₦airaland Forum

@freelance, good info. You have captured the basic principles of investing in the stock market. The moment you buy a share of any company, you become a part owner of that company.

The whole world is right in front of us in the form of ''internet''. There are lots of well researched and documented reviews of various companies in the NSE. Sites like ""research.ibtc.com, www.portfolioinsight.net,www.expresson-line.com, will make you a much better informed investors if you avail yourself of information provided therein.

In addition, a prospective investor should pay close attention to government policies with regards to a particular sector of economy. Bank consolidation, Ban on cement importation, Nafdac war on total eradication of fake drugs e.t.c. The direct and indirect outcome of these policies influence the companies operating in that sector of the economy.

Do your research very well and buy stocks based on fundamentals. even if you are a speculator, you can't loose on a fundamentally good stocks.

Take particular interest in stocks of companies that are bid for takeovers. Such stocks are at their low periods, unfairly priced, battered and bruised. Just research the prospective new owners and take positions fast before the whole market realise what is going on. By the time they do, they will be playing ''catch up'' on you.BCC, WAPCO, CONOIL(2005) are good examples . We all tend to get CAUGHT UP in the euphorias of the moment and buy overvalued and overpriced stocks.

Be proactive. All the best.

I am heading the ICT unit of an oil firm.

NO! 250k can cover the cost of everything including the product. if u buy at a good rate, you can get yourself around 2300 litres after getting the tank and measuring cans! do the calculation, u will still have some extra nairas left after getting the product. bottom line is ,get the product at the cheapest rate you possibly can. my advise is to visit the depot, find out how everything is being done, et.c. after your own analysis base on what you have, you may decide to go ahead!


all the best

yes, though as a passive member( financier). different companies offer different prices at the depot. its up to you to get the best price you possibly can. since we only have 250k to invest, we need to secure a good deal on product delivery (transportation) . e.t.c. just make sure you take the product to where its needed so you can sell on time. the keyword is turnover . its not too dificult to get the product from depot.

@cassidy06,
I am not a stock broker. I am the head of IT for an oil firm. However, I find the stock market interesting because of its challenges and the singular ability to make your money work for you without lifting a finger. I try as much as possible to convince people of the great opportunities that exist in nigerian capital markets. Like sage of omaha will say:you don't argue with results. The returns on investments in NSE ,particularly this year are there for all to see. yes, there are high and low periods in the market, and nobody can predict how one particular market will be in any particular year, but time tested methods tell you that stocks thrives on information,government policies especially with regards to any particular sectors ( for example, I think the cements companies stock is a ''must have'' stock for any investors next year).e.t.c
some stocks can give you 30-60% returns within 3 weeks. facts are there, when the market is bullish, nothing comes close to the stock market in terms of returns.its better you are there when things are happening or you are bound to be a spectator with a great expertise at relating stories! We should not be too risk- averse as to loose a great investments opportunities. we face risk everyday.we live with it everyday. its part of the joy of living.

a ten percent tax is applicable to all dividends.

@ioma, account has already been published. but you can get a more detailed account from banks and stockbrokers as soon as the IPO opens.

all the best.

Here are the stats:

The company recorded a profit before tax of N7.8 billion for the six months ended June 30 2006 and expects to record profit before tax of N17.9 billion, N23.7 billion and N30.1 billion respectively in the next four years.

here is the part I like best. If you subscribe to this offer, you are getting a dividend of N1 per share by march, 2007 ( dividend yield of 5.6%)- the best in food sector.  A factor that will automatically result in the appropriate pricing of the stocks. The right price is around N26.5 (ibtc research). But once it starts moving up, only God can tell where the price will finally settle down.

If you wait till after the listing of the shares, You will buy it at a much higher price. Believe me, fundamentals are there and you don't work against the obvious if you are investing. Buttom Line - invest in the IPO!

All the best!

Its a great idea. I am all in for it. People will learn and hopefully invest in NSE because there are great and unbelievable opportunities in it.

Thanks. I am happy to be of help. IPO is coming out @N18 per share. Nov 15- Dec 22.

