₦airaland Forum

RabbiDoracle:
Warning: LONG POST

I have noticed lots of newbies asking questions on : what to buy, how to navigate the NSE, dividends, regulatory agencies (like SEC) and custodians (CSCS).

My simple advice is to read up all you can as fast as possible and arm yourself with knowledge of stock investing. We were once like you. You may not get everything by asking questions. You need to do you own research and be confident you did the hardwork.

Pick books on fundamental analysis (FA) and consume as fast as you can. Then learn Technical analysis (TA). A quick slice of both subjects : FA deals with understanding the company financial reports, management, news pertaining to the company. TA on the other hand deals with understanding how price moved in the past and how it is currently moving using several indicators. When you have quickly and fully grasped these, then you can understand where you want to put your money.

Many people will not tell you the truth, stock market can wipe you out very fast. If you are in doubt, ask those on the US stock market thread Many people may only tell you that stock market gives lots of gains, there can be losses as well. So when you see a market rising with rage, bullish on euphoria, remember that oneday things can turn sour. I was once as young as you were and had the belief that it can only rise. However the market showed that it can rise and it can fall at will.

"With every investment, one can become richer or wiser but never both" ~Unknown

Arm yourself with knowledge, when you fall pick up your pieces and stand. And keep moving! It is only with knowledge that you can survive in any investment product.

There is a global decline in all asset classes and many portfolios are hurting. My portfolio isn't having a dent because many of us foresaw this event and warned especially the US traders. When people say a bullish move will last forever, don't always listen to them. Always remember that there are seasons for everything. A season to plant and a season to harvest. However people prefer to listen to what makes them feel good and truly a bullish rage makes one feel good. But you should always trade those investment with caution especially when you entered in the late stage of the bull. Always have a balanced view(bull and bear scenario) of the market so that you will never be disappointed.

On a positive note, some tech stocks are about to bottom. Few Emerging markets have bottomed (won't name them). Some will have more pain. Some commodities will have more pain. However arming yourself with knowledge (in this case TA) will help you know when it is time to start entering into the market.

The next bullish phase in emerging markets, once it bottoms, will be an aggressive phase. As in very very aggressive. During that time, many people will start the bullish rant and lofty projections. Use your tongue to count your teeth when everyone on your street, church, school, market start investing.

"The two most powerful warriors are patience and time" ~Leo Tolstoy

RabbiDoracle:
Warning: LONG POST

I have noticed lots of newbies asking questions on : what to buy, how to navigate the NSE, dividends, regulatory agencies (like SEC) and custodians (CSCS).

My simple advice is to read up all you can as fast as possible and arm yourself with knowledge of stock investing. We were once like you. You may not get everything by asking questions. You need to do you own research and be confident you did the hardwork.

Pick books on fundamental analysis (FA) and consume as fast as you can. Then learn Technical analysis (TA). A quick slice of both subjects : FA deals with understanding the company financial reports, management, news pertaining to the company. TA on the other hand deals with understanding how price moved in the past and how it is currently moving using several indicators. When you have quickly and fully grasped these, then you can understand where you want to put your money.

Many people will not tell you the truth, stock market can wipe you out very fast. If you are in doubt, ask those on the US stock market thread Many people may only tell you that stock market gives lots of gains, there can be losses as well. So when you see a market rising with rage, bullish on euphoria, remember that oneday things can turn sour. I was once as young as you were and had the belief that it can only rise. However the market showed that it can rise and it can fall at will.

"With every investment, one can become richer or wiser but never both" ~Unknown

Arm yourself with knowledge, when you fall pick up your pieces and stand. And keep moving! It is only with knowledge that you can survive in any investment product.

There is a global decline in all asset classes and many portfolios are hurting. My portfolio isn't having a dent because many of us foresaw this event and warned especially the US traders. When people say a bullish move will last forever, don't always listen to them. Always remember that there are seasons for everything. A season to plant and a season to harvest. However people prefer to listen to what makes them feel good and truly a bullish rage makes one feel good. But you should always trade those investment with caution especially when you entered in the late stage of the bull. Always have a balanced view(bull and bear scenario) of the market so that you will never be disappointed.

