited Supply.
African Petroleum F, MP 65.85 87.3 87.3 4.85 13.57 42.26 Agrressive Buy.


SELL RECOMMENDATIONS
Stock Basis for Stock Pick Current Price (N) Fair Value (N) Price Forecast (N) Fwd EPS Fwd PE YTD Price Mov't (%) General Commentary
OKOMU Oil F 35.28 27.1 27.1 0.83 42.51 3.61 Overvalued
7UP F 50 37.83 37.83 2.14 23.36 25.82 Overvalued. High operating costs, low margins.



* Opinions and estimates constitute CSL's best judgement and are subject to change without notice
**Price as at May 11, 2007

Price forecast is our expectation of where the market will likely push the price to.
Fair value is the actual worth of the company at the present time i.e. the ideal price to take position in stock if the market price is higher.
Forward (Fwd.) EPS & PE ratio are based on expected figures for the next financial year end.
____________________________________________________________________________________________________________________
Explanation of Basis of Opinion
F: Fundamental
T: Technical
MP: Market psychology

I dont like the fact that Afoil is on the buy list. Read in this weeks moneywise that they cant be located. What kind of management would relocate their operations and not inform the stock market.

dollyp1cute:

Okay from what i have read so far, cashcraft, Zenith, BGL all have k leg in their customer services, i was just in the process of going for Zenith.

So where can i get a reliable broking firm?

Going forward there may be no way that you can dodge these firms. The smaller one's that may be able to give personalisedd services may not be able to meet the new capital requirement. However I beleive that anyone that is owned by a bank should be able to.

@ Cheexy

Thanks Cheexy, I'll do just that.

Can anyone please tell me when the suspension on UBA will be lifted?

nakedwire:

Can anyone please tell me when the suspension on UBA will be lifted?

Yes please, Oceanic and Diamond too _{(seems half the banks are under suspension)}

Even my broker seems not to know. Untill all the stocks in banking will go on technical suspension, worse still most stocks there are not readily available for purchase.

frankiriri:

I don't like the fact that Afoil is on the buy list. Read in this weeks moneywise that they can't be located. What kind of management would relocate their operations and not inform the stock market.

Yes, I didn't think it should be on the buy list either. I guess that's why they've indicated it as a speculative investment, because it's highly risky.

ckenneths:

Even my broker seems not to know. Untill all the stocks in banking will go on technical suspension, worse still most stocks there are not readily available for purchase.

I tire o

windywendy:

Yes, I didn't think it should be on the buy list either. I guess that's why they've indicated it as a speculative investment, because it's highly risky.

Its not enough for them to indicate that it is speculative. They should state the basis for their speculation so that people can judge for themselves. Me thinks that they are just applying the greater fools theory here. They beleive that the stock is in demand and even though they cannot justify it they want to profit from any increment in price that may result. So you buy in the believe that at some point in future a 'greater fool' will buy from you at an even higher price. 

What beats me is the fact that they have stated that the fair value for the stock is N1 and yet suggest a buy

dollyp1cute:

What beats me is the fact that they have stated that the fair value for the stock is N1 and yet suggest a buy

Their buy suggestion is based on their projected value

dollyp1cute:

What beats me is the fact that they have stated that the fair value for the stock is N1 and yet suggest a buy

The only reason they would be doing so is that they see the demand for the stock on the floor and feel that money can be made from it.
I beleive in short term investment but such investments must still make sense. Some brokers advised people to buy Nigeria Cable and Wire even when the company has not been in operations for a year. ;

@ Windywedy and Frank - What's your take on Wema bank in the short to medium term

frankiriri:

Its not enough for them to indicate that it is speculative. They should state the basis for their speculation so that people can judge for themselves. Me thinks that they are just applying the greater fools theory here. They beleive that the stock is in demand and even though they cannot justify it they want to profit from any increment in price that may result. So you buy in the believe that at some point in future a 'greater fool' will buy from you at an even higher price.

Oh and we're back to the greater fools theory . Anyway, different investors have different investment styles. I personally wouldn't touch Afroil with a foot long pole, but some other person who's into speculative buying may buy it and make tons of money (or lose tons of money if he's the "greater fool"

windywendy:

Their buy suggestion is based on their projected value

I am not privy to how they arrived at the projected value but me thinks that if they had a sound basis fpr projecting the price to rise to N9 they would have indicated it rather than dubbing the stock speculative. Also note that they  indiccate that the basis for the judgement is technical analysis. This does not have anything to do with the fundamentals of the company and is less reliable.

frankiriri:

Some brokers advised people to buy Nigeria Cable and Wire even when the company has not been in operations for a year. ;

Does this surprise you?? What then would you say of transcorp being allowed to do an IPO and professionals actually recommending it to investors?? _{Anyway, let's not go there}

Omoba3:

@ Windywedy and Frank - What's your take on Wema bank in the short to medium term

I have not been following that stock so I can not comment at this time.

