₦airaland Forum

kolaish:
We have more than 100 stocks in the NSE. So, no simple reason can be adduced for all stocks. The reason for the movement of one may not be the reason for the movement of the others. Recent Examples:

1. UBA has been moving upward of recent on the back of the release of good earnings, mainly due to government floatation of the naira. Good earnings is moving the price?

2. Oando recently delivered 200% capital appreciation based on speculation.
Speculation moved the price?

Likewise, Dangote Sugar and NASCON because nobody knows the actual price that Dangote foods will eventually be listed.
Speculation is moving the price?

3. Eternal and other oil companies once rallied and gave more than 200% capital appreciation based on new government policy on subsidy.
So policy moved the price?

4. GSK and PZ has delivered more than 100% capital appreciation based on the price for delisting from the market.
The offer price to delist moved the price?

5. Power tussle for the soul of transcorp between Elumelu and Otedola move the price from 100k to 400k.
Otedola didn't move the price from N1.50 to N3.24
The list is endless. So, you can pick a particular stock and talk about it rather than generalize the whole NSE.

Thank you for your extensive response.

But you still haven't gotten the answer to this very important question. You have not been thoughtful of the matter.

ositadima1:
I know some of you are abroad. How do you fund your Nigerian bank account in naira for the purpose of stock investing? I assume that once I have funds in my Nigerian account, funding my stockbroker can easily be done from anywhere.

I'm curious, why would someone abroad use dollars to invest into companies which are generating their revenues in naira? Is that financially sensible? Investing in the NSE makes sense if the investor generates his cash/earnings in naira, not dollars.

YoshihideSuga:
I'm curious, why would someone abroad use dollars to invest into companies which are generating their revenues in naira? Is that financially sensible? Investing in the NSE makes sense if the investor generates his cash/earnings in naira, not dollars.

It is not sensible currently

Phlinx:
These are the theoretical answers provided from your links.

No one can give a simple answer in their own words without providing a link?

I'
In nse I will say corruption in different ways you may interpret it..You can see it in rabiu way in manipulating his company shares,Alhaji in telling us that his rice is diamond without financial statements to the public, bank ceos with insider information before price movement ,wale a learnered person in crafting financial results, insurance companies those ones have scammers as thr second names,etc.I will equally say it is mostly in companies managed by Nigerians

Now waiting for your own reason

essentialone:
Please analysts and Gurus in the house, what is the Fair Value of the following stocks?

CAVERTON: 76 Kobo
CHAMS: 38 Kobo.
DANGSUGAR: N14
ETI: 45
ETRANZACT: N3
FIDSON: N9
GUINNESS: N33
JAPAULGOLD: N5
LIVESTOCK: N3
MRS: N22
NASCON: N15
NB: N17
UACN: N7
WAPCO: N23.

Don't quote me oo. I am in Israel now. Maybe when I am back, I will review...

DeRuggedProf:
Don't quote me oo. I am in Israel now. Maybe when I am back, I will review...

Thanks. That means most of the stocks are presently Over-Priced, except for Ecobank, Japaul, and Livestock.

Now you are in Gaza, is it true that the All-seeing Eye of Horus that watches over Israel, temporarily slept off, and those ganjas now attacked Zion?
The greatest form of Defence is Attack, and in surprise attack, even a giant can be brought low.

What is the Fair Value of Oando, my padi?

Phlinx:
These are the theoretical answers provided from your links.

No one can give a simple answer in their own words without providing a link?

I agree that this question is as complicated as "What determines who wins Nigerian presidential elections?"

Please tell us the answer if you know the answer to your question. If otherwise, you can let us know whenever you find the answer.

Plenty cruise dey this forum . Same way we are asked to reflect on whether we are investing or speculating .

YoshihideSuga:
I'm curious, why would someone abroad use dollars to invest into companies which are generating their revenues in naira? Is that financially sensible? Investing in the NSE makes sense if the investor generates his cash/earnings in naira, not dollars.

Good point! But I'll share my thoughts:
People who took advantage of the scholarships in Western countries in the 60s, 70s, came back to Nigeria armed with education that afforded them top positions in government and private institutions. Many of them were able to make names for themselves and get into politics for elected or appointed positions, or became household names in their fields (legal, health, financial services). I think deployment of dollars or any currency to position well in companies that will last decades/centuries is one of the evolving ways of returning to Nigeria for the new generation emigrants.

