The new kids on the block

[bwalaman]

The NSE featured 2 new kids on the block (Insurance Sector)

CONTINENTAL REINSURANCE PLC

CUSTODIAN AND ALLIED INSURANCE PLC


What do we know about these 2 companies???

[olusolakemmy]

Continental re-insurance was once analysed by paragon on this forum, i intend to buy it base on the fact that insurance sector is booming right now, and continenetal re-insurance was lunched at N1.26, ROSE TO N1.56, I HAVE NOT BEEN SEEING IT TRADED on daily basis, (using the daily price list on africancapitalmarkets website,) but i spoke with my broker just today and she said the bid was too high and the company is too scarce, i intend to buy big time into the comapny, cause i think it is cheap for that price comparing the performances of other companies in the same sector.

i will look into the other insurance company you mensioned, but for continental re-insurance, its a good buy

[olusolakemmy]

hi bwalaman,
i just check up cashcraft daily listing, they are yet to update the price list for 13/06/07, but the price of continental re-insurance for 12/06/07 is N1.99 an indication of upward movement, yet the bid is still high.

crusader and allied insurance is still under stidy, i think i will buy continental even at N2.5, that might be my limit.

[paragon]

@ olusolakemmy,
the bid on continental Reinsurance is too high. Last week the bid was over 300 million with only about 15,000-20,000 being traded daily. Even if you get it at N3.00, it is still a good buy.

[eriksbmw]

@Olusolakemmy

What site do you guys use to check the bids ?

TIA

[olusolakemmy]

i hope i have not plunged into japaul oil too late?
the average price i bought it, was N7.2 and the company is on the downward, althoguh it is natural, investor are cashing in on profit and also after dividend.

but from your analysis,how soon do u see the company moving back up?

[bwalaman]

Olusolakemmy & Paragon, thanks a mil- will put in my buy mandates tomorrow.

[paragon]

@ olusolakemmy,

the price dip is due to profit taking. Before the end of the incoming week, the stock will resume its rally. What would you do if you bought a share @ N1.05 in January and after 6 months, it was selling for over N7.00?

Hmm.. thats what people are doing on Japaul stocks, grabbing their gains.

[olusolakemmy]

paragon,

i understand vividly whats happening to japauloil, it is a normal phenomenom.
i am also aware that it will resume upward movement anytime from now, foundamentals are still there.

whats your stake on custodian and allied insurance?

i am yet to lay my hands on continental re-insurance!!!!!!!!!!!!

i hope the funds am expecting comes in at the right time before the prices of the two above named insurance firm becomes too high for short time investment

[olusolakemmy]

Originally Posted by eriksbmw

@Olusolakemmy

What site do you guys use to check the bids ?

TIA

eriksbmw,

i dont have anysite used for monitoring bids, but paragon gave us an update.
However, the fact that it was not available to buy makes it evident that demand (bid) is more than supply

[dotunk]

japual is COOOOOOOOOOOOOOOOOOOOL!

i actually bought the IPo and also at N1.00 and now its N7. wish i could sell but i want to stay with the company for sometime. i think its a good company to stay with since they are the only company in thier sector and also enjoy monopoly of the sctor just like NAHCO1

[lauchukel]

I buy Japaul every day for the time being, as much as my broker can lay her hands on, but i wish (if wishes were horses....) I can get Continental Re...I may just give up on ever getting it soon, but im ready to buy it at a bonus. Anyone considering Grommac and Morrison?

[olusolakemmy]

grommac as a company, i dont have any data, but the sector is becoming very viable, which can impact on the performances and investor interest on grommac, been the cheapest in the group.

When it was still anout 45kobo, i told my broker to buy it, was not usualy traded, but now that it is rising, that means it is traded regularly, i might just consider it onemore time.

okiti pupa is also another company

[paragon]

@ olusolakemmy,
the bid for custodian is very high.Let me expalin how some of these things work.

When these companies are about to be listed, the brokers on the floor of the exchange know and as such, big firms like cashcraft, afrinvest, zenithsecurities and others place bids for them. once thet are listed , they mop up everything and then hoard. the forces of demand and supply the starts to play in the market and they release very little portions of these stocks on a daily basis so that the price begins to move upwards.

these companies are good, no doubt. For Cont.Reins. for example, even if you get it @ N3.oo, it is still a good buy. If you monitor the dilay trading volume, you wold notice that when they were first listed, it was btw 15,000 to 20,000. However, once the price entered N2.00, the volume increased. Some big buyers are satisfied with 100% profits so they will start offloading now.

I can go on and on but i believe you get the gist.

[bwalaman]

...thanks Paragon, I believe something like that happened with NASCON, which quite frankly is normal. In the mature markets common folks don't even get IPOs.

I am planning on timing IGi now...will appreciate any info on IGi listing (if / when).

All lets remain vigilant on this one

[oseitutu]

If I may then ask, is it normal to expect such surge for shares of ANY company when it is initially listed? For instance, Standard Trust Assurance was listed today on the NSE. at 1.40 naira. Is it wise to speculate for a decent rise and grab some during the week? Doeas anyone have more information aboput the company? Like where the Directors have been, or which bank they have good relationship with etc etc?

[babatunde akinyemi]

Originally Posted by dotunk

japual is COOOOOOOOOOOOOOOOOOOOL!

i actually bought the IPo and also at N1.00 and now its N7. wish i could sell but i want to stay with the company for sometime. i think its a good company to stay with since they are the only company in thier sector and also enjoy monopoly of the sctor just like NAHCO1

Paragon, dotunk, all

Is Japaul still a good buy as at today. I just got some cash to invest. Goal is short time 6 months. Please advice

[paragon]

yeah Japaul ois still a good buy. It is just beginning a new really so move on with he waves.