Hi Nairaland users!!! I am Ayo, for short, a research/investment analyst with a reputable stockbroking firm in Lagos Nigeria, and this is the begining of a daily report on the events at the nigerian stock market.

Nigerians and even foreign investors home and in the diaspora have reaped more than a 100 percent returns on there investments between January 2007 and now thanks to the bullish stock market. Virtually all the quoted stocks/shares has rallied by some percentage in the current campaign in 2007.

Most active sub-sector is the banking sector which can give maximum returns for short-term investors. Closely followed by the banking sub-sector is the insurance sub-sector which is now the toast of investors which is not unconnected with their recent recapitalization exercise boosting their confidence in the process.

In my series, i will focus on five active sub-sectors by picking hot stocks which could make you so rich without having to sweat or monitor your investment. For today, i will merely start by highlighting the following stock picks, based on the specifics;

1. Bank PHB: Having reconstructed its shares recently and listed last week at N16.10 per share, it has been on the rise to close at N22.05 today. In less than two weeks investors who put in N16 million on the banking stock now has N22 million worth of shares. I recommend Bank PHB as a BUY for all classess of investors based on the bank's recent improved earnings and profitability.

2.Fidelity Bank: Started trading January this year below N3.00 per share to close at N7.49 today. Investors have reaped more than a 100% share value return on the stock between January and now. Its recent 9 months result for Mar 2007 revealed a N3.1 billion profit after tax compared to N969 million recored in the comparable year of 2005. I recommend a strong BUY on Fidelity in view of its capital appreciation prospects in its last quarter.
Other recommended stock are Cornerstone insurance, Mutual Benefit Assurance, Dangote Sugar, IBTC, Diamond bank, UBA, 7-UP, PZ, Sterling Bank, FirstInland and FCMB.

3.NAHCO: This is unarguably the hottest stock this year, the aviation stock is currently the solely quoted stock on the NSE having suspended trading on ADC and Albarka airline due to the revocation of the licenses of duo. Nahco has firmed its share value by about 500 percent this year alone. Quoted last year at N5.00 following its privatisation by the Fed. govt of Nigeria, it closed yesterday's tradin at an all-time high of N70.05 per share, it means an investor who has 1 million units of Nahco has made a gross profit of N65 million naira witout havin to run the coy himself!!! There is no beta time to invest in Nigerian Equities than now followin reduction in transaction charges at the capital market.

Call me on my mobile Reltel +234-01-4041391 for further enquiries please.

CAVEAT.  Note that my analysis is based on reports and company results gathered from the Nigerian stock exchange therefore highly subjective and I will not not be held liable for any loss of capital on any investment as most investmets are risk prone. But remember the higher the riskiness of an investment the higher the expected profit.



Part 2: https://www.nairaland.com/nigeria/topic-52566.0.html#msg1102698

hi all,
talking of penny stocks what does the house think of grommac .it is in the agric sector.it has being on the rise since april.the price is only 52 kobo.this could be another NASCON in d making.please use this link to check a graphical analysis of the stock http://www.firstglobalselect.com/scripts/cgiip.wsc/globalone/htm/quote_and_news.r?pisharetype-id=5825

Hi aylala2002,

This is very interesting to me. We need more of this for others and myself to make their investment decisions. Thanks for the good work and continue with it.

Cheer!!

Can you tell us about the FUTURE growth potential of PHB and Fidelity
It seems most of the stocks you listed are already at their peak
tell me about the next dangote sugar in the market at the moment

any proper info on eternal oil?

The Nigerian Equities Market came down marginally 2day as most blue chip stocks like Mobil, Guiness, Conoil and Ashaka all conceded prices with the All-Share Index closing at 47,293.12 while the market capitalization closed at N6.77 trillion. Top gainers were Nestle, Nahco, Nascon, and RTBriscoe. Based on the specific, I highlight the following stock picks based on some of my recent clients' requests:

1. WAPCO disappointed investors in their full year result wit just a N1 per share div witout any bonus issue but mark my word all building stocks are GUD BUY now on the medium and long-term approach because cement prices are set to be on the rise due to the hot demand on cement based on various constructions and developmental projects here and there.Dangote himself has postulated a rise in cement prices, so watch out for CCNN,BCC, WAPCO, hold on to Ashaka as we await its long over-due full year result for dec. 2006.Oceanic is the bum! but u can't get it on the floor since it's scarce (on bid) but try and get it because the price is set for an upside once the technical suspension on it is lifted. Oceanic is a N40 stock by Dec. 2007 as they position for the third position in Africa.

