Some thoughts after playing this game over the last 1.5 years.

The Nigerian stock market is designed for long time investors and not traders.

From exorbitant trading costs(imagine forking out 2% from equity per trade while some systems make 3 to 4% per trade, howmuch remain?), to low daily turnover.

On average, only few stocks trade more than 5 mil per day. Meaning you would find it hard taking positions at target prices without slippage. As a result, some stocks are untradable.

Anyhow, as a trader I see the nse as a learning ground where I can hone my skills before taking my biz elsewhere. Leave the space for the likes of Pa Emma.

Hello everyone!

Just a quick one. Is it possible to trade Nigerian stocks from the US?

Thanks!

Yes. You can trade in NSE from US. You need an account with a broker that gives you online access and also a functional Nigerian bank account will help you make deposits and withdrawal of share proceeds. All the best

locodemy:


I am enjoying the debate.We will know the truth from the fall and rise of Naira henceforth.I am only concern on the balance of economy and Nigeria stock market.We wey no get foreign stocks portfolio don suffer for NSE.

To be brutally honest, with your newly found TA skill and your previous 10-10 percent background, the US Capital Market would be everyday win for you.

Wall Street will always tell us about the average annual returns in 5 years, this can deceptive.

A stock with an average annual return of 10% in 5 years, can do better than a stock with an average annual returns of 20% in 5 years.

Annualized return is more appropriate

ositadima1:
Some thoughts after playing this game over the last 1.5 years.

The Nigerian stock market is designed for long time investors and not traders.

From exorbitant trading costs(imagine forking out 2% from equity per trade while some systems make 3 to 4% per trade, howmuch remain?), to low daily turnover.

On average, only few stocks trade more than 5 mil per day. Meaning you would find it hard taking positions at target prices without slippage. As a result, some stocks are untradable.

Anyhow, as a trader I see the nse as a learning ground where I can hone my skills before taking my biz elsewhere. Leave the space for the likes of Pa Emma.

We only need to be strategic on NSE, does not matter if you are trader or an investor.

Flash back
30th October 2013


Access N9.35
APR N1.90
Dangote sugar N11
FBN N16.50k
Nahco N6.00
Oando N11.10
PZ N37.60
Red Star Express N4.40
Skye Bank N4.10
UACN N65.20
UPDC N18.50
United Capital N1.40
UBA N7.50
Vita Foam N4.25
Lafarge Wapco N102.00
Zenith N21.00.


Source my CSCS statement from BGL Securities

Did we go back in time or what?

emmanuelewumi:
Flash back
30th October 2013


Access N9.35
APR N1.90
Dangote sugar N11
FBN N16.50k
Nahco N6.00
Oando N11.10
PZ N37.60
Red Star Express N4.40
Skye Bank N4.10
UACN N65.20
UPDC N18.50
United Capital N1.40
UBA N7.50
Vita Foam N4.25
Lafarge Wapco N102.00
Zenith N21.00.


Source my CSCS statement from BGL Securities

O boy only vitafoam made over 200% increase. Wow!

ojeysky:


O boy only vitafoam made over 200% increase. Wow!

Including United Capital, Africa Prudential Registrar.

ojeysky:


O boy only vitafoam made over 200% increase. Wow!

Once the dividend yield is less than 40% of the coupon from a 30 year bond na to sell.

At N105 Lafarge was selling at a dividend yield of 2%.

FBN at a dividend yield of 7%, which was not bad but whenever a business cuts dividends it is a testimony of bigger problem with the business. FBN cut dividend from N1.10 to 60k and the to 10k.

When a business stops paying dividend it is also a red flag, this is what affected Oando and Skye Bank.

UACN at a dividend yield of 2.3%.

Nahco was at a dividend yield of 7%, but when earnings are static or reduce and dividends don't grow, the stock will just be their

United Capital was at a dividend yield of 10%, dividends grew by about 200% in the last 8 years it is normal for the stock price to rise.

APR was at a dividend yield of 10.5%, dividends grew by over 150% in the last 8 years it is normal for the stock price to rise on the long run

Zenith was at a dividend yield of 8.5%, paid a total dividend of about N20., dividend also grew by overby120%. It is veryry sluggish stock that is not good for jijo

At this time the average coupon on a 30 year bond was 14%

emmanuelewumi:



Once the dividend yield is less than 40% of the coupon from a 30 year bond na to sell.

At N105 Lafarge was selling at a dividend yield of 2%.

FBN at a dividend yield of 7%, which was not bad but whenever a business cuts dividends it is a testimony of bigger problem with the business. FBN cut dividend from N1.10 to 60k and the to 10k.

When a business stops paying dividend it is also a red flag, this is what affected Oando and Skye Bank.

UACN at a dividend yield of 2.3%.

Nahco was at a dividend yield of 7%, but when earnings are static or reduce and dividends don't grow, the stock will just be their

United Capital was at a dividend yield of 10%, dividends grew by about 200% in the last 8 years it is normal for the stock price to rise.

APR was at a dividend yield of 10.5%, dividends grew by over 150% in the last 8 years it is normal for the stock price to rise on the long run

Zenith was at a dividend yield of 8.5%, paid a total dividend of about N20. Very slugger stock that is not good for jijo

At this time the average coupon on a 30 year bond was 14%

The bolded has been added to my strategy. Thank You.

ajsans:


The bolded has been added to my strategy. Thank You.

A lot of things should be considered ooo, what if the business has been growing its earnings by about 20% or more per annum for the past 5 years and has been increasing it annual dividends every year for the past 5 years and it is operating in a high growth sector.