Omoba3:

@ Windywedy and Frank - What's your take on Wema bank in the short to medium term

I don't know too much about wema bank but the first things I look for when I want to invest in a bank in today's banking environment is innovativeness (which to a large extent depends on management quality), technology infrastructure (which makes customers' lives easier and could therefore potentially attract new clients), visibility (at least to the foreign world) and branch network. I don't see too much of these in Wema. Furthermore, I'm not comfortable with the affiliation with Odu'a group. So I would hesistate to invest in Wema unless I have real info that could help me make money in the short term. I personally don't see them as a good long term buy, and I wouldn't really buy in the short to medium term either. I'm just not comfortable with the company.

windywendy:

Does this surprise you?? What then would you say of transcorp being allowed to do an IPO and professionals actually recommending it to investors?? _{Anyway, let's not go there}

Well lets not.
_{[/sub]tries to resist the temptation but loses[sub]}
At least they had the all mighty NITEL in the kitty. Who can argue with such an asset (laughs)

@ Windywendy and Frank - I appreciate your candour. My broker presented it to me as a short term buy and sees it appreciating based on their fundamentals and financial report, so there you go.

windywendy:

I don't know too much about wema bank but the first things I look for when I want to invest in a bank in today's banking environment is innovativeness (which to a large extent depends on management quality), technology infrastructure (which makes customers' lives easier and could therefore potentially attract new clients), visibility (at least to the foreign world) and branch network. I don't see too much of these in Wema. Furthermore, I'm not comfortable with the affiliation with Odu'a group. So I would hesistate to invest in Wema unless I have real info that could help me make money in the short term. I personally don't see them as a good long term buy, and I wouldn't really buy in the short to medium term either. I'm just not comfortable with the company.

exactlty the reason why I dont follow it. A company has to be in my face for me to be convinced that it has exceptional potentials. Most of the good banks today are running different pronotions to put them in the public eye WEMA bank is no where to be found in that regard.

frankiriri:

Well lets not.
_{[/sub]tries to resist the temptation but loses[sub]}
At least they had the all mighty NITEL in the kitty. Who can argue with such an asset (laughs)

Oh you mean the sleeping giant?? How many nitel lines did you have in your house that were working?? Even the one in my grand father's house had stopped working for like 10 or so years _{Ok i'm exaggerating}. But by the way, did you hear that MTN (or some south african company) is bidding for MTEL? where will that leave transcorp?

Omoba3:

@ Windywendy and Frank - I appreciate your candour. My broker presented it to me as a short term buy and sees it appreciating based on their fundamentals and financial report, so there you go.

What fundamentals? I'm interested. Can you please scan the balance sheet, P&L and Cashflow statement so that we can do an analysis and see if your broker is right? If he's right, then i'm in _{who no like beta thin} If you can put it on the site that'll be good otherwise mail me at windywendy121@hotmail.

What fundamentals? I'm interested. Can you please scan the balance sheet, P&L and Cashflow statement so that we can do an analysis and see if your broker is right? If he's right, then i'm in who no like beta thin If you can put it on the site that'll be good otherwise mail me at windywendy121@hotmail.

@ Windywendy - This is what I was told by my broker when I asked for the reasons she considered Wema a good buy. She's with Cashcraft. I personally haven't seen any financials.

No mind them. The WEMA bank story cant be too sweet. I will pass. I am not even bothering to look out for the fundamentals. When I still have Banks like Zenith, GTB, Oceanic, UBA , First BAnk and co that are repositioning in the minds of the public I will now follow a dead bank. Its like some1 telling me that Afirbank can do something ,relatively, good. I would rather not waste my effort. I have over 260 companies to choose from so I cant be bothered by the laggards.

Some stocks that were laggards has performed very highly, check out NATIONAL SALTS, BCC, COSTAIN, IPWA etc

We all know its the interference of ODUA GROUP that has been affecting Wema negatively.

Besides, for short term investors, some has reaped up to a hundred percent appreciation on the stock this year alone, the rest as they say is history.

ckenneths:

Some stocks that were laggards has performed very highly, check out NATIONAL SALTS, BCC, COSTAIN, IPWA etc

We all know its the interference of ODUA GROUP that has been affecting Wema negatively.

Besides, for short term investors, some has reaped up to a hundred percent appreciation on the stock this year alone, the rest as they say is history.

Yeah. Laggards perform when there is a bull market. But watch out when the bears take over you would wish you had not touched them. The story of high retuens cuts across almost all the companies. People reped more than 100% on a dead company like Ngeria wire and cable.