An equity funds helps you to spread your risk. In a way, they have large pool of fund that they invest in various sectors of the economy. Being an equity fund, a big percentage (over 70%)is allocated to the stock market while the rest of the money goes to money derivatives like bonds, treasury bill e.t.c.

The returns you can get is therefore a function of the performance of the stock market in any particular year since most of the funds are allocated to the market. In case of IBTC, They are really the pioneer of equity fund in nigeria and they have been on it for a long time. They have millions of shares in their portfolios which they bought at a very cheap price like say 10 years ago. So you can imagine the cumulative effects of bonus, dividends e.t.c over the years. This is why they offer a different sell and bid price every year. I am not sot so sure of their debut price, but I think its 1000 or so but it has now grown to 5kplus. First bank shares 10 years ago is like N10. First bank was going for N72 at its peak this year. For a big equity fund, this translates to a healty returns for subscribers to that fund.So an average returns of 50% is quite possible because it is a cumulative effects of past investments and new ones.

In addition, IBTC is quite expensive at 5k plus a unit. Unless you really have big fund, you can make better returns investing in a very good stock. unless you have a great phobia for risk, you are better of putting the money in stocks like gtbplc, zenith and my current favourite- impending dangote sugar IPO.

all the best.

Do a kerosene distribution business.

Go to the depot, buy kerosene at depot price (N56-N65) a litre. Just make sure you have already commision a small tank, say, 5000 litre tank and start selling. as a retailer, you are suppose to be selling between N85-N90 a litre. If you do it well and cut unnecessary cost, you should make between 40k - 50k in for every tankful of kerosene. However, your major profit is a matter of turnover. If you can get yourself a good location to sell, you can finish a tankful within a week, you quickly go back to replenish your stocks and the cycle continues. In a good month, depending on your turnover, you can make your 250k back. It works and it quite easy. all the best!

He has the right to appeal against the judgement within a week. He was convicted for murdering 148 villagers in 1982- one of his many crimes against humanity. A well deserved sentence.

Apart from the obvious :the ubiquitous genenerators. you can get an inverter. An inverter converts ac to dc. This is done via a set of batteries that charges itself with ac and gives you power any time PHCN "holds'' its power. The size of inverter and batteries you will need depends on the power requirements. I have seen this thing (inverters) power a whole hospital before so it actually works.

@kazey, . I am going to invest for sure.
@Temin. offer starts Nov15- Dec22. price N18 per share.

The company is not about to raise money, but to sell part of its shares to the public (30% ). This is quite different from other public offers where they raise money to further improve operations and infrastructures. The company is already making profit judging from their half year results.

Another good thing about this offer is the proposed dividend payment of N1 per share by march/april 2007. This has already make the offer a good bargain for any discerning investor. I am still reiterating that the price will hit N30 or more before year 2007 ends. No amout is too small. minimum subscription is 500units (N9000).

Investments is all about taking risk albelt intelligent risk. I will advise anyone who wants to make money to consider investing in this offer. Dangote Sugar accounts for almost 80% of the entire country's requirements. All the major food and beverages companies (cocacola,nestle, e.t.c)are direct consumers of this product and I am also sure the company earns itself foreign exchange via export. These are basic fundamentals a prospective investor should look at.

We may have our misgivings over ownership of the company (one man business e.t.c) . however, what can we say about Zenith (jim ovia), oceanic (*ibrus) e.t.c. All these companies are performing very well. oceanic alone has recorded over 100% in price appreciation with a lot of prospects for further appreciation before the final results come out.

I believe strongly that the price will hit N30 or more before the end of next year (2007). My advice is for us to invest, no matter how small, in this offer. Great wealth are made like this and Nigeria is an incredible country to invest in. A very fertile land for wise investors. Thing BCC, Wapco e.t.c

Please invest and may GOD help us on our way to bulding great wealth for ourselves!

The virus must have corrupted your NIC's driver. You should uninstall the drivers completely, remove the NIC, get rid of the virus and reinstall the drivers again.

