₦airaland Forum

EDUECO:
I exited ACCESSCORP yesterday after buying around ₦23 .

I made a minimum of 10% on my funds from the above operation.

Every problem is an opportunity to make money.

ositadima1:
Ok, let’s put the NYSE aside first. Do you know it is the same liquidity and scarcity that made it reach trillions over time? I don’t think more than 10–15% of the shares were traded in the last four or five years it took Dangote Cement to move from 115, where I initially bought it, to today’s 1115.

It’s like a presidential election where you count votes from Lagos State alone to determine who becomes president. If you counted all the national votes, that candidate may not win or even come close.

With a constant supply of shares available to whoever wanted them, I doubt the price would have appreciated that much. Of course, book value and future earning power are also important.

So, I don’t take market capitalization too seriously unless an entity is willing to buy the entire company at that valuation.

chimex38:
Interesting voting analogy .
But, Recall Dang cement bought back shares at circa 300 or so.

So giij6ny your analogy, same as Presidential aspirant voting for himself multiple times in an election based on his capacity.
Don't really know how this proves or counters your point
But yeah, just to chip in.

megawealth01:
I'm trapped too

Wale hold me for blokotus

ositadima1:
You know, it is always good to revisit why an argument started in the first place. Somebody claimed that his farm, or some farms he knew, had more resources than Zichi, so if Zichi’s market cap was 48 billion at the time, then his farm should be worth more.

I countered that market cap should not be taken too seriously because it is a theoretical figure that is difficult to translate into actual cash or even true worth. Zichi’s 48 billion valuation does not mean much unless there is a buyer willing to acquire all the shares at that valuation.

ositadima1:
You know, it is always good to revisit why an argument started in the first place. Somebody claimed that his farm, or some farms he knew, had more resources than Zichi, so if Zichi’s market cap was 48 billion at the time, then his farm should be worth more.

I countered that market cap should not be taken too seriously because it is a theoretical figure that is difficult to translate into actual cash or even true worth. Zichi’s 48 billion valuation does not mean much unless there is a buyer willing to acquire all the shares at that valuation.

mikeapollo:
I have told you:
E lo 'fokan ba'le
Only the patient can ''eat'' from Wale's ''pot'' because he is slow in ''preparing the meal''

The same way you were scared about LASACO.....but it has delivered 81.5% growth in profits now.

Pesuzok:
When did you buy access for 23? That was before the release of their result, meaning you didn't sell when it got to 30.

deathwing:
The guy who spoke about his farm made a tongue-in-cheek comment. He was highlighting the absurdity of the market cap (whether it is translatable into actual cash or not). The whole point was that the Zichis valuation had gone out of hand...so perhaps he should jokingly make himself even rich by coming to the market since his own farm is comparable.

KarlTom:
Ding

chimex38:
I agree. It's just that some investors do use it as though there's an apparent buyout at any instant of time.

Pesuzok:
When did you buy access for 23? That was before the release of their result, meaning you didn't sell when it got to 30.

ositadima1:
OK, then there is no limit to valuation. That is why market cap is not a very serious metric. We can keep exchanging 20 shares between ourselves, and if we somehow legally prevent the remaining shares from being traded until the stock rises 100 times, it completely undermines the meaning of market capitalization.

mikeapollo:
His focus and expectation was that Access would pay very good dividend and he was very sure of that, until kasala burst!
He was not the only one in Access, but he was bluffing, bragging and condemning other stocks which is unnecessary.

Pesuzok:
From my understanding, market cap is what the market feels the business is worth or it's future worth should be. That a house is worth billions in the market doesn't mean you will easily sell it if you want to. If I have similar house in the same area, then it's ok to say my house is worth the same amount.

essentialone:
https://thenationonlineng.net/lasaco-assurance-leverages-strong-q1-performance-to-strengthen-recapitalisation/

ositadima1:
OK, then there is no limit to valuation. That is why market cap is not a very serious metric. We can keep exchanging 20 shares between ourselves, and if we somehow legally prevent the remaining shares from being traded until the stock rises 100 times, it completely undermines the meaning of market capitalization.

Itzlinda:
I agreed with you on this.
Thin liquidity can absolutely distort valuation, agreed. But that doesn’t make market cap meaningless, it just means market cap is a market pricing metric, not a guaranteed intrinsic value calculator.

Thin liquidity and scarcity can push valuations far above fundamentals temporarily, but that’s also how bubbles form. Once sentiment or liquidity reverses, the correction can be brutal. That’s literally how bubbles work.

Pesuzok:
He was claiming pro in the market and didn't sell when the price got to 30, only to sell at 10% profit now.

Access that will still get to 30 in no time

zendi:
Why na when some companies wan raise money fortune go begin smile on their Results ?

Na who be small pikin for dis market ?

Stockpromoter:
Get ready to chase Japaul as you did in March.
Maybe this time,it will excel

Stockpromoter:
Get ready to chase Japaul as you did in March.
Maybe this time,it will excel

emmanuelewumi:
Opportunity for long term investors to buy Zichis and average down