₦airaland Forum

emmanuelewumi:
Once the total return from a stock is higher than the yield from Fixed Income investment by a huge margin there is opportunity to make profit from the stock


In 2020 Zenith Bank came down to as low as N10, dividend was N2.70k, earning growth was about 8%.

Dividend yield 27% plus earning growth of 8%, that is a total return of 35%. Long dated bond was about 14%, interest on secured bank loan was 21%.

Zenith Bank increased dividend from N2.70k in 2020 to about N3.10k in 2022.


An entrepreneurial investor who took a leveraged position in 2020 based on the estimated total return is now sitting on about 200% profit within 3 years

The 2020 case was a very rare occurrence. It was a fortune making opportunity for risk takers and sound investor. Another very good example is UCAP

The last time TBills was trading at 18% , I think it was in 2016 , we knew how it affected the stock market. Attentions shifted to the fixed income market and a lot of good stocks tanked. NSE lovers that picked up good stocks at very low prices at that time and held till date are reaping bountifully now.

But in any case , it is still a win win situation. All I see is opportunities in both markets . Still lots of opportunities, a lot of money to be made.

emmanuelewumi:
For the guaranteed total return, i was referring to the addiion of the dividend yield and the exoected earning growth in the next 10 years.


UBA at the current dividend yield of 8.14%, if the earnings will grow by an average of 10% for the next 10 years. The total return of UBA will be 18.14%

Okay, now I got what you meant

emmanuelewumi:
If you can get stocks that can give you a guaranteed total return of over 18% compounded for the next 10 years and above

18% guaranteed is a good deal for any risk - averse person, especially if the fund is much. Only a very few companies on NSE will be able to beat that in terms of Dividend yields. UBA present dividends yield is 8.14% , maybe they will be more generous in days ahead , with payout ratio of 6.64%, there is still a big room for generosity but I doubt if they can beat 18%.

emmanuelewumi:
We are getting close to 18% for long dated bonds

The rates are becoming more and more juicy. Risk-averse investors will start shifting base to fixed income market. It's an opportunity for long term stocks investors to start picking some fundamentally sound stocks at good prices. The smart ones will buy in tranches.

Hedgefunds:
IF YOU HAD TO BUY AND HOLD JUST 1 STOCK FOR THE NEXT 5 YEARS, WHAT WOULD IT BE?

cc
emmanuelewumi

My bet will be on Dangote Sugar / Nascon ( Dangote Food ). Food will always be a necessity and Dangote will enjoy economies of scale.

chunkuli:
please what is your price projecton for BUA Cement?

Judging by how Rabiu moves ,between 120 - 150 in the next 6 months . The projection is sentimental , it is based on Rabiu's pattern. This is just my personal projection , not in any way a recommendation . Please due diligence always

ositadima1:
I need BUACEMENT to go up another 10%. Then, I will have the money.

https://businessday.ng/companies/article/bua-to-inaugurate-new-cement-plant-in-sokoto-by-jan-2024/?amp=1


Rabiu the magician, Buacement might just perform the magic BUAFOODS performed. The quest to stay on Forbes list of African richest is real.

FOLLOW THE MONEY

There is some sorts of direct proportionality between dividends yield and price appreciation in NSE. No matter how good the result is , if the dividends yield is poor, the stock is likely to suffer a setback except in some rare cases.

A lot of good companies are trading at ridiculously cheap price because of this factor. NSE is still one of the cheapest in the world cos most times we don't buy on values , rather on immediate gains. It's not a bad thing though, considering the kind of country Nigeria is.

Newbies please tread carefully , don't get carried away , put the above factor into consideration when planning your trade, especially now that fixed income rates are looking hawkish. The OGs already know how to manoeuvre. Always do your due diligence

Follow The Money

BabsO2:
Looking at how MTN is dragging with NCC on being limited to repatriate only about a 3rd of profits only after approval. Going forward all future major FDI's must be made to have substantial Nigerian Equity Participation of even more than 50%. So that there can be enough sustainable pool for pension income streams of pension funds and for individual pension income investors to invest in. So all this upcoming $16b investment coming from India should be partly funded by Nigerian Banks, Pension Funds and Individual Investors. I hope this message gets passed to those that can make it happen.

