NEM Insurance

[emmanuel ewumi]

Originally Posted by afolabi27

I understand your point on liquidity, within the insurance sector NEM,AIICO, Custodian and recently Mansard will qualify as those with the leading liquidity.

What I should also say is that the weight you attached to liquidity depends on the stage you are in your financial planning (or current financial status) and other opportunities around you. I will put bargain valuation ahead of liquidity for a good stock in an industry I admire.

I am able to "securitize" my stocks and raise cash without selling them, I pay interest though, and this is fine by me.


Disclosure: I hold 1,000 units of NEM and I will buy more if I see my bargain price.

What is your bargain price? the current price of NEM is a bargain price.

[overload]

Originally Posted by emmanuel ewumi

My bank and most banks will not accept a NEM stock as a collateral. NEM is okay for dividend investors, but i dont think Nosa is a dividend investor.

Oga doesnt need to pledge his NEM as collateral. He already has 2M units of Nestle which i believe the banks can manage as collateral while he keeps amassing NEM

[emmanuel ewumi]

Originally Posted by overload

Oga doesnt need to pledge his NEM as collateral. He already has 2M units of Nestle which i believe the banks can manage as collateral while he keeps amassing NEM

Then he should be a director, or one of the movers and shakers of Nestle.Olusegun Osunkeye, the Chairman of Nestle does not have 2 million units of Nestle. He had sold some of his holdings in Nestle to diversify into other stocks, businesses and assets.

[nosa2]

Originally Posted by emmanuel ewumi

I love the figures from NEM, but what do you think will happen to this stock if you what to sell N10 million worth of the stock? Will you get ready buyers for the stock with 72 hours. Any stock that can not be converted to cash within a week is a no go area for me.

I know how long it took me to sell just 200,000 units of Mutual Benefits Assurance stock.

I intend to control an insurance company before the end of the decade, these guys are gigantic investment firms and in the right hands would do wonders. So to me liquidity is irrelevant

[emmanuel ewumi]

Originally Posted by nosa2

I intend to control an insurance company before the end of the decade, these guys are gigantic investment firms and in the right hands would do wonders. So to me liquidity is irrelevant

Goodluck to you. But dont forget you will not want to have an investment that is up to to 20 million naira in Nigeria. I am not sure if you can control an insurance company with even 100 million naira investment. Except if you have change your perception as per opportunities in Nigeria.

[emmanuel ewumi]

Originally Posted by nosa2

I'm flattered but abeg always do your analysis. Some people believe in diversification I don't, if think a stock is cheap then I buy as much as I can afford and I try not to hold more than 3 stocks in my portfolio (I currently own Diamond bank 80% and NEM 18%). I don't advocate to concentrate your investments if you're not disciplined or confident (I just sold vitafoam cause their numbers didn't "ginger my swagger"). Guess what I'm trying to say is don't buy if your only reason is to diversify, if you analyse nem and find it ridiculously cheap, try and find out why, and if there's no concrete reason just keep buying cause in the long run you'll be smiling.

I will rather go for Skye instead of Diamond bank, although i dont have either of the 2 stocks .What is the expected earning for Diamond. I prefer going for market leaders in any sector i invest in, First bank was okay at less than N10, Zenith at N11, Access at N5, UBA at N2.50, GTB at N12. These are highly liquid and margin-able stocks in the banking sector.

[nosa2]

Originally Posted by emmanuel ewumi

Goodluck to you. But dont forget you will not want to have an investment that is up to to 20 million naira in Nigeria. I am not sure if you can control an insurance company with even 100 million naira investment. Except if you have change your perception as per opportunities in Nigeria.

There's a big difference between owning and controlling, I currently manage funds for friends and family, and while the funds are currently minuscule I am building a reputation for myself and I hope to get a license to be an investment adviser before year end and go into fund management proper. So when I talk of controlling a firm I intend to use other peoples money

[goldsun2]

Originally Posted by emmanuel ewumi

I will rather go for Skye instead of Diamond bank, although i dont have either of the 2 stocks .What is the expected earning for Diamond. I prefer going for market leaders in any sector i invest in, First bank was okay at less than N10, Zenith at N11, Access at N5, UBA at N2.50, GTB at N12. These are highly liquid and margin-able stocks in the banking sector.

why will you choose skybank ahead of diamond bank

[emmanuel ewumi]

Originally Posted by goldsun2

why will you choose skybank ahead of diamond bank

The trailing earning per share is 0.7, and the expected earning for the year 2012 is 1.52. The P/B ratio is about 0.52.
Lagos State is a major shareholder through Ibile holdings, the bank is also the official banker of Lagos state government.