You are young, we need to be adventurous and also take calculated risks.


I only use dividend yield and bond returns to know when to get out of some stocks, this will be determined by other variables and results from numerous tools

ojeysky:


O boy only vitafoam made over 200% increase. Wow!

What about UCAP, Over 400%, from 1.4 to 6.9

Gov has committed N30bn from N200bn set aside for oil palm production.The companies that benefited are PZ Wimar, Biase oil,Eyop,Okomu oil, SIAT & Presco.

Why PZ is not moving baffles me.

OBAGADAFFI:
Gov has committed N30bn from N200bn set aside for oil palm production.The companies that benefited are PZ Wimar, Biase oil,Eyop,Okomu oil, SIAT & Presco.

Why PZ is not moving baffles me.

On the long run share prices will move when earnings increase and most especially when dividends grow.

PZ has been struggling for profitability, earning growth and dividend growth in last 6 years

On this new episode of Value Nigeria with Ajibola, we discuss some common but wrong reasons to sell your stocks...

Listen, learn (hopefully) and give some feedback...

Thanks...

https://anchor.fm/ajibola-oladele-awolowo/episodes/Common-but-wrong-reasons-for-selling-your-stocks-e168i6o

Mpeace:
What about UCAP, Over 400%, from 1.4 to 6.9

Ah I missed that one on the list o.....o boy

If you try to board every bus you see, you'll never arrive at a meaningful destination...

Decide where you want to go and wait for the appropriate bus...

#Selah...

OBAGADAFFI:
Gov has committed N30bn from N200bn set aside for oil palm production.The companies that benefited are PZ Wimar, Biase oil,Eyop,Okomu oil, SIAT & Presco.

Why PZ is not moving baffles me.

let us be guided. pz wilmar, biase oil are not consolidated with PZ plc result.

X21:


let us be guided. pz wilmar, biase oil are not consolidated with PZ plc result.

Exactly, those core investors are smart. Same with Tony and his Oil and gas business. When the business faces serious challenges he will then consolidate with Transcorp, but if it is a money spinner he will have it all to himself

Good evening Pa Emma, please wait example quantitatively, this statement of yours

Once the dividend yield is less than 40% of the coupon from a 30 year bond na to sell.

eziokwunwoko:
Good evening Pa Emma, please wait example quantitatively, this statement of yours

Once the dividend yield is less than 40% of the coupon from a 30 year bond na to sell.

I bought 2050 bond last month at 13.25% for diversification, what is 40% of 13.25%.


A total dividend of N1 Trillion was paid in 2020, with a market capitalisation of about N20 Trillion that will give an average dividend yield of 5% for NSE.


I buy shares of companies whose dividend yield are at least 50% higher than the average dividend yield on NSE. That will give a minimum of 7.5% dividend yield, although my current portfolio dividend yield is currently higher than 10%..


The company must also have a dividend payout ratio of between 40% to 70%, free cash flow should be minimum of 120% of the dividend declared. The company must also be consistent with earnings and dividend growth

Thanks Sir

emmanuelewumi:



I bought 2050 bond last month at 13.25% for diversification, what is 40% of 13.25%.


A total dividend of N1 Trillion was paid in 2020, with a market capitalisation of about N20 Trillion that will give an average dividend yield of 5% for NSE.


I buy shares of companies whose dividend yield are at least 50% higher than the average dividend yield on NSE. That will give a minimum of 7.5% dividend yield, although my current portfolio dividend yield is currently higher than 10%..


The company must also have a dividend payout ratio of between 40% to 70%, free cash flow should be minimum of 120% of the dividend declared. The company must also be consistent with earnings and dividend growth

Pa Emma, please answe my questions.
UPDC REITS audited report 2020 not yet out, dividend not declared. 2021 Q1,H1 not yet released.
Is it due to the unbundling.
The last date of effective date to qualify for the unbundling is Nov 8 2021.
Will the corporate actions take place after November 2021

emmanuelewumi:



Exactly, those core investors are smart. Same with Tony and his Oil and gas business. When the business faces serious challenges he will then consolidate with Transcorp, but if it is a money spinner he will have it all to himself

X21:


let us be guided. pz wilmar, biase oil are not consolidated with PZ plc result.

Wow that's interesting.

So I thought PZ Wilmar is a subsidiary of PZ plc.

eziokwunwoko:
Pa Emma, please answe my questions.
UPDC REITS audited report 2020 not yet out, dividend not declared. 2021 Q1,H1 not yet released.
Is it due to the unbundling.
The last date of effective date to qualify for the unbundling is Nov 8 2021.
Will the corporate actions take place after November 2021

Are u sure?
See this https://doclib.ngxgroup.com/Financial_NewsDocs/33303__UPDC_REAL_ESTATE_INVESTMENT_TRUST%20_AUDITED_FINANCIAL_.pdf

TheBlackMamba:
Hello everyone!

Just a quick one. Is it possible to trade Nigerian stocks from the US?

Thanks!

Yes you can, kindly visit www.meritrade.com, and open a stockbroking account or download the app.

Regards

ositadima1:


Check d graph below and see that chams may move up soon as well.

The problem is that courtville is being moved without Volume. It did 6% with only 661k valued at 200k.


Edit: the title is incorrect: it is not a monthly return rather an expanding return with respect to d first Date on the chart.

Please take note that Courtville Half Year result is in the positive region and a very encouraging one that supports the price while that of Chams is negative (1k).

Vitafoam @ 16

Courtville on full-bid

OBAGADAFFI:
Vitafoam @ 16

Courtville on full-bid

Do you have the 9 months financial report of the business?