I know some policy makers and big shots that do come here as guests to read comments. Please continue to speak freely on things you believe can make the change that is needed to make our investment society better, you never know how far your ideas / suggestions can go.

Shalom

Mpeace:
Is it not funny that a firm with half year eps of 10+ would struggle to make 20naira.
When we should ordinarily be talking of 200naira

Nigeria stocks are ridiculously cheap. Long term investors that have holding power and are patient will be massively rewarded when the Nigeria economy finds its balance.

All I see is opportunities.

Shalom

Shalom428:
GTCO result is fantastic, Access - Zenith - UBA will release a little less or better results, all things being equal, a bull is expected in these companies, Fidelity inclusive. But it's important to trade with caution, especially the newbies. Everything looks good but my chart sings caution. Safe!

All I see is opportunities.

Shalom

Ades1:
Jeeeez!!! For this same Nigeria oh wey them say nothing good happens!!! 96 million Naira a year, without lifting a finger!!!

Bros how you take make your money? Before anyone attacks me, I am asking because I want to make this money too!

More than 25 years of hardwork, investments, businesses, smart decisions and good luck.

rmx:
You are sure 8m or 8k usd monthly will be enough to retire in the bahamas ?

Vacation in Bahamas , not retire in the Bahamas

owolabi5:
Even Dangote wey be the SUGAR still dey find MONEY

Dangote and I are two different people with two different philosophy about life .

With more than 8 Million Monthly for the next 25 years in my Bonds , I am definitely a happy man for life. Contentment is the key word

I don't need a yacht or private jet . I am not going to be a prisoner of rat race . The rat race is rigged to keep you running.

The set goal has been met , it's time to enjoy life while I can .

Best of Luck.

Retirement came earlier than I thought. Thank you Mr. Sugar. I'm off to Bahamas . See you all later.

currentprice:
nothing stop GTB price to move to stanbicibtc junction

,

Sure , everything looks good, really good but caution still needs to be applied, especially the newbies.

chunkuli:
please who knows the admin.? One of our great contributors here - Customstreet said is account has been banned from commenting, please house anyone that can help reach the moderator to resolve this. thank you

CustomStreet is a treasure that must be protected, a lot of people have made millions from his credible and trusted information. He's meant to be celebrated , not banned . Admin / moderator, Seun , please do the needful. Thank you.

GTCO result is fantastic, Access - Zenith - UBA will release a little less or better results, all things being equal, a bull is expected in these companies, Fidelity inclusive. But it's important to trade with caution, especially the newbies. Everything looks good but my chart sings caution. Safe!

Labdi69:
Thanks for this. I plan to approach a stock broker for them to help me balance my portfolio as they see fit based on their expertise. Subsequently as i gather more knowledge, i can then do this on my own. Is this a wise thing to do?

Some great minds have added their voices , please listen to them and also carry out your due diligence.

Study and stay close to the source , because information is power. One good and credible information can change your life forever.

Best of Luck.

agbanimu11:
Street called custom? Please kindly throw more light. because I love ur contributions. Thanks

I was just throwing in some humours using word play

CustomStreet and CurrentPrice are some of the names of credible people on this forum whose information has been really helpful. Others are Pa Emma ( he has wealth of experience ) , OGG ( currently on Sabbatical ) , Mycya and so on

A lot of good people dey here but try to be good to yourself by reading books , listening to business news , learning the basics like how to read and interpret financial statements, how to value a stock because you are expected to carry out your own due diligence no matter how credible the information is.

