₦airaland Forum

Willie2015:
Q3 result is flat... Though coy still manage to pay.... N25 interim div as against N=20 last year.... thats 25% yr to yr ... Projected div for 2019 should be ard N65... As against N=48 ...last year... U need a good defensive stock.... Nestle can hold its own house...without any hassle... 4 Dividend purpose... i will find a better alternative....

Thanks for your timely input.

@mcy, brokerharuna, yok, Does anyone know why Nestle is been dumped since last week? It just sold for N1150 a moment ago. Urgent opinions please as the price is attractive for this earning period. Any negative info?

yok:
DAILY STOCK MARKET GUIDE FOR 14 FEB 2020/INSIDER VIEW OF SOME YET TO BE RELEASE RESULTS



I was a little bit surprised when someone suggested that whoever wants to have a foreknowledge of yet to be released results should actually pay somebody to show him the result brought to the exchange before it is made public. Okay, I am not blaming that person, but in this era of high technology, that is not necessary. why don't we place a recording device in that board room or better still in the CFO's Office where the results are likely to be 1st submitted or even going further, placing a sort of CCTV inside the computer that the Finance section of the company is using (I prefer this last option, in that case I can even get the result before the finance people even finalise the figure, okay).

See as YOK codely told us how it can be done.

In the days before internet stockbrokers that know somebody that knows a secretary or one worker or another at the NSE used to give profitable tips about yet to be released results to their favoured clients. My recent research of price movement of some companies that recently released their unaudited results shows that some moneybags still have access to this type of information and they profit from it. Consider the sudden price increase of nahco starting three days before the release of its result and same scenario in ucap today. My question here is what is the current means by which companies release their result? Is it by direct upload to NSE corporate disclosure site which means we all see it at the same time or is it first delivered to some junior staff in the NSE office who possibly has no money to buy shares with the info he has? Second question is will it amount to insider trading if somebody with money (who does not work with NSE) actively goes in search of such guy for partnership since some insider trading is lawful?

emmanuelewumi:
The price can drop to N1.00 or below that is what I want.

But I don't think the rental income of the company will drop.

The company has 2.6 billion outstanding shares but has about N4 billion in cash. That means each share of the company has N1.50k in cash and the share price drops to N1.00.

I am kind of Investor that will buy more if it should ever drop to N1.00.

The almost N4 billion cash does not include the real estate portfolio valued at over N20 billion

Thanks Sir emmanuelewuni, for your reply. I merely used UPDCREIT as an illustration. What I really want to know is whether company management sometimes decide to increase or decrease the dividend they declare based on the current price of their share? Do the board of a company that has made huge profit sometimes decide to reduce dividend they declare if they think the dividend they normally ought to declare will be too much visavis the current selling price of their share?

JamiuO:
I know that UPDC REIT is liquid. Most of their cash are invested in treasury bills. Now that the treasury bill rate has been reduced to single digit rate, this might affect their 2019 result negatively.

UPDCREIT is very illiquid in the sense that you and your broker will sweat before you are able to sell it and its price has steadily been decreasing. Its trade is not relected on realtime basis as we have with the normal equity. It is not a jijo thing at all.

emmanuelewumi:
You need more of a regular and steady income from your investment in form of dividends. Nestle won't disappoint but the dividend yield is low.

If you don't mind real estate, I will advise you to buy UPDC REIT the dividend yield is currently over 18%.

I bought more units at N3.10k today, paid dividend of 58k last year, been consistent with dividend payment in the last 7 years.

Just bought 2 additional properties, bought Kingway building Marina from UPDC for N3.4 billion and invested another N600 million on a hostel at Lagos Business School

Sir emmanuelewuni,
please will you say that company management sometimes decides to increase or decrease the dividend they declare based on the current price of their share? If the price of UPDCREIT falls to say N1 will the management not by that reason be tempted to reduce the dividend they pay even when their profit stays the same? I have often wondered about this. pls what's your experience on this issue.