Another way to look at things is that many emigrants use their hard-earned dollars to purchase houses they will never spend 30 days per year living in; not generating any cash flow either. The return on investment might continue to diminish due to devaluation, but not all investments are for income purpose only. Certain assets open doors and earn someone a seat in certain places.

The Federal High Court, Lagos, has adjourned again hearing on the date to file the Scheme of Arrangement document of energy company, Oando Plc.

In a corporate notice to the Nigerian Exchange Limited on Monday, Oando said that Justice Chukwujekwu Aneke sitting at the Federal High Court, Ikoyi, Lagos Division had further adjourned the matter to October 10, 2023.

Oando said the adjournment was to enable it to report on its compliance with the court’s order dated June 7, 2022, and update the court on the status of the Scheme of Arrangement.

YoshihideSuga:
I'm curious, why would someone abroad use dollars to invest into companies which are generating their revenues in naira? Is that financially sensible? Investing in the NSE makes sense if the investor generates his cash/earnings in naira, not dollars.

Depending on the angle you are looking at it. I invested N25m in May 2023 which was £25,000. I bought over 8m units of Transcorp, I exited with value in excess of 40m which was around £33,000. I entered Oando @ 7.35, it rose to N16, I didn't sell because by my projection I expected Oando to do N20. Even @ current price my portfolio is around N50m (£40,600). Can you now tell me it unwise to invest in naira? I believe in price appreciation strategy and not dividend payout.

The best interest you can get in the UK fixed income investment is 4.5% per annum, if I had chosen that option my investment will worth £26,125 after a year.

YoshihideSuga:
I'm curious, why would someone abroad use dollars to invest into companies which are generating their revenues in naira? Is that financially sensible? Investing in the NSE makes sense if the investor generates his cash/earnings in naira, not dollars.

@Phadriz & @capitas hve done justice to your question. my thoughts below na just jara nothing more.!.


one of many strategy is playing the nigerian stock exchange, japanese stock exchange, turkey , jamaican stock exchange as a "penny value stock" (if that is even a word) . I will rather be exposed to this cheap but valuable companies in above listed countries for penny stocks plays than penny stocks in North america. PENNY WISE NAIRA & DOLLAR WISE

Over time, it evens out in yield (Growth and dividend ) considering the businesses you are buying into have devaluation as a competitive advantage in many respects viz: companies that get influx of cash from diaspora mostly have exporting capacities, they also have huge base in their respective hubs for multi-currency revenue generation around the world. Devaluation and inflation becomes a competitive advantage compared to their peers whose currency have higher purchasing power, cost of production. The Latter's production and product (peers with hard currency) tend to be expensive .Hence, revenue drops compared to business in countries with devalued currency , they can offer cheaper price , with large volume so long quality is not jeopardized

there is no rule set in stone that you most must only invest in one exchange. allocate based on your convenience, as you see result for self, you will adjust appropriately.!,

edit oct 11- 23: brain say one thing , hand dey type another thing.!!!!

Phlinx:
Thank you for your extensive response.

But you still haven't gotten the answer to this very important question. You have not been thoughtful of the matter.

Demand and Supply simple.

essentialone:
The Federal High Court, Lagos, has adjourned again hearing on the date to file the Scheme of Arrangement document of energy company, Oando Plc.

In a corporate notice to the Nigerian Exchange Limited on Monday, Oando said that Justice Chukwujekwu Aneke sitting at the Federal High Court, Ikoyi, Lagos Division had further adjourned the matter to October 10, 2023.

Oando said the adjournment was to enable it to report on its compliance with the court’s order dated June 7, 2022, and update the court on the status of the Scheme of Arrangement.

Many will probably jump out of OANDO ship until further notice... Abeg make una no quote me as I am currently with balablu

phadriz:
Depending on the angle you are looking at it. I invested N25m in May 2023 which was £25,000. I bought over 8m units of Transcorp, I exited with value in excess of 40m which was around £33,000. I entered Oando @ 7.35, it rose to N16, I didn't sell because by my projection I expected Oando to do N20. Even @ current price my portfolio is around N50m (£40,600). Can you now tell me it unwise to invest in naira? I believe in price appreciation strategy and not dividend payout.

