₦airaland Forum

mecatchcha:
@All,

See bleeding again today. Which kind bears be this self?

@AkTopGun,

Abeg, u fit carry your candles blind these bears, make they run away. Man fit get heart attack oooooooooooo

i can't post pictures anymore so we may just have to hope our ninja training to fight in the dark will help! _{goes off to continue practicing ninjitsu candle style}

@ijogbon et londoncool et easi

Mobil

ijogbon:
In support of aktopguns post to the engineer above, I will also like to add that the basic foundation of all investing should be 'MONEY MANAGEMENT' . Enough attention is not paid to the simple I want to make better than I would make if my money was in a savings account/ in property/ or more than the inflation rate etc.

@aktopgun

Your frustration about being censored over the holidays is shared. I tried three times to post my well edited NEM and UBA charts (all three times without waiting to see it posted before deleting it from my computer - Yeah, 3 times; I'm that dumb!!!) only for it to bounce all three times       I almost ran bonkers.

Did you see the UBA pattern yet or is it NEM I remembered one of them doing a kind of Morning doji star reversal but with a bearish candlestick for today?

it was NEM. i was discussing it with londoncool and invincible i think. I discussed UBA with u and savvy i believe. i was sceptical about UBA late yesterday but overall we were right on both

@crazyT

i hate to tell u this but Unity isnt looking good at all at all. the candles in the last 5 market days heve been red and today it did a long red marubozu. there were no buyers today, na so so selling.  
i hope we will see some stabilization soon cuz it has now reached support zone. the signs arent good but lets hope shall we.

fidelity on its way

really peeved off i cant post pictorials

aktopgun:
lets see if i can add a few more ratios before my clinic starts this morning

Price/book ratio:
calculated by dividing the current price of the stock by its book vlue(obviously  ). Now book value of a company in clear terms is just how much a company is worth if it were liquidated completely ie sold off. book value is calculated by dividing the common shareholders equity by the number of outstanding shares. so again price/book ratio is price of stock/(common share holders equity/number of outstanding shares.

ideally u want a number less than i which means that u are paying less for the share than its liquidation value.
BUT if u have a company wth a number greater than 2 don't rule it out completely if the business is earning good money and has a network, good brand name etc. example, coca cola. anyone can have a great formula for making cola but who has the brand name or distribution network of cocacola, see the point.
Use price/book ratio along with other ratios for a fuller picture to help with your decision making

Price/sales ratio: calculated by dividing total Market capitalization by last 4 quarters of sales revenue. Can also be calculated more easily if u already know the price per share (we get that everyday on the NSE), and the sales per share (calculated by dividing the sales revenue by the number of outstanding shares).
example- our friend company A has 100 outstanding shares. its share price is say N25 and it makes sales in 2007 worth N100,000. its total market cap. is 100*25=2500. its PSR is therefore 2500/100,000=.025. this means u are paying N0.025 for every Naira of the companies sales.

PSR is good to use because in many ways it helps alleviate the fears inherent in EPS which is more open to manipulation. PSR is less likely and i dare say impossible to manipulate unless the company is downright fraudulent and lying, because it is basically the revenue the company has made from its sales chikena!

remember though that the EPS AND PSR are not mutually exclusive and therefore both should be used

Next ratio.

ROI Return on equity.
calculated by dividing net income by total shareholders equity(preferred + common euity)* 100
Best that this percentage be nice and big. i think 25% and above (not being greedy    )

gotta run, work begins.
happy investing

@echelon

and this

aktopgun:
Oh, just to say that growth investors search for their "players" using earnings, that is, raw earnings and EPS (earnings per share). A groeth company is said to have earnings momentum whaen it increases earnings yr on yr or quarter or quarter.

to the Ratios now:

1.Current ratio:
Calculated by dividing the current assets of a company by its current liabilities. the word "current" isnt used in its everyday parlance here. Current assets refer to the assets of a company that can be immediately converted to cash eg accounts receivable, inventories, raw cash itself of course, etc.
Current liabilities refer to a companies debts that are required to be paid usually within one year, eg accounts payable.
Current ratio measures a companies ability to keep short term commitments. You want the ratio of current assets:current liabilities to be anything from 0.5:1,1:1,2:1, etc, as long as the current assets are more than or equal to the current liabilities side (at least no less than 0.5 preferably)