On a positive note, some tech stocks are about to bottom. Few Emerging markets have bottomed (won't name them). Some will have more pain. Some commodities will have more pain. However arming yourself with knowledge (in this case TA) will help you know when it is time to start entering into the market.

The next bullish phase in emerging markets, once it bottoms, will be an aggressive phase. As in very very aggressive. During that time, many people will start the bullish rant and lofty projections. Use your tongue to count your teeth when everyone on your street, church, school, market start investing.

"The two most powerful warriors are patience and time" ~Leo Tolstoy

emmanuelewumi:
Better to chill and buy on the floor

samguru:
if you are buying MTN Offer, think twice ooooooo.

This offer is the General overseer of Way Wayo

igbosoro:
Please can you explain more sir, I am interest in MTNN for long term, do you mean the present price is not sustainable in the long run? or does mean the present dividend yield is not sustainable ?

Appreciate your explanation.

Thanks

currentprice:
https://doclib.ngxgroup.com/Financial_NewsDocs/34659_ECOBANK_TRANSNATIONAL_INCORPORATED%20Q32021_CORPORATE_AC.pdf

Foundwealth001:
Stanbic IBTC STOCKBROKER or Any of the other brokers that participate can offer you a minimum subscription of $500.
Give them a call and narrate your request with the attached shotscreen.
Do not DM me, I do not respond to public forum DM.
Don't allow the eagles and jackals on Nairaland to feast on you.

mickky22:
Good day

Thanks for the piece of information.

I called ibtc stockbroker they said they don't deal with Euroboand.

My question is... Is it preferable to saving board and what is the procedure to start it.

Thanks in advance.

mickky22:
Good day

Thanks for the piece of information.

I called ibtc stockbroker they said they don't deal with Euroboand.

My question is... Is it preferable to saving board and what is the procedure to start it.

Thanks in advance.

Foundwealth001:
https://www.stanbicibtcassetmanagement.com/nigeriaassetmanagement/individual-investor/products-and-services/mutual-funds/fixed-income-funds/stanbic-ibtc-dollar-fund/stanbic-ibtc-dollar-fund

onegentleguy:
On GSK' Q1 2021, i've received a couple of mails following their report some of which were from forum members here.
Am truly sorry if this doesn't come off right but quite frankly, some of u still have a long way to go before u can understand how to effectively analyze financial statements.

As I've always said here in times past; to draw a BETTER INFERENCE in fundamental analysis, NEVER assign judgement by looking at a single or few factors in isolation. ALWAYS BEST to look at several KEY indices as a collective.

Investing is both an act and a science. When u fail to lead the part in italics above, investing becomes a mere act where decision-making are lead by the heart(a persons emotions) ahead of their head.(the act and science combined)
The result? ...You won't have an explicit basis to draw-up an effective/sound conclusion.
Let me help with a brief:

A financial statement comprises of 3 pivotal parts;
1) The income statement (SoI)
2) The statement of cash flow (CFS)
And
3) The Balance sheet (BS)
Of the 3, No 1 is the least important. Note the use of the word "least"...which means; It's important, but less, when compared to the other 2.
On a scale of preference, No 2 should ALWAYS get a higher weighting than 3 and 3 than 1 if u desire to effectively interpret a company's financial print, make sound judgement and WIN!

Hear this; The KEY is to know how to RELATE 2 and 3... then separately BENCHMARK both against 1.
This is one sure way to spot great VALUE in asset pricing even before others can see it.

