₦airaland Forum

emotimi,

It was briefly discussed in the thread below

https://www.nairaland.com/nigeria/topic-101732.0.html


My take is it's better to source for funds elsewhere; margin facilities are too expensive and short term for my liking. However, if you have no other source, pull the trigger.

CMI,
I don't think the rates are tied to the size of the investment/margin facility.

And I use Lead Capital

gonziiii:
Folks what do you guys think of buying FCMB and Diamond bank at the current price, instead of buying the zenith PO and risk having my money returned, plz answer fast if u are online i intend to place my orders tomorrow morning,

Information on both coys is incomplete at the moment; we don't know how many shares FCMB will allot nor do we (I?) know what Diamond'd PAT forecast is (from the GDR prospectus; if u have one lemme know). Based on my estimates, FCMB will have to be 200% alloted for the forward PEs to be the same. My Diamond PAT forecast is a little conservative but FCMB's PAT is soooo aggressive that it wins out.

Go with FCMB.

FYI, I own quite a bit of Diamond but I bought in the 18s.

@ Pennywise,on your previous posts, you should see a button called "Modify" (in the top right hand corner). You can use that button to revise/re-word your previous posts.

And you are right, I was about to issue a disclaimer 

kingzy:
Since I have not got any wonderful stock to buy this xmas, I now want to use the money to buy 20,000 units of zenith po. Can they absorb that? because I would't want my money to be returned.

First Bank returned money for 10k+ units, Access returned money for 5k+ units. If Zenith does not absorb all (and they prob won't be able to), you can bet your money will be returned. Buy 10k for yourself and 10k for a family member who would otherwise not buy (or you can contact me , but I go charge o!) and cross-deal when he/she gets the Cert. Then pray the cut-off is 10k units.

Merry Xmas Kingzy.

lokwe:
I don't get it please. can anyone in the house please tell me the minimum (initial) deposit for opening account with cash craft.
peace.

I believe it's 500k. Merry Xmas.

kingzy:
@All,
Where are all d analysts who promised us to wait till xmas that there will be some good buys. Please what and what are the good buys?

Merry xmas. What do you think the good buys are?

[quote author=omo_boy link=topic=31554.msg1787077#msg1787077 date=1198252186]@ Easimoni and Others

what's your take on C&I leasing and Costain on the floor? They have the highest 08 price appreciation from my broker's recommendations. But looking at their financial, C&I leasing currently have a PE in the 30s while Costain has only have one profitable year in a while.

Thanks for your response,[/quote]C&I has one of the highest profit growth rates in the NSE. PE of 30+ could be 10+ in a year (assuming no price movements).

Costain: buying a company just coming out of debt/losses it the best way to make money on the NSE. If you wait for a long track record, you'll end up with average gains. But tread carefully, it's not easy to predict if/when a company is fully turned-around.

Quite an interesting dilemma. My broker just offered my 21% with a 2% "management fee." Add in ~2% every time you buy or sell and you'll see that I need to make 30% just to break even. I have considered it and decided to source for cheaper funds. I can pick stocks I'm pretty confident will out-perform the market, the question is "what direction is the market headed"? No one can predict that. If the NSE heads south in 2008, I'll have to sell my actual holdings to repay the margin facility.

My advice: tell your friend to look for a cheaper loan. If he can't find one, go for it and focus on Insurance stocks.

ololufemi:
@ All,
FCMB lost 5% today,

Stay strong. It's an okay stock. Consider averaging down.

tobaaro:
Hi,

I heard about the National Sports Lottery Shares. Does this Intellectual House have any recommendations as regards the purchase of this shares??

I'll have to see some results history or a prospectus to get some sense of what the relative value (or price forecast) is. If anyone has seen any results, pls share.

yodiyokun:
so next trading na friday abi,
haba this yeye Lead capital

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.

@ Pumping,
nice insight. Maybe it still works if linked to the timing of results. But it's not the sure-fire thing it was till a few months ago.

dollyp1cute:
Easimoni, you forget that the market is thin at the moment as folks have started to decamp to their village plus there are many other juicy offers so folks may not be rushing for FCMB. Naija investors are also getting sophisticated with the so called "strategy".

