₦airaland Forum

manie: I have built three modest houses in Lagos and Ogun States courtesy of the market, I get regular dividends from my investments in the stock market and I have also used my shareholdings to secure loans for the expansion of my businesses.


With these few points of mine, i hope i have been able to convince you that the stock market is real for the the knowledgeable long term investors

Unfortunately, I am still trying to get a certificate of occupancy to these houses.

manie: The market is real, I have benefited immensely from the reality of the market.

I have built three modest houses in Lagos and Ogun States courtesy of the market, I get regular dividends from my investments in the stock market and I have also used my shareholdings to secure loans for the expansion of my businesses.


With these few points of mine, i hope i have been able to convince you that the stock market is real for the the knowledgeable long term investors

Okomu Oil sold for less than N5, in 2004.

100k will buy 20,000 units.

A bonus of 1 for 2 was declared some few years ago. this will make the 20,000 units to grow to 30,000 units.

Okomu closed at 104 on 12th April 2013.

30,000 units of Okomu will be worth over 3 Million Naira.

Dividend of 135k was received in 2012, and a dividend of 189k will be received in 2013.

This is the performance of the top houses for the first quarter of the year


http://www.thisdaylive.com/articles/top-10-brokers-pulled-n290-billion-transactions-on-nse-in-3-months/144858/


According to the data on the performance of stockbrokers between January and March, obtained from the website of the stock exchange at the weekend, Stanbic IBTC Stockbrokers Limited topped the table with transactions valued at N83,802,402,588.57, translating into 16.43 per cent of the total transactions within the three month period.
Next in ranking was Rencap Securities (Nig) Limited, which did transactions valued at N79,877,299,390.77, a 15.66 percentage of the total value.

CSL Stockbrokers Limited came third with N33,093,237,809.18 worth of transaction within the first three months of the year, translating into a 6.49 percent.

Fourth on the table was FBN Securities Limited, which recorded transactions worth N18,486,389,566.50 and which amounted to 3.62 percent of the total transactions for the three months.

On the table also was BGL Securities Limited, which came fifth with a N14,886,583,377.34 transaction worth 2.92 percent. Next in ranking was Cardos Capital Limited with did transactions worth N13,991,482,588.11, amounting to a 2.74 percent.

Chapel Denham, which came seventh recorded transactions valued at N13,806,612,919.20 and this translated into 2.71percent.

Also on the table was Partnership Investment Company Limited, which did a business of N11,036,342,528.18, translating into 2.16 percent of the total transactions on the exchange between January and March.
Ninth on the table was Zenith Securities Limited, which did transactions worth N10,491,439,308.49 and this was 2.06 percent of the total value.
Vetiva Securities Limited came last on the table of the top 10 stockbroking firms on the exchange with transactions worth N9,667,242,523.55, a 1.90 percent.


The top 10 stockbrokers accounted for 56.70 percent of the total value traded between January 1, 2013 and March 28, 2013.

maclatunji: You bought government land whatever the facts are. It might be best for you to comply with government's decision on the matter.

What about those who bough land at Ibafo, Mowe etc that were also required by government to ratify the document to the land, before they can start processing certificate of occupancy. Government acquisition is another way of defrauding real estate investors in Lagos and Ogun States.

jossy26: @OP, try add 10k to it and visit leadcapital to open a cscs account; read manuals about stock, get one with strong fundamentals with advise and guidance from your stcokbroker, there's also a thread by stockbull you can check through for good info, also check www.proshareng.com, www.moneyhub.net for daily stock analysis. If you need more info ask here. There are plenty gurus here to give good info. Best of luck

Never knew Lead capital will accept as little as 20k to open a stock broking account.

shigidi: @manie, im trying to diversify portfolio as i am heavily biased towards the banks. Amongst the infrastructure sector, would you advise ashaka or dangote cement? Ashaka appears cheaper in terms of p/e ratios. But what do you see as per growth prospects for each of them.

I am currently heavy in bank stocks, about 50% of the value of my portfolio is in banking stock. I will prefer Ashaka and WAPCO over Dangote cement, I still have corporate governance issues with companies that are 100% owned and managed by Nigerians.

elvis10ten: Ok. I am willing to give 15% to the investor. If you want validation from my parents, that can be arranged. Thanks for the response.

15% for how much? What is the worth of the enterprise? How did you arrive at the value quoted for the enterprise.? Just curious.

ugodre: I wrote this article on my blog about a year ago and is a prelude to my next review of Tantalizers Plc.

IS IT TIME TO DUMP MY INVESTMENT IN FAST FOOD COMPANIES?

