₦airaland Forum

jamace: I don't want dividend. I want capital appreciation. I also prefer bonus to dividend.

Of what use is dividend to me if the value of my share has to depreciate in order to get dividend? Dividend payment is a delay on my investment appreciation and progress.

Nothing stops me from reinvesting my dividend into same stock, other stocks or other investment outlets.

Born 2be Rich: I can guess the company you are talking about... but what of diamond bank, they didnt pay dividend yet they are planning to raise more funds and analyst are rating them as BUY...

I can't invest my funds in a bank like Diamond.

Born 2be Rich: As for me, i prefer dividend paying stocks becos majority of stocks that pay dividend consistently are healthy...For example: Nestle, okumu oil, Guiness, NB, Gtbank etc...However, thats my own thought.

Same here, provided the company does not borrow to pay dividend.

What the hell, what therapy do we call this?[/quote]I think it is madness.

What the hell, what therapy do we call this?

https://fbcdn-sphotos-d-a.akamaihd.net/hphotos-ak-prn1/p480x480/552375_412907038725229_564207463_n.jpg

bbporsche: @manie, which one is due diligence again??

http://en.wikipedia.org/wiki/Due_diligence



I hope this will help.

[quote author=val_dubem]Mine is investing in a given start-up company, it fetched me lots of $$. Am looking forward to investing (or even owning) a similar kind of company in the nearest future.

Tell us about yours::[/quote]My father bought some stocks of First bank for me and my siblings during the indiginisation policy of Obasanjo in 1977.

Mine was the investment i made in Nestle Plc about 13 years.

felucci: It depends when you buy the stock. If you buy it before the books have been closed for the year or dividends have been proposed, you won't get a share of it. Dividends are normally issued out to shareholders whose name appear in the books as at that financial year end for which they have been declared.

He said if he should buy UBA today, that was yesterday 16th April 2013. He would get the dividend, because they have not closed their register for the year.

ihedioramma: MAKE I ASK U PEOPLE NA WERE UNA DAY WAY FBNH DAY SELL FOR #12?, WERE UNA DAY WAY UBA DAY SELL FOR #2.48 ? . OK MAKE UNA TELL ME THIS ONE WHAT IS THE BUSINESS OF NEM? WAY EVERY BODY DAY TALK OFF?.

Very good question. Where were they when good stocks were begging for buyers at very cheap prices.

Aks: Hi Manie,

I salute your great work. Kindly analyse Fidelity bank result and projections

Sorry Ugodre is the in-house analyst.

cometozizo: Hey guys , just a sharp one if I buy UBA stock today now , will I be paid dividend at the propose date for dividend payment

Yes.

9free:

Una no go kill persin with laughs here.
Abeg, wetin the acronym SMN stand for? Make I check NSE website because e be like say una don dey code winning stock(s) for here.

The fellow wey concentrate his investment on NEM and Diamond Bank shares. You are the main guy wey dey hype NEM on Stock market Nigeria.

Born 2be Rich: Now you got the persin...make im dey code himself for here, na we know am...

By the tone of their writings, we go know them.

Born 2be Rich: Now you got the persin...make im dey code himself for here, na we know am...

Stockmarket Nigeria guys plenty for here wella.

[quote author=val_dubem]And who says investing in shares cannot make you rich?[/quote]Just being sarcastic. There is no point convincing someone who does not believe in the stock market, to start investing in shares.

9free: On the NSE, Impossibility is Nothing!!!

I think I know this fellow, you are on SMN.



"If you don't have ambition, you shouldn't be alive." Aliko Dangote

ugodre: This was written in February as well and expect its audited accounts this month as well

RED STAR EXPRESS – DELIVERING RETURNS TO INVESTORS

Red Star Express Plc is a leading logistics and delivery firm who recently appeared on the news when they acquired an airside facility at the international airport in Lagos. The moves help them cut back on the time wasted in clearing their goods from the airport. ?The company released its 9months to Dec 2012 unaudited results with revenue rising modestly by 6.88% to N3.8b when compared to the same period last year. Pre-tax profits remained flat only increasing 1% to N361m compared to same period prior financial year.

Red Star is a tightly held company with Dr Koguna (Chairman) and the company named after him owning about 31% of the company. In fact, 56 people own a total 72% of the company’s nearly 590m outstanding shares as at the last financial year. Despite this, the company appears very well run having posted consistent profits and dividend payout over the years. Last financial year it posted revenue of about N5billion up 19% from the prior year and CAGR of about 10% over 5 years. Much of its revenue are derived from its courier business making up 68% of revenue last year alone.

