Wanajo, aktogun, easimoni, yodiyokun, donilors and others contributors THANK YOU ALL! GOD WILL CONTINUE TO SHOW YOU GUYS THE WAY!

My friend will receive the 40M from the bank next week Thursday and he is currently analyzing what and what to buy. That guy is not shaking! I've always known him as a risk taker and funny enough he succeeds all the time! He calls it calculated risk! He reliably told me what he wants to do.

His strategy is to buy those stocks with good fundamentals whose end of year is between now and June this year. His 40m loan is for 6 months . Usually if the 1qtr,2qtr and 3qtr of naija companies are good the 4qtr will be good almost all the time except in unusual case. Usually too if the end of year of any good company(that released good previous result) is approaching people normally position for killing and the share price will normally rise(look at GTB and intercontbank). For sure he factored all these things in. But 40m no bi moi-moi money I dey shake small,small ohh LOL. On the other hand I want him to collect that money and invest it!.Man nogo die if any thing goes wrong after all he is only 38yrs old and if it works, you know the rest. lol

I like these companies for him oceanic,fidelity,Lasaco ,M/benefit,AIICO,Chellarams ,PZ,Access Bank ,UNION BANK,IBTC,First inland,first bank,Thomas Wyatt ,Guinness,FCMB, 7UP Plc,DIamond bank,Zenithbank.Skye Bank Plc(on the floor) Tripple Gee & Co. , Academy Press Plc,Northern Nigeria Flour Mills Plc, Afribank Nigeria plc.C & I Leasing,Union Homes Savings & Loans Plc,Livestock Feeds Plc,Avon Crowncaps & Containers (Nig) Plc.Niger Insurance Plc ,Academy Press Plc .University Press Plc.

The above list will further be narrowed to like 4 or 5 good stocks and each gets 10m. I will make sure that at the end, I will publish here his profits or loss in the next 6 months. His entire portfolio is pledged to the bank already. He will do CICO much. calculated risk is the game!!!

FO2,PUMPING,and the rest your comments please!!!. GOD BLESS YOU ALL.

i forgot to mention that the bank wouldn't give the share loan for more than 6 months. Thesame guy bought Japaul at 3.9k (2million units) with bank loan and today you know that Japaul is above N13 he is selling next week. when i grow up i want to be like him.lol

i forgot to mention that the bank wouldn't give the share loan for more than 6 months. Thesame guy bought Japaul at 3.9k (2million units) with bank loan and today you know that Japaul is above N13 he is selling next week.  when i grow up i want to be like him.lol   He bought intercontinental N13.5 and now it is N39.98, some people are lucky in this NSE  game --OOOHH  chei!  I admire him.  funny enough this my friend is not a graduate ooH! just ordinary guy who lived overseas for 10 years and just came back to naija in 2006. but his is sound. He is good in using banks to get what he want,

@wisky waja

not to be a party pooper man but looking at ur friend's stategy, there are some things i'd like to point out:
these companies may look good but one never knows how long the market will take to realise this, that's why the investment process is advised for long term periods. it may be true that the company has posted good results but it's not necessarily true that the market will rally cuz many times the good result has been factored into the price due to the market's anticipation of a good result. See, the market doesn't work after the fact, ie to paraphrase FOF2 et pumping, "na die to stand in front of moving train". i'm sure as an obvious silent reader, u must have read comments about "hiding in the bush" for a particular stock. all that means is u way-lay a stock and require patience to make a profit. Now ur waiting period is anyone's guess, it could be 1 month or 1 year, case in point - diamond bank, good fundamentals but dragging to rise to its potential so far.

Moral of the story: In my humble opinion, this is a risk a bit too high for my taste but i guess ur friend   is a calculating man and knows what he's doing. i wish him the best.

nuff said

@ waja

in response to ur post about his successes, i see u didnt post any of his failures .

