₦airaland Forum

faketan:
@ Barge thanks for the info. I picked some of Phb's share.

Just a starter and I do not have a broker yet. i want to have one but not sure of a good coy. I do not know shishi about this Stock trading thing

Do you have experience with any you can recommend please?
Thanks again

@ faketan

Go for Afrinvest .They are good in terms of execution. You will need 500k to open an account.

crazyT:
My main man Barge thanks for the shout-out, I wish you all the best in the coming New Year.

My guess is that you are in Madrid? I may be wrong though, but I hope the weather in Spain is better than ours? Holland is around -6 degrees today (and man still plays football for inside) I guess we should expect white Xmas this year.

I am planning to go for the CFA program too next year maybe you can be my mentor?


So I say Merry Christmas and happy New Year in advance to you and all my new found families @ Nairaland.

@crazyT
am in malaga, and the weather is a lil breezy but fine. Go for the cfa , it is a stressfull but rewarding experience.whatever you need , will provide you with the resources i have. a big shout to ur boiz.

texas543:
thats the law for building wealth, a solid foundation!We are having a great union here on nairaland

indeed. the last reunion was da funniest day on this thread .

@texas 543

i recognize o , how can i forget you.  am quite bullish about the insurance sector for obvious reasons. you may need a rock for the foudation of your wealth in that sector !

@ all

Its  a few days before 2007 runs and i have to switch to thanksgiving mode . A BIG BIG THANX TO You ALL ESPECIALLY
 
     Easimoni , Pumping , Temmie 10,shigidi
     Windywendy , Yodiyokun , Wanaj0,noshaking
     Father of 2 , Frankiriri , Aktopgun ,nba,Emmachile
     Ololufemi , mypeace ,naijadr,kpineo,damoche 07
     Roughcut, aktopgun,chokit , crazyT,ckeneth,jehosaphat et all
    APOLOGIES to all whose postnames i cat rememeber, ina ground i dey

I can't  thank you all enough for the selfless and invaluable contributios you have all made on this thread. I got a little confession,
a number of people have impacted my life with their views here and  i just hope you  keep doing what you are all doing.  I realize how much i needed to reeducate myself after reading some posts here ,and i could not interprete appropriately the lingo . My motivation for entering the cfa program came from this thread and guys like windywendy ,easi ,frank ,temmie 10 and later pumping.Regardless of my exam result its already a success , as this thread keeps the learning process open. I PRAY 2008 BECOMES A FULFILLING YEAR FOR US ALL . As we continue the crusade for financial independence , i pray 2008 turns out to be unic and forms the cornerstone of great wealth which we all hope to achieve. THANK YOU ALL, you are all appreciated. Barka de sallah , merry xmas and A wonderful , success-filled 2008.

oh, how can i forget Seun , thank you for this forum and don't let detractors derail you from your goals.
    ,

@ Pumping

totally right. It is more like a "public private placement"  .Only a full page advert in bizday last week. I agree with you , it appears there is a deliberate effort not to publicise the offer. Two researchers made the same obsevation. This is one of the many reasons i read and re-read some posts here. thanx for your views.

pumping777:
This strategy will probably also work with Aiico.

Most certainly. you identified the peculiar situation of this firm in one of your recent posts , coupled with the expected results.The only reason that may change is if they have to release results prematurely to prop -up the P.O  to oversubscription .I think that is an unlikely scenario . methinks this bull will run as fast as the spanish bull !

easimoni:
Yodi, did you get Lead's recommendations. I nearly laugh my head comot! Crusader has a forward PE of 5? That place needs help in their research/analysis department.

@ easi

they sure need help in the research dept and you must have noticed the quality of the research has deteriorated in the last year . been switching base for a while because i am not feeling them on the service delivery though the CRMs do their best , but you know its hard to clap with one hand.

@ all

i just stumbled on this thread but i feel obliged to write a few words . I wrote the december 1st exam . For all budding analyst i, be thoroughly prepared.And the only way to do that is by proper planning and dedicated study. I invested 600hrs of effective study time into the preparation for the exam . Your rate of understanding of the material depends on your background-i mean if you have a business -related first degree- will help you undertand the material .

Trust me , the exam is not impossible to pass, the real HURDLE is the OVERWHELMING MATERIALS consisting of 3600 pages of 466 Learning outcome statements. The examiners try to cover every detail ,YES EVERY learning outcome statement is fair game.

The key to success is your preparation. My study provider was WWW.SCHWESER.COM , I HAD ONLINE CLASSES FOR 3HRS ONCE a week for 16 weeks. The schweser study tools are more than sufficient to pass the exam. check the website for details.

Finally, i hope you are not discouraged by the enormity of the task , it IS VERY REWARDING. i can say that the SKILLS . KNOWLEDGE AND ABILITY i use in navigating the NSE was mostly acquired from my notes. You will make a success of it.Set your mind to it , plan for it and you will be a financial analyst soon. Goodluck . i hope this helps .

@Crazy T

TS has not been lifted but there is still some trading, 32m units changed hands today. I have a feeling the share reconstruction rumor may be behind the selling.just a feeling , no facts to back it.

