learning about stockmarket

giwababatunde · #1 (**permalink**) 2nd December 2006, 07:55 PM

Someone to advise on how to pick stock in nigeria stockmarket?

joyagba · #2 (**permalink**) 11th December 2006, 12:49 PM

how do one know a stock that will appreciate in the nearest furture to invest in

SpecNomics · #3 (**permalink**) 14th December 2006, 01:09 AM

@ joyagba - How do you find shares that'll appreciate in the "nearest" future? I like the emphasis on nearest, I take it you mean 0 - 3 months (since short term is more like <= 6 months). Well let us see:

1. IPOs. From all evidence the NSE is hot at the moment, buying into one of them and selling shortly after dealing starts could fetch you a nice buck in the very short run.

2. Rerating. If a Share A was expected to have an EPS of 100kobo and expectations changed to say 150kobo, the stock would be re rated upwards to adjust for increase not previously priced. So start combing for sectors who are likely to exceed markets expectation and market is yet to price this in

3. Related Asset to Stock. A stock like an Oil Company would react to changes in Crude, Or metal company to Copper Or Agriculture to produce prices. So if your uncle is gonna be at the OPEC meeting tomorrow lets know what they plan on doing, I'll ber awake.

Well thats my 2 pence on "how one can know a stock that will appreciate in the nearest furture to invest in".

@ giwababatunde - simple way to this is to invest according to the following

1. Shares with the lowest PE Ratios : you would essentially be investing in the cheapest stocks according to Earnings.

2.Highest yielding Shares e.g. Dividend Yield : good if you want income now from your shares. NB research has shown that High Dividend Yeilders have returned best in the long-run

3. Cheapest Price to (Tangible) Book Value: you would be investing in a company priced relative close to its book value.

4. Cheapest Price to Cash flow ratio: you would be investing the stock that generates the most cash for price per share. essentially if it was your business how much cash can you take out at yr end.

We can discuss which ever one your interested in knowing more about in detail.

paragon · #4 (**permalink**) 14th December 2006, 01:42 PM

hi there,
i just wanted to add a little something to what Specnomics said.

When looking for stocks to invest in, you should look at the management of the company. This is because the management makes decisions that influences the way the company is run.

Also, look at the kind of products and services that the company offers. Competition is what places keeeps companies on their toes and only those that can keep up with this competition will stay ahead.

In nigeria for example, only few banks that operate ATM's can be regarded as the market leaders. This is because they receive new customers on a daily basis as a result of the service they are rendering. people do not like staying on queue and as such there is capital as well as customer flight from baks that are behind in this area to banks that are operating this service.

lastly the perception of people is also important. Experience has taught me that the way the public perceives a company reflects in its share price and price movement.

So, in summary,if you want to invest shaort term combine all what you've seen here and you'll definitely have a cause to smile.

SpecNomics · #5 (**permalink**) 14th December 2006, 09:37 PM

@ Paragon - I concur with your statement re management. Its management that delivers that should be backed. How can we find out if the company has such management? Well, one can read pevious annual reports and highlight what the management thinks of prevailing market conditions and how they think the company would fair. If their view materialises i.e. following annual report, they'll sumarise performance etc. Consistency in thought and action is the key i.e. they practise what the preach in previous annual reports in new annual reports. Thus it is not only the financial figures that we should pay attention to on the reports, we should read the CEO and Chairman Reports.

However, this is not easy to do and advising people to carry out such a reasearch could be wasteful. Essentially good management must reflect itself in the bottom line. All this management sturves is long my guy. My simulated PE Ratio portfolio has outperformed the FTSE Allshare Index by a wooping 28.9 percentage point, by simply picking the 5 shares with the lowest PE Ratio.

Dude 50 per cent of professional money managers under perform their benchmark, why stress a passive investor into troughing through annual reports reading!

Tayo · #6 (**permalink**) 18th December 2006, 08:49 AM

Specnomics, pls do you know of any good books that teach about the workings of the Nigerian stock market? All books i've come across so far teach about the New York Stock exchange or London Stock Exchange.

paragon · #7 (**permalink**) 18th December 2006, 12:34 PM

hi omotayo,
my name is Chuks, the executive editor of this site. Well you are entiltled to a free e-book once you register on this site. i do not know if you got this, but if not, mail me on chuks@stockmarketnigeria and i'll see what i can do.

If you are interested in getting more, ther are some good ones like "can every nigerian be a millionaire" by a renowned stockbroker in nigeria. I can help you get them and send them to you depending on your location.

Timeless · #8 (**permalink**) 15th January 2007, 04:30 AM

Chuks,
I'm interested in the book, "Can every Nigerian be a Millionaire" How can I get it? I checked Amazon.com and it wasn't there... Thanks!

paragon · #9 (**permalink**) 16th January 2007, 07:44 PM

hi Timeless,
the book can every |Nigerian be a Millonaire is not advertised on Amazon.com. If you can give me your location, i'll devise a means on how to send it to you.

Tayo · #10 (**permalink**) 8th February 2007, 06:40 PM

Hey Chuks, just seeing your reply. I got the free e-book and it's very good. Great job you did there. I'm in Lagos. Is there a way i can get the "Can every Nigerian be a millionaire"? thanks a lot.

ghm · #11 (**permalink**) 8th February 2007, 08:11 PM

I'm sorry I didn't remember. The book was a master piece. I enjoyed reading it, I have also given it to 3 of my friends and they are all excited about it.

Keep up the good work.

ghm · #12 (**permalink**) 8th February 2007, 08:22 PM

Chuks, I am also interested in the book "can every nigerian be a millionaire". Kindly advise me o how I can lay my hand on it.

babs · #13 (**permalink**) 20th April 2007, 10:26 PM

chuks, just registered, how can I get the e-book on 9ja stock?

Sari · #14 (**permalink**) 2nd May 2007, 09:52 PM

Hi I'm in PH, how can I get this book, 'Can every Nigerian be a millionaire'?

Geeman · #15 (**permalink**) 3rd May 2007, 07:29 AM

Dear Chuks,
I am interested in the above title out of curiosity to read what it has to say. I am in Singapore.

enurayce · #16 (**permalink**) 4th May 2007, 01:48 PM

to all the pros in the house.
I need you all to please help me with a list of possible low priced stocks with growth potential and why you think so.Indicators could be provided also.
Waiting for your response
Thanks

enurayce · #17 (**permalink**) 4th May 2007, 07:20 PM

@chucks,
i'm a registered member in tthis site.I did not get any free e book.i will be very grateful if you can help with that.
enurayce@yahoo.com

letuak · #18 (**permalink**) 5th May 2007, 03:55 PM

Quote:

Originally Posted by paragon

hi omotayo,
my name is Chuks, the executive editor of this site. Well you are entiltled to a free e-book once you register on this site. i do not know if you got this, but if not, mail me on chuks@stockmarketnigeria and i'll see what i can do.

If you are interested in getting more, ther are some good ones like "can every nigerian be a millionaire" by a renowned stockbroker in nigeria. I can help you get them and send them to you depending on your location.

pls am unable to download the e-book tru d net pls assist, my e-mail is letuak@yahoo.com txs.