WASKY-WAJA:

Wanajo, aktogun, easimoni, yodiyokun, donilors and others contributors THANK YOU ALL! GOD WILL CONTINUE TO SHOW YOU GUYS THE WAY!

My friend will receive the 40M from the bank next week Thursday and he is currently analyzing what and what to buy. That guy is not shaking! I've always known him as a risk taker and funny enough he succeeds all the time! He calls it calculated risk! He reliably told me what he wants to do.

His strategy is to buy those stocks with good fundamentals whose end of year is between now and June this year. His 40m loan is for 6 months . Usually if the 1qtr,2qtr and 3qtr of naija companies are good the 4qtr will be good almost all the time except in unusual case. Usually too if the end of year of any good company(that released good previous result) is approaching people normally position for killing and the share price will normally rise(look at GTB and intercontbank). For sure he factored all these things in. But 40m no bi moi-moi money I dey shake small,small ohh LOL. On the other hand I want him to collect that money and invest it!.Man nogo die if any thing goes wrong after all he is only 38yrs old and if it works, you know the rest. lol

I like these companies for him oceanic,fidelity,Lasaco ,M/benefit,AIICO,Chellarams ,PZ,Access Bank ,UNION BANK,IBTC,First inland,first bank,Thomas Wyatt ,Guinness,FCMB, 7UP Plc,DIamond bank,Zenithbank.Skye Bank Plc(on the floor) Tripple Gee & Co. , Academy Press Plc,Northern Nigeria Flour Mills Plc, Afribank Nigeria plc.C & I Leasing,Union Homes Savings & Loans Plc,Livestock Feeds Plc,Avon Crowncaps & Containers (Nig) Plc.Niger Insurance Plc ,Academy Press Plc .University Press Plc.

The above list will further be narrowed to like 4 or 5 good stocks and each gets 10m. I will make sure that at the end, I will publish here his profits or loss in the next 6 months. His entire portfolio is pledged to the bank already. He will do CICO much. calculated risk is the game!!!

FO2,PUMPING,and the rest your comments please!!!. GOD BLESS YOU ALL.

First question is whether that risk is needed at all? It is not everyone that need leverage. I hope he actually need the loan to achieve his financial goal.

Naturally, such a loan is best obtained in Q4. Also, 6months is damn too short. That reduces the margin for error. I would suggest that he goes for one year.

Thirdly, fundamentally sound stock hardly return 'huge' profit in the short term. It is stocks without data, information, result etc that tends to do that. Such stocks are also normally not liquid.

He is also contrained by the stocks he can buy. Most banks will produce a list of investible stocks.

That said, if his personality agrees with it, then he should go ahead. I am bullish on DSR. UBA is good but not for 6 months. Apart from those two, very few 'cheap' stocks are available.

WASKY-WAJA:

i forgot to mention that the bank wouldn't give the share loan for more than 6 months. Thesame guy bought Japaul at 3.9k (2million units) with bank loan and today you know that Japaul is above N13 he is selling next week. when i grow up i want to be like him.lol

You see, it is this time of experience that makes people to forget reasoning. Even if you win 99.9% of the time. the 0.1% can wipe out his total portfolio now. Remeber, past performance is not guarantee for future performance.

I also hope that he has a 'good' broker because that can surely complicate matters.

Anyway, all the best

@ Wasky Waja

I think your friend has some BIG kahunas!!! E get liver! I fear the terms of his loan but if he knows what he is doing best of luck to him.

This is another spice on the thread, keep us posted please as there will be lessons to learn from it all.