Also did not work for Access when TS was lifted in Oct. So you can debunk the xmas theory. Maybe it's all the POs, maybe it's increased investor knowledge, but the inexplicable post-TS bull run may have died a natural death. R.I.P

http://businessdayonline.com/National/1642.html

For those who own Costain or wonder how they'll meet an agressive PAT growth forecast.

yodiyokun:
Those of us using FSDH format
Note the addition of deap capital and NSL
Anyone know the no of shares lsited for these 2 companies should please holla.
thanks

NSL = 5.2B shares
DEAP = 1B shares

http://www.stockhouse.ca/mediascan/news.asp?newsid=9844190

blueband:
looks like FCMB is losing steam.Might lose close to 1 naira today.

Looks like all this post-TS bull-run is now B.S. (like my word-play huh?  ) FCMB had only 2(?) days of gains and now loses? It goes to show, if you have a stratgey that works, others will adopt and eat away at the margin till the strategy ceases to work.

I've believed for months that there is a major increase in the sophistication of the Nigerian investor. Typical strategies won't work anymore. Make we find the next thing, this one no go work again.

Talktrue:
@All

For those interested in technical analysis but lack the excel skill/ time to do that.
Nigerian securities just releases the online software.

http://www.nigeriansecurities.com/nstabasic.php

all the best with the decision making

All my Excel programming just became pointless.   Good stuff! Can't wait to see how much they'll charge for the improved versions of the software. But it'll save me all this FSDH report gyrations.

Talk true: na you biko!

scambater:
Oh man I pray Ohio state get ther ass kicked again this year, I'll give my left testicle to see them loss

Tsk, tsk! You want to keep the right one?

Tebow to repeat next year!

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

Same thing. "Stock" is often used as a plural for "share". To say "I own stock" in UBA is the same as saying "I own 5,000 shares"

Shigidi,
it's the sum of prices on up days and sum of prices on down days over the last 14 trading days. Both days must add up to 14, not 28 in your example. You are always adding one point and throwing out another one.

If you have 14 straight days of gains, then rs down is zero

Prince11:
@ easimoni,

Thanks,

My broker also bought Transcorp (only 10,000), Diamond and GTB,
I am concerned about the 3 (Transcorp seems to have problems, , and this GDR thing affecting GTB and Diamond). I am learning fast enough to start issuing orders soon like all of una,
, should I just sell them all off before it is too late, or hold on,
I need to keep the little change working to the maximum,

Hold on to your GTB and Diamond bank. The GDR thing seems to put most people off, but "you can't buy what is popular and do well". Fundamentals for both banks are rock-solid. I don't worry too much about her (the market) sentiments.

Transcorp? Flog your broker! Look for a break-even and get out. Transcorp is a looooooong ways off from making any money. This is one for 2009 (maybe).

Prince11:
Gurus in the house, I salute oh,

What will be the impact of this share reconstruction by Internatinal Energy Insurance,

Is it good or bad news?

Should be good news; less supply.

pumping777:
"Oando and Ocean Oil Investment- 181,769,627 Ordinary Shares was created as a result of the scheme of arrangement between the two companies"

Can anyone explain how this may impact the outstanding shares of OandO?

I think you had not joined when Wanaj0 apprised us of this development. This now takes the no of shares to 753M (formely 572), I think. Some website, such as Naija Securities, had the larger number already. I don't think this is addition to that but a validation of what had been pending for month. I'm changing my sheet to 753M.

Buffet bought his 1st stock at 16 (or was it 14) and in retrospect, he said he started too late. I wish my parents knew/educated me about the stock market, I'd be getting ready to retire already.

CrazyT, don't inundate them with EPS, PE, RSI and the craziness you and I deal with daily. A good idea will be to "take" some monetary gift they get from someone (maybe you), tell them you'll invest it for them and in what security. In 12 months, ask them to compare what they could have bought then vs. what they can buy now. Just get the message that delayed gratification is worth it. The bible also helps. "Cast your bread upon the waters, "

I attend a public speaking club (Toastmasters) and a Lady read a children's book 2 us about the need for budgeting explained thru a story in kids terms. Will try to find out the author and title and get back 2 u.

SGN:
@All

GT Bank Result. someone mentioned they can still make 21Bn full year PAT on this thread. Given they made 11 point something bn so far how are they going to make another 11bn only in the last quarter of the year? I don't think Banking business is such seasonal for such performance. And I seriously think if they do make 21bn eventually, one needs to look beyond the surface.

Anyone one agree? 21bn Full Year PAT possible?