[quote author=yok post=86398838][/quote]Very true. I no know say yok fit yab like this.

Delords:
Needed more insight on the coy itself.

Thanks

Do a nairaland search of 'nestle' restricting your search to investment section, you will be able to read the opinions of the gurus on the stock. I researched the stock about three months ago and resolved that the highest price of buy it is between N1100-1200. I think it is overpriced but safe as it is not too volatile.

Jejebabaa:
Na d dividends trapped me boss. I wont repeat such mistake again.
Dats why I need to learn more from boss like you. Now lesson learnt, I will not sell a bank to buy another bank when the market is tanking since they both move together.

I don't think you made a mistake selling Uba to enter Zenith bank considering that Uba took off much earlier than zenith bank and at higher rate than Zenith which was doing slow motion. Don't use benefit of hindsight to judge your decision which clearing you had good reasons to take. At about the same time as you, I also sold my Uba (which I thought had appreciated to my envisaged projected price) and I used the proceed to buy Zenith in anticipation of the dividend. Very few could have predicted the ongoing pullback which, by the way, also affected Uba and other stocks. I am sure most experienced people will agree that Zenith will most likely than not climb above N22 when its dividend is eventually announced. BTW there is no rule that you can't sell one stock to buy another in the same sector as it is circumstances on ground at any point in time that will determine that. Happy investing.

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Marlianvestor:
Just leverage on both support and overhead resistance level of such stock using its daily volume level to know when to position and exit. Eg Zenith Bank was bouncing along the bottoms for a while last nov/dec 18 circa, with volume rising re. typical Xmas/Yr End rally, I entered the stock 18.30 and exited nicely b4 the anticipated overhead resistance @ 22. Hoping to JIJO again, once the price consolidation is over or better still sub N20.... all before the release its FY results.

Thanks Marlinan. You suddenly came from heavens knows where and talk a lot of sense. Enjoy the weekend.

Marlianvestor:
More reason, why I trade with momentums on NSE. Even the anticipated N2.50 dividends Zenith would be paying for FY2019, I have already taken my own from the market this year. Sub-optimal in this market to wait for the declaration date. Hoping to repeat the cycle at least twice before the declaration date... That's my style re. Zenith. And I stick to it, at least the last 5 years now...

Dear Marlianvestor, can you please explain this 'cycle repeating' style in more details. If it is not too much trouble, please use real time figures from any company to illustrate so that those of us interested in momentum trading can understand the concept and apply it. Thanks in advance

Cadillac15:
Boss. My trading ends after release of results. After that, till November.

Dear Cadillac can you please tell us what you do with your proceeds in the interveneing months between when you exit the market and when you come back in November. A member of this forum who also follows this your entry-exit strategy said he always take his proceeds to treasury bill within his non trading months.

rebekah2011:
Very confusing to me. My accounting knowledge is rusty I believe.

It is hardly your fault. Most people on this forum did not realise that one ccnn will exchange for one bua. The major opinion was that the retail investors were about to be robbed. We missed easy money on this one. Lesson for me here is: read the source document.

onegentleguy:
Closing Prices:
ACCESS- N11.20 ...20k above its previous 52-weeks high.
UBA- N8.45 ...5k above the last 52-weeks high.
FBNH- N7 ...N2 below its last 52-weeks high.

Technically, all 3 coys are playing out a similar trend of higher lows with a push for higher highs !!
Perhaps it's time to tap into the last coy(FBNH)
...the probability that u can gain that N2 margin from it is near 1.

Elsewhere, it'll be wise to keep a close eye on AIICO !!
...that 'dude' has be making above average vol with signs of a trend reversal in the last 3 trading days.

For those still seeking for where to invest; there is still more than enough room for reward(feasible ROI) in CAVERTON, FCMB, FIDELITY, ETI, GTB, ZENITH, UACN, WAPCO and TRANSCORP.
...including the 3(ACCESS, UBA and FBNH) highlighted above !!