@ all

what's the word about Fidelity ? Still got some left .

easimoni:
Law Union is inching down. For anyone who is interested in Inurance coys, pounce! I'm sure 4 will be a good support.

Dios mio ! dem don reveal secret !!

@Ololufemi

FCMB closed @18.05 , low volume 2.4m

faketan:
Please can someone tell me how good the Bank PhB's IPO is. I am a novice in this stock thing. Any good prospect in it??

Thank you in advance. No vex if i used any wrong terminology.

@ faketan

go to the previous page , there is a link to a detailed analysis on the offer. I think its a good offer and some gurus think so to but you can draw your conclusions after reading the attached link.

Got this from Proshare


Making companies liable to public offer forecasts
Posted Friday, December 14, 2007


Forecasts made by some companies in their public offer documents have turned out to be misleading and some thing urgently needs to be done to arrest the situation.



Forecasts are part of the requirements by the regulatory authorities in the process of floating new issues and preparation of prospectuses. It is the process of analyzing current and historical data to determine future trends. Forecasting is therefore used to value companies and their securities.



Some of the indicators expected in forecasting include gross earning, profit before tax, profit after tax, dividend, earning per share, dividend per share, price earning ratio, dividend cover, earning yield and dividend yield.



Finanacial forecasting, according to Olufemi Akande , a director of West African Capital Market School, allows early capture of gains or loss and helps expert users see discrepancies between model and target price. It aids the investor in his decision making process.



In Nigeria, some companies coming to the market to raise money prepare projections that miss their targets. For example, some banks prepare prospectuses and forecast in the ongoing consolidation exercise and at the end of the day such projections are not realized and yet they have returned to the market for the same purpose, and both the regulatory authorities and investors have remained adamant. Failed forecasts simply demonstrates the inefficiency of issuing houses and investment advisers that prepare the offer. The implication is that investors who made their decisions based on such forecasts are deceived and the culprits companies are allowed to go scot free.



It is in realization of the severity of failed forecast that the London Stock exchange waves it as a requirement in the offer document.



According to LSE officials, over in UK, companies are accountable for the actions .



In view of the importance of forecast in Nigeria and the fact that it is expected to be a reliable guide, the Securities and the Nigerian Stock Exchange should ensure that such misleading information are made actionable such that aggrieved stakeholders who are short changed on account of the projection can sue the company and those associated with the preparation of the offer document.



The Investment and Securities Act (ISA) should therefore be amended to contain such provisions while the Investment and Securities Tribunal should be statutorily empowered to prosecute such offences. Towards enforcing this, companies should also contribute to the Investor Protection Fund so that in the event of investors being misled by such false information, they could sue the relevant company.



Such steps would compel companies to be more efficient and thorough in preparing the projections made in offer documents. -

Mr. Risky:
ckenneths,
I seem to share your sentiments that the Insurance Sector will perform 100%.  I have lately become scared of them, going by my recent experience with Crusader.  A major claim can wipe out the whole profit of any of them in just one quarter.  Crusader recorded 593m in its halfyear result only to regress in its 3rd quarter result to 572!!!!!!!!!!!  Assuming there is another major claim waiting, investors are simply left with virtually nothing to expect unless prices cascading to the south!  That experience really scared me.  Do these insruance companies have a hedge against this kind of experience?

The insurance industry will  perform well next year , the growth potential in the sector is quite obvious for discerning investors to position .A cursory glance at the quarterly earnings shows the earning potentials.Firms like Linkage assurance  leaping into profits from loss position , Cornerstone  posting 850% in the last quarter .  The only way to INSURE yourself against the inherent risks of heavy claims against a particular company is to buy into  number of them , preferably 4 or 5  companies and hopefully they will not be affected by claims that will affect their bottom line. My point is you can hedge your business risk by diversifying.  

Gurus , what's your take on the risks of heavy claims affecting the insurance  firms bottomline ?

crazyT:
@ All (especially parents)


Hi guys, I learnt from you all how important it is to teach your children about trading in stocks at an early age.

So I am planning to call my boys (11 and 8 years respectively) to a round table discussion today about stock market.
Can any one of you help a brother with tips on how to explain stock market to kids?

The idea just hit me now after calculating how much we spend for their birthday presents just last week (about 1200 Euro) The bithday parties (both at home and schools not included) so I was planning to use that as an example and show they what would have happen to the same money had it been it was invested in Capoil or any of the penny stocks.

Or am I going too far

@ Crazy t

   You  are certainly not going too far . Y ou are in the process of moulding your kids future for the better. It may be to early to teach them about stocks. But you can help them start the habits of saving to invest. Teach them about money and HOW IT WORKS . Give them an idea of how banks create money by making loans and you can stop them from using CREDIT FOR CONSUMABLES. Most kids and ADULTS only know HOW TO SPEND MONEY . You can start them off with some books , Yes make them read ,and who knows they might love it. On the expenses for their B'DAY . I have put a lid on non -productive expenses for my kid and i pump it into the brokerage account. Some years down the line , your kids will be eternally grateful you started early. Google Robert Kiyosaki , there are resources for kids. Goodluck !

pumping777:
I don't think this is the point that is being made. The Accountants can help. Companies have different ways of recognizing revenue.  Revenue generated in Q-1 to Q-3 which has not been recognized may eventually find it's way into the full year results.