INTERCONTINENTAL BANK TEST SOME WEEKS BACK IN IKEJA


No, it's not a political rally, neither is it a Refugee Camp nor did it
happen in Rwanda ,
It is very much a "Nigerian Thing".

It's a picture of applicants scrambling to write an Employment Test @
Fototek Plaza, Opebi Ikeja, Lagos . Nigeria ,
Police had to disperse the mammoth crowd with teargas!

INTERCONTINENTAL BANK TEST SOME WEEKS BACK IN IKEJA


No, it's not a political rally, neither is it a Refugee Camp nor did it
happen in Rwanda ,
It is very much a "Nigerian Thing".

It's a picture of applicants scrambling to write an Employment Test @
Fototek Plaza, Opebi Ikeja, Lagos . Nigeria ,
Police had to disperse the mammoth crowd with teargas!

hello, everyone,
please refer to my analysis on the above subject matter.
the recent share prices of uba, btb, oceanic happen to confirm my earlier projections.
stock market still remain one of the most viable ways of multiplying your income. we know there are risks involve, but is thre anything you do in this world that does not carry some elements of risk. Nigeria is such an incredible country ,where legitimate fortunes can be made in a very short time if you know what you are doing. your dreams can indeed come through via stock investments.
please, if you have a loose fund and you dont know what to do with it, seek advice and invest in a good company. you will be happy at the end of the day.
@akin21. my mail address is k_disu@yahoo.co.uk.

all the best,

Neb,

i wish i could predict the stock that will net you the best returns but i can't. my advice is based purely on fundamentals.

so invest 50k a each on uba and oceanic bank. My reason for this is the two stocks are near their year end, and the potentials are great. but if you must do it, you have to invest Now to take advantage of price appreciation! I have substantial investments in the two stocks and am happy with the outcome so far. if you are not too much in a hurry, GTB is another great stock.

all the best,believe me, all the best.

Neb,

GTB- GTb will likely pay a combine dividend of N1 this year. interim Dividend of 25k- 30k (due NOV,2006) and final dividend of 65k- 85k (due May 2007).
If business is good, thats the lowest you will get a year. at current price of N18, your 100k will fetch you approx 5400 shares. thats around 5k in dividend a year. but thats not all, if you keep your shares, you may also enjoy capital appreciations. i can't tell you how much because price movement is affected by many factors and dont forget bonus issues in a very very good year!-

UBA- it can pay between N1-N1.50 as dividend (once a year). Uba's opportunity for capital appreciation is tremendous. so do the calculation of how many UBA shares you will buy for 100k .

Oceanic- dividend of 50k- 70k this year. This year has been good for oceanic. Profit growth rate has been fantastic this year(90%). Oceanic will be the 3rd most profitable bank this year. just wait for the final results. You will get about 8000units of oceanic bank shares at the current price.

First Bank- refer to my last post!

hope i have answered your initial questions.

happy investing!

Neb,
With an outlook of 4-5 years and 100k of investible funds, i will recommend the following stocks:.

GTB- stable,efficeint and consistent returns.Gtb also enjoys tremendous goodwill from investors plus, guaranteed payment of dividend twice a year!

oceanic: i still believe it is currently undervalued(I bought @ N7) at the current price, and at the current growth rate, it is a N15- N20 stock.

Ist bank is good too. provided you are not too much in a hurry to make returns. If you had invested earlier , it could have been better. I did and made a lot of money. 100% to be precise. however, looking at the proposed merger with Eco bank, The stock will be placed on technical suspension, shares reconstructions will follow later, New certificate of the combine entity wont come out in time and that means you can't trade on it. This is from a speculator's point of view. since you are a patient investor(2-4yrs), then you can buy first bank. You will smile after a year or two but not before then due to merger -induced distractions.

UBA is also good. Full year result will be fantastic. You can inest now. The stock will be trading at N25 before the year ends- UBA will be declaring 18months result instead of 12 and the outstandings shares are ok relative to her peers. so for 100k, UBA is also good.

