₦airaland Forum

dexsail:
mr. easimoni u said u can't invest in public offer and your reasons are u can wait 4 a long term. please advice me i am new in investment deal

egoldman answered quite well on my behalf. I believe in investing for a few months and moving on to a new opportunity. That's just the way I think. It's certainly not the only way to make money. Pls buy IPOs if you are willing to wait about 6 months to make good returns. I don't have that much patience.

Another Forum? this is the second ad for a forum today. It'll take time to challenge nairaland!

meetgiwa:
Do you know you can make huge amount of money on penny stock? visit nairakobo . com to see how.

thanka.

I vote we stay right here!

SavvyLanre:
@Frank - I say you and Windywendy should open a Stockbroking firm, all of us would jump boat :-)

I second that. I'm sick of Lead Securities. Worst brokers in the world.

philipmay:
@ENCLOSE
Are you a stock broker,how do you know when to buy and when to sell,that is my question.this is the only way www.nairastocks.com that you know.if there is any member that have use nairastocks services i need more info.

I don't use enolase's services but based on his webiste and previous posts on nairaland, he is clearly more educated about buying/selling stocks than most stockbrokers I've met. I'd encourage you to take his challenge and sign up for his services if you have not had much success on our own. Most importantly, educate yourself.

I lost money of my first market deal based on bad advice from my broker. I have since educated myself and managed my own portfolio. I'm up more than 100% since this January!

nakedwire:
@ Stock gurus, Please help, I already have shares with First bank, how can I subscribe for more shares @ N31.00 (rights offer)? Is there any special application form?
My stock broker is not giving me any any info or assistance on this.

First and Foremost, you need a new stockbroker. You should try FSDH Securities, Zenith Securities, Cash Craft etc. Second, all the info on the 1st Bank offer (including forms) can be found on the website

https://www.naijabigoffer.com/

Good luck.

@ egoldman,
You are correct. Anyone who already owns shares (or by some miracle gets his certificate by that date) is free to sell. You don't even have to wait for that date. The wait for certificates is what precludes me from buying public offers. Let's hope the e-whatever makes things better.

BTW, do you know what your broker charges for transactions? Mine appears to be charging a lot more than the 2.23% in your previous post. I might have to threaten to move my account.

Seun:
The government has no business setting the price of fuel. Let allow the laws of demand and supply to work.

Be careful what you wish for. demand and Supply would require that the govt remove all subsidies.

finemocha:
geez

that question is like asking can i marry a man poorer than me.

So I guess your answer is no!

I always thought the name "Lucy Pearl" was catchy and classy. It's the name of Raphael Sadiq's short-lived R&B group from 1999.

nazzyon:
Does any of the numerous companies in Nigeria have the policy of reducing the number of outstanding shares?

Please if there is, kindly, help me with their names.

I don't think any company does.

ThiefOfHearts:
it's unisex

well really it's not negative as it just shows the difference between a Nigerian and a Black people in a foreign country but it can be used negatively against them.

"Akata" translates into "Cotton Picker". It's a derogatory word used as a thinly veiled reminder of the slave trade heritage of most African Americans. It's no better than "Nigger" and you shouldn't use it regardless of how much you get taunted (been there, done that). Don't repay evil with evil.

@ Allcorrect,

you have hit the nail on the head regarding why I think Public Offers are a bad idea to invest in. By the time the average investor gets his/her certificate, other opportunities in the market would have overtaken you. I have never, ever bought a public offer and I never will. Not even a Dangote offer. People always point to Dangote Sugar. While the Dangote IPO was out, I invested my money in Japaul instead. I sold my 90kobo investment for N3 and re-invested in Wema which has since climbed 50%. I'm up 350% while Dangote owners are getting 100% (assuming you've even seen your certificate).

Say no to Public Offers unless your are "long-term". And ask yourself why you should think long-term in this market.