PS
JAPUAL @ N3.90 sounds like the PO price Hope it wasn't a PO purchase.

hello house
my broker just gave me a deal that will close by 10 am on monday.
investment and allied assurance 2.00 at 210 naira per share private placement.
minimum of 100k units.
since the offer has closed it attracts a .30k premuim to the people that will organize it.
finally a 5k fee to him for his services.
if you want it please email me on muinabello@yahoo.com so i can email you the details on how we will go about it. please reply by sunday 4pm so we can plan meeting on monday.
ps. i know some issues will be raised like whats the gain but imagine you getting an insurance coy at 55k.
it should be listed by feb.

wanajo , i like you! you are an intellience man!!!

but i also think that a lot of inssurrance stocks will give 100% in the next 6 months. 1year loan is still possible just a matter of negotiation! maybe 21% for 365 days against the current 180 days. If you buy skye post offer at N17 you will reach 100% before the end of this year.

I also like his strategy for this loan. He paid the 21% interest to the bank upfront! so he can use the money as he want with relaxed mind. he only need to worry now about the preservation of the Capital. Wanajo based on your post, i will tell him to press for 1 year loan. In naija everything is possible with good arrangement.!!!

Fidelity bank and FCMB  will return 100% this year.

well we learn everyday. He said, there is no going back on the loan. i want all of us here to share in the success story of this post this year. Home work is required and there will be a test.That is how to get rich,

I have asked GOD for great contributors in this post .No joke. A great contributor will make this matter a whole lot easier. I am paying attention to the details.

muina:

hello house
my broker just gave me a deal that will close by 10 am on monday.
investment and allied assurance 2.00 at 210 naira per share private placement.
minimum of 100k units.
since the offer has closed it attracts a .30k premuim to the people that will organize it.
finally a 5k fee to him for his services.
if you want it please email me on muinabello@yahoo.com so i can email you the details on how we will go about it. please reply by sunday 4pm so we can plan meeting on monday.
ps. i know some issues will be raised like whats the gain but imagine you getting an insurance coy at 55k.
it should be listed by feb.

When it get listed is not as important as when you will get your certificates. Any prospectus? Any profit forecast?

WASKY-WAJA:

wanajo , i like you! you are an intellience man!!!

but i also think that a lot of inssurrance stocks will give 100% in the next 6 months. 1year loan is still possible just a matter of negotiation! maybe 21% for 365 days against the current 180 days. If you buy skye post offer at N17 you will reach 100% before the end of this year.

I also like his strategy for this loan. He paid the 21% interest to the bank upfront! so he can use the money as he want with relaxed mind. he only need to worry now about the preservation of the Capital. Wanajo based on your post, i will tell him to press for 1 year loan. In naija everything is possible with good arrangement.!!!

Fidelity bank and FCMB will return 100% this year.

well we learn everyday. He said, there is no going back on the loan. i want all of us here to share in the success story of this post this year. Home work is required and there will be a test.That is how to get rich,

I have asked GOD for great contributors in this post .No joke. A great contributor will make this matter a whole lot easier. I am paying attention to the details.

Paying the 21% interest upfront is a dumb move!!!! That effectively reduces the amount of money he has to trade with!!!!! 21% is like N8m. Effectively, he is collecting a loan of N32m. Not very smart.

For such loans, he should not go near a PO at all. What happens if SKYE bank certificates are not available in 6months time? How will he pay the capital back?

While we all expect the market to be bullish we don't know for SURE? Unfortunately, the shorter the time you stay in the market, the higher your probability of making a loss!!!!

Personally, if I have a gun on my head and I have to go for something like this, Dangote Sugar will be number one on my list. Good Capital appreciation and quarterly dividend. At <40.00, that will be a steal.

@wanajo, You keep mentioning DSR,maybe i will go and add more on my holdings there o o

@ waja

  the guy could have just used the N8m 21% Iinterest to invest but well sha, na im money. as i said i wish him all the best. i'm afraid i can't make any recommendations as the market is too unpredictable and the sums involved frankly cut my liver, ie OPM.

@wasky-waja, what is the collateral your friend offered to the bank for them to give him that type of loan? cash, certificates, house?
I am only asking so I can know what the level of his loss will be 'if' the shit hits the fan.

I am interested, keep us posted, I was offered a similar deal by my brokers, cause they think i will make it, they watched my fast trades and decided to approach me for a termed loan.