You can divide your fund into 2 and invest 50k each, that minimise your risk but i tell you , it is a very good risk to take. invest in any of this shares and you will be happy. all the best.

Visit the corporate websites of the companies you are interested in. Although most companies do not update their websites regularly but you will likely get previous financials statement of 2 to 3 years and in some cases their past annual reports.

@Nwoke,. I am an active investor in the nigerian stock market  so i am going to answer your question based on experience.
whatever is what doing at all is worth doing well, and if what we are talking about has to do with your financial wellbeing, you need to open your eyes well before making a decision on how to invest/multiply your hard earned naira.

so how do i choose my stocks? you have mentioned most of it yourself in your opening post: daily newspapers, financial based/business newpapers, companies website, trends,stockbroking firms website,rumours,government regulations e.t.c. The question is how to  channel the array of info from these media for effective stock picking.

I only invest in company with good history of consistent earning, stable management,resilience and market value share.
examples of such companies are FIRST BANK, UNION BANK, GTB, ASHAKA, . 

Government regulations also affect my investment decision. e.g federal government ban on the inportation of cement may force me to take a look at the cement industries. Obasanjo first major increase of fuel prices heralded the unprecedented growth of petroleum firm shares two years ago. abi, how do u explain the movement of conoil  stock from N20  to almost N200 in six months!
the latest is the current consolidation in the banking sector.


my story has not been all rosy though, I have incured some losses before but my single gains have more than cancelled those losses.

am a system engineer but my  interest has made an accountant  of me . OK.

I think the answer to your second question (percentage of investable income) depends on your status in life: financial, marital, family background, attitude , e.t.c
I'm single, so i can afford to invest more than 50% of my income .and of course, the 50% depend on your pay packet. i have ist bank, gtb, ashaka, gtb, oceanic bank in my portfolio.

This year alone, i have made enough profit from first bank to cover my expenses for the rest of the year. This is what a good investment can do for you. I started 3 years ago.


here are some of  the sites.

www.expresson-line.com
www.firstglobalselect.com
www.moneywise-ng.com

hope you find this 'epistle' useful.

you can open a domiciliary (dollar) account here and leave a standing instruction with your bank to pay in the dollar equivalent of your dividend to that account.

am from Ilesa town,osun state.

I am both a speculator as well as a long-term investor.i change my method according to the market trend. it is true the political situation may be detrimental to investments, you still have a fairly long term (9) months to invest and make ur gain.

How I Made A Million Naira In One Day!

You can say i am one of the few lucky ones. I have always been a good advocate of the great returns on investment(ROI) in nigeria stock market.

I bought 110000 units of firstbank @ N33 three months ago and i have just sold all yesterday at N46. my profit on this is more than a million excluding brokerage fee. while it is true that you can lose a fortune in the stock market, you must be ready to study the market and identify good company to invest in at the RIGHT price.

This is not a flash of the pan thing. the truth is you stand to gain a lot if you study the markets. it is a level playing ground for both expert and newbie alike.

I am attracted to this girl at my place of work. she is nice and we have become quite"friendly''. well, i invited her to my place and she told me that two of my bosses had made advances at her.one of them even promised to make her his second wife.Ha!  (can u believe that).Now am faced with two options. its either I go out with the girl or  risk getting into trouble with my bosses. I like the girl but I don’t think I have reached a point of sacrificing my career  for a feeling that has not been tested. I work with an  oil exploration company. It’s a small company but the pay is pretty good. Rumours and false innuendo can jeopardize one’s career in this place and am not ready for that. so here is my dilemma- should i continue or give my feelings a quick burial and forget about the girl. your advices and opinions are welcome!

How can you explain such  an important human  phenomenon as being in love with gravity,you  put your hand on  hot flame for a minute, it feels like an hour, you gaze at a beautiful girl for an hour and it seems like a minute. That is not gravitation. That is relativity.

i was doing a search on business oportunities in nigeria. forum from nairaland was displayed as one of the result. here i am. good site. no regrets.