Now look at that part in bold; There is a danger when as an investor, u make decisions by reshuffling the scale.
By permutation/combination (F/math), the 3 can be arranged in 3 factorial ways...=6 (3*2*1)
Of the 6 ways, statistics have shown that over 92% of investors tend to build their judgement using the 4 of 1>2>3, 1>3>2, 2>1>3 and/or 3>1>2 .
Of the 4 ways, the first 2 is one way that company's/firm's play their shenanigans especially on manipulating earnings (mirage accruals etc).
While the 3rd and 4th is one way to expose/spot the level of incompetence or ineffeciency on the part of management, cooperate misgivings and/or how they siphon funds while painting a different picture in their books. (a case in point was with FBNH and WAPCO btw 2016-2018... I spotted this then and raised the alarm here. Both coys later fell from a high of N13+ and N50+ to N5+ and N9+ respectively)
Management have since turned the tide though.

Only the 2 ways of 2>3>1 and 3>2>1 is totally effective. ...with the 1st carrying a greater weight of efficiency.(unless u are using several key financial models to gauge value, u might make a mistake with the 2nd... otherwise it is also very effective)

For those looking at GSK' SoI in isolation, a quick illustration...
2 investors, Mr A and B wanted to invest in 2 different assets.
Mr A bought into a coy with contracting NPM(or even negative EPS/EM), but with a healthy CF, CGPR, EFIR, AER, CBR, NCPS etc,
While Mr B bought into the other with a quite opposite xteristics.
In time, Mr A saw his investment double while that of Mr B took a hit.
Inference: Mr A dug in to spot the VALUE BEHIND THE PRICE... while Mr B could have been among the 92% mentioned above.

Pls kindly go back and dig deeper into GSK' financial prints using either of the 2 effective/rewarding ways highlighted above, then u can come back and tell us what really is the intrinsic value of the coy.

On a side note, the 4 aforementioned ways is how the managers of some Nig coys rip-off minority investors/shareholders. ...either by painting the extreme of a make-believe impression that everything is GOOD or that its BAD.
When they want to steal from u(NCI or otherwise) or see immense VALUE they intend to reap from, they create a bad picture.
Its easier for management to manipulate their SoI and make u believe what they want u to than the BS and CFS (this in particular is about the hardest)
Which is why it's extremely important to learn how to spot the good in a perceived poor financial print and the bad in a seemingly good one.
I remember telling someone that it will be a bad idea to accept the MTO price of NEWREST ASL(former airline serv & logistics) because the coy was making so much money at the time but trying hard to hide it in their FP so they could achieve their motive. Everyone knows what happened after they delisted.
NEIMETH and WAPCO @ 38k and N9 are also great examples of spotting the good in what may be perceived as a poor FP. (VALUE behind the price in view)

GSK @ the current mkt price is a STEAL. ...presently the cheapest in the NSE.
I already gave my analysis/take on it. (refer to my several past posts)
But pls feel free, if u wish to avoid the coy or exit (for those already in) ...it will sure present any discerning investor a great opportunity to increase their stake!

Selah

onegentleguy:
Untill folks learn the ropes on how to see, extrapolate and interpret the good in a bad or poor result and the bad in a good one, they may continue to give in to their emotions and oftentimes overreact when a coy releases its financial print.(fear-greed factor in view)
Spotting the good in a poor or bad financial report can help one to efficiently and effectively manage FEAR, while seeing the bad in a good report can be a handy tool towards managing GREED. This way, a trader/investor can better utilize their trade/investing set-up peculiar to their personality to ensure more WINS and fewer loses(entry/exit strategy in view)

Admitted, ETI under-performed in the period under review, but could there have been any good reason behind it? …could there have been some good in the poor result?
This is how to benchmark inherent risk against feasible reward and from there, sick to tap some gains over VALUE.
1st off is to ask why the report was audited?(Q3 in view) …and why was there a grossly poor NPM despite just a slight drop(circa 14%) in NIR and growth in NIM(NII in view). …in fact, NIR witnessed only a 1% drop in Q3 when compared to the preceeding yr.

