The capital market has been bearish for a while now and investors have seen the value of their investments go down seriously. My esteemed readers would recall that I warned on this blog sometimes in February about the need for people to be careful where they put their money .I had warned then under the caption ‘caveat emptor’ because I noticed that most of the stocks had appreciated beyond their fundamentals. The chips are down now and most investors who bought some of these stocks without considering the fundamentals are now crying because they have lost a lot of money to the market correction.
I am however, confident that the market is not going to crash. In fact the market will pick up again very soon but investors have to be careful this time around. They must look before they leap.
I want to tell you authoritatively and with responsibility that this is the best time to invest in the capital market because most stocks promise superior returns. .This is because stocks with sound fundamentals are not spared out of this price depreciation. How else could one explain GTB’s price @N22 naira? What of Oceanic Bank that has an EPS of close to N2 doing at less than 20 naira.
This is an indication that the good times are here for those who will invest now and wait to reap handsome rewards in future.
Investors who know their onions know that the best time to invest is when prices are down. By this I mean you should buy when others are selling and you should sell when others are buying.
I want to tell you authoritatively that very soon the bears would give way to the bulls very soon.
Keep investing !
.
Wednesday, July 23, 2008
Friday, February 29, 2008
CAVEAT EMPTOR-BUYERS BEWARE
I have been extremely busy lately with some stuffs and that is why I am just posting today.I would have left what I am about to write till next week but it might be too late by next week.
I feel i should let you know what I feel about the rapid appreciation in price of most stocks on the floor of the exchange for the past two weeks.You would recall that I predicted in my last post that the appreciation in price of most securities will continue this year. I am however of the opinion that the price of some of the stocks that are appreciating rapidly does not justify the increase.A phenomenon which I have chosen to refer to as 'appreciation without fundamentals'.What is a stock like Avon crown caps and container doing at N14 ,Oando @ 200naira in my own opinion is expensive and what of Nigerian wire and cable that is only a strolling distance from my house.This company just opened again for business after it went to sleep for more than a year.Don't forget that the company is not enjoying a monopoly and a price of 12naira is laughable.
Note: The fact that I believe these and many other stocks are expensive does not mean they are not going to appreciate further but I am only saying caveat emptor...Don't get your fingers burnt.
I feel i should let you know what I feel about the rapid appreciation in price of most stocks on the floor of the exchange for the past two weeks.You would recall that I predicted in my last post that the appreciation in price of most securities will continue this year. I am however of the opinion that the price of some of the stocks that are appreciating rapidly does not justify the increase.A phenomenon which I have chosen to refer to as 'appreciation without fundamentals'.What is a stock like Avon crown caps and container doing at N14 ,Oando @ 200naira in my own opinion is expensive and what of Nigerian wire and cable that is only a strolling distance from my house.This company just opened again for business after it went to sleep for more than a year.Don't forget that the company is not enjoying a monopoly and a price of 12naira is laughable.
Note: The fact that I believe these and many other stocks are expensive does not mean they are not going to appreciate further but I am only saying caveat emptor...Don't get your fingers burnt.
Thursday, January 24, 2008
WHERE TO PUT YOUR MONEY IN 2008
Happy new year to everyone.Year 2007 was a great year for many investors:sophisticated or novice.Not too many people got their fingers burnt last year because of the continuous injection of public funds by pension managers and other institutional investors.This led to the upsurge in the prices of almost all the 300 equities listed on the exchange.This led to increase in the P/E of most stocks and a reduction in their Earnings per share.Most banks also came to the exchange the second time in three years to shore up their capital base.
Having given a brief review of the activities in the capital market,I will now give my advice on where to put your money in year 2008.
The surge in the prices of companies will continue as more and more funds find it way into the capital market.I am, however, confident that the sector that will benefit the most this year is the insurance sector.Most insurance companies will appreciate rapidly this year(the price rally has started)because they now have more money to play with.Do not forget that the Federal government just released the money that was raised by them to meet the new capital base.This is expected to have a positive effect on their financials.Insurance stocks generally will experience a rally in their prices.I will, however , recommend some that I can place my money on:
STACO insurance:This company is managed by a proactive management that is bent on catapulting the company to greater heights.The company is also gearing up to raise more funds on the exchange.If you can quickly take position in this stock before a ban is placed on its price.
AIICO INSURANCE:this company also has a sound management and it just beefed up its capital base.A share reconstruction is likely, to reduce the number of outstanding shares.Expect a price rally in this stock immediately the technical suspension is lifted on its price.
Lassaco insurance; it has the second highest EPS in the industry.Watch out for this stock.
LAW union and international emery insurance are also good stocks that will not disapoint investors this year.
Investors should also put their gaze on the following stocks :Wema bank,Chellarams,UBA,Zenith bank,Access bank,University press as their earnings will improve significantly this year.
I will complete the topic I started last month"investing with dates and with numbers"next week by the grace of God.
Keep investing!
Having given a brief review of the activities in the capital market,I will now give my advice on where to put your money in year 2008.
The surge in the prices of companies will continue as more and more funds find it way into the capital market.I am, however, confident that the sector that will benefit the most this year is the insurance sector.Most insurance companies will appreciate rapidly this year(the price rally has started)because they now have more money to play with.Do not forget that the Federal government just released the money that was raised by them to meet the new capital base.This is expected to have a positive effect on their financials.Insurance stocks generally will experience a rally in their prices.I will, however , recommend some that I can place my money on:
STACO insurance:This company is managed by a proactive management that is bent on catapulting the company to greater heights.The company is also gearing up to raise more funds on the exchange.If you can quickly take position in this stock before a ban is placed on its price.
AIICO INSURANCE:this company also has a sound management and it just beefed up its capital base.A share reconstruction is likely, to reduce the number of outstanding shares.Expect a price rally in this stock immediately the technical suspension is lifted on its price.
Lassaco insurance; it has the second highest EPS in the industry.Watch out for this stock.
LAW union and international emery insurance are also good stocks that will not disapoint investors this year.
Investors should also put their gaze on the following stocks :Wema bank,Chellarams,UBA,Zenith bank,Access bank,University press as their earnings will improve significantly this year.
I will complete the topic I started last month"investing with dates and with numbers"next week by the grace of God.
Keep investing!
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