2. Dividend yield:
a favorite for nigerians is dividends but more importantly, dividend yield is more helpful. It is calculated by dividing the annual dividend a company pays out to share holders by the price of the share. example company A. it pays its shareholders a total dividend (adding all the dividend they paid per quarter together) of N1 and its share price is N20. its dividend yield is 1/20=.05, .05*100=5%.
You will notice that there are only 2 parameters used in calculating dividend yield, dividend and share price. Annual dividend for most companies remains relatively stable with little variation yr to yr. the price of the share on the other hand, changes daily, so if for example the share price of company A goes up to N40, the dividend yield becomes 2.5%. this ratio is best used for large cap companies and can help u choose between them

got to run for now, patients to see. will continue as time allows

and this as well

aktopgun:
WARNING: THE MARKET WARNS THAT LEARNING THESE AND OTHERS LIKE THESE IS LIABLE TO MAKE YOU WEALTHY

Here is a small instalment of the "tutorial" i spoke of late last year for my fellow nairalanders. I'm only able to do this because i'm on call and it's not so busy being sunday plus of course wifey & my son arent here!!  .

here goes nothing.

How to evaluate a stock:

Before we go into the ratios to observe, let me just first say a few words on growth and value investing. First lets be clear, they are not mutually exclusive and ideally should be combined in the individual investors portfolio.
Growth investing is when u buy a stock whose earnings are high and forecasted to get higher. As a result of the current high earnings and the markets expectations, the prices of growth stocks are likely to be high. allow me to use football as an example as i'm sure we have many premiership fans here. Growth investing is like buying the finished product like Chelsea football club did when abrahamovich went and bought players who are already stars (mercenaries). When u buy the ready made product u expect it to perform week in week out or in our case, fiscal year to fiscal year. these players are expensive but will probably deliver most times. the same way growth stocks are solid and experienced and will deliver 8 times out of 10. they may therefore be expensive.
Value investing is like what that yeye manager at Arsenal football club does by coming to Africa and other 3rd world countries to search for young, largely untested players who he hopes will go on to become world stars like the players in Man united  . ASSENE (notice i intentionally spelt his first name wrong  ) searches ivory coast, togo etc for players he hopes will develop to world beaters. The same way value investors search for companies that are really yet to attain their potential or are only in the very early stages of doing so. He uses the price/earnings ratio most for this search amongst other ratios. example. If i may be so bold, when easi or pumping say company X is expensive for example, they can only be talking in terms of the companies earnings and performance. The current price of Company X's share on the NSE divided by the earnings per share (will talk on EPS a little later) gives the P/E ratio, the king of ratios for value investors.

An individual investor in my humble but certain opinion would do well to combine both growth and value investing strategies in his portfolio, with value strategies carrying the largest chunk, probably in a 70:30 or 65:35 percentage.

Now to the ratios used in fundamental analysis of a stock

to our dera friend the engineer who asked for how to evaluate stock and read company reports

hope this helps, i posted it here a while back. might be worth going back on this thread to read it. it would answer most of ur questions

its unfortunate u know, if not for all the unpalatable goings on here over the easter, one could have warned his fellas and fellettes about some impending drops but no, not only were we shut down, we cant even upload pictures   _{sobbing in corner}

Ikeja hotels for example did a doji on thursday after its recent climb and that sent my alarm bells ringing on my computer but i was so tied up between SMN and here ovr the holidays (apart from other easter festivities  ) that i forgot to point it out . SORRY GUYS. i kinda got disillusioned when i couldnt post pictures

@mypeace

transexp has reached its support are and looks to be consolidating around there. it looks unlikely it will drop much further but i've been wrong before and probably will be again  

let me check to see if u are on my caveats list, i dey come  

@MYPEACE
GIRL, WAIT SMALL MAKE DEM UPLOAD THE CHARTS TODAY AND I'LL HAVE A LOOK AT IT

BY THE WAY HOW U GO DEY CALL URSELF GUGURU, NA LIE JO!!

@omoba

redstar, betaglass

@londoncool

NEM

i see the prices are skewed again today as usual
expect they'll be updated later

i am so dragging my feet about moving house!

especially when i am not sure the move is needed or even a step up

Union homes is looking interesting. looks like its set to break out of that trading range its been in u know.

yodiyokun:
Aktopgun,

I am representing- What say you guys are we off to SMN?? or how far?

At least there is moderation goin on there!.

girl its been tough trying to stay on both fronts today u know and i dont even have work today!!.

i kinda favor here cuz we have everyone on one thread gisting at once on variuos issues but on SMN we are just getting used to that idea and it kinda looks strange over there . but with the issue of picture downloads becoming a no-no here we may in the end have no choice but to switch!

SavvyLanre:
Folks - so we have moved 
And, our archive would be gone as well??

