SMN Top 5 end of year result.
January 16th, 2008 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
Happy new year to all of you, our dear subscribers out there. It’s been a wonderful 2008 so far, as we expect an improvement in the investment and capital market this year compared to last year.
Well, it would be recalled that we started an investment fund termed SMN TOP 5 in 2007 where we bought into 5 stocks and traded on them to see how much we would be able to net at the end of the year. We also made sure that we detailed quarterly updates as to the progress being made. Based on this, we are glad to let you know that the SMN Top 5 grew by 65.62% in 2007, which we believe is very impressive based on the fact that we started out with N50,000 (fifty thousand naira) and we also had to buy into at least 4 stocks. The end of year result is detailed below.
Oceanic Bank Plc
At the end of the year 2007, SMN TOP 5 portfolio had 564 units of Oceanic Bank shares to its credit. The shares were purchased at N and closed the year at N37.40. Already, the bank has posted an impressive first quarter result for their 2008 financial year, and as such, we are still keeping it. A dividend of N1.02 was also declared, of which 9the fund benefited from.
Lasaco Plc
No doubt the insurance sector is the hottest presently in the capital market. Well, the portfolio also had Lasaco Assurance plc to the tune of 6000 units, which were purchased at N2.89 per unit. The closing price at the end of the year was N4.41 which was very good for a penny stock. Year 2008 promises to be a very good one for the insurance companies and we therefore have decided to hold on to this stock.
Fidelity bank Plc.
For a stock that gave one of the highest returns in the market last year and also the banking sector, the portfolio had 2,230 units of Fidelity bank share to its credit. They were purchased at N4.00 and closed the year at N11.83. They concluded a public offer towards the end of the year and were lifted from technical suspension few days ago. The price is still rallying a few naira here and there, and as such we will still hold before disposing finally. The company also paid a dividend of N0.16 (16 kobo) of which we benefited from.
Benue Cement Company
This is the only stock in the SMN TOP 5 portfolio that did not do quite well except for the fact that we got some bonus shares. We bought 174 units at N60, but it closed the year at N51. We are still holding as we believe that this year would be a better year for companies in the building materials sector of the exchange.
Summary.
After calculations and charges deducted, the value of the portfolio as at December 31, 2007 stood at N82,808.50 up from N50,000. We believe we would have exceeded this but for the fact that we stated the fund in late February 2007. Notwithstanding, we believe this year would be better. It would be recalled that the objective was to make a minimum of 20%.
Note: the value as at the end of the year does not include bonuses and dividend received.
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