Top Stocks for 2007

[paragon]

Happy New year to everyone. We hope that you have enjoyed and are stiil enjoying our online community. As a means of serving you better and making sure that your knowledge of investment increases this year, we will be doing an analysis of StockmarketNigeria.com Top 7 Stocks for 2007.

We will provide key variables as to how we picked them and follow them throughout the year for at least the next 5 years to see how much returns they will generate.

Also, we will be giving tips and techniques on how to trade on stocks to maximize profit and minimize losses. Please endeavour to visit the blog regularly and remember to refer a friend to this site if you believe that your investment needs are being met.

Thankyou

[prof]

Dear Paragon
That is a great idea! I am looking forward to the analysis and the picks. Indeed this community has contributed greatly to my investment knowledge. Am looking forward to greater and more rewarding 2007

[gabikwulono]

Thank you Moderator. The analysis of StockmarketNigeria.com by providing Top 7 Stocks for 2007 is a big and welcome idea. This is a step to great improvement, growth and maturity.

If this is done as promised and monitored for 5 years it will enormously help the investors on the choice of their companies to trade stock and how to maximize profit and minimize losses.

Gabriel

[dtrader]

This will be a perfect idea , are you planning choose the stock based on growth stock, income stock and defensive stock. It will be a good yardstick to measure performance.


regards

dtrader

[c kenneths]

So which are your top picks ?????????.

[c kenneths]

So which are your top picks ???????????.

[EIC]

You can find our stock picks here

http://www.stockmarketnigeria.com/ca.../smn-5-stocks/

You can visit this category regularly as we will keep a running diary of both our reasons for picking these stocks and a record of their performance from the time we bought them.

We have decided to narrow our stock picks down to 5. This is because we think a good investor should pick only as many stocks as they can afford time to study and continually keep abreast of.

[Taipan]

Why don't we have a survey, or something of the sort, of SMN members to find out members top 10 stocks and why?
For me, i believe the penny stocks are going to do incredibly well. Stocks like Cadbury and Nigerian breweries would also probably recover and shoot-up. However, to a large extent, the whole market is going to explode this year and anyone who doesn't get on the train YESTERDAY is a 'mugu'!

[bwalaman]

The 5 picks (below) make for a good foundation and have shown some movement already- Question do you not think you are over exposed to the Banking and Construction Sectors- true, thats where all the action is...but what about diversification?

Oceanic Bank Plc
United Bank for Africa Plc
West African Portland Cement Company(WAPCO)
Fidelity Bank Plc
Benue Cement Company.

Pharmaceutical and Conglomerates are not doing badly. If anyone has been paying attention -NAHCO is there as well. Don't forget Dangote is coming out soon.

We await March/April to see what the Insurance sector becomes... If NICON and IGi get floated, they will definately be good buys.

I think you should ramp up your top picks to 10 to take advantage of other sectors and provide proper diversification.

Leads Capital, IBTC, FSDH, Express discount limited, Tiddo Securities all have good sites with NSE, share info, economy etc. IBTC even breaks down performance by sectors.

What do you think?

Bman.

[bwalaman]

The 5 picks (below) make for a good foundation and have shown some movement already- Question do you not think you are over exposed to the Banking and Construction Sectors- true, thats where all the action is...but what about diversification?

"Oceanic Bank Plc
United Bank for Africa Plc
West African Portland Cement Company(WAPCO)
Fidelity Bank Plc
Benue Cement Company. "

Other factors to consider…

Pharmaceutical and Conglomerates are not doing badly – any good company in this sector will make steady returns in an environment like Nigeria.

If anyone has been paying attention to NAHCO is there as well. Don't forget Dangote is coming out soon. We await March to see what the Insurance sector becomes... NICON will be a good pick in this sector when it comes to the market.

I think you should ramp up your top picks to 10 to take advantage of other sectors.

Leads Capital, IBTC, Express Discount, Tiddo Securities are but a few ways to get direct info on NSE / economy related shares- I think tracking10 stocks is manageable.

Parting shot: BPE is currently privatizing NICON- 49% is slated to be sold to the public…when this finally happens… BUY!!!

What do you think?
Bman.