In almost every street corner in Lagos and major cities in Nigeria, there is fast food restaurant. From Mr Biggs to Sweet Sensation to KFC to Chicken Republic etc they are everywhere. Just walk into any of them at peak periods between 12noon to 2pm and you may not get a sit. Go back a few hours later at 8pm and you may not get food to eat because the shelves are empty. Certainly, this guys are getting a lot of patronage which ultimately result to cash. But does this cash transcend to Profit??

The only way one can know if these guys make profit for their shareholders is to look at their financial statements. Unfortunately, only a handful of them are quoted companies making it difficult to analyse them in their entirety. The quoted ones should however serve as a guide as to whether they are making money or not at least theoretically. Like a opined in an earlier blog post, the food business in Nigeria is highly competitive as the barrier to new entrants is quite low. The Fastfood business also face this same problem.

A look at Tantalizers Annual Report for 2008-2011 reveal a startling idea of just how unprofitable these businesses are. Tantalizers for example have made revenues of not less that N4.5b over the years. However, most of it is eaten up by huge cost of sales and admin expenses both taking an average 54% and 45% from revenue respectively . This leave’s the company with little or no operational profit before interest and tax making the business model a cyclical drag on profits. Bigtreat also share a similar trait with an even worse result. In 2009, cost of sale of N2.5b took a huge chunk out of their Revenue of N4.2b with operation cost and interest eating up the rest, leaving a loss position of N441m. Even UAC the owners of Mr Biggs show very low profit margins. Their 2010 revenue of N34b only yielded profit before tax of about N2b (less than 10%).

Could it just be competition ripping into their profits or is just the inability of their management to reign down on cost? Tantalizers for example have a staff strength of over 2000 with salaries and wages taken up about N693m and N648m for 2009 and 2010 respectively. Another cause may also be the huge depreciation cost that these companies incur year after year. With some of them owning Fixed Assets with book values of over N6b its not inconceivable to understand why their depreciation cost can go as high as N400m every year alone, a whopping 10% of their revenue. Thats probably why interest on loans isn’t so much of an issue as these cost are only accounting profit so do not represent cash payments. A look at their operating cashflows buttresses just that. Tantalizers in 2010 had Operating Cashflows of N654m alone in that year. However, it purchased fixed assets of over N700m in that same year. As such they will have to write off huge depreciation cost year after year from their profits before paying dividends.

Ironically, the little money these fast food companies make come mostly from business not directly associated with the selling food. For example, Big Treat made N34m from rental of its properties in 2008 and another N16m from other sources. UAC made a profit of N4b on its Real Estate business in 2010 alone. Tantalizers, the only one of them with a currently released financials has mostly relied on other income to remain profitable. it made N159m and N140m in 2009 and 2010 respectively on other income with rent making up N130m and N114m of that revenue in 2009 and 2010 respectively. 2011 is also not any difference as they made N113m in other income.

This sadly, doesn’t offer comfort to any serious shareholder as increased returns on shareholders funds is no more than a pipe dream. Tantalizers have in the last couple of years declared a paltry 2kobo only on a nominal share price of 50kobo only, a meagre 4% compared to other sectors that yield over 100% of nominal price. Would I hold on to the shares if I had one? My answer surely is anything but in the affirmative as I do not see any trend suggesting a concrete plan to reduce cost.

UACN is a conglomerate, you need to get and analyse the annual report of UACN to get the contribution of of UAC Foods to UACN bottomline. Grand cereals, another subsidiary of UACN contributed more to UACN bottom-line than the real estate subsidiary.

Seun: It means spreading your stock purchases over a long period of time and buying shares that cost a certain amount in naira each time. The spreading out of the purchases greatly reduces the risk of loss due to buying at a time when the shares are relatively expensive. But it also greatly reduces the possibility of making more money by buying at a time when the shares are relatively cheap.

Since the amount invested is constant, this means you will tend to buy more shares when they are cheap than when they are expensive. That makes it arguably superior to the similar strategy of buying X shares at regular intervals over a period of time.

Thanks Seun, for the explanation. With Naira cost averaging, an average investor will rarely go wrong investing in stocks.

INFO70: I can do biz with the money and pay u 3k every week for 6 month• If interested, send me a mail and I will supply you with info that u can use to draft an agreement• My email infocentre 70@yahoo•com
Better still if u are in Port Harcourt we can schedule for a meeting and discuse

The OP should not give his or her money to anybody. Learn how to save, invest and multiply your money.

maclatunji: Yeah, I did some work on this last week. I think a mixture of rapid economic growth and modern building techniques will be critical to surmounting this deficit. Look towards the Chinese and other rapidly developing countries to transfer their knowledge and technology to Nigeria soon.