Diamond is also good, but i am more conversant with skye even-though i dont have the stock.

[migiets]

Originally Posted by emmanuel ewumi

I will rather go for Skye instead of Diamond bank, although i dont have either of the 2 stocks .What is the expected earning for Diamond. I prefer going for market leaders in any sector i invest in, First bank was okay at less than N10, Zenith at N11, Access at N5, UBA at N2.50, GTB at N12. These are highly liquid and margin-able stocks in the banking sector.

This is like dwelling in the past. What if these stocks do not fall to these price levels, are you saying that new entrants into the NSE should not buy stocks.

[overload]

Originally Posted by migiets

This is like dwelling in the past. What if these stocks do not fall to these price levels, are you saying that new entrants into the NSE should not buy stocks.

No mind Oga Emma.. he dey always wan show us say him don tey for this market!

God dey sha!

[goldsun2]

Originally Posted by emmanuel ewumi

The trailing earning per share is 0.7, and the expected earning for the year 2012 is 1.52. The P/B ario is about 0.52.
Lagos State is a major shareholder through Ibile holdings, the bank is also the official banker of Lagos state government.

Diamond is also good, but i am more conversant with skye even-though i dont have the stock.

you have your sentiment, its nice to have the additional info but try to compare the figures of the two of them. I've to a branch of skybank and i don't like what i payi they seams to be living in the past

[emmanuel ewumi]

Originally Posted by migiets

This is like dwelling in the past. What if these stocks do not fall to these price levels, are you saying that new entrants into the NSE should not buy stocks.

Not dwelling on the past, but those stocks sold good bargains at that time. The All share index was less than 20,000 when they sold at those prices. I wont buy those stocks at the current prices. I have not bought a single stock in the last 6 weeks.

[emmanuel ewumi]

Originally Posted by migiets

This is like dwelling in the past. What if these stocks do not fall to these price levels, are you saying that new entrants into the NSE should not buy stocks.

New entrants are welcome, but they should be careful. I dont see those stocks falling to those level again.

[emmanuel ewumi]

Originally Posted by goldsun2

you have your sentiment, its nice to have the additional info but try to compare the figures of the two of them. I've to a branch of skybank and i don't like what i payi they seams to be living in the past

I dont own any of them. But if i must choose between Skye bank and Diamond bank, i will go for Skye bank. It is always better to stick to the market leaders.

[emmanuel ewumi]

Originally Posted by nosa2

There's a big difference between owning and controlling, I currently manage funds for friends and family, and while the funds are currently minuscule I am building a reputation for myself and I hope to get a license to be an investment adviser before year end and go into fund management proper. So when I talk of controlling a firm I intend to use other peoples money

Is that fair, you will not invest your 20 million Naira in our market, yet you want to invest other people's fund in our market.

[emmanuel ewumi]

Originally Posted by overload

No mind Oga Emma.. he dey always wan show us say him don tey for this market!

God dey sha!

My Broda, na yesterday i enter this market ooo.

[nosa2]

Originally Posted by emmanuel ewumi

Is that fair, you will not invest your 20 million Naira in our market, yet you want to invest other people's fund in our market.

My words\philosophies aren't set in stone, few years ago I won't have touched a financial stock and today virtually my entire portfolio is in financial services. The more information I get and as the economy evolves I adjust my strategy. If the federal government can remove fuel subsidy then I would be willing to bet the farm in a Naira de nominated asset but as long as we have policies that guarantee the long term devaluation of the Naira then....

Anyway I'm not interested in insurance because of the business but because of the cash flow, these guys are the most productive cash cows in town second only to casinos.

I really wish someone who knows more about insurance would step in

[migiets]

Originally Posted by emmanuel ewumi

Not dwelling on the past, but those stocks sold good bargains at that time. The All share index was less than 20,000 when they sold at those prices. I wont buy those stocks at the current prices. I have not bought a single stock in the last 6 weeks.

There are good bargains at any point in time. Let us assume that i just got to know about NSE last week, does it mean that i should not buy stocks because the index has moved?. People move in and out of markets. I have a son that is about 7 years. Should he have bought when the index was 20,000?.

Btw, why did you not buy when NSE was started and the index was at 0. A market is a free entry and free exit place. There will always be people in the market even if the index goes to a billion.

[migiets]

Originally Posted by emmanuel ewumi

New entrants are welcome, but they should be careful. I dont see those stocks falling to those level again.

There will always be new entrants and opportunity for them to also make money.