[dotunk]

hi.

great news on tracking 5 stocks. but frankly i think thats a bit too small a number. i would rather 10 like someone suggested. you see, if you choose only 5, i dont get to use that info appropriately. what if i dont have the stock you choose since the choices are too small. if it were 10, then the chances are that i would have stocks with in those 10.

i understnad that one needs to be able to follow the progress of the company one ahs stocks in, and 5 is a safe number for beginners, but lets face it, your site is not viewed by newbies only. there are variuos levels of investors in your data base and you should factor that into your planning.

hope you think about this and act on it.

Dotunk

[otunba]

NAHCO has since outlived the expectations of every investor, likewise Wapco (to an extent)-- although the former was not directly mentioned in your 'magic 5' stocks for 2007. And talking about the magic 5 stocks, do you think that that benue Cement is not a superfluity to the list, at least by its performance up till march (as it has only impressed by a high of 30% since the beginning of the year.)

As for Nicon, federal govt only owns 30% and the offer for sale wil not come up any time till the 2nd-3rd quaters of the year (if it does then).

Dangote is out and has already become a bull's legend. Speculated intrinsic value is N40.

Does anyone feel that though WEMA is underpriced its fortunes will get any better given the spate of hostile takeovers here and there...?

[myd]

is WEMA GOOD TO BE CONSIDERED A GOOD STOCK TO BUY INTO

[bwalaman]

I believe 5 stock recommended by the blog as indicated by Paragon, remains a good foundation…

NAHCO outlived what “investor” expectations? No, may be the expectations of day traders or speculators… I believe NAHCO has all the hallmark of bellwether stock, so does WAPCO in the initial top 5 (I add that there are about ten stocks, at least one per sector in this category).

If one is thinking of having a portfolio, then the “bellwether” stocks serve as sure bankers – may be not returning 20 – 40 % as the NSE has spoilt us to believe that it is only going to shot up and up.

If you are in it for the quick cash- “quickie”, then better have a lot of information and an excellent broker…

Timing also counts, if you buy NAHCO or WAPCO today, it is not the same as buying it 1, 2 or 3 months ago – note there are reports of potential IPO by NAHCO ( do not forget NAHCO was privatized through IPO – funds was not raised through IPO, slightly different).

On NICON, the plan as made public by BPE (check their website)- is 49% to the Public- lets only hope that it will be “Public”. Regardless of when it comes, it will be at least double in the first 12 months, note NICON has 15% of this sector (the closest is less than 5%, before consolidation - check Vevita website. Even after the consolidation, I reckon the next is still less than 10%. Also NICON will inherit a lot of the government related business).

Anything Dangote is momentum- given, we don’t have enough info to objectively assess Dangote in the PLC arena, but Dangote is Dangote – if anyone bought Dangote 2-3 weeks ago, one would have a lot more today. If I am a Portfolio manager, I would still buy Dangote today. This sugar deal is the biggest or 2nd biggest in Africa!!!

Related to Dangote, see the Blog section on this site – National Salt Company, Plc. This is a strong buy even today. Dangote reportedly has about 70% of the Salt market (check Dangote website). Note Dangote deals in essentials – people will always need salt, sugar, cement etc

I think the Banks on the list (Fidelity, UBA and Oceanic) have lived up to their predictions- additionally with UBA and Oceanic on IPO, there is more, at the minimum the discounted IPO. I don’t like WEMA- check its 5 year…not impressive, I also think that there is strong State/Public interest in Wema ( I am sure I read it somewhere…) not good… see valuable input of Stockbear on this point (thread Trouble Ahead For Bank Shares From Q2?).


Whiles Banks the appreciation margins of banks might appear to be drying, I think the banks with foreign direct investment / interest will go up more.

I still think one should diversify…keep an eye on the weekly and monthly ups and downs, not everything is going up.

My wild cards: Juli, Plc and Rokana, Plc (2nd T)… Union Bank bought 40% of one and Intercontinental and Wema 20% each of the other – if you have spare cash, put it here. When Banks start buying huge chunks of companies I would accept to ride their coattail.

So look at the Top Picks from when that opinion was formed…

What do you think?

[WOOF]

There Is Alwaya A Delay In Their Results.i Think We Should Observe For A While

[mobolaji6]

Great idea! I ran through the SMN 5 picks today 22nd April for the first time and I think the two sectors were and still remain amongst the most dynamic with best growth propects on the exchange. We will keep track too. mobolaji6

[Catherine]

Hi everyone,

Am new here. Found this sight for the first time today. Ve been interested in the shares market but don't know much about it. The little savings ve been making need to be invested and most people i discuss with say the prices are currently too high. Is it too late for me?