Taking your time to understand the concept of Technical analysis and fundamentals will be of great help as well . Sentimental analysis sef dey

crowniran:
Sorry for bothering you. Can you point me to some of these books and where is your go to for news

Book 1 : 5 Rules of successfully investing . Author : Dorsey

Book 2 : Rule One by Phil Town

As regards news , try to check the forum often , good men and ladies usually drop credible information here but you still have to carry out your due diligence cos no one will be liable if anything goes south

On a comic note , try stay close to a Street called Custom cos Na there you fit get Current Price and projected price of some life changing stocks.

Good luck

crowniran:
Please I need guidance o. I don’t even want to start trading now. I want to read and speculate

Please follow Pa Emma's advise ... Read books , read comments , start small to gain real experience.

crowniran:
Thank you. Nigerian stocks too?

Yes , you can monitor all Nigeria stocks on the app. Their prices , EPS , dividends history and so on.

crowniran:
Good morning,

What app can
I use to watch these stocks

Download investing.com app ... You can monitor stocks , commodities , currencies and so on

veecovee:
My concern is how much Dangfood mkt capitalization would be las las

Can sugar challenge bua in that area? Bua has more than N3trillion

That is where the game will now become very interesting. Patient investors will be hugely rewarded .

Where two billionaires battle for highest capitalisation, the shareholders smile to the bank

One should not also be too greedy , it makes sense to set a realistic target. Booking profit is very very important

FOLLOW THE MONEY

emmanuelewumi:
How

See it as a bonus ( is the best way I can put it till the cat is finally let out of the bag , if there are no changes ), but one can arguably say it is not a bonus , technically , because the common denominator is DSR and the final answer is DangFoods.

So sorry, I don't want to say much.

yMcy56:
E Ku Merger o.

- DANGSUGAR is the new DANGFOODS!
- % of NASCON to SUGAR is lesser.......salt lesser than SUGAR........12:11
- RICE is invariably lesser than SUGAR too.....1:14
- SUGAR is the winner here.......

See Rice as BONUS to Sugar holders

ogoo4real:
Should one Sell/Hold/Buy?

Hold , if you have staying power to ride it till the end , you will be massively rewarded

A lot of people have made more than 200+ % profit already , so there might be a lot of profit taking in days to come but as they sell , there will be people on the side waiting to pick up . The people in the know

The patient ones will be rewarded . The keyword now is PATIENCE.

FOLLOW THE MONEY

sterlingD:
While we are waiting for NASCON meeting communique

https://doclib.ngxgroup.com/Financial_NewsDocs/39362_DANGOTE_SUGAR_REFINERY_PLC-DANGOTE_SUGAR_REFINERY_PLC_-_UPDATE_ON_PROPOSED_MERGER_CORPORATE_ACTIONS_AUGUST_2023.pdf

DangRice and Nascon ratio with respect to DSR has been announced. The two major information that are yet to be made public are ;

The ratio of DangFoods to DSR

The listing price of DangFoods

And you will be able to make an educated guess with the volume and price of DSR that will be traded next week.

I have my established theory but I've decided to limit what I post on this forum , going forward.

FOLLOW THE MONEY

megawealth01:
Make I no talk wetin dey my mind joor

Feel free brother.

Boshins:
guy, don't distract wit ur beer parlour gist...we r here strictly for business....

Please ignore him completely, don't dignify him with a reply.

A lot of money in the pipeline. The future is still very GREEN.

FOLLOW THE MONEY

phoinix:
LOL, what you typed up there does not make sense my brother. All these armchair technical analysts, LOL.

Many sound minds and people with privy information will stop posting on this trend because of people like you. You radiate negative energy

You seriously need to tone down your negativity. You attack people unprovoked. You did the same on the Treasury Bills forum, the moderator had to pull out all your post

If you miss the train , queue up for the next one . Stop attacking people that know better than you . The nuisance you constituted on the Treasury Bills forum has been cleaned up yesterday, don't start another one here.