NOTE: Following ur instinct should still take higher precedence ahead of this post. Due diligence still applies.

It is well.

Una see why I dey trip for this Ogg. Timely recommendations, unequivocally given. In this euphoria have we all not forgotten about Caverton? Thanks Ogg

robobo:
There goes a veteran with many scars

Oga BigJay i was about to same thing, the only thing i can add further is that u shld test that terrain gradually (with some cant kill part of you portfolio)

Good, practical advice. Short time is the in thing, preferably with fundamentally sound stock.

Agbalowomeri:
Hmmm maybe mid-term
Short-term is filled with landmines

I am praying for the day when gurus like you, ogg, pa ewumi, prof, cook cash, will combine your vast knowledge of stock trading to mine golden opportunities that short term trading on the NSE offer. Nse is an imperfect and largely unregulated market where best practices taken for granted in advanced markets are absent. If you look at the figures, no long termer has made any significant gain in the Nse in the last five years. When you hear phrases like "profit taking' , 'pull back' know that a short termer has chopped and cleaned mouth while the long termer is still waiting for measly 7% annual dividend or a 100% appreciation that will never come. Short termers should be encouraged on this forum to disclose their technics, observations, strategies and openly test their theories. In this manner they can perfect their act which those of us still learning can learn from. We can avoid the many landmines in short time trading you are fearful about when we become skillful in short term trading. Short term is the new cool. My respect to the short term pioneers here especially .......

Coolcash1:
I exited because i have met my profit target. What i do with the proceed is to re-invest in another stock with strong fundamental provided its still at value zone or same stock (upon PB)...

More importantly, you need to come up with your own strategy inline with your investment objective and risk tolerance. Do this and you will be fine...

Nemaste!!

Thanks. I appreciate your reply. Owo nlanla for you.

Intendy:
Stocks with new 52 week lows

Fidson #2.55k

Does anyone know the reason for the unrelenting decline of the price of Fidson. I am aware that its last quarterly result was not so good but I thought that the positive news of its winning manufacturing contract with Gsk was enough to equalise that, but lo and behold the price has depreciated almost 45% in the last few weeks. Is there any other reason for this free fall?

Coolcash1:
Yours truly don pass my kaya to another person make he too chop small....

Dear Coolcash like you I was minded to offload my uba today having made profit quite above my target. What stopped me was the fear that I may not be able to get another good stock that has not left the bus stop with the cash. I am curious to know what you intend to do with the proceeds of your passing the kaya at the bullish period . Do you keep the cash awaiting another opportunity to re-enter low or do you move to other investment vehicles. Pls let me share from your strategy.

OakPearl:
Sorry been up and about.

My brother, I lay no claim to being "close to the market" oh.

As a long term holder of Zenith, the last detailed attention I paid to it concerning the shareholding structure was in their last audited report.

The Chairman increased his holding to over 3 billion shares as the MD increased his from 5 million to 15 million shares.

As a result of my strategy for this stock, I don't bother about price movement unless the fundamentals change negatively.

Thanks brother for replying. Same thing was said by Godlylife. I guess I became lillylivered as I am deeply in the stock . Merry Christmas in advanced.

Zenith bank is one of tfhe major stocks on the Nse for retail investors who are necessarily concerned about factors capable of influencing its price appreciation and rate of dividend yield especially at this crucial year end. I have read Nsempa to discover reasons that have been suggested by members for the recent and rather unending offloading of Zenith. Some opined that Jim is divesting to enter into agric, that efcc is forcing a major holder to a forced selloff and that a major holder is selling off to buy Access bank shares. Most of these are speculations which cannot be completely without basis. What I seek at this moment is the opinion of those who are very close to the market or have people close to the market can find out who is really offloading and for how long this is likely to persist? I remember when Guinness was going down uncontrollably a member informed us it was msci that was selling off and he even told us when the sell off ended. I would appreciate input from yok, mcy, dipolowo,oak and Intendy to mention a few.

