Help me chose 5stocks to Invest N150,000

[Eagle1]

Please I am new to StockMarket. I have N150,000 to invest but not in one stock. I want to diversify the little money I have into about 5stocks. Kindly advise me to chose the 5stcoks that will yield maximum return in a space of one year now. Thanks all

[purpose]

The said intended amount for 5 stocks will definitely lead you to purchase penny stocks which may be ripe for eventual sales in the next one year or less depending on some factors.
I will advise:
NEM INSURANCE
OASIS INSURANCE
AIICO INSURANCE

[chibiks]

concentration builds wealth, diversification preserves it.

My advise is that you should put the entire sum into one company which will rally within the next twelve months. When you sell it, you will gain more than if you split it - my advise is diversify if your portfolio >= 1 million; if not, concentration might be better.

Target a solid insurance Company.

Regards

[olusolakemmy]

Originally Posted by Eagle1

Please I am new to StockMarket. I have N150,000 to invest but not in one stock. I want to diversify the little money I have into about 5stocks. Kindly advise me to chose the 5stcoks that will yield maximum return in a space of one year now. Thanks all

i will suggest that you pick just one coy, as you have been advised.
insurance can rally within short period, but thats the only funds budgeted, i will not advised insurance because of the risk level, fine they are all doing fine at the moment.
you also have to aswer if you are for short or long term.

MY advised for you is to choose one company among the following
(1)UNION HOMES, Property keeps going up, people are appreciating morgage in nigeria, am sure you can get 50% on your pay in less that one year.
(2) FIDELITY ANK, Although just concluded its PO, they will release the certificate and shares volume will increase, that will drag down the price most probably, but the rebound might cause a strong rally, so if u get it at N9, its a good buy.
(3) ECO BANK, after the merger plans with sterling, fail or succesfull, there will be a rally, as their are strong bids for the coy.
(4)1ST BANK, its a good coy at N40, towards the middle of the year, when they usually declare dividend and bonus, there will be strong rally.

However, if you want to enter for short term, go for the insurance, but remember, the risk level, any small bad news, nigerians react negatively.

good luck

[hispy99]

Originally Posted by olusolakemmy

i will suggest that you pick just one coy, as you have been advised.
insurance can rally within short period, but thats the only funds budgeted, i will not advised insurance because of the risk level, fine they are all doing fine at the moment.
you also have to aswer if you are for short or long term.

MY advised for you is to choose one company among the following
(1)UNION HOMES, Property keeps going up, people are appreciating morgage in nigeria, am sure you can get 50% on your pay in less that one year.
(2) FIDELITY ANK, Although just concluded its PO, they will release the certificate and shares volume will increase, that will drag down the price most probably, but the rebound might cause a strong rally, so if u get it at N9, its a good buy.
(3) ECO BANK, after the merger plans with sterling, fail or succesfull, there will be a rally, as their are strong bids for the coy.
(4)1ST BANK, its a good coy at N40, towards the middle of the year, when they usually declare dividend and bonus, there will be strong rally.

However, if you want to enter for short term, go for the insurance, but remember, the risk level, any small bad news, nigerians react negatively.

good luck

I am not a fan of putting all your eggs in one basket...what happens if your bet on one stock goes bad? At least pick 3 stocks.

I also doubt if First Bank will give bonus this year; they have 19.75 billion shares outstanding.

[edwardaigbokhan]

the poster should state his investment objective. long or short and how soon he want the money.

[olusolakemmy]

Originally Posted by hispy99

I am not a fan of putting all your eggs in one basket...what happens if your bet on one stock goes bad? At least pick 3 stocks.

I also doubt if First Bank will give bonus this year; they have 19.75 billion shares outstanding.

yes, if ur bet goes bad, you loose, but, it is call investment and not get rich quick scheme, so stuff like that happens.
I dnt even want FBN to give bonus, but if they declare good dividend, that alone is enough to drive up the price.
however, he still need to state his investment policy, if he want to be trading short term or long.
for short term, i tell you to get good return, you need just one coy, but for long term, you can spread your investment.