Well, regarding UBA,  the thing has no where to go but up,

Look at the Inverted Hammer and the Oversold bollinger band pounding - we should see an uptrend tomorrow,

i agree with u savvy that UBA should do better tomorrow unless there's something we are missing.

however on the candle pattern from last thursday, u see, for a candle to be a full hammer, it is required that the tail be twice as long as the body of the candle. this isnt quite the case in the thursday candle.

another thing is that if we believe this is a dumpling top reversal then UBA should drop some more. sounds like i am undecided about it doesnt it?  
been looking at the chart closely and i am inclined to reconsider my position on it and say  

the jury is out on this one for topgun but the above are my thots on it

@ioma

SMN is not that great i must say but we may have to make di with it for now or just try to build this thread slowly again.

this is getting on my last nerve man

@faketan

go to stock market views on the business front page. we have started a new thread called stock market views there.

seun locked the old thread cuz of the blood letting that went on there over the weekend by the usual suspects

@andico

we cant upload pics any more, seun has reduced the file size allowed on here

andico34:
I have not seen the pics on Nem and Mobil. By the way I am a technofundamentalist

welcome to the club mate. i am a fundamental technocrat.

looka t their charts and tell me what u think. u'll find my thots on them above

andico34:
@aktopgun
Happy to be back!
In relation to the previous discussion. The mbenefit base formation is a pan with a handle or "saucer with a handle" Why?

Pan with a handle formations are shallower in terms of the depth of its correction.

Minimum length of the base of a pan with a handle is usually more than 3 months, Mbenefit base about year long

A cup with a handle base does not exceed more than 2 months and the depth of the cup is steeper(e.g utc cup formation)- according to williams o neil- the authority on cup/pan formations

i have been trying to post the picture correction here man but no luck. u are right on the MBENEFIT. i rechecked it yesterday too.
nice one.

take a look at Mobil and tell me what u think and NEM pls

will be waiting man.

@easi
does SMN have a general forum where we can talk cuz last i checked we still had to click on individual stocks to talk on them.

@easi.

unfortunately that doesnt work either.

it keeps giving the message "the upload folder is full"

any other suggestions?

easimoni:
Egoldman, Longest time.
UBA has just about the best fundamentals in the banking sector + the price has dropped ~N3 lately. Diamond's FY is next month so it must rise. the guy was asking mainly to preserve capital. V little upside with those 2, but also little or no downside.

easi,

i holla.

LondonCool:
@Aktopgun,

What makes you suggest a price rise ? Did you check any imminent trend reversal? I thought it was in a free fall for more blood shedding

2 things- the head and shoulders pattern formed during the month of feb which has now virtually reached its target bottom and the gravestone doji on thurs last week.

i suspect a rise/stabilization quite soon, maybe even tomorrow. but i have been wrong before

invisible!:
My man topgun, do I take it we are nearing a bottom on NEM? cause I will pounce if you give me a positive confirmation.

. u see, bottoma are a process and not an event. well now that u've asked, i suspect it will rise in price

do u need caveats invisible man?

LondonCool:
I have just checked out the Stock Tips thread and did not see any recent spat. I guess the clampdown must have been due to the previous 'rantings' and trading of insults that took place 1 to 3 weeks ago. The clampdown is too late and unwarranted. The insultson the Sex and Romance forum are nothing comparable.

@Princesege,

I usually buy my books from Amazon.co.uk and from Books,etc bookshop (@the Croydon shopping centre)

seun has deleted them. u should have seen the rants over the last weekend, not cool at all! one can only hope he will return the thread but if not we will continue here and hope he will react quicker should such occur here as well

anyone noticed the google adverts on candlesticj charting on the top of this page?

seems some people are watching and want to tap into this

poke:
@Topgun

we are here again lets continue
Baba i wan be your student
this your macd and chickine candle chart
i wan know how to use it

poke wassup man. i hope u are having a Jesus-filled easter.

listen dear friend, i will share what i see on the charts

which one be baba!!! i never old reach dat one o!
ha, baba ke? no call me name when no be my own!! . i no wan die young abeg.

@ londoncool

pls liik at NEM and tell me what u think. there's a head and shoulders pattern in there and the target fall is roughly around N4.15. with the gravestone doji done on thursday i suspect a rise in price actually. sorry still cant upload pictures

what say u?

LondonCool:
Who were the culprits? Shouldnt they have been banned instead of the tread being removed without it being archived or locked?

u read our minds i think. i had hoped seun would have acted sooner to stop all the blood letting before it got out of hand.

as per the culprits, well, just think of the usual suspects

aktopgun:
having trouble uploading pictorials

@ijogbon et omoba

got a pictorial on mobil but having trouble uploading it. are u having any joy uploading today?

having trouble uploading pictorials