2.Ecobank's recent full year result for dec. 2006 was good enough. the bank made a profit after tax of N3.6 bn against N1.7 bn in 2005. The directors are recommending a div of 9kobo per share , closure date is 14th may, payment date is 1st of june 2007. investors are expecting more from the bank but were disappionted about the low div. and no bonus issue - the reason why it dropped yesterday by 28 kobo to close at N7.30 per share.

There is the market hearsay that the bank is on the verge of merging with unity bank which cld giv the bank a synergistic effect in terms of expansion network alone. otherwise unity bank merger doesnt sound nice.Ecobank transnational inc. (ecobank Nigeria.'s parent coy) is also on merger talks wit 1st bank of Nigeria.which sounds nice.
Generally, Eco bank Nig. is a LONG-TERM BUY based on the bank's profitability, it actually boosted the parent coy's Q1 profit for march 2007.

3.RTBricoe is now an investor's delight; having paid a final dividend of 50 kobo and a bonus of 1 for 4 on 27th April 2007 (in its dec 2006 financial year), the coy is already making a profit after tax of N149.53 million Q1 result for mar. 2007 compared with N75 million it recorded in 2006. This culminated in today's 4th position on the gainers' chart. RTBriscoe is a highly diversified coy and the stock has been able to firm its share value by more than 100 percent in 2007. I recommend the automobile stock as a BUY at the current market price for any rational investor

CAVEAT.
Note that my analysis is based on reports and company results gathered from the Nigerian stock exchange therefore highly subjective and I will not not be held liable for any loss of capital on any investment as most investmets are risk prone. But remember the higher the riskiness of an investment the higher the expected profit.

Additional information By Goddy Egene from the punch newspaper gave an insight thus;
Ecobank, Unity Bank may merge

Published: Wednesday, 9 May 2007
TWO Nigerian banks, Ecobank Plc and Unity Bank Plc, have begun plans to merge.

The two banks will sign a Memorandum of Understanding in Lagos on Wednesday (today). People close to the banks say it will lead to the combination of their businesses.

The plan, if it pulls through, will make the merger the first after the consolidation in the banking industry.

Ecobank Nigeria is a member of Ecobank Group, which is a private sector banking group based in 13 countries of West and Central Africa.

Ecobank was one of the three banks that did not merge with another bank before complying with the N25bn minimum capitalisation specified by the Central Bank of Nigeria in 2005.

On the other hand, Unity Bank Plc was formed by Intercity Bank Plc; First Interstate Bank Plc; Tropical Commercial Bank Plc; Pacific Bank Limited; Centre Point Bank Plc; Bank of the North, NNB International Bank, New Africa Bank Limited and Societe Bancaire Limited.

Details of the deal will be unveiled at the signing ceremony, according to sources close to the two banks.

Unity Bank had from inception stated its desire to create a national franchise to be run by carefully selected professionals with competences spanning corporate banking, investment banking, retail banking, among others.

The bank took off with an asset base of N100bn and over N30bn in shareholders funds and over l00 branches.

Unity Bank recently completed its Information Technology integration project with a cost of about N3.5bn.

Speaking on the integration, the Executive Director, Operations and Services, Unity Bank, Dr. Evans Woherem, said, From Day 1, Unity Bank had an extremely challenging situation to contend with as far as information technology was concerned. Over 70 per cent of the banks branches had no basic network (Wide Area Network or Local Area Network) infrastructure. Many of them operated manual banking services.

When our correspondent called the Head, Corporate Affairs, Unity Bank Plc, Mr. Baffa Muhammed, on the phone, he confirmed the signing of the MoU, but refused to give details.

However, an official of Ecobank, who asked not to be named, confirmed the merger plan.

Many Nigerian banks have taken steps to increase their competitive strength after the consolidation.

While some went to the market to further boost their capital base, others received foreign investment inflows.

I tot it was BCC that gave a bonus of 1 for 8 (but no dividend) and WAPCO gave a dividend of N1 (but no bonus). I think U're right on the boom the building material sector is set to experience, but not so sure of CCNN. Anyway nice rightup.

What's the latest info on the merger between FBN and ETI. Is still on course or has it hit the rocks cos we don't seem to be hearing anything on that.

