MarketWatch

[olusolakemmy]

Originally Posted by ayemco

Just a couple of moves I've made of recent. Investing in Property Companies (or REITS) with specific target projects and good returns on Dividend. Thats all I do now on PP's and PO's.

you are still saying the same thing.
the companies that are losing on the floor are not bad in the sense of profit potential and consistent and good dividend to the investors.

Your REIT will be listed, for you to truely have a cap appreciation, the problem facing stockmarket need to be resolved.

Look at SKYE REIT listed on the nse, is it not same story as every other coy?
if you are in real estate business directly, i agree with you, but if u invest in a company that is planning to someday list it shares on the floor, then no edge over others.

[BigSeun]

Originally Posted by BLUEMONEY

And if short selling had been introduced in the market the loss would have been minimal.

The reverse is what would had happened. The loss would have been more substantial.

[BLUEMONEY]

Originally Posted by BigSeun

The reverse is what would had happened. The loss would have been more substantial.

Well I dont think so. Most of the listed Equities are still overpriced and if short selling is introduced, they will definately find thier level while investors will make money at thesame time.

If short selling had been in place most of the manipulation we saw in the market when it was bubbling due to liquidity wouldn't have happened. I Know you would not be willing to buy Afroil at N25 that have not released thier result for years when you know you can make money by Shorting the Stock.

[BLUEMONEY]

Originally Posted by waaan5

Most of what Summers said is true but then there is nothing new in those. We should be wary of these so called experts who come Nigeria only to bash us to gratify their superiority complexes. A lot of non-nigerians share culpability in Nigeria's under-development. And Summers has more than his own share of those mundane instincts (part of his recently disgrace).

I would love to hear concrete suggestions on how to move things forward. otherwise my advice would be 'physician heal yourself first'

'physician heal yourself first' is a very good advice for Mr Summers. All what he stated are thesame Old unfruitful Colonial Talking Points that have gotten us nowhere.

[ayemco]

Originally Posted by olusolakemmy

you are still saying the same thing.
the companies that are losing on the floor are not bad in the sense of profit potential and consistent and good dividend to the investors.

Your REIT will be listed, for you to truely have a cap appreciation, the problem facing stockmarket need to be resolved.

Look at SKYE REIT listed on the nse, is it not same story as every other coy?
if you are in real estate business directly, i agree with you, but if u invest in a company that is planning to someday list it shares on the floor, then no edge over others.

I am not sure if you read my thread properly. I am not looking at the overinflated Capital appreciation we have had over the years. I can assure you that will not be around for a while. I mentioned dividend and bonuses in REITs (or the likes) with good projects. I don't care if its quoted or not as long as I can see Divdend pay outs of at least 70% which most of the ones I signed up for have projected. I can assure yoy SKYEREITs is not one of my choices. So my brother olusholakemmy I am not saying the same thing.

[knightofdelta]

Originally Posted by BLUEMONEY

And if short selling had been introduced in the market the loss would have been minimal.

Do you remember that the financial experts in the US threw a major blame on the part of short sellers for running down the stock markets? It would have been worse off here if there was short selling but we would have reached the bottom long ago anyway...

[knightofdelta]

Originally Posted by olusolakemmy

you are still saying the same thing.
the companies that are losing on the floor are not bad in the sense of profit potential and consistent and good dividend to the investors.

Your REIT will be listed, for you to truely have a cap appreciation, the problem facing stockmarket need to be resolved.

Look at SKYE REIT listed on the nse, is it not same story as every other coy?
if you are in real estate business directly, i agree with you, but if u invest in a company that is planning to someday list it shares on the floor, then no edge over others.

There could be a slight edge over other companies that are in the financial industry who depend on returns from the stock exchange. That is based on return on investment through dividend payouts with minimal capital appreciation. REITS are for long term players.

[knightofdelta]

Originally Posted by BLUEMONEY

Well I dont think so. Most of the listed Equities are still overpriced and if short selling is introduced, they will definately find thier level while investors will make money at thesame time.

If short selling had been in place most of the manipulation we saw in the market when it was bubbling due to liquidity wouldn't have happened. I Know you would not be willing to buy Afroil at N25 that have not released thier result for years when you know you can make money by Shorting the Stock.

Ummm... not likely. Short selling will only make money for investors when others are buying. As it is, you cannot even sell your own stocks how much more other people's stocks.

[BLUEMONEY]

Originally Posted by knightofdelta

Do you remember that the financial experts in the US threw a major blame on the part of short sellers for running down the stock markets? It would have been worse off here if there was short selling but we would have reached the bottom long ago anyway...

Are you refering to the recent suspension of short selling on the shares of financial institution in the U.S ?????

That was done because the Regulatory body over there discovered that some people with inside information of the poor financial health of these institutions were engaged in the practice of short selling and to me that is criminal offense.

Or are you refering to the Tons of Articles written by Analysts on the Negative Aspect of Short Selling ?????

I have read a few of the Articles and must confess that they have a point on the effect of short selling on the stock market but then these Analyst will also advise you not to catch a falling knife. And one of the ways for the knife to get to the floor quickly is by short selling.

So these Analysts have a point but the idea behind short selling is to Borrow a stock and bet that it will fall to a certain price and when it does you buy it back and the difference is your profit but unfortunately our market lack the basic structure for this practice to operate effectively and even if it becomes operational, only the wise ones will benefit from it.

[BLUEMONEY]

Originally Posted by knightofdelta

Ummm... not likely. Short selling will only make money for investors when others are buying. As it is, you cannot even sell your own stocks how much more other people's stocks.

Even with the Credit Crunch in the Western Markets, short selling was still in practice. That is where Market makers and Liquid Stockbroking firms comes into play.

The Bottom line is this --- Our Market lack the structures for such a practice to operate effectively here because if it had been operational here, some wise investors would have used it to hedge thier positions in overvalued stocks.

[knightofdelta]

Originally Posted by BLUEMONEY

Even with the Credit Crunch in the Western Markets, short selling was still in practice. That is where Market makers and Liquid Stockbroking firms comes into play.

The Bottom line is this --- Our Market lack the structures for such a practice to operate effectively here because if it had been operational here, some wise investors would have used it to hedge thier positions in overvalued stocks.

What is the point in bringing in such complicated structures in the markets when simple things like corporate governance is not even in place? See what Sterling bank has done, see what Cadbury did, see the issue of Capital Oil (is it Capital Oil and Gas?), see Afroil... the list is endless. There is no point introducing those things into the market when the basics are not there to support it. It is like building a house on the beach...

[billions]

Originally Posted by BLUEMONEY

Even with the Credit Crunch in the Western Markets, short selling was still in practice. That is where Market makers and Liquid Stockbroking firms comes into play.

The Bottom line is this --- Our Market lack the structures for such a practice to operate effectively here because if it had been operational here, some wise investors would have used it to hedge thier positions in overvalued stocks.

I think they hv stopped it in d U.K & U.S.

[waaan5]

Originally Posted by billions

I think they hv stopped it in d U.K & U.S.

Shorting itself is not the problem. It is the application in those markets, and for Nigeria, I think it is in the lack of structures as mentioned by Blue Money.

[olusolakemmy]

Originally Posted by billions

I think they hv stopped it in d U.K & U.S.

am not thinking, it was stopped in the US.

[hispy99]

Originally Posted by olusolakemmy

am not thinking, it was stopped in the US.

It was suspended in the U.S for financial stocks. The suspension will end this coming Wednesday @ 12 Midnight.