₦airaland Forum

I explained the technical Analysis of How TOP 10 GAINERS Stocks Performed Last Week.

Which is safe to take profit, which is still going to continue to print money and more.


https://www.youtube.com/playlist?list=PLelyzjGuxrbj-ORzfwOEveV2vK0j1e3fw

BERGER (+55.57%)
 FIDSON (+32.52%)
MECURE (+30.72%)
 REDSTAREX (+27.35%)
 UNILEVER (+21.43%)
UHOMREIT (+21.00%)
UACN (+16.93%)
EUNISELL (+12.92%)
 MAYBAKER (+10.13%)
 UBA (+10.00%)

https://www.youtube.com/playlist?list=PLelyzjGuxrbj-ORzfwOEveV2vK0j1e3fw

Mfunkynation:
I have been trap with number 10 like this...

Reason why such stocks are aggressively marketed here. The reason is to create liquidity for them

Hello everyone, I’m quite new here, I’m here because of the Dangote Refinery IPO launch, I would love to know how I can get involved, set up and account so I don’t miss out on it.
I found out listings aren’t done on trading platforms like Bamboo and the rest.
Any suggestions?

Rubyjade:
You are making an incredibly sharp, grounded point here. Looking at a Price-to-Sales (P/S) ratio of 71 through that lens really exposes the absurdity of market hype. To say, "Even in a magical world where we have zero expenses, no taxes, and workers labor for free, it would still take nearly three quarters of a century just to break even" is a fantastic, sobering reality check.

Comparing that to Dangote Cement at 4.5 years perfectly highlights the difference between paying for actual, tangible substance versus buying into pure, unadulterated optimism.

However, to play devil's advocate and look at why the market priced "Zichis" (or companies like it) that way before the fall, we have to look at the counter-argument. If we were to humanize the perspective of the investors who bought in at a 71 P/S ratio, their justification usually boils down to one word: scalability.


1. The "S-Curve" Growth Bet
Investors buying at a 71 P/S ratio aren't assuming the current revenue figure will stay the same for 71 years. They are banking on exponential, explosive growth.

*The Math They Are Visualizing: If a company is growing its revenue by 100% year-over-year, that 71x multiple shrinks drastically in just a few years.
*The Reality Shift: If sales double every year, that 71-year payback period based on current revenue suddenly becomes a ~6-year payback period based on FUTURE revenue. Investors are buying the future, not the present.

2. Software vs. Brick-and-Mortar (The Margin Play)
Comparing Zichis to Dangote Cement is a classic tech-versus-traditional-industry matchup.

*Dangote Cement: To sell more cement, Dangote has to build more factories, buy more limestone, hire more truck drivers, and ship heavy physical goods. Their variable costs are high. A P/S of 4.5 is healthy because their net profit margins have a natural ceiling.
*Tech/Software (Zichis): Once a piece of software or a digital platform is built, the cost to sell it to the 2nd user or the 2,000,000th user is practically zero. This means that while revenue is small today, tomorrow's revenue could carry a 80% or 90% profit margin. Investors tolerate a massive P/S ratio early on because they expect the eventual Price-to-Earnings (P/E) ratio to collapse into something highly profitable once the company matures.

3. Market Dominance and "Winner-Take-All"
In modern markets, tech companies often operate in ecosystems where the winner takes the entire market (think Google in search, or Amazon in e-commerce).

Investors backing a company at a 71 P/S ratio are often thinking: "If this company becomes the undisputed infrastructure for its industry, it will have pricing power. They can raise prices later, eliminate competitors, and turn on a massive money printing press." They view the high price today as a premium ticket to get into a monopoly tomorrow.


The argument isn't entirely crazy in theory—it’s how companies like Amazon or Nvidia justified seemingly insane valuations for years before delivering massive profits.

But your critique highlights the ultimate risk: perfection must be priced in. When a company is trading at a P/S of 71, absolutely nothing can go wrong. The moment growth slows down even a little bit, or macroeconomic conditions change, the illusion shatters, and the stock crashes back to earth—which sounds exactly like what happened to Zichis.

Does the company have a realistic path to that kind of exponential growth, or was the market just high on pure speculation?

Is Zichis a tech company? Your entire argument lies on the assumption that It is but it is not.

Alex35971376:
Hello everyone, I’m quite new here, I’m here because of the Dangote Refinery IPO launch, I would love to know how I can get involved, set up and account so I don’t miss out on it.
I found out listings aren’t done on trading platforms like Bamboo and the rest.
Any suggestions?

It’s going to be a massive IPO.
Once it’s out, there will be various options available to participate.

E don do na

emmanuelewumi:
Reason why such stocks are aggressively marketed here. The reason is to create liquidity for them

handsomebolanle:
It’s going to be a massive IPO.
Once it’s out, there will be various options available to participate.

Thanks, but this information is not helpful to the question asked na..