It should help to note how the drop in EBIT margin was majorly driven by an over 6,300bps(approx 63.7%) booking on impairment from the groups Goodwill. Apparently the bank decided to book an impairment expense in its Goodwill. This often happens when a coy thinks its goodwill line is a bit too much and requires pruning down, and would usually affect(negatively) a coys NET INCOME.
For emphasis, ETI reported 37% of what would have been its NPM(should’ve been 63% more) …the interpretation of this is that for every N10 of net income in its book, over N6.3 was taken down as goodwill expense. But for that line, NPM would’ve been much higher.
Again ask urself; How did the group grow its AER(NA in view) and deposit pool despite the impaired Goodwill line? …this clearly tells u that the brand is still healthy !!
Elsewhere, why is the groups CGPR still very healthy !!

As I’ve always stated here in times past; financial indices like EPS, ROE, PE/PEG oftentimes does not tell the whole story. …broad financial analysis has gone past that stage. A right but thorough blend/combination of several key indicators/determinants is needed to see through the value accretive stand in a company’ financial print.
While ETI’ Q3 report card is poor, inherent risk is still well below its feasible reward given the coys current mkt price.
That part in bold is all that matters, as it is where an investors quest for VALUE/RETURN revolves around. …it is everything !! Every other thing comes after it.
Using a blend of financial model which looks at the worst case scenario given the No prints in its report and also attaches an appreciable risk premium to its value potential, ETI is fairly priced @ N10.30.
So if u had bought at btw N3.90 to N4.1 when we 1st mentioned it here… HOLD !!
Even if u bought @ N5 to near the present mkt price, it’d be best to stay put and not panic.(the coys technical stance largely supports this)

Disclaimer: NOT to be inferred to as any kind of recommendation.

The most important thing is to Know WHAT u want out of every investment move and WHY u want it !! …and from there, ur investment personality and goal(what sought of investor ought u to be) and ur investing horizon should be the necessary seasoning that drives ur decision-making.
To illustrate; common sense should infer that a dividend growth investor could be better off without ETI, while a value chaser could be better off embracing it given the current mkt price.
Define ur terms and do well to stick to it !!

Selah

mickky22:
Good day

Thanks for the piece of information.

I called ibtc stockbroker they said they don't deal with Euroboand.

My question is... Is it preferable to saving board and what is the procedure to start it.

Thanks in advance.

onegentleguy:
As expected, ECOBANK delivered!
ECO was always a hold from the range of N3.90 to N4+
I remember advising some folks to HOLD!
Coy already delivered near 100%/2x from price average at the time.

However, while the banks latest report is good, I'd prefer to be cautiously optimistic given the Nos I see now.
I'd also like to see their YE report for better inference.

Elsewhere, FBNH flopped in its latest Q3 report.
For emphasis, some lines does point to a few red flags but there are also a few positives.
That said, I would not align with FBNH at the present mkt price.
A trade set-up that borders around a 21.7 to 38.1% discount from current mkt peg, subject to mkt dynamics should be a better deal though. (RRM from FVE in view)

Selah

Manwarrior55:
Hello

So I am trying to make a decision of whether to buy FGN savings bonds or not.

Bonds is the only investment vehicle I have not tapped in from.

Is it wise to buy bonds from Nigerian Govt. what are the risks ?

Your advise will go a long way thanks

DUNKA:
Please If you had 1 million which stock would you buy now for capital appreciation in 2022?

Nigerialabalaba:
Bros e, abeg dis time, e go beta make we dey ask for wetin make person no buy too.

Dis market dey remind me of dat film 300 BC wey d actor sef die for the film.

Igi pawpaw o ni wo pawa o.

onegentleguy:
Bought more GSK for some of the portfolios I manage today.
Pray it comes down even more tomorrow, so I can load much more! ...hope its T.A mechanics helps on that line.
The lower it can drop, the higher my chance of making massive risk-free return.

I can not come and go and kill myself for nothing.
I love the melody/game that's been played in the coy.

It is well.

onegentleguy:
Bought more GSK for some of the portfolios I manage today.
Pray it comes down even more tomorrow, so I can load much more! ...hope its T.A mechanics helps on that line.
The lower it can drop, the higher my chance of making massive risk-free return.

I can not come and go and kill myself for nothing.
I love the melody/game that's been played in the coy.

It is well.