[hispy99]

Originally Posted by olusolakemmy

yes, if ur bet goes bad, you loose, but, it is call investment and not get rich quick scheme, so stuff like that happens.
I dnt even want FBN to give bonus, but if they declare good dividend, that alone is enough to drive up the price.
however, he still need to state his investment policy, if he want to be trading short term or long.
for short term, i tell you to get good return, you need just one coy, but for long term, you can spread your investment.

I am not denying that you'll hit the jackpot if you put all your eggs in one basket and it pays off. The problem with that strategy is that if you are incorrect, then you are toast (By the way, putting all your eggs in one basket sounds more like a get rich quick scheme than spreading your risk amongst 3 stocks).

For someone (Eagle1) that is just trying to get into the stock market, I do not think it's advisable for him to take that approach.

[BigSeun]

Originally Posted by hispy99

For someone (Eagle1) that is just trying to get into the stock market, I do not think it's advisable for him to take that approach.

I quite agree with you, it's too risky for a learning investor to concentrate his holding on a single stock, 3 companys will be more appropriate.
If am to recommend, it will be UBA and Beta Glass @ N23

[chubby]

I agree with the group that supports diversifation of your stock as a beginner. When I started in year 2006, I gave a friend 200k for a broker on my behalf because I have not really understood the stock market at that time. She was able to pick 6 different companies for me up to 1000 units as the least, even some were above that.

I used those 6 companies as my base, from last year, I started consolidating on them gradually through public offers, and I must tell you that I am happy with the suggestion.

In view of the above, I suggest that you diversify your stock, to form a base, after you can start consolidation. Good Luck.

[Eagle1]

Originally Posted by edwardaigbokhan

the poster should state his investment objective. long or short and how soon he want the money.

I'm looking at long-term maximum yield. I don't have any short term need for the money. Thanks

[olusolakemmy]

Originally Posted by hispy99

I am not denying that you'll hit the jackpot if you put all your eggs in one basket and it pays off. The problem with that strategy is that if you are incorrect, then you are toast (By the way, putting all your eggs in one basket sounds more like a get rich quick scheme than spreading your risk amongst 3 stocks).

For someone (Eagle1) that is just trying to get into the stock market, I do not think it's advisable for him to take that approach.

well tactics and approach are different from individual to individual.
i have tried diversification and just started the volume thing late last year, its been fantastic changing tactics of investment.
volume trade or choosing one company is not a get rich quick, i dnt expect you to call it that name really.
great minds have disccused for and against diversification and concentration, it now depend on individual to choose which school of thought he belongs to.

the way it wrks is that, you dont do minimini-manimo to choose your company, you buy after a good and unsentimental research.

well lets still stick to our opinion based on your investment objectives.

[kca$h]

Originally Posted by Eagle1

I'm looking at long-term maximum yield. I don't have any short term need for the money. Thanks

well i guess dt settles it..then diversification is sure d solution.........i wud recommend universal insurance ltd, fidelity bank and longman

[gas213]

dunlop, livestock, Unilever

[olusolakemmy]

Originally Posted by gas213

dunlop, livestock, Unilever

dunlop, yes lot of expectation, we are still yet to see the effect of the fund raised in the last PO, the price have hit 100%, and can still do better by the time they release result.
report on proshare state that shareholders fund of livestock feed decline, the outlook for now is not too cool, then unilever, well to be sincere i really dont have any insight on the coy.
for everyone that have advised diversification and also for the guy to have mentioned long term, then he should go for AIT PO(50k worth) and choose any of the ongoing PP that has 100k as minimum requirement, e.g resort developer savings and loans, after all its long term

[hispy99]

Originally Posted by kca$h

well i guess dt settles it..then diversification is sure d solution.........i wud recommend universal insurance ltd, fidelity bank and longman

Universal Insurance? A company with 16B shares oustanding and projected profit of N0.625M? If you must do insurance long term, why not Unic or Law & Union?