The best interest you can get in the UK fixed income investment is 4.5% per annum, if I had chosen that option my investment will worth £26,125 after a year.

Dey play... How much was pounds then and now?

phadriz:
Depending on the angle you are looking at it. I invested N25m in May 2023 which was £25,000. I bought over 8m units of Transcorp, I exited with value in excess of 40m which was around £33,000. I entered Oando @ 7.35, it rose to N16, I didn't sell because by my projection I expected Oando to do N20. Even @ current price my portfolio is around N50m (£40,600). Can you now tell me it unwise to invest in naira? I believe in price appreciation strategy and not dividend payout.

The best interest you can get in the UK fixed income investment is 4.5% per annum, if I had chosen that option my investment will worth £26,125 after a year.

That is part of the plan.

I did a little calculation, but before that I want to point out that the Nigerian market can be predicted to a large extent, although it requires a lot of patience and observation. Some notable stocks that would have been almost sure bankers for an astute investor are GTCO, DANGSUGAR, and some other banking stocks. By this time last year, the picture would have started to become clearer.

Now back to the calculation. ₦25 million, which was £25,000, was doubled, and now he can sell off and enter sukuk or long-term bonds at 14% minimum. After ten years, his ₦50 million (after the double) would amount to ₦113 million, while the same pound at 4.5% would be £34,000 at the end of 10 years. The naira would need to fall above ₦3,320 per pound for him to do worse in the next 10 years.

This perhaps explains their very sloppy response to issues nowadays

naturalflow:
Notice of relocation.

megawealth01:
Dey play... How much was pounds then and now?

I think you need reason and punch calculator before nasty comment. I sold pounds @ N1,000 and it is around N1,230 which is about 25% depreciation and my portfolio appreciated above 100%.

ositadima1:
That is part of the plan.

I did a little calculation, but before that I want to point out that the Nigerian market can be predicted to a large extent, although it requires a lot of patience and observation. Some notable stocks that would have been almost sure bankers for an astute investor are GTCO, DANGSUGAR, and some other banking stocks. By this time last year, the picture would have started to become clearer.

Now back to the calculation. ₦25 million, which was £25,000, was doubled, and now he can sell off and enter sukuk or long-term bonds at 14% minimum. After ten years, his ₦50 million (after the double) would amount to ₦113 million, while the same pound at 4.5% would be £34,000 at the end of 10 years. The naira would need to fall above ₦3,320 per pound for him to do worse in the next 10 years.

Most of you don't understand that no one way to wealth building through portfolio management, you don't have to stick to a pattern. You move base on changes. What you wrote is just theory which is good on paper only. For your information I only invested 30% of my savings in the NGX, 70% is in fixed income in the UK which would be used for future investment in £, that is diversification.

phadriz:
Depending on the angle you are looking at it. I invested N25m in May 2023 which was £25,000. I bought over 8m units of Transcorp, I exited with value in excess of 40m which was around £33,000. I entered Oando @ 7.35, it rose to N16, I didn't sell because by my projection I expected Oando to do N20. Even @ current price my portfolio is around N50m (£40,600). Can you now tell me it unwise to invest in naira? I believe in price appreciation strategy and not dividend payout.

The best interest you can get in the UK fixed income investment is 4.5% per annum, if I had chosen that option my investment will worth £26,125 after a year.

you are spot on.

This is one argument i have always had with some people. As long as naira gets devalued, they see the best investment as having foreign currency as a hedge.

If Naira looses 40 to 50% within a year and your investments in stock yields above 50%. This implies that the Naira investment was better.

Agree, stock may not yield 50% gain annually all the time and so is Naira cannot loose 50% every year.

That guy was actually buttressing your point na.

Read am again

phadriz:
Most of you don't understand that no one way to wealth building through portfolio management, you don't have to stick to a pattern. You move base on changes. What you wrote is just theory which is good on paper only. For your information I only invested 30% of my savings in the NGX, 70% is in fixed income in the UK which would be used for future investment in £, that is diversification.

phadriz:
Most of you don't understand that no one way to wealth building through portfolio management, you don't have to stick to a pattern. You move base on changes. What you wrote is just theory which is good on paper only. For your information I only invested 30% of my savings in the NGX, 70% is in fixed income in the UK which would be used for future investment in £, that is diversification.