Fashola. He gets things done in situations where he is really in charge. I put him in the same league with the likes of Sam Mbakwe, Balarabe Musa and Jakande. Soludo comes a close second.

Dear Mr Ogg,
As one who has read every of your prolific contributions on Nsempa, spanning 67 pages, your silence in the last six days is noticed. Please we need you on this thread. Best wishes Sir.

landmark86:
Abeg no commit suicide now, na me & u vote Buhari and we must both enjoy am . No be u say u won change & next level?

Meanwhile, log on to http://www.hesgoal.com/news/56936/Bowing_-_Andy_Ruiz_Jr_vs_Anthony_Joshua.html



Joshua is seriously dealing with this heavy big called Ruiz.

Thanks for the link. You made my day.

owoblow77:
@Bamofin: Hope u got answers to ur questions? I think a lot of UACN folks will offer their REITS and UPDC prop shares for sale, once the spin offs are completed. At least, that's what I'll do. It's just a bonus na . So, maybe the REITS price may fall in the medium term. Well, one never really know these things
Hopefully, by April/May 2020, UACN would give me good dividends(REITS & PROP shares) and great capital appreciation.

Happy to see you back in action. Yes I got responses from members including from emmanulewumi, oak and Rebeka who are quite happy with the stock.. From their comments, and from literature I subsequently discovered, UPDCREIT is more of a dividend paying stock which one should hold with long term mindset. I already got dividend of about 12% of my entry price. Its main drawback is its illiquidity. It.is quite likely that the price of the stock will fall tremendously post unbundling of uac and the doling out of reits as bonus which most investors will fling. This will present a buy opportunity for dividend hunters. Again thanks for your assistance as I am finding my way back into the stock investment space.

TLAX:
The kind of uppercuts and right hooks coming from Oracle and OGG today dey make me fear o. I withold all further comments till next month.

These gentlemen vex today no get equal. I thought bringing the view of a non-member for opinion of our more knowledgeable gurus here is part of seeking financial literacy.

RabbiDoracle:
See your suspicion

You no sabi basic maths! Just go and read JSS1 maths from afresh.

Sir what has maths got to do with a call for more tolerance for shortermers, for them to be able to show us tips?

PETERiCHY:
UAC of Nigeria Plc closed at N7.60 in yesterday’s trading session on the Nigerian Stock Exchange (NSE), down 0.65%. Year to date, the stock is

Investors that have held the stock, in the last 5 years, have lost a key chunk of their holdings. In April 2014, the stock was trading at N53.78. Investors that have held since then, have thus lost over 85% of their holdings, in terms of share value.

https://nairametrics.com/2019/04/04/uac-of-nigeria-hits-10-year-low/amp/

Let me help someone's ministry if you know you know.

BARGAIN HUNTERS BETTER FOLLOW THE MONEY & DONT BE LEFT BEHIND!

*ThE OcToPuS*

Holding stock for long term in NSE is unprofitable, at least, since the 2007 crash. The loss in value of UAC highlighted here is also true of most established stocks in the Nigerian market. I remember having to give bribe to my broker to ensure he succeeded in buying Fbn for me at N50. In the past the preponderance of opinions of our gurus was that long term is good and short term a sin. I sense that in this Nsempa there is more tolerance of shortermers because they actually make money. This is a good development. Short termers, and even Jijoist, must be encouraged to disclose their strategies, methodology, observations, tips and tricks. I suspect that money bags have assembled groups of young jijo traders in the NSE who are given access to billions of Naira whose sole purpose is to make 10% over and over again for their masters, a sort of real life Wall Street Warriors scenario. My kudos goes to pioneering shortermers and jijost on this forum. Am almost afraid to name names as the appellation may still be considered as offensive by some.

Uchetoba:
Where did you get this from?

It is a reader's comment published on www.nairametrics.com. I wanted Nsempa to discuss the issue of overtaxing we will soon be subjected to and how we can possibly avoid some of them. Jijoist may discover that its a case of monkey work baboon dey chop.