Typically, businesses like this are the bellwether for predicting economic growth in the west, as the performance of delivery businesses is an indication of how economic activities are performing in terms of the sale of goods and services. It’s not so in Nigeria, the room for growth in delivery business is hinged on huge infrastructural development such as roads, safer airspace etc.

Between the end of the end of the last financial year and date of the post their share price has risen over 39% to N3.40. Current P.E Ratio based on its trailing Eps of 55kobo is 6x, a cheap stock if you ask me. The company has no long term or even short term debt to any financial institution, has a strong working capital of N1billion and about N600m in cash as at the end of the quarter ended Dec 2012. The company currently relies on its assets to drive returns as margins are thin at 9%, however, shareholders can’t complain much with 9 months returns on equity at 15%. Surely, the balance sheet shows the company is well placed to expand its business efficiently if it can just borrow below its impressive returns on asset of 11%. Its cautious and organic approach to growth is understandable and surely will evolve to a more aggressive one in future. Just as customers want their goods delivered not only safely but quickly, investors look forward to a sustainable double digit growth in revenue every quarter rather than depend on the fourth quarter to boost revenue.


The share price was N3.80 as at today (15/4/2013). I still think this stock is cheap on the back of the 9months result.

Dr Koguna is one of the straight forward corporate managers in Nigeria, we saw what happened to CAP Plc when he was the Chairman of the company.

torhuke: Wht is the nominnal value of their shares? Wht is or wht wx the market value of the share in their last public offer? Can som1 pls explain haw investing in shares can make u rich?

Investment in shares can not make you rich, I will advice you to keep you money in the bank.

Does that answer your question?

Kayode 12: Pls can I still buy Gtb shares for now?and can I buy with 10000 naira

Walk up to any stockbroking house that will accept a minimum of 10k to open a stockbroking account, after opening the account tell them to buy GTB shares for you. 10k should buy about 400 units.

sellydion: N10 go dey difficult oo. Make I add N2

I doubt if it will get to N15.00, but if it dose that provides ample opportunity to buy more.

manie: Try Naira cost averaging, invest regularly and make stock purchase your habit. Don't try to time the market, dont be a day or week trader, invest for long haul.

If you do these you should be able to build substantial portfolio, 10 years from now.

mercylicious: I just don't know d best strategy to use in buying shares to be sure I buy wen its cheap/ cheapest. UBA will hit 9naira very soon. Shares fall after I've bought and still make an upward muvt.
Is there any strategy u guys use? When is d best time to buy frm the stock mkt? Is there any particular time of the year dt prices are low?

Try Naira cost averaging, invest regularly and make stock purchase your habit. Don't try to time the market, dont be a day or week trader, invest for the long haul.

9free: Guy, why you dey always look for my trouble? Abeg, make Firstbank no declare anything joor so that I fit r[b]eload @ N10[/b]
I no say na you dey bid up UBA....

You go wait tire if you wan buy FBN at N10

If you are looking at stock market investment, I will advice you to read books by Warren Buffet, Peter Lynch, Ben Graham etc.

My best section is the Investment section.

jossy26: Bros, I didn't say 20k oo, OP said he has 40k and I told him to add 10k to it making it 50k abi I no sabi maths again ni

Sorry for the mix up. i thought he had 10k

shigidi: So therin lies another question. With many of these stocks trasding at P/E's of 15, is it still worth jumping in for the long term? Or in other words,what indicators tell you that the P/E ratios at which you make purchase are good value at the time of purchase.

No vexx, i know i can be very interrogative

So therin lies another question. With many of these stocks trasding at P/E's of 15, is it still worth jumping in for the long term? Or in other words,what indicators tell you that the P/E ratios at which you make purchase are good value at the time of purchase.

No vexx, i know i can be very interrogative

You may need to look at the PE, and the PE growth rate, Peter Lynch loves investing in companies whose PEG is higher than the PE.


To Peter Lynch, a stock with a PE of 12, and a PEG of 15, is cheaper than a company with PE of 6 and a PEG of 5.

shigidi: At what P/E ratios were many of these stocks purchased? Might help to make for better historical analysis.

When i bought UACN and GSK back in the days, the stocks had a PE of less than 5.

Peterwins: The NSE is very real. I lost funds in the market crash of 2008/2009 but that have not made me pessimistic about the stock market. It is still a veritable source of creating, storing and transferring wealth despite the numerous challenges like "doctored" reports, corporate governance issues, unstable government policies, etc.

You did not tell us about the money you made before the crash and after the crash.

Fellonigerians: People that want easy and fast money are the ones that get burnt... If you invest in companies that give dividends or bonuses regularly, u cant lose... But if you invest in penny stocks that have not even filed annual statements in the past 3years, u will suffer...

Tell them.