I don't know where you saw in my post that there is one way to wealth creation. I may have a prospect to relocate and I asked if I could fund my account in naira from wherever I find myself.

Then I mentioned one of the reasons why I would do that.

Besides, it's not theory - everything I wrote there is pure fact. I knew with almost 100% certainty that GTCO and DANGSUGAR would deliver before they did, and if you follow my posts, you'll see that it's there. I also know that bonds now are at above 14%.

The only thing I don't know is the fate of the naira or the UK bond rate in 10 years.

phadriz:
Depending on the angle you are looking at it. I invested N25m in May 2023 which was £25,000. I bought over 8m units of Transcorp, I exited with value in excess of 40m which was around £33,000. I entered Oando @ 7.35, it rose to N16, I didn't sell because by my projection I expected Oando to do N20. Even @ current price my portfolio is around N50m (£40,600). Can you now tell me it unwise to invest in naira? I believe in price appreciation strategy and not dividend payout.

The best interest you can get in the UK fixed income investment is 4.5% per annum, if I had chosen that option my investment will worth £26,125 after a year.

Thank you, also to Hogwarthtrades and capitas

ositadima1:
I don't know where you saw in my post that there is one way to wealth creation. I may have a prospect to relocate and I asked if I could fund my account in naira from wherever I find myself.

Then I mentioned one of the reasons why I would do that.

Besides, it's not theory - everything I wrote there is pure fact. I knew with almost 100% certainty that GTCO and DANGSUGAR would deliver before they did, and if you follow my posts, you'll see that it's there. I also know that bonds now are at above 14%.

The only thing I don't know is the fate of the naira or the UK bond rate in 10 years.

My apologies, I think quoted you wrongly.

essentialone:
The Federal High Court, Lagos, has adjourned again hearing on the date to file the Scheme of Arrangement document of energy company, Oando Plc.

In a corporate notice to the Nigerian Exchange Limited on Monday, Oando said that Justice Chukwujekwu Aneke sitting at the Federal High Court, Ikoyi, Lagos Division had further adjourned the matter to October 10, 2023.

Oando said the adjournment was to enable it to report on its compliance with the court’s order dated June 7, 2022, and update the court on the status of the Scheme of Arrangement.

Why you dey like post old news or info?

ojesymsym:
That guy was actually buttressing your point na.

Read am again

Thanks for calling my attention, I have apologised to him.

phadriz:
Depending on the angle you are looking at it. I invested N25m in May 2023 which was £25,000. I bought over 8m units of Transcorp, I exited with value in excess of 40m which was around £33,000. I entered Oando @ 7.35, it rose to N16, I didn't sell because by my projection I expected Oando to do N20. Even @ current price my portfolio is around N50m (£40,600). Can you now tell me it unwise to invest in naira? I believe in price appreciation strategy and not dividend payout.

The best interest you can get in the UK fixed income investment is 4.5% per annum, if I had chosen that option my investment will worth £26,125 after a year.

You have done well . Diversification is always key . Holding different asset classes . Even poor naira has its uses . Said it repeatedly here you can hedge devaluation and inflation by buying right when opportunities present itself , see the returns of some stocks since may 2023 . And I do agree with you price appreciation is the koko not dividend . All my returns have been well above the devaluation rates for the dollars I changed in may . Don’t forget to lock in profits and move to other asset class , make NSe no do you strong thing

Oando court case ongoing....

hisexcellency34:
Oando court case ongoing....

What are the minority shareholders saying?

mikeapollo:
What are the minority shareholders saying?

I don’t think the minority shareholders will be saying anything. Oando will report to the court on its compliance with its order

hisexcellency34:
Oando court case ongoing....

The case would be adjourned with no fixed date of rehearing

No going back. Acquisition of minority shares at N7.07 per unit is unacceptable

mikeapollo:
What are the minority shareholders saying?

Who told you that? Is Oando ready to comply?

Tpharell:
I don’t think the minority shareholders will be saying anything. Oando will report to the court on its compliance with its order