Government should first of all remove the bottle-necks that real estate investors are facing.

maclatunji: Which one is ratification? Did you buy government land?

I bought form Omo - onile, Fashola said the land was acquired for Agriculture during the days of Awolowo as the Premier of Western Nigeria.

When Lagos State was created out of the old Western Region in the 70s, Lagos inherited the land from Western Region. The area is built up, and it is obvious that Lagos can not use the land for Agriculture again.

Anybody that wants a certificate of occupancy in Ajah axis must first ratify the land or get the Governor's consent

shigidi: My question has always remained, when exactly do you know when the market has bottomed out?? The current bears presents good opportunity, but at what point do you enter? What formulates the basis for such a judgement.

I will advice you to try Naira cost averaging, this is a good strategy for starters and long term investors.

jamace: Have already invested. Waiting to harvest.

Their is no end to investing, make it your habit.

bbporsche: Hello! Nairalanders. I came on dis site in Jan looking for a gud internet business I could invest my money in. Along the line, I came across a guy here named Victor Ade (I'll post his email add on mon) who convinced me and lured me into 'william hill sport bettin'. I loved d idea although it was too gud to be true...I decided to try it with a little amount of money to see hw it will turn out and as I type dis he has refused to pick my calls, reply my e-mails or even try contact me! Initially I didn't want to believe dat I've been duped so I kept callin him. My experience is nt a gud one dat y I'm writing dis so dat nairalanders won't fall prey to these thieves on nairaland. If u don't understand d biz and u can't run it without their help DON'T DO IT!!!

I would kindly like the mods to put dis on front page pls.

That is why you need to do your due diligence, better luck next time.

frcxs: I have a question about Okomu oil. Please can someone tell us what changed? what have they done differently? hope people have not started manipulations again?
who has analyzed their financials in the last 3yrs and identified what changed. where are they getting the money from? what did they sell in terms of coy property?

The internet will help to research into the company's performance for the past 10 years. The company is consistent with dividend payment since it was listed. They have being ingback some of their profits for the past 10 years, they paid a dividend of N5.00 last year and think the best is yet to come from well managed companies in the Agricultural sector.

That is Presco and Okomu, but unfortunately the companies that are doing well in the Agricultural sector are about 50% owned by foreigners, I have not seen a 100% wholly owned Nigerian company in the Agricultural sector that is doing very well.

gosj: Guys A̶̲̥̅♏ advising you to buy Okomu oil as much as you can while the stock lasts bcoz d̶̲̥̅̊ε̲̣̣̣̥γ̲̣̣̥ are planning to increase production this year Ǻn̶̲̥̅̊ԃ mind you, the May 13th maturation date į̸̸̨§ just by the corner. Smart guys have discovered that there į̸̸̨§ so much prospect in Okomu oil in the short, medium Ǻn̶̲̥̅̊ԃ long terms Ǻn̶̲̥̅̊ԃ they are going ƒσя ∫t as one can see that in today's sudden appreciation from about .80k to N9 in less than 1hr b4 the end of the market. Okomu oil has the following things working ƒσя ∫t presently in the market
1. Good Management
2.Transparency to Itڪ shareholders
3. Good annual report both in bonuses Ǻn̶̲̥̅̊ԃ dividends (Imagine 1 ƒσя 1 Ǻn̶̲̥̅̊ԃ N7 at a blow!)
4. Government supports in policy Ǻn̶̲̥̅̊ԃ others
5. Recent dclaration by Itڪ MD of their increament in production to boost exports
I hope they wil forge ahead Ǻn̶̲̥̅̊ԃ keep the vision intact. Long live Okomu oil! Long live the fed rep of Nig.! Long live Ǻƪƪ our Nairaland investors

This is not the right time to buy or increase your holdings in Okomu, you can do this after the price is marked down.i have been a shareholder of Okomu for close to 10 years, and I can tell you that the best is yet to come from the Oil Palm and rubber plantation.

manie: If you are looking at a minimum of a 5 year plan, I will advice you to invest in fundamentally strong and highly liquid stocks.

If the money is quite substantial you can buy an income generating property in a good area.

If you must invest in real estate make sure the PE is 20 or less, anything higher than this is expensive.

spyder880: While I agree with most of your points, I disagree that real estate is like stock business because I have played both markets on the highest levels. I lost more than xx million in the 2007 market crash so I know what am saying.

Real estate is real estate and it retains its value much more than stocks which you can wake up one morning and your company has packed up.

