MarketWatch

[Michael]

Originally Posted by nosa2

I stuck to my guns on crusader and i ordered oceanic and more of tantalisers today. I stuck to Crusader because as an insurance company they are well diversified, which may prove to insulate them a bit, so much so that their nature of business has been changed and since i'm already in at 2.27 i think its foolish or risky for me to sell just before results especially since they have a low amount of shares which makes bonus a possibility as well. I bought tantalisers because i already own some of the stock and from their yearly financials i like the direction the business is going, the past dividend yield is low but i'm buying this stock because i already own some and i think the diversification plans would help the bottom line in the future. Finally oceanic bank, this was the most difficult one of them all all the news i hear about them is terrible but to be honest with you i cant ignore the fact they are making similar profits with first bank and are having less amount of shares yet the price is less than 30% of first banks. Its just too tempting, i think that the market is over estimating the level of write offs they'll make, plus its 15 months results so that should help cushion things.

And considering the fact most people in the market are generally proved wrong, you should do extremely well with your Oceanic and crusader.

[zainabusman]

Originally Posted by Michael

How about both Friday, Monday & Tuesday

True. If it falls on Friday, then i expect the drop to last a few days and so on and so forth.

[nosa2]

Originally Posted by zainabusman

Thanks 4 sharing.

U cannot compare Oceanic and First bank. Oceanic does not have the sort of history of performance that FBN has. For those who bought Oceanic PO at N16.5, they are yet to see a dime. Those who bought FBN have gotten a bonus and a dividend. Meanwhile Oceanic did their PO b4 FBN.

Furthermore, the N40 billion of Oceanic u are comparing with FBN's might go up in smoke as the market expects a large chunk of it to be written off.

When all stocks collapse or rise, one can argue that the market is in an irrational mode. However, when only a few stocks are singled out for correction, u might ask whether there is something wrong with them. At the time Access and Skye collapsed to less than N4, Oceanic was selling at N5.5+. Today both Access and Skye are selling at higher prices than Oceanic. Perhaps the market knows more.

Good luck with ur purchase. Personally, i exited most of my Oceanic gradually. No regrets because from the peak price i started selling it has since dropped 27%.

i respect your opinions a lot and i agree with you on first banks history and oceanic's write down, but keep in mind that its 15 months results, this kind of adjustments does not happen very often, and yes there is great risk in this move short term but in the medium to long term, say one year where would we be, i think you'll agree with me that as a business they'll weather the storm, and i predict their stock price would be a lot higher a year from now and when i compare that potential gain to a fixed deposit or bonds i think the risk is worth it.

[nosa2]

Originally Posted by Michael

And considering the fact most people in the market are generally proved wrong, you should do extremely well with your Oceanic and crusader.

do i sense sarcasm, cause i dont understand your comment.

[nosa2]

Please does anybody know of any news letters like proshare that one can subscribe to

[Michael]

Originally Posted by nosa2

do i sense sarcasm, cause i dont understand your comment.

No, You do Not. Everybody is waiting for Oceanic to release an earth shattering damagiing result and as such are staying away from it and pushing it to absurd prices. The general feeling that Insurance companies fared worse than the banks has also pushed Crusader Into Oblivion. I have both stocks and hope to buy more, i will however let the market tell me when it has confused most people.

[babe!]

Originally Posted by nosa2

I stuck to my guns on crusader and i ordered oceanic and more of tantalisers today. I stuck to Crusader because as an insurance company they are well diversified, which may prove to insulate them a bit, so much so that their nature of business has been changed and since i'm already in at 2.27 i think its foolish or risky for me to sell just before results especially since they have a low amount of shares which makes bonus a possibility as well. I bought tantalisers because i already own some of the stock and from their yearly financials i like the direction the business is going, the past dividend yield is low but i'm buying this stock because i already own some and i think the diversification plans would help the bottom line in the future. Finally oceanic bank, this was the most difficult one of them all all the news i hear about them is terrible but to be honest with you i cant ignore the fact they are making similar profits with first bank and are having less amount of shares yet the price is less than 30% of first banks. Its just too tempting, i think that the market is over estimating the level of write offs they'll make, plus its 15 months results so that should help cushion things.

Thanks. seems like we are interested in the same stocks!! and your answer and last few post have put a new perspective on investing now. i have money with the broker but just can't seems to enter now. really it's the inability to do my analysis quickly. will wait a few days more sha... of course Zain's analysis is solid, but gotta take risk some time. really am prepared to wait for a while, say till oceanic less than 6!

[babe!]

Originally Posted by nosa2

Please does anybody know of any news letters like proshare that one can subscribe to

i think meristem too has newsletter.

[hispy99]

http://www.proshareng.com/admin/uplo...ts/DRAFTSS.pdf

Proposed Draft Rules/Ammendments of the Rules and Regulations of the Securities and Exchange Commission

[hispy99]

Originally Posted by hispy99

http://www.proshareng.com/admin/uplo...ts/DRAFTSS.pdf

Proposed Draft Rules/Ammendments of the Rules and Regulations of the Securities and Exchange Commission

Highlights:

• Bonus to be credited to accounts within 5 working days of receipt of approval from SEC
• Capital raising to be approved only upon satisfactory utilization of proceeds of previous offering
• Underwriting to be at discretion of issuer
• Rights Issues can now be underwritten
• Share certificates to be verified within 10 working days
• Return monies not dispatched in accordance with existing rules will be subject to an interest rate of CBN MPR +5
• Absorbed oversubscription is limited to max 15% of offer size, NO LONGER 25% of OVERSUBSCRIPTION (this makes more sense)
• Private Placements cannot be advertised in print or electronic media
• In case of oversubscription, all applicants will be alloted the min subscription units and the residual balance allocated on a pro-rata basis

[hispy99]

The Stockbroker as the New Villain - Proshare

[knightofdelta]

Originally Posted by c kenneths

Abeg which type? I thought the diesel powered - gas guzzling Cummings, MTU, etc still leads in high energy production facilities, I am interested in the alternative power source.