As an example revenue can be recognized once a sale is made (just signed contract, no payment from customer yet) or it can be recognized based on the percentage of completion.

The treatment of expenses presents the same issues.

@ pumping

  are you an engineer or did you study a bit of accounting and Finance ? The post above clearly describes one of the revenue recognition methods . impressive .

FatherOF2:
That stock was the first Dangote fraud in NSE.

Dont completely agree with that. Peeps were not forced to buy .Remember the first law of commercial transaction - CAVEAT EMPTOR - let the buyer

BEWARE !

@ all

  Opening bell situation 141207

FCMB T.S lifting confirmed , opened @ 18.1

a

@ all on Bank PHB P.O

ckenneths:
@barge, I don't relly have a low risk appetite as am ready to take loads of risks, but imagine what it could make investors do; a guy bought stocks with a margin facility, only to be forced to sell off to pay off the loan earlier than he wanted, reasons; he can't keep the position cause he has got to pay back,

@please stick to what you are comfortable with. The terms of the facility is important . I prefer term loans with quaterly interest payments . Futher the gains generated from trading takes care of interest payments. I estimate that abnormal profits will possble for the next 3 years when most of the inefficiencies of the NSE will probabaly be non existent. In the meantime , we have to enjoy the ride while it lasts. A good example of leverage is the BAGCO results, ROE was 140% in 2006 due to the use of leverage while  it dropped to 58% in 2007 when less leverage was used.Stick to your strategy as long as it keeps working.

pumping777:
In fact you are very right _{but not about the deep pockets part}

I use good PO/IPO opportunities to take care of my long term investing while I see how this momentum based trading goes. My limit remains that I won't buy a stock without good fundamentals. I don't care about any momentum then. It means I will miss out on some juicy opportunities but no problem. I need to preserve my funds.

You just expressed my use of Public offers. couldnt have put it better .

ckenneths:
For me charts give me headaches, I have always been a student of the 'common sense' approach to investing, and trading, I don't want to make the type of issue I had while arguing in a thread in stockmarketnigeriam
.Com, called investing vs trading. And please
don't give me a loan to trade stocks even without charging me interest, I am better making mistakes and learning from it all with my own cash.

i imagine you have a low risk appetite but like WW wrote it is VERY REWARDING. I only started investing from last december but i read Other Peoples Money by one of Robert Kiyosaki's advisor and that did it for me. It is simply INCREDIBLE the multiplier effect that leverage has. I started using leverage lately and the reward is Huge .Right now i source capital continiously to invest. At the moment am a highly funded investor . Your cash is got a limit , but OPM IS LIMITLESS.

@aktopgun

  congrats ! loadsaluv  to u ,da kid and the mum. I should pass the info to otto.

grabdaloot:
@ ololufemi

I am willing to bet you my last dime that easimoni is an engineer, we all know ourselves when we meet. I will tell you why. Financial analysts if you have ever met one are articulate but lazy. The FA definitely would NEVER use excel to do his analyses believe me when I tell you it is way way to tedious and requires a lot of discipline and tact to keep the sheet up to date. He would use the numerous softwares out there to do the same stuff. easimoni on the other hand is an engineer. We thrieve on excel, running marcos VB programs etc. If he would speak up then you would be rest assured.

The FA s i know are not lazy in fact they do very detailed analysis however they tend to focus more on WHY you would invest in a firm not When. I mean they focus more on fundamental analysis than TA .But with the NSE as it is , where you can make abnormal profits, studying technical analysis is a must to optimize gains.

easimoni:
I found it on Amazon but the review of it was not flattering. Turns out it speaks only about chart patterns and not about RSI, MACD and the like. Seems those indicators were invented after the author wrote this book. Thinking about settling for "Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications" by John Murphy. It seemed to get mostly solid reviews on Amazon.

you not only EFIKO but Efiwe , wetin ! I just wan recommend John Murphy's book together with TRADING IN THE ZONE BY MARK DOUGLAS , Come into my trading room by Alexander Elder. nice one on the investopeadia link , it makes for interesting reading.

[quote author=easimoni link=topic=31554.msg1763381#msg1763381 Muchas gracias.
[quote][/quote]@ Hablas spanish ? tengo un regalo para ti y pumping !

@Pumping ,

like the mailman , you always deliver. nice one !

realkemmy:
Cement Co. of Northern Nigeria Plc
                                    Turnover                       PBT                                   TAX                                   PAT
                               =N='000                      =N='000 =                         N='000                              =N='000
30-Sep-07 9 Mths      6,859,000                  168,987                                52,400                         116,587 
30-Sep-06 9 Mths      4,880,000             -     209,110                               14,895                 -       224,005 
                                     40.6%                     -180.8%                                                                   -152.0%

turnover quite impressive but PAT very low. whats  the possible cause. house wats your opinion on this stock

a cursory glance suggest this firm has issues with costs and expenses including an increasing tax liability. For proper analysis , one needs to look at a more detailed financials.