₦airaland Forum

maishai:
CAVEAT: I entered at #4 and Im willing to loose all my investment in OAndo

Wapgod:
Is it possible to buy ETF on the NGX market?
If so, how do i go about it?

oyamhe:
Thank you Dr Awol. I took the opportunity to listen to other broadcast from you. They are very educating and inspiring. Thank you very much.
Keep up the good work.

I recommend any newbie here to take out time to listen and get lectured by those wonderful topics you explain with detailed clear simplicity.

Thanks
Julius

erwinschro:
The issue isn't really with how the companies report their numbers. The one input that would be difficult to calculate is the levered beta of the stock. In the industry, you can just pull this information from bloomberg. Without access to a bloomberg terminal (or similar financial data) then you will have to calculate the company's historical beta using regression analysis. Not too difficult, but a little tedious. Another more thorough method involving bloomberg is to spread comps of similar companies unlevered beta, take the average and then re-lever beta based on the capital structure of the company you are analyzing

erwinschro:
It's a little difficult to get an exact number, but you can estimate it within a very reasonable margin of error. You look at the companies total amount of capital (debt + equity). Then you simply calculate the firms after tax cost of debt multiplied by the percentage of debt in the capital structure and add that to the cost of equity multiplied by the percentage of equity in the capital structure.

The complications come in primarily in calculating the cost of equity. Traditionally, this is done using the capital asset pricing model. The process can be quite tedious, but most financial professionals have access to software (bloomberg or otherwise) that has many of the inputs to calculate the cost of equity such that they don't need to do the calculations and estimations required by themselves.

gloriousdawn:
If a company Returns on Invested Capital (ROIC) is not greater than the company Weighted Average Cost of Capital (WACC), such a company is a value destroyer.

emmanuelewumi:
Considering the average 80% growth in the earnings of both players in the sector in the last one year and an average of more than 25% earning growth rate in the last 3 years, I think their current PE is not too expensive. Shareholders hardly sell sef

Agbalowomeri:
You people should stop this investing/trading comparisons. As long as you sell or buy, whether taking advantage or disadvantage you are a trader.
As long as all man dey make money. Even our chief priest of buy and hold has learnt some trading tricks. We are all learning tricks to maximise returns

ositadima1:
Let me show u what is alpha in practical terms.

Again, let's take zenith as case study.

1. I buy 1 share of zenith in 2012 for #12.47(on first of February 2012, dat is how far back my data goes)

2. The total dividend paid within the period to date is #18.17(please correct me if am wrong)

3. I have no ideas if Zenith had had splits from 2012 to date so I assume none.

4. As at friday Zenith closed at #23.7

5. Total gain is (23.7-12.47)+18.17 =29.4

6. I made 29.4/12.47= 2.35 my initial investment from buy&hold.

7. Ok, my mean reversion strategy tested on the same data input did more than 5 times initial investment.

8. You can argue that I may not get into the market at adviced prices by my strategy due to slippage so I knock off 1 times. So, I get 4 times my initial investment. Mind u that I was not even compounding my returns.

I am not bragging or something as I have nothing to gain from that, but my strategy holds alpha.

Is buy&hold a bad way to go? Definitely not, I also have funds that yield dividends. Just that where d money is made handsomely is in deploying trading strategies.

Now, I want to rest my case abeg, believe what ever u like.

emmanuelewumi:
Multiplication, addition, division, subtractions, percentage, ratio, simple interest, compound interest etc are learnt from primary 4 to JS 3

samguru:
Has nothing to do with Guiness Nigeria

samguru:
This is the rumour I heard early before I recommended guinness.