bear on the run!!!!!!!!!! time to invest

[olusolakemmy]

I am observing closely as event is unfolding in the Nigeria stock market, i have also seek peoples opinion on this matter too, the bear have sustain hold on the market for close to four days now!

I strongly believe that this is the best time to invest, despite the fact that lots of my companies are affected, i kind of pray that the bear remain with the market for another week!!, according to buffet, when the prices are falling is not the time to sell, but time to increase your stake in the company, that is if foundamentals are still supporting the companies.

Some of the companies that are dipping in price presently are cash cows when the bull returns.

So, time to invest rather than time to sell, what do u all think???????????????

However, some persimist, believe that this is the onset of market crash?????????????? what do u all think

[ajifowowe adeyemi]

yes,
olusolakemmy, i also agree with you that its time to rather buy and not sell but may i ask that what is the evidence that such company is not actually going to die or even be stagnant for a period of time.
lets take a look at Wema bank fof example; the company went to the market in 2004 and since then we can only count a remarkable growth this year 2007
so what is the measure that such company 'll not experience what what wema bank experienced, and u know this is money.

[olusolakemmy]

Originally Posted by ajifowowe

yes,
olusolakemmy, i also agree with you that its time to rather buy and not sell but may i ask that what is the evidence that such company is not actually going to die or even be stagnant for a period of time.
lets take a look at Wema bank fof example; the company went to the market in 2004 and since then we can only count a remarkable growth this year 2007
so what is the measure that such company 'll not experience what what wema bank experienced, and u know this is money.

with awareness the NSE is enjoying right now, i dont see a good performing company dormant, interms of price appreciation.

i see number of investor increasing rather than decreasing, and as far as companies are posting good result, price cant remain dormant on the short andlong term.

market price of most bank and insurance firm are dipping now, do u see this two sectors as a potentail dormant sector rather than dominant sector?

definitely dominant is my answer, so why not lets take position and wait for the harvest time.

[oseitutu]

[quote=ajifowowe;2727]yes,
olusolakemmy, i also agree with you that its time to rather buy and not sell but may i ask that what is the evidence that such company is not actually going to die or even be stagnant for a period of time.............quote]
No company is going to die just because of a bear retreat. If you look at the league tables these last couple of days, 'all man' dey drop in price. When a company falls in bull times and falls further in bear times, then unless you know a lot of things others do not know do not buy

[olusolakemmy]

oseitutu,
i like your statement that when a company fall both during the bull and bear run,then itsnot advisable to buy such company.

[dotunk]

everybody,

its the time to buy, but not just yet. i would say we wait some more when prices would kind of stabilized.

it would have been a good time to sell too... ie at the peak just before the fall started so that one can re-enter later to get more units.

[olusolakemmy]

Originally Posted by dotunk

everybody,

its the time to buy, but not just yet. i would say we wait some more when prices would kind of stabilized.

it would have been a good time to sell too... ie at the peak just before the fall started so that one can re-enter later to get more units.

dotunk,
your concept of selling now and buying back to get more unit will be effective for union bank, since they are planing PO, i will likely sell if the company should rally back to 42 and wait for the PO that is likely to be less than 35.

For active market trading, yes, it is also good, more so now that trading charges have been reduce. But just consider a scenario where you sell at the peak, and you want to re-enter and it became so scarce that you are nearly buying back close to the price you sold or even more, that will be applicable to hot stock anyway. If you are sure of effectiveness on the part of your broker, then it is the best to increase your unit little by little

[kaymoney]

Originally Posted by olusolakemmy

dotunk,
your concept of selling now and buying back to get more unit will be effective for union bank, since they are planing PO, i will likely sell if the company should rally back to 42 and wait for the PO that is likely to be less than 35.

For active market trading, yes, it is also good, more so now that trading charges have been reduce. But just consider a scenario where you sell at the peak, and you want to re-enter and it became so scarce that you are nearly buying back close to the price you sold or even more, that will be applicable to hot stock anyway. If you are sure of effectiveness on the part of your broker, then it is the best to increase your unit little by little

Olusolakemmy,
i quite agree with your last statement that one can end up buying back close to or more than the amount one sold for.This is the more reason why one has to be calculative in whatever step one wants to take when selling or buying any of this shares at this point in time.

[c kenneths]

I advice that if you have not already sold your stock, look well before selling now cause you may not have gotten the money to buy in this bear session, by the time you sell now and get your money, the shares may have started moving up leaving you searching for other stocks, which may not even be as good as the one you sold, anyway the strikes is a welcome opportunity, kind of allowed us to re-appraise our strategies.

[lauchukel]

I agree totally with O'sola on this. Its the time to buy really, and remember the quoted companies are predominantly defensive, so yes, the bears are running, but its in the investors favour. Lets focus on the bigger picture.

[alanbow]

I agree that this is a time to start buying but maybe waiting a bit longer would be better.

A few weeks ago, the CBN was going to mop off excess cash in the NSE by increasing the deposits from most of the banks, I thought there was going to be an immediate effect as the banks hold very large stocks and would always sell to be more liquid.

This did not have the immediate effect but may be it is just starting to trickle down.

So Like dotunk suggested, give it another week or so for things to stabilise before acquiring more.

[c kenneths]

Originally Posted by c kenneths

I advice that if you have not already sold your stock, look well before selling now cause you may not have gotten the money to buy in this bear session, by the time you sell now and get your money, the shares may have started moving up leaving you searching for other stocks, which may not even be as good as the one you sold, anyway the strikes is a welcome opportunity, kind of allowed us to re-appraise our strategies.

Like i said earlier today, selling now may not be in the best interest of an investor, the bears seems to be retreating, the bulls seem to be staging a come back, based on todays figures, and selling now may leave you in cash when everything has gone up.

[stevak]

Seems nobody is looking at the fundamentals. Question to answer is why a particular stock is coming down in price. Aren't some stocks appreciating now? Beware. The bears and bulls may be a generalized way of preventing us from looking critically at stock performances.
For me, buying or selling......depends on the company performance. Cheers.

stevak

[c kenneths]

We dont look at market directions alone, you also get to check the fundamentals, but when your strategy is playing short time, you have no need for fundamentals. Also if your strategy is long term, then use mainly fundamentals.

[lauchukel]

Theres no doubt about the importance of a company's fundamentals in decision making. However, I also want to assume that the fundamentals was a major consideration when you invested in the first place.
Fundamentals (except of course company policy and management) dont change over night. Therefore when there is a global bear lead, i.e affecting a good percentage of the qoted stock, then obviously, its either a general government regulation or announcement, or an anticipated global action that could be responsible.
Dont misunderstand me, fundamentals are fundamental (no pun intended), but we also have to have an intelligent approach to our decision making and my gut instinct says wait and see, or if you are like me, buy a bit more now. JUST A BIT!!! Hope you all in naija are enjoying your 'compulsory stay @home'.

[c kenneths]

The stay at home is really pissing me off, i cant buy a thing even as the market is on, the banks are closed, and, how do all these trades going on now happen, where do these people get their own money from, or did they plan all these earlier to leave us behind?

[kaymoney]

Originally Posted by c kenneths

The stay at home is really pissing me off, i cant buy a thing even as the market is on, the banks are closed, and, how do all these trades going on now happen, where do these people get their own money from, or did they plan all these earlier to leave us behind?

c kenneths,
Have you forgotten that we live in a country where anything can happen.