I refused, but lets see if your friend will survive this.

He needs some fasting, many days.

abocana:

@wanajo, You keep mentioning DSR,maybe i will go and add more on my holdings there o o

Dangote Sugar appears fairly valued.

@wanajo

and it has been fairly valued for more than 6months.

the market continues to delay in valuing it at its right price. I am afraid this plan is dangerous and as u've said, a risk not worth taking

wanajo thanks again! invisible ,NBA,aktopkun  , million thanks to u guys,

first the 21% interest for 180 days (6 months) is N4,142,465 as calculated by the bank and not 8m. He used certificates(representing 40% of the 40m) in securing the loan. his house is not attached.  Normally the interest is payable every month. If most pay interest every month, it means he will be under pressure every month! so  he decided to take care of the interest upfront, ! not good when u are thinking about interest repayment in this type of loan every month. This is not like mortgage monthly repayment, this is different.

Wanajo i have taken note of your DSR hint but. skye bank will be bought on the floor also Zenith bank and costain immediately the technical suspension is lifted he never intended to buy any PO.

aktopgun:

@wanajo

and it has been fairly valued for more than 6months.

the market continues to delay in valuing it at its right price. I am afraid this plan is dangerous and as u've said, a risk not worth taking

Depending on your time frame. I entered DSR at <33.00 around August/September, so you can see that it is inching up gradually. Performance (turnover) not wonderful but I expect the PAT target to be met. Add that to the quarterly dividend. It should be able to do 30% in the next 3 months by which time the guy can move to another stock. Also, the gyrations on other stock is absent so not expecting a 'loss'.

In this type of situation, you cannot afford to diversify. You need to hit and hit big!!!!

WASKY-WAJA:

wanajo thanks again! invisible ,NBA,aktopkun , million thanks to u guys,

first the 21% interest for 180 days (6 months) is N4,142,465 as calculated by the bank and not 8m. He used certificates(representing 40% of the 40m) in securing the loan. his house is not attached. Normally the interest is payable every month. If most pay interest every month, it means he will be under pressure every month! so he decided to take care of the interest upfront, ! not good when u are thinking about interest repayment in this type of loan every month. This is not like mortgage monthly repayment, this is different.

Wanajo i have taken note of your DSR hint but. skye bank will be bought on the floor also Zenith bank and costain immediately the technical suspension is lifted he never intended to buy any PO.

No wahala.

My calculation was based on the 1 year scenario.

Well, instead of paying the N4m at once, I would rather keep that amount in my broking account and mabe leave N1m at any point in time to handle the interest payment. Most likely, he will always have some idle fund in the trading account anyway!

As per buying after lifting of Technical suspension, not as easy as you think!!! Orders are difficult to execute at this time nad if he does not give a price limit, expect the broker to buy at the PEAK!!!

Now if the 40% is his TOTAL porfolio, then he is taking unnecessary risk!!! He is mortgaging all that he has. If the 40% pledged is liked max 40% of his portfolio then it is manageable.

That said, I have a close pal who has collected margin facility of over N60m. Quite an intesreting experience for him. He is fortunate in that he has a steady source of income (salary), he also has other good performing businesses. That allows him not to be under too much pressure.

as it is after haven taken care of interest upfront , the 40M (cash)is now at his disposal to use as he wants. with this type of money he can create scarsity wich can drive price up!  stock business is a game of volume! with good CICO he can make 70% in 6 months

@ALL,
Is it adviceable to buy Intercont.Bank now.(for 6-9 months)

WASKY-WAJA:

as it is after haven taken care of interest upfront , the 40M (cash)is now at his disposal to use as he wants. with this type of money he can create scarsity wich can drive price up! stock business is a game of volume! with good CICO he can make 70% in 6 months

N40m is nothing on the NSE!!! That will buy you only 1m units of DSR out of the 10bn listed or 3bn available for trading.

