Standard Alliance

[excel123]

Am new to stock trading. On the advice of my stock broker I bought a substantial unit of Standard Insurance@5.00 in June and its been falling,@2.97 as at yesterday. As it stands now,I dont know if I should sell off at a loss or wait or average it.
Any advice is welcomed please!

[easimoni]

Originally Posted by excel123

Am new to stock trading. On the advice of my stock broker I bought a substantial unit of Standard Insurance@5.00 in June and its been falling,@2.97 as at yesterday. As it stands now,I dont know if I should sell off at a loss or wait or average it.
Any advice is welcomed please!

Average it. I expect Standard Alliance to be at at N5 within a year. You bought too early. Expect the price to drop a little more as september is often a bearish month. After that, buy some more (target 2.50-2.70).

[c kenneths]

To average the buy on Standard alliance is good, but I dont think the same advice will suffice for those that bought Cornerstone at 4.30 and the price is now 2.63?

The situation of the two companies are different, while St alliance is showing some promise, Cornerstone is dropping profits because of big claims settlements.

[olusolakemmy]

AVERAGE IT,BUY SAME UNIT IF U CAN AFFORD IT, AT THE LONG RUN, YOUR EFFECTIVE PURCHASE PRICE WILL BE ABOUT N3.5, YOU CAN EVEN SELL AT N5, when it get back

[RethinK2.0]

Originally Posted by c kenneths

To average the buy on Standard alliance is good, but I dont think the same advice will suffice for those that bought Cornerstone at 4.30 and the price is now 2.63?

The situation of the two companies are different, while St alliance is showing some promise, Cornerstone is dropping profits because of big claims settlements.

the same advice might make sense for cornerstone but one would have to wait for further price drop to begin averaging...its not yet attractive at current price

[excel123]

Thanks a lot for your advice.I will average it. I'm really impressed by your contributions.This is a great forum. I ve been reading through the postings and responses in this forum and shortly I will start contributing. This is a great forum!!

[Rapidresult]

Standard Alliance is on suspension. Any word on when it is coming to market and for how much?

[Babs_O]

They did an IPO in Q3 of 2006. Most likely the money is still being held by NAICOM. They haven't done any business with it yet they want to raise fresh money again ?

[chymex]

Was it IPO they did or Private placement? However I do not see anything wrong with coming to the market again as long as they have a business plan for the money.

[olusolakemmy]

Originally Posted by chymex

Was it IPO they did or Private placement? However I do not see anything wrong with coming to the market again as long as they have a business plan for the money.

am not sure they did an IPO in 06, most of the insurance coy, despite meeting the recapitalisation requirements still need funds, and so the market is almost the only place they raise such emergency and easy funds.

they will be welcome anyway

[Babs_O]

Originally Posted by olusolakemmy

am not sure they did an IPO in 06, most of the insurance coy, despite meeting the recapitalisation requirements still need funds, and so the market is almost the only place they raise such emergency and easy funds.

they will be welcome anyway

They did a public offer for N1.10 that ran from 22 to 29 Sep 2006. I still have a hard copy of the prospectus.

[olusolakemmy]

Originally Posted by Babs_O

They did a public offer for N1.10 that ran from 22 to 29 Sep 2006. I still have a hard copy of the prospectus.

that means you are very sure then.
but then can explain the technical suspension?

[BigSeun]

Looking at the insurance industry, one will observe that all the company prices have risen well above 5naira except very few. Standard assurance presently is the cheapest stock in that sector (fundamentally speaking), so i strong encourage investors to start buying from the floor as it is still available now. In the next few week, it will be very scarce.
Avoid the rush and the risk of return money now.

[Emenyke]

I wonder why no one has mentioned anything about this stock, i hard that it is wise investing in it since the proposed budget seems to favour the insurance sector.

[chymex]

I totally agree with BigSeun, this is the time to mop up Standard Assurance.

[riskreturn]

Clearer pictures have now emerged of the volumes of shares to be issued by the Standard Alliance Insurance as well as the Custodian and Allied Insurance, going by the publication in today's issue of This Day, as shown in the link below:

THISDAY ONLINE

[chymex]

From the publication, Custodian and Allied will be offering at 20% discount while Standard Assurance will be at 16%. Not as generous as AIICO that offered at 35%. Considering the risk of returned money after 6 months, it is clear that one is better off buying both on the floor.

[BigSeun]

Does anyone in the house know when the PO is going to start?

[chymex]

This stock is no longer available on the floor as I've been trying to buy for about a week now without success.

[newton]

I think ur broker might just not be active enuf.