Did you invest in the market with figures or emotion. Were you a fundamental investor, technical investor, contrarian investor, value investor etc?
What value did you see in the companies you invested in when they were selling at a multiple of over 40.


Come to the Island and I will show property who have lost their between between 2007 and 2013. The most important thing for every investor is not to over pay for any investment be it stock, real estate or business.

Seun: You can buy FGN bonds with as little as 10,000 naira. Just call your bank and ask them about it.

What is the current interest paid on FGN bond. You can invest 10k in theory, but in practice it is almost impossible.

Real estate investment can create jobs for Nigerians, but the unnecessary bottle-neck created by politicians and civil servants is discouraging average Nigerians and big time investors from investing in the sector.


A 15 million housing unit deficit is quite huge, but who are the people to solve this problem.

aasog1: You definitely require a title. Undocumented properties spend longer time in the market than the documented ones. But financial institutions through their lawyers and at a service price that would be deducted as part of loan service interest can fix that for you. The problem with banks and loans is that no matter how good you are in mathematics, these guys will always surprise you with some confusing terms or the other eventually. Like I said, I'm in partnership with the bank....now we develop. They keep most of the flats for some period of years, I keep some as well. And 1979 is like forever. I thought conveyance was as cheap as 250 naira then. Maybe your old man wasn't just bothered about getting the documents.

I have not gotten certificate of occupancy to the property I bought at Ajah between 2001 and 2002. Fashola wants us to pay 4 million for the ratification of our property, it is after ratification that we can now process c of o.

KingMEXX: yea 5yrs exactly. Pls am not quite enlightened on d business area, wat are liquid stocks?? Sorry am a bit of a pest?

Liquid stocks are stocks that are as good as cash, these stocks can be readily converted to cash. These are examples of liquid cash FBN, GTB, Zenith, Nestle, Total, Flour Mills, Nigerian Breweries, Guinness, WAPCO etc.

manie: He has conveyance, but banks do not recognise conveyance. He just got the certificate of Occupancy. I can tell you that more than 90% of the houses in Lagos do not have a certificate of occupancy.

Government should make it easy for real estate investors to have valid titles to their property.

aasog1: [b]Fine business....Just time and capital consuming...but soooo lovely!
I do this, but I didnt really get it until 2006...but here is how it is done:

in 2006, I bought an old property in a road that links Gbagada with Bariga (in most cases, I target rough areas in lagos, with promises of development and upgrades....areas I know the rich and elites are slowly migrating into and which would be transformed within atmost, 4-5 years). I took the first two years to raise a 5 bedroom duplex, and 2 bedroom bq on it, and gradually did the finishing on the third year based on the flow of cash....by 2009 ending, the property was ready and placed on the market for 40mil. It sold in 9 months, and I made over 65% profit as im an engineer and handled the project myself ....And since them, other strategic properties have been purchased, remodeled rebuilt from scratch, just that now, I work with my bank instead, and me and the manager of my branch are like partners....Hes brought some money bags into the bidness over the years, the sad thing is, we still keep making the mistakes we did in the past....house flipping isnt a wonderful business like "land flipping....call me so I can explain that".

Good slow investment business sha....Mind you, it is an investment and it yeilds excellent....it is not buying and selling like garri and beans [/b]

You bought the property in 2006 and sold in 2009, but you made a return of 65%. A return of 65% in 3 years will give an annualised return of 18%, not too bad but I think i can do better.

aasog1: You definitely require a title. Undocumented properties spend longer time in the market than the documented ones. But financial institutions through their lawyers and at a service price that would be deducted as part of loan service interest can fix that for you. The problem with banks and loans is that no matter how good you are in mathematics, these guys will always surprise you with some confusing terms or the other eventually. Like I said, I'm in partnership with the bank....now we develop. They keep most of the flats for some period of years, I keep some as well. And 1979 is like forever. I thought conveyance was as cheap as 250 naira then. Maybe your old man wasn't just bothered about getting the documents.

He has conveyance, but banks do not recognise conveyance. He just got the certificate of Occupancy. I can tell you that more than 90% of the houses in Lagos do not have a certificate of occupancy.

manie: DO you have a valid title to the property. If yes how long did it take you to get the valid title in your name.

A property that does not have a valid title in the name of the owner can not be used as a collateral.

A property that does not have a valid title can not be maximally used to multiply wealth. My father just got a title to the house he built in 1977.

manie: DO you have a valid title to the property. If yes how long did it take you to get the valid title in your name.

A property that does not have a valid title in the name of the owner can not be used as a collateral.

A title in the name of the person who sold to you is not valid with most financial Institutions.