N40m will buy you less than 1m of First Bank out of the over 17bn units listed!!!!

So, N40m is not that BIG and you will be surprised at how much some people are use to trade daily.

N40m will not move the market!

@WASKY-MAJA,
YOU ARE THE PERSON FOR THE 40M(LOAN) NOT YOUR FRIEND,
YOU HAVE ALREADY KNOWN,WHAT TO DO WITH THE 40M,GO
AHEAD.THE ALMIGHTY WILL BE WITH YOUR PORTFOLIOS AND
BLESS YOU MORE THAN 200%.(AMEN)

WASKY-WAJA:

as it is after haven taken care of interest upfront , the 40M (cash)is now at his disposal to use as he wants. with this type of money he can create scarsity wich can drive price up!  stock business is a game of volume! with good CICO he can make 70% in 6 months

chei! chei! chei! see power play. but 40m creating scarcity will greatly depend on which stock u buy. it won't really dent companies with billions of shares on issue.

wow see business plan! talk about leverage.

some companies in NSE have less than 1b share outstanding. 40m sure will make an impact. Wanaja don't forget if he suceeds and repay this loan, he can go for 100M and believe me, he only need to borrow twice and stops using banks money. first bank alone, and DSR and FCMB and can give 50% to 70 in 6 months. Wanajo i like your way of reasoning, i have learnt a lot from you, thank you,

WASKY-WAJA:

some companies in NSE have less than 1b share outstanding. 40m sure will make an impact. Wanaja don't forget if he suceeds and repay this loan, he can go for 100M and believe me, he only need to borrow twice and stops using banks money. first bank alone, and DSR and FCMB and can give 50% to 70 in 6 months. Wanajo i like your way of reasoning, i have learnt a lot from you, thank you,

If you know this for sure, please send me the next lottery number.

This time last year, WAPCO was to give 1 for 1 bonus that will give 100% return in six months. My friend used his margin facility to buy WAPCO @ 75.00 with the assumption that it is just rising. Don't forget, this same guy made a kill with BCC by buying 1m units of the the rights @ 6.50 (traded rights on the floor), Well, you know the story of WAPCO.

In a BULLISH environment, people tend to assume that prices ALWAYS go up!!! Sorry, it is not always like that.

Anyway, enjoy the loan and the returns.

Companies with small units of shares (like NESTLE) are quite pricey! Others in that category don't even have the units to sell. Use the N40m to buy Chellarams and see whether you will buy anything.

i am not the one who is taking the loan oooooooo!!! lol wish i have such liver! it is my close friend, but i am learning something on it ,

About 9.1bn shares to be added to the oustanding shares of Access Bank. Allottment already cleared by SEC.

I'm learning quite a lot from this site, and i must commend all the Guru for their unrelenting contribution,

@ poster,
    Ur friend has taken a brave and unprecedented  decision, i wish him the best,

But he should have realised that NSE is unpredictable, predicting stock that will give him 100% profit in 6-9 month is where he got it all wrong,

I was in this type of  situation about 14 months ago,


After vigorous analysis and help from expart I bought First bank in October 2006 @ N44.00, i committed a lump sum in the stock anticipating that it's going to give me reasonable return within 6-9month, Up till date I'm still counting my losses, But I'm not bordered cos it's not a loan money,I'm ready to play along with first bank due to their strong fundamental ,

Ur friend really need to do a deligent home work before he leap to any stock,

Wish everyone happy weekend !

Nigerian Bank with their killer interest rate, imagine N4M interest on N40m loan for six months, plus broker and NSE commission,

Its interesting that there has been a turn around in the NSE. Insurance stocks have the highest turnover in terms of volume, not the banking stocks anymore

Could it be that the Insurance stocks are going to reign in 08, compared to the banking stocks in 07?

ZENITH BANK AVAILABLE IN LARGE VOLUME FOR ANYONE INTERESTED TO RIDE THE POST-OFFER
JET.