Cheers

@ dis guy, FUTURE prospects of Bank PHB and Fidelity are capital appreciation and dividend prospects. a bonus issue is highly uncertain. However, Fidelity bank may apply for a shere reconstruction soonest just like wat PHB just did cos Fidelity has the 2nd highest number of shares in issue currently in the banking sub-sector after Ecobank. Fidelity has 16.5 billion shares in issue while Eco has a whooping 21.7 billion shares. Then I think u'd have to wait for Dangote's salt and cement listings or IPOs otherwise UBA and Oceanic cld be the next gud thing in the market. Nahco has done well 2, currently on the high side(N66.10 per share today) based on the unprecedented 3 for 2 bonus issue which drove the stock 2 dat height. A new info from a quoted coy is usually the driver of price since the market is info driven.
Nigerian Stock Market is currently the most profitable haven for investors all over the world, so there're no high prices for now, patience is d in thing and ur investment motive. I'll encourage long term buys. On the short term, go for banking stocks!!!

Eterna Oil & Gas floats N1.4 billion rights issue
Friday Ekeoba, Lagos (tribune newspaper)

As part of its repositioning strategy, Eterna Oil & Gas, is set to float a rights issue of 150 million ordinary shares of 50 kobo each at N9.95 per share, translating to N1.4 billion.


The application for the rights issue basically for existing shareholders is expected to commence on May 14th, 2007, while acceptance list closes on June 11th, 2007.


Addressing stakeholders on Monday, at the company’s board meeting, the chairman, Otunba Tunji Lawal-Solarin, said the company’s raising of fund through rights issue was occasioned by strategic need to expand its business and position the company for growth.


He said, the company was presently embarking on a series of strategic actions aimed at enhancing its relevance within the oil and gas industry.


Specifically, he said, proceeds of the offer would be used to acquire a costal petroleum tank farm, retail outlet development and construction, as well as provide additional working capital needed to drive planned business expansion.


Estimated net proceeds from the offer is adding three new ordinary shares for every 10 previously held. After deducting the cost of the offer stands at N1.4 billion, thus bringing the total market capitalisation of the company at offer price (post offer) to N6.469 billion.


Eterna Oil & Gas Company, it will be recalled, is noted for products which range from fuel stations, upstream products, and marine automotive and industrial lubricant, and LPG, associated products.


In the offer’s prospectus forecast made available to the press, the company planned to grow its profit after taxation to N165.1 million, N461.4 million, and N616.5 million in 2007, 2008, and 2009 financial respectively.


The company’s prospectus also stated that, turnover for the company barring any unfavourable event is expected to climb to N14 billion, N18.1 billion and N22.6 billion in 2007, 2008, and 2009 financial year.


The company will not be paying dividend in 2007 financial year because of its expansion pro-gramme.


The company is expecting to pay a dividend of N179.8 million and N371.1 million to its shareholders for 2008 and 2009 financial year.

thanks

whats up with CCNN in this week? any news about the company?

On the other hand, Unity Bank Plc was formed by Intercity Bank Plc; First Interstate Bank Plc; Tropical Commercial Bank Plc; Pacific Bank Limited; Centre Point Bank Plc; Bank of the North, NNB International Bank, New Africa Bank Limited and Societe Bancaire Limited.

are they fully merged now?

I think the merger between FBN and ETI been called off

is the share offer for existing shareholders alone ?

Specifically, he said, proceeds of the offer would be used to acquire a costal petroleum tank farm, retail outlet development and construction, as well as provide additional working capital needed to drive planned business expansion.

Yeah, for existin shareholders alone.not a public offer

@ gist sorry abt the error and tanx for the correction WAPCO gave N1.00 per share while BCC gave a bonus of 1 for 8.

Hello Nairalanders,

I think everyone who has posted has done great and applausible task, thank for the piece of information.

Moreover, I do wish to know list of companies and banks paying good dividends and bonuses to their customers who have invested their hardly earned money in buying stock/shares. Pls, let me the names of those companies,most especially those that sell at cheaper rates.

Anyone with useful idea can contact me directly via my email; nathool2006@yahoo.com or on this thread here, Thanks!

@aylala, thanks so much for the info. please do you have any idea bout 1st bank?do they have any major projects in sight? do you think their public offer will be the investors haven like dangote sugar?

hope you'll keep posting these tips!!!keep it up pls

aylala thanks again for the info. wats up with ccnn and mutual benefit assurance? whay are those shares depreciating daily?