Ashaka cement is switching over to coal fired energy source, which is far cheaper than the gas guzzling Cummins generators. Other companies are likely to follow suit especially with BCC that is currently on rapid expansion.

Originally Posted by wanaj0

Yes but no guarantee of gas supply for those that switched to gas. Note also that they are moving into power generation which is not their area of competency. Moreover, they are not switching to 'less costly' power generation. They are switching to 'more stable' power supply. Its never LESS COSTLY to generate own power.

Poor infrastructure will make it tough for manufacturing concerns. However for those that are able to pass on the cost to the consumer they should be able to coast through.

Like I pointed out earlier there is a reason why Ashaka cement paid miserly dividends this year and it has been noted above. The cost of building the power source is high and the company is located in place that is rich with coal. At the end of the day, they now have a a more stable and cheaper source of energy. Considering the infrsructural gap and the demand gap in cement, it will be easy for them to transfer the cost to the end user.

[zainabusman]

Originally Posted by nosa2

i respect your opinions a lot and i agree with you on first banks history and oceanic's write down, but keep in mind that its 15 months results, this kind of adjustments does not happen very often, and yes there is great risk in this move short term but in the medium to long term, say one year where would we be, i think you'll agree with me that as a business they'll weather the storm, and i predict their stock price would be a lot higher a year from now and when i compare that potential gain to a fixed deposit or bonds i think the risk is worth it.

By all means buy when ur analysis screams buy. There are times when taking a risk is worth it. Buying oceanic now could turn out to be such. My point is be careful comparing Oceanic and FBN.

[comuna-amadi]

Originally Posted by Michael

For someone who can agree less, you do seem to be agreeing more!

Maybe i have wrong use of english. Abeg, House if i say i can't agree less does that mean i agree wholly or don't agree at all.

We are here to learn not just stock but English and other stuff as well

[123.rado]

Originally Posted by comuna-amadi

Maybe i have wrong use of english. Abeg, House if i say i can't agree less does that mean i agree wholly or don't agree at all.

We are here to learn not just stock but English and other stuff as well

Well from the little I learnt in kindergarten, "I can't agree more" means you agree wholly or in totality without any reservation (you view things from the same perspective) but "I can't agree less" means you agree with something (not wholly) but because you don't have the proof or information at your disposal to disagree with it i.e. you have your reservation.

If you ask my opinion about you and Michael's post, I will say you "can't agree more" with the selling theory but you "can't agree less" with preparation for buying now since you could be selling to hold your cash and not in preparation to buy

[knightofdelta]

Originally Posted by 123.rado

Well from the little I learnt in kindergarten, "I can't agree more" means you agree wholly or in totality without any reservation (you view things from the same perspective) but "I can't agree less" means you agree with something (not wholly) but because you don't have the proof or information at your disposal to disagree with it i.e. you have your reservation.

If you ask my opinion about you and Michael's post, I will say you "can't agree more" with the selling theory but you "can't agree less" with preparation for buying now since you could be selling to hold your cash and not in preparation to buy

"I can't agree less" is hardly ever used in the English Language. Let's put it in perspective... I can't agree less: Less is low so there is a low level of agreement and I can't agree less means I have hit the rock bottom of agreement. This means there is no way I can agree less than I presently agree. It boils down to the fact that I can't agree less means I totally absolutely disagree.

I hope I make sense because I don't think I made sense to myself.

[motosh]

Originally Posted by zainabusman

Which are the stocks with a dividend yield of 7% and above? From the data available to me only 5 outside of banking and Insurance meet that criteria. From the little we have seen so far, the insurance companies will struggle to pay the same dividend of last year. As for the banks we know that Oceanic and Intercont might not be able to pay the same div as last year.

From my data only RT Briscoe, CCNN, Total, Crusader and Redstar have a yield of 7% or more at today's closing price. I will not be too confident about Crusader and Redstar cos they can easily cut their dividend since they are yet to publish their latest full year result.

It is because of the above that i believe while one can still get into the market now, there are really not many bargains out there. I also feel the market is due a fall either Friday or Monday based on past trend.

Please share with us ur list outside of banking and insurance.

my criteria use to be about 15% earning yield,10% dividend yield and single digit pe.that was in the good/dark days of feb and march.things have changed since then.7% dividend yield is still good.

i will add nascon to your list

[knightofdelta]

Originally Posted by motosh

my criteria use to be about 15% earning yield,10% dividend yield and single digit pe.that was in the good/dark days of feb and march.things have changed since then.7% dividend yield is still good.

i will add nascon to your list

Earnings yield of 15% is equivalent to PE of 6.67, which is still single digit unless you meant to say a PE of less than 10 with dividend yield of more than 9%? It is not likely to see those kind of stocks nowadays though.

The truth is the market is already fairly priced and if the NSE decides to make another gain of 15% from the current levels, we are already trading into the overvalued territory.

[nosa2]

Originally Posted by knightofdelta

Earnings yield of 15% is equivalent to PE of 6.67, which is still single digit unless you meant to say a PE of less than 10 with dividend yield of more than 9%? It is not likely to see those kind of stocks nowadays though.

The truth is the market is already fairly priced and if the NSE decides to make another gain of 15% from the current levels, we are already trading into the overvalued territory.

at that stage i'll take my money out and just watch the madness go on all over again unless there is a government ipo, a foreign takeover of a dead company or a 50k stock with potentials

[123.rado]

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