So far this year, GTB's 3 sets of results have shown 66, 55 & 57% increase in PAT over the corresponding periods last year. IF you take 55% over last yr's FY PAT of 13.2B, you get 20.5B. That's another way to look at it.

kpineo:
@ Mr Risky

i think you should consider damoche07 advise to guard against spam. i will paste the report on this forum daily once i get it for the benefit of all. it comes in rather late though , like 8pm so might be the next day. just used some contacts in UBA to put me on their mailing list.
Guys on this forum share a lot of useful info and as i no sabi technical, fundamental or market behaviour analysis i say make i contribute my little quota so as to continue to benefit from both gurus and gugurus,

Correct guy!

esco399:
@ easimoni: today must be a lucky day for you (one of the plenty ofcourse), your # of posts is currently 777, it just caught me off guard, no post again until u don make some trades o,

Too late! But the other 2 "7s" still dey there. Anyway money don (nearly) finish.

shigidi:
@ easimoni,
i have somequestions concerning technical analysis :
1) you pasted the attachment for volumes, how does that help in calculating the RSI
2) i studied rsi in investopedia, there, it says rs= number of gains in x days/number of losses in x days
what does that mean.
3) can you use technical analysis to get an estimated forecast price like in fundamental analysis,
please help me out here.

Chem Engr Shigidi,
1. Volumes don't figure into RSI. It's, however, used to calculate OBV.
2. RSI is a little confusing per Investopedia's definition. RS (not RSI) = (sum of closing prices on up days / 14) divided by (sum of closing prices on down days/14). RSI = 100 - 100/(1+RS)
The 14 is the number of trading days used to calc RSI and is the norm. It can be adjusted.
3. No. Tech analysis analyzes demand and supply over the short term. A stock may be undervalued but over supplied and that is a recipe for an interim price decline. I's also (I think) a useful tool to know when to get out.

I think buying a fundamentally sound stock that appears to be "oversold" and primed for a bull run is the best way to go.

We go dey see as we start to apply.

Octupus:
@ALL
I am relatively new to this thread and I must say I am very impressed with the depth of knowledge most of you have displayed in financial and biz matters.Keep it up.I think I have found a place to gel for a while,if not permanently.This thread is far detached from most other threads in other sectors of this website,where I have seen people post thrash.

Having said that,I want to thank Wendywendy for the DG's speech she attached.I have perused through it also.Looks good and promising.However,I have a few questions to ask,and I welcome answers from all.

1. What does she mean by NSE All-share index?

2. Why is there a disparity between the number of listed COMPANIES and SECURITIES.I thought the two are used interchangeably.

3. Finally,and this is unrelated to her speech,can anyone postulate some reasons for the recent bullish run of AP?.It seems to me to be political rather than based on real, on the ground, solid improvement in the company's services.I stand to be corrected.

NSE all share index tracks the general direction of the market. If the index goes up, it means the average investor is gaining, if it goes down, well u know! It weighted based on company size, so if (for example), the ten biggest companies gain the max 5%, the remaining 200 coys can be neutral or negative, the index will likely gain.

There are funds and the like also listed on the NSE.

We discussed AP some weeks ago; Otedola has bought the company an is now attempting a foray into the UPSTREAM petroleum industry by bidding for 2 blocks shell is trying to sell. I don't think it means anything in the near-term (I work in the upstream, no be yam o!) but I guess people think Otedola will turn that place around.

Stick around the thread. It moves too quickly.

https://www.nairaland.com/nigeria?topic=31554.msg1767212#msg1767212

Yodi,
click the link

windywendy:
40% cash   Oh Pleeeaaasseee can I have some   . Anyway you're right though, risk appetite does determine a lot. I myself started in 8/2005, but started using margin about 3months later. The setting was just perfect -- stocks going for prices that I considered a STEAL, naira appreciating against dollar, the economy and NSE with rapidly improving fundamentals . . . Just converting USD to naira, doing absolutely nothing (or maybe putting the money in a fixed deposit acct) and then converting the naira back to USD within about 3 to 4 months would have resulted in a positive margin over the interest rate here. _{Twas too good to be true, and windywendy just had to get herself summ. . .}  

That works if you wish to borrow a small amount from a US bank. If you've built up a portfolio of N100M (not saying I have o!), which bank in the US will lend you/me 12M/100k USD? Would it be woth you while otherwise?