Share prices drop due to a lot of factors, one is the forces of demand and supply, a lot of investors have made money from MB and CCNN this year alone, so they are takin profit on those stocks. CCNN might be doin badly in their earnins, but they'll bounce back shortly as govt. policies favours cement production in Nigeria. So hold on to your stocks in CCNN and MB!!! As for 1st bank, foriegn investors are already canvassin for a stake in the coy, grab every opportunity u can 2 buy 1st bank once the offer opens, if Zenith cld be trading at N49.15 per share as at 2day (10th may 2007), then u can expect the pioneering bankin institution in nigeria to perform better in the market. !st bank bank bank is capable of grossin N85 billion in earnins and a PAT of N20 bn for their full yr result for Mar. 2007 which is yet 2 be released. UBA and Zenith are both trailin that path 2!!!

@aylala2002
please can u tell me watz happening to conoil and oando shares, they are the worst set of shares i have ever bought(esp.oando). should i sell? close to three years now they have been averaging N70. need your advice

yemo:

@aylala2002
please can u tell me watz happening to conoil and oando shares, they are the worst set of shares i have ever bought(esp.oando). should i sell? close to three years now they have been averaging N70. need your advice

I  think the problem cuts across the petroleoum marketing sector (With exceptions to Eternal oil and Chevron Oil). I also bought some share in TOTAL many months ago @ 198, which as today closed @ 181.5. But I hope the sector will have some good turn around soon, else

@aylala2002, what do u think. The last time I Total release it result, it was in the red!!

I have been thinking about buying CCNN, should i buy it now or should i wait for it go the other way?
_{does anyone know who CCNN supplies to apart from the sokoto state?}

@aylala2002.

Thanks for the great enlightenment.

Please what about UBN and Oceanic are they very good also?

@ umobile, i have been watching out for that stock and afroil but my stockbrokers say is unavailable- could youhelp out on that pls.

my stockbroker told me as well that afroil is scarce as well.

Does any person knws wht penny stocks, one can buy?/ for now that will be profitable.

@ all petroleum shareholders/stockholders, petroleum shares are the most valued on the Nigerian Stock Exchange (NSE) cos they've got pedegree. They were the earliest quoted quoted stocks hence the high price tag, investors shld buy these pet stocks if they are interested in reaping dividend. Their prices are very volatile cos they lose and gain high prices daily (share prices changes by + or - 5% daily), so the higher the price, the greater a stock loses or gains value. Oando performed poorly last year, but has done well this year (traded at N90.00 per share last year, but once a coy declares div. or bonus, the price gets adjusted for div. or gets marked down for a bonus. Oando declared  a total of N4.00 per share div. , Total declared N7.50 per share, Mobil N7.14 per share etc all in their recent result for Dec. 31st 2006 full year. Patience is the game in the capital market, then seek the services of proffessionals cos Nigerians are passive investors, u need sumone 2 giv u market info from time 2 time so u dont miss out on ur dividend warrants. He'll also advice on wen 2 sell if a stock is doin badly.

Oceanic is a hot stock currently, UBN (Union bank)  is quite lukewarm we'll watchout for their full year result

Thanks aylala2002,

iI just sent a mail to your yahoo box. Kindly respond.

Hi Ayo,

Nice job. Your posts' have an undertone i appreciate. Its the tone of one that knows, but isn't proud. Keep up the good work. Once your stock broking firm is up, let me know. I'll get as many people as i can to register with you. I'll also register

Very catchy topic too. Keep up the good work.

I need a stockbroker that can offr me loan with any form of collateral. Any advice?

Nice one!

Keep us updated and keep up the good wuk

Godspeed!!

Aylala2002 thanks a lot for all the info.please do u know whts delayin Intercontinental's share certs?its takin too long o.Will still send u an e-mail anyway.Thanks

did u say stock,like how mcuh can one invest
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wassup,guess everybody is really interested in shares.am also interested.but really it is a very risky business and you tend to make profits quicker by buying and selling and having turnovers instead of sitting on shares,that is, waiting for bonus or dividends.most companies would not give tangible dividends or bonuses that commiserate with your funds utilized by them.so to be profitably,rely on your guts,dont sulk over lost profits and dont wait for too much profit else you land in trouble but generally is fun.win some,lose some.

what happening to union bank. their stocks are not doing well.

i think my little experience has shown me that stocksmarket is an information driven arena but its a pity nothing as such is coming from union bank hence i guess thats responsible for their price stagnation.