Alex35971376:
Hello everyone, I’m quite new here, I’m here because of the Dangote Refinery IPO launch, I would love to know how I can get involved, set up and account so I don’t miss out on it.
I found out listings aren’t done on trading platforms like Bamboo and the rest.
Any suggestions?

Reach out to any SEC licensed stockbroker and get a Cscs account so you can trade

YES

emmanuelewumi:
Dangote Cement was listed at N135 in 2010.

It was when it got to around N200 that retail investors got the shares to buy on the floor.

Assuming one was able to get the shares at N135 in 2010, based on the current price of the stock the compounded annualized growth rate of the stock price should be around 16%.

“Tinubu’s 2026 budget signals shift to expansionary spending strategy—Analysts

President Bola Tinubu’s 2026 budget may be a pointer to a change from the 2025 economic stabilisation approach to a more expansionary and infrastructure-driven policy, as the administration humps up spending despite rising debt and widening fiscal deficits.

This is according to analysts , who shared their views on the budget with Nairametrics.

A comparison of the 2025 and 2026 federal budgets, based on data from BudgiT Foundation, suggests that the Tinubu administration is evolving from managing the impacts of tough restructurings to pursuing broader economic consolidation through hefty public investment, increase in security spending, and strengthening government institutions.”

GeneralDae:
“Tinubu’s 2026 budget signals shift to expansionary spending strategy—Analysts

President Bola Tinubu’s 2026 budget may be a pointer to a change from the 2025 economic stabilisation approach to a more expansionary and infrastructure-driven policy, as the administration humps up spending despite rising debt and widening fiscal deficits.

This is according to analysts , who shared their views on the budget with Nairametrics.

A comparison of the 2025 and 2026 federal budgets, based on data from BudgiT Foundation, suggests that the Tinubu administration is evolving from managing the impacts of tough restructurings to pursuing broader economic consolidation through hefty public investment, increase in security spending, and strengthening government institutions.”

Where the the 2025 budget performance reports published maybe we start with that first

megawealth01:
YES

That is why I am not buying Dangote Refinery IPO

Alex35971376:
Hello everyone, I’m quite new here, I’m here because of the Dangote Refinery IPO launch, I would love to know how I can get involved, set up and account so I don’t miss out on it.
I found out listings aren’t done on trading platforms like Bamboo and the rest.
Any suggestions?

Contact your Stockbroker

WOW. I buy after NOISE don low. that's what I did with power just that power no gree power 😔

emmanuelewumi:
That is why I am not buying Dangote Refinery IPO

I kukuma dey chop DIVIDENDS every year

https://www.youtube.com/watch?v=WY9XCyKqA5k

A few stocks I'd be watching closely in the coming trading week.

Alex35971376:
Hello everyone, I’m quite new here, I’m here because of the Dangote Refinery IPO launch, I would love to know how I can get involved, set up and account so I don’t miss out on it.
I found out listings aren’t done on trading platforms like Bamboo and the rest.
Any suggestions?

Preparing for the Dangote Refinery IPO

For investors interested in participating in the upcoming Dangote Refinery IPO, don’t wait until the offer is announced; start preparing now.

Suggested actions while you wait:

1. Open a Money Market Fund (MMF) account specifically for the purpose or use an existing one
Start saving towards the IPO in an MMF so your funds can earn better returns, rather than leaving them idle in a regular bank account.

2. Open a CSCS account with a stockbroker
This is essential. Physical share certificates are no longer issued; every allocation from primary offers is credited directly to your CSCS account.

Note: You can purchase shares through any accredited agent when the IPO is launched. You are not restricted to a specific bank or investment firm.

To open a CSCS account with Investment One, get in touch.

Maybe we should wait for the valuation and the offer details to conclude.
DANGREFINE will likely defy market logic...

Every mallam to his kettle

emmanuelewumi:
That is why I am not buying Dangote Refinery IPO

Cardinal Stone

emmanuelewumi:
Who is your Stockbroker.

Just tell them what you use the loan to buy.

I got a loan for the right offers of Zenith and Presco.

It was stated in the offer letter that I would use the loan for Zenith right offer or Presco right

KarlTom:
Maybe we should wait for the valuation and the offer details to conclude.
DANGREFINE will likely defy market logic...

Every mallam to his kettle

Imagine if the money invested in the share in 2010 was used to buy Presco or Okomu share. Or Better still Lafarge Africa at around N38

Alhaji is a capitalist and he will try to maximize his return

Presco share price in October 2010 when Dangote Cement was listed

Alex35971376:
Hello everyone, I’m quite new here, I’m here because of the Dangote Refinery IPO launch, I would love to know how I can get involved, set up and account so I don’t miss out on it.
I found out listings aren’t done on trading platforms like Bamboo and the rest.
Any suggestions?

Don’t worry it will be the biggest IPO in Nigeria, once it out you will be able to get in. It will be on every streets in Nigeria through POS and Telecoms operators.

