Our Capitial Market

[nojku]

Nigerians we love to gain without pains and that's why we can’t see the advantage of what the current state of the capital market holds for us. Stocks with good fundamentals are selling far below their support prices. Nestle for example at an eps of #8 was selling at over #290 last year, but now with an eps growth of #10.37 it's trading at #225.43 and its chances of further drop is high.

The first rules of investing is to notice a good stock and enter at a low price, come out when one is satisfied with the profit margin gained.EPS is a good parameter to determine a good stock and many of the listed equity have done very well in that regards. That leaves us with a question (WHAT IS WRONG WITH OUR CAPITAL MARKET?).If it true that the problem has to do with policies then companies wouldn't have good EPS especially the financial institutions.
If we are able to understand the simple fact that the market is a game played by two different teams, the buyers and the sellers. The condition of the market is affected by which of the teams is winning. The current state of the market shows that the sellers are dominating actives on the floor of the house and the buyers are too afraid to bring their money. Rather we are waiting for someone to take the lead and may be later someone else will follow.

#150billion alone by the Federal Government is not enough to save our market that is worth over #9trillion, if the Nigerian investors refuse to invest their money. The regulations by the government will fail if Nigerians don't have confidence in our own market. What is a well regulated game if the players refuse to play the game? Nigerians we need to believe in our market, it's the only one we have and there’ll be no other . Let's tell the foreign investors that left that we are financially capable of building our market. Since it's a building process that puts all of us in the long term investment position, and we should with stand the temptation of the short term.
The market recovery lies in our hands and those that should be in the fore front of this vanguard are the institutionally investors whose business it is to invest, there should be able to invest come rain or shine. Whatever action they take shows on the price list and we the smaller investors then follow, because there have the large volume of cash so it easier for them to drive the market to any direction they choose.

For us smaller investor that don't have the big cash to invest, we can equally drive the market with the number of penny shocks on the floor of the house. In fact the smaller investor should be dictating the direction of the market, because we are many in number. Our populate multiplied by our small cash surpasses that of the institutional investors.
When the institutional investors and the smaller invest are playing the market according to their various capacities, it diversifies the market with plenty of options.
NIGERIANS WE SHOULD START TAKING INVESTMENT DECISIONS AND STAND BY THEM, THAT WAY WE'LL BE TAKING THE BULLS BY THE HORN AND MAKE IT STAND HEADS UP LIKE THE BULL ALLOWS DO WHEN IN ACTION.

I believe that the market will turn around, how soon is totally a function of NIGERIANS FAITH IN THEIR MARKET.

[Michael]

Originally Posted by nojku

Nigerians we love to gain without pains and that's why we can’t see the advantage of what the current state of the capital market holds for us. Stocks with good fundamentals are selling far below their support prices. Nestle for example at an eps of #8 was selling at over #290 last year, but now with an eps growth of #10.37 it's trading at #225.43 and its chances of further drop is high.

The first rules of investing is to notice a good stock and enter at a low price, come out when one is satisfied with the profit margin gained.EPS is a good parameter to determine a good stock and many of the listed equity have done very well in that regards. That leaves us with a question (WHAT IS WRONG WITH OUR CAPITAL MARKET?).If it true that the problem has to do with policies then companies wouldn't have good EPS especially the financial institutions.
If we are able to understand the simple fact that the market is a game played by two different teams, the buyers and the sellers. The condition of the market is affected by which of the teams is winning. The current state of the market shows that the sellers are dominating actives on the floor of the house and the buyers are too afraid to bring their money. Rather we are waiting for someone to take the lead and may be later someone else will follow.

#150billion alone by the Federal Government is not enough to save our market that is worth over #9trillion, if the Nigerian investors refuse to invest their money. The regulations by the government will fail if Nigerians don't have confidence in our own market. What is a well regulated game if the players refuse to play the game? Nigerians we need to believe in our market, it's the only one we have and there’ll be no other . Let's tell the foreign investors that left that we are financially capable of building our market. Since it's a building process that puts all of us in the long term investment position, and we should with stand the temptation of the short term.
The market recovery lies in our hands and those that should be in the fore front of this vanguard are the institutionally investors whose business it is to invest, there should be able to invest come rain or shine. Whatever action they take shows on the price list and we the smaller investors then follow, because there have the large volume of cash so it easier for them to drive the market to any direction they choose.

For us smaller investor that don't have the big cash to invest, we can equally drive the market with the number of penny shocks on the floor of the house. In fact the smaller investor should be dictating the direction of the market, because we are many in number. Our populate multiplied by our small cash surpasses that of the institutional investors.
When the institutional investors and the smaller invest are playing the market according to their various capacities, it diversifies the market with plenty of options.
NIGERIANS WE SHOULD START TAKING INVESTMENT DECISIONS AND STAND BY THEM, THAT WAY WE'LL BE TAKING THE BULLS BY THE HORN AND MAKE IT STAND HEADS UP LIKE THE BULL ALLOWS DO WHEN IN ACTION.

I believe that the market will turn around, how soon is totally a function of NIGERIANS FAITH IN THEIR MARKET.

Firstly, Did you actually have to start a new thread to say your piece, marketwatch is a sufficient thread for your comments.

Secondly, You attacked the Investors mindset and made no comments about the regulators or govt, with their usual topsy turvy pronouncements.

Thirdly, You are preaching support for the market on the grounds of Patrotism.


If I merge these three issues together, Combining the arrogance of starting a new thread, when an old one will do. The attack on the common man, and the demand of patrotism in others, I would think you must be a member of the National Assembly.