Since the return of her stay on the moon
She listens like spring and she talks like June
Train - Drops of Jupiter

Don't know, don't care. Take That was and will always be the best. So glad they have a new album out right now.

"The Remedy" by Jason Mraz

"Spoken for" by MercyMe

"How to save a life" by The Fray

"Irreplacable" by Beyonce

Methinks Blake will be a great entertainer. A few back-up dancers and watch Justin Timberlake & Usher. The song he did with Doug E. Fresh at the finale was the second best performance in idol history. My fave was when Mary J. Blige sang "one" with Elliot Yamin during the 06 finale.

Blake, keep your head up. Daughtry is selling more records than anyone else from the 06 group. Just stay away from Rueben Studdard's producers (and from his Chefs too )!

Back to the topic,
based on my records, my initial stock market investment of 600k in Dec of 04 is now worth >N7m. If you know of any land deal that appreciated 1100% in 3.5 yrs, please let me know! The key is to learn how to find relatively undervalued stocks and buy them before other people realize it.

You should get the book "Investment for Dummies" by Eric Tyson (pls don't take offense by the name). He compares both forms of investment (property vs Stocks) and shows that stocks beat real estate in the long run. It's also a good reference book.

Either way, careful & legal investment in either will give you good returns.

@ 50kobo,
I pay an income tax of 22% of my income to Asiwaju Bola Ahmed Tinubu (the BAT man). Based on my datbase of company results, banks pay ~15% of thier earnings as tax. For other companies, it seems to be all over the place.

A google search of "Nigeria Tax Rates" came up with this link that shows income tax rates are 30% but can be reduced to 20% for certain industries (Agric, manufacturing, ). Interesting! Also has info on VAT, dividend withholding tax and PPT.

http://www.nationsencyclopedia.com/Africa/Nigeria-TAXATION.html

50kobo, next time do your own homework and don't rely on efikos like me!

ono:
Well guys, I've got a number of stocks in some coys - Firstbank, Union Bank, UBA, OandO, Unilever, and Nigerian Brewries.

Aside from the bank stocks, I think something strange is happening at OandO. Ayala, do you know if the folks at OandO are planning to do something big? I've tied my money (a good fortune at that) for some 3 years now, and I think, I'm not getting any good dividends. Their share price drive me crazy everyday, and I'm thinking I should not have purchased those shares when they came out with their yeye public offers a couple of years back. Is that company one of OBJ's firms or what? I've got myself to blame for not looking before leaping.

You need to learn to do fundamental analysis. I bought my 1st shares (Ashaka Cem) in Dec 2004. I sold at a loss a few months later because my broker asked me to. A few weeks later Ashaka started a climb that TRIPLED it's share value. Since then, I have learned to do my own analysis, and now my broker takes advice from me! Go to investopedia.com and learn about earnings, EPS, PE, PEG, ROE and how to determine the true value of a stock. Fundamenal analysis helped me determine that Oando was a DOG when the IPO came out. Unfortunately for you, Oando is now a buy! That's right. Just placed and order for 15k shares myself. I think it can make a push for N100 in the next 6 months. Let's use Oando today as an exmaple of simple fundamental analysis:

Profit-After-Tax for 3 months ending March 2007 is N1.07B
Project to N3.5B for the full year and divide by 572M shares gives a projected EPS of N6+ per share.
If you think a PE (Price-to-EPS ratio) of 20 is fair (I do), Oando should reach N120 in the next 9 months.

My advice: I know Oando has treated you poorly in the past but don't invest or divest based on sentiment. Oando is now a buy. At a current PE of 14, it is now the "cheapest" petroleum stock in the market and lasohas the most growth potential.

@ Frankiriri and ijogbon,
it seems like Dr Eteng (enolase) has beaten you to the punch and is advertising his investment club on this thread. I've followed the link and studied the info. There isn't much fundamental analysis available. I guess you have to subscribe to get that,  Lot's of success stories.