Share price of Lafarge Africa in October 2010 when Dangote Cement was listed

Lafarge Africa also bonus shares twice or thereabout

emmanuelewumi:
Imagine if the money invested in the share in 2010 was used to buy Presco or Okomu share. Or Better still Lafarge Africa at around N20.

Alhaji is a capitalist and he will try to maximize his return

Every IPO is meant to favour it issuer. I expect it to be listed on a premium valuation.
If it was a Regular IPO i won’t touch it as i expect most institutional investor to exit in the next months after the IPO and bring price to below IPO. But with Dangote targeting 5m retail investor even if its gets half of that, the price won’t drop post IPO rather it would increase as most institutions who didn’t get in will buy at listing.

My case for buying Dangote IPO is that most institutional investor won’t get in.

I have read how Dangote wants to market it to the public and how accessible it will be, he might get half of his 5m target which is unbelievable right now

Just buy the 2m cap limit where u guaranteed full allocation.

emmanuelewumi:
Reason why such stocks are aggressively marketed here. The reason is to create liquidity for them

Lol You no go allow traders to sell market?

Boss, Keep up the good job of sharing your stock knowledge free of charge here.

Your type is rare.

An average biz person in Nigeria usually want to exploit the ignorance of others in business to make money and they call it business secret.

Thank God you are here to expose all.

isaacosas01:
My case for buying Dangote IPO is that most institutional investor won’t get in.

I have read how Dangote wants to market it to the public and how accessible it will be, he might get half of his 5m target which is unbelievable right now

Just buy the 2m cap limit where u guaranteed full allocation.

Where did they say the cap is 2m?

isaacosas01:
My case for buying Dangote IPO is that most institutional investor won’t get in.

I have read how Dangote wants to market it to the public and how accessible it will be, he might get half of his 5m target which is unbelievable right now

Just buy the 2m cap limit where u guaranteed full allocation.

N2 million is small. The cap should be about N10 million

emmanuelewumi:
N2 million is small. The cap should be about N10 million

I agree with u, na just rumour right now. We go see when the IPO is out but 10m makes more sense

deathwing:
Where did they say the cap is 2m?

Speculations sir

emmanuelewumi:
Imagine if the money invested in the share in 2010 was used to buy Presco or Okomu share. Or Better still Lafarge Africa at around N38

Alhaji is a capitalist and he will try to maximize his return

True… I expect people to pull out money from solid and good fundamental stocks. It’s that pull back I’m looking forward too.😎
I may be wrong 🤷🏾🤷🏾

In 2024, I actively searched for public validation to support my narrow, bearish views on bank stocks during and after the rights issue and recapitalisation exercise.

I found exactly the opinions I wanted to hear, trusted them, and ended up missing one of the rarest investment opportunities in the Nigerian market in recent years.

I still remember reading a response from Pa-emmanuelewumi stating that he would not subscribe to the bank rights issues but would rather wait to buy on the floor after the recapitalisation. That single opinion reinforced my already biased mindset, even though I had the dry powder ready at the time.

That decision remains one of the biggest investment regrets of my journey.
The key lesson I want fellow forum members to take away:
Never rely blindly on opinions from public forums, especially faceless ones. People’s views, strategies, and even their own actions can change at any time.

In August 2024, Pa-emmanuelewumi publicly said he would not buy the bank rights issues. By March 2026, he revealed that he eventually did.

Now, with the much-anticipated Dangote Refinery IPO on the horizon, my advice is straightforward:
If you have the means, do your own thorough research, develop your own conviction, and act based on that. Don’t outsource your financial decisions to strangers on the internet.
Do not repeat the same mistake I made in August 2024.


https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/8014#131553829


https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/10235#138765323

We have had people here market a stock but pull out without even informing the gullible ones that have entered the trade. You are the CEO of your portfolio. Chikena!

Mankind2024:
In 2024, I actively searched for public validation to support my narrow, bearish views on bank stocks during and after the rights issue and recapitalisation exercise.

I found exactly the opinions I wanted to hear, trusted them, and ended up missing one of the rarest investment opportunities in the Nigerian market in recent years.

I still remember reading a response from Pa-emmanuelewumi stating that he would not subscribe to the bank rights issues but would rather wait to buy on the floor after the recapitalisation. That single opinion reinforced my already biased mindset, even though I had the dry powder ready at the time.

That decision remains one of the biggest investment regrets of my journey.
The key lesson I want fellow forum members to take away:
Never rely blindly on opinions from public forums, especially faceless ones. People’s views, strategies, and even their own actions can change at any time.

In August 2024, Pa-emmanuelewumi publicly said he would not buy the bank rights issues. By March 2026, he revealed that he eventually did.

Now, with the much-anticipated Dangote Refinery IPO on the horizon, my advice is straightforward:
If you have the means, do your own thorough research, develop your own conviction, and act based on that. Don’t outsource your financial decisions to strangers on the internet.
Do not repeat the same mistake I made in August 2024.


https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/8014#131553829


https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/10235#138765323