@enolase
If someone stands to make 40% on Zenith btwn now and Dec (I don't see Zenith rising above N70 based on fundamental analysis), why not advise them to buy a stock with much more upside? Don't you think there are other stocks with much higher upside? I do.

@senetee
When you go to open a stockbroking account, that's when you'll be required to open a CSCS account. Per your 1st bank question, you'll certainly make money buying 1st bank shares. But I am of the opinion that you won't see it triple like Dangote Sugar. Based on 1st bank's very poor profit growth rate of 25-30% (compared to 70+% for Zenith, Oceanic, GTB, ), I project N55 is a fair value by year end. Still a good return on investment. Like Dr Eteng, I bought WAPCO at 21  and sold at 70. You won't get similar returns on public offer. Even Dangote has dropped like a rock since peaking at 56

@ Rhea,
Your post has more wisdom in it than all the other posts in this thread combined! The answer is not to throw your vows out of the window in anger and she chose the perfect way to address the problem.

For those of you who bring up the bible permitting divorce on the basis on infidelity, remember that Paul said Moses allowed it because of the hardness of our hearts. Jesus said when we divorce on that basis, no one should remarry. If God forgave us of all our sins, we can forgive a spouse we swore an oath to, of infidelity. It's easier said than done, but remember the parable of the wicked servant. If you get all your sins 4given, then try to 4give too.

Finally, I think the intial post is a FRAUD! If you've been cheated on (& I have), the last thing you want to do is put your issue out in the open for other to gist about (even anonymously). + the vibe of the post didn't seem heartfelt. Just my thoughts.

@spora
You have serious issues.
Barca will win!

@Riba_man,
allow me to usurp aylala2002 and answer your question. Ashaka's EPS (N3.01) is based on the Full year 2005 result and the market is awaiting the long overdue Full year 2006 results. Assuming a profit-after-tax growth rate of 50%, the new EPS will be ~N4.50. This simple analysis indicates the fair market value will be around N90 (assuming 20 is a fair PE).

Unless Ashaka exceeds the expected growth rate, pays an outstanding dividend, or exploits market sentiment by declaring a good bonus, it's tough to see the stock climbing above N100. Now might be a good time to sell (as Proshare recommends) and re-invest in stocks with much higher upside (Wema, Skye, Oando, RT Briscoe, 1st Bank public offer, ). I wouldn't hold on to a stock with a 15-20% upside. Not in this market.

Ashaka might be a good buy late in the year as the ban on cement importation becomes effective.

I wonder if anyone has read the CSL research report on proshare: http://www.proshareng.com/myproshare/portal_articles.php?id=1055
that Zenith is presently overvalued at N50. I find it difficult to agree with their explanation, because I believe it's worth is even going to increase based on speculations of bonus and scrip issue. My stockbroker also advised me against selling, but I wonder if I am being sentimental. What's your take on this?

Zenith is overvalued with respect to the rest of the opportunities in the Stock market. You won't lose money holding on to your shares for long, but you stand to makes less than if you bought, say, GTB, Wema or Skye. Or any of the other stocks recommended on proshare (which I think, by the way, offers the best buy/sell advice for naija stocks). Zenith has a high PE and a low ROE, both reasons for the price to decline.

that said, the naija market psyche tends to favor shares with bonus even in the face of bad results. If zenith gives a bonus, the price will climb and the decline steeply once the bonus is issued.

I think you guys might be on to something. Remember that Berskshire Hathaway (Warren Buffet's Company) is essentially an investment club. He takes peoples money and invests it to deliver above-average returns.

My problem with investment clubs is that as they grow in size, they tend to take on less risk and they start to deliver market-like returns; case in point IBTC's Equity Fund. As more people join, you'll start to run out of high-growth stocks to buy (due to the small size of the Nigerian Market) and the efficient market theory will set in.

I'd suggest you start off as an investment advisory service and ask for a "subscription" for advice and analysis that would almost guarantee high yields. Tell people what stocks you bought, when and why and what your returns have been. As you build trust and a reputation, it might be reasonable to leverage that reputation to start a trust (with a bank loan?) and aim for naija-Warren.

I do my own analyses and I am a Buffet fan. By exploiting inefficneicies in the naija market, I have seen my portfolio grow at over 100% p.a. since 04. I'd be happy to provide my opinion if you ever get something started. My current portfolio is 7% AP, 55% Wema, 13% SKYE Bank, 25% WAPCO. I'd be happy to explain my reason for buying each stock. That's the type of advice I'm looking out for.

Good luck.

@ ijogbon

the best source for near real-time stock updates is the Stock exchange website. See link below. Type in the name of the company, e.g "diamond" and then press "go" do not hit "enter". Choose from the list that comes up. I hear it is real time info.

http://www.nigerianstockexchange.com/quoted_companies.jsp

If you want a complete summary report, the quickest website I know of to post today's results is Zenith Securities'. My friends and I have searched tons of websites and this is the quickest to provide a complete pricelist as soon as the market closes. It should be user-friendly.

http://www.zenithsecuritiesng.com/marketanalysis.php

Enjoy.

I would enjoin you guys to consider buying SKYE bank. I think it's a hidden gem. The problem is the previous reports show some underwhelming numbers. However, the profit margin (after tax) is a measly 10% vs. 20+% for Banks like GTB, Oceanic, 1st Bank,

There is now an upward trend in SKYE bank's profit margin and if the manage to hit 15% at the end of the full year, an EPS of 70k (PAT of ~N5B) is possible. At current typical PEs of 20, SKYE could be a N14 stock by Dec, double the current price!

THe cat might be out of the bag already as the price is climbing steeply. See my analysis in the attached spreadsheet.

@ ty ademolu

You can learn how to calculate PE and EPS at the website investopedia. Make sure you look at trailing EPS. It is the most rigorous way to calculate EPS & PE. The site aslo has great articles on fundamental and technical analyses.

http://www.investopedia.com/terms/e/eps.asp
http://www.investopedia.com/terms/p/price-earningsratio.asp

If you ever get confused over any terms used in this forum or any investor report, look it up under the dictionary, acronyms, or tutorials sections of the website. Hope this helps.

It's a shame it's on DSTV. This means HiTV is dropping the ball on getting shows that are a proven commodity to the market. Good shows (like DOND or maybe even "5th Grader") will only help to make up for the fact that they've lost the english premiership,

Per the quality of the show, methinks DOND is a great show. Not a brain show but a luck show. Always fun to see some greedy person open one case too many and go from 6 figures to 4 or 5, (remember the fat guy who asked the models to come sit next to him and won $10, was aksed to come back and again won only $400). It'll be nice to see how this will translate to the naija market, I can imagine peeps will take a lot less risk than in the US.

Per the ignorant comments of our US brethren, we might want to start a new thread for our "Hall of Fame" idiotic comments about Naija. Mine was teaching a set of 7 yr olds during junior achievement and a little boy asked if Mud Huts could be considered a type of residence. My co-teacher (a Hill-Billy I met in my business class) said "I dunno, maybe **** can tell us more about that!" Not his fault, I bet my childhood home in GRA Ikeja was much nicer than his farmhouse.

A recent survey of current Premiership managers asked the question "Which one player in the history of the premiership would you pick to start your team?" 11 of them said Roy Keane. He played the central defensive midfielder position so far above anyone else (ony Viera ventured close) and willed his team to big wins on several occasions (whereas Viera often choked).

Henry is a special player but has never had a signature game a la Roy Keane's Man U vs. Juve in 1999. His scoring records were also often matched by Ruud, Andy Cole and the like.

In the end, I voted Cantona for sentimental reasons; he brought Man U the first ever premiership title one year after leading Leeds to their last title. Other surveys also rank him the best prem player ever.