l need advice

[dannynoko]

Originally Posted by emmanuel ewumi

Just got a facility of N30 million to trade for 360days with opportunity to roll over for another 360 days.
Although l have done my research on 4 stocks to buy before the end of July,
l need advice from members of the forum on what to buy,and why l should buy.Your contributions will be highly appreciated,l will definitely pay for consultancy.

Hi Emmanuel-I think you got Oceanic right. Is a good buy at the rate it is now,am even looking to see if I can get buck to jump in myself, however am being buried with my earlier investments and don't know how to come out. I think Ashaka looks good too, it been fluctuating in price mid 30's and early 40's and i think it could make for a quick buck. Diamond could be considered too, chances are they might pay bonus div this year. However,to me the price movement on Diamond is not fast compared to other banks. But the current price looks good. Hope this helps if you still want to play in the market.

[emmanuel ewumi]

Originally Posted by nwoyearoh

@ what interest rate?

If circa 22% add the round trip costs of buying & selling (4-5%); this gives you a handicap of 27%. If inflation rate is 13% in 360 days you are working against 40% for any money (in excess of interest and inflation charges) to have real value.

When looking at the stocks to buy ensure a minimum return in excess of 40% no matter how the valuation is done and method used in actualising it (fundamentals and/or technical)

Wishing you the best
.

The total interest is 20% per annum,l have only drawn down N5 million from the facility.l hope to buy more as market index decline,the more.

[nwoyearoh]

Originally Posted by emmanuel ewumi

The total interest is 20% per annum,l have only drawn down N5 million from the facility.l hope to buy more as market index decline,the more.

I assume the interest you quoted (20%) is for borrowing the N30 million. If you turn over the N30million just once over a one year period (i.e buy + sell) this adds 5% as transaction costs (to the brokers). If one factors 13% inflation rate for one year then we are talking about a total exposure of 38%.
Ensure that whatever stocks you pick (at the correct timming) must return more than 38% for the exrecise to be worth it. 25% return merely ensures you are not owing anyone anything - you just enriched the Lender & your stockbroker(s). Ability to stay above inflation rate is now hypothetically subsidized by personal efforts in other areas.

Having said that it might make sense for you to do more analysis on the following stocks :
Oceanic Bank, Diamond, Skye, Dangote Sugar, Mutual Benefits, Standard Alliance and RT Briscoe. (This assumes that both banks will not be negatively impacted by the December end year rule by the CBN)

The final choice is yours!

Like I said earlier, goodluck.

[emmanuel ewumi]

Originally Posted by nwoyearoh

I assume the interest you quoted (20%) is for borrowing the N30 million. If you turn over the N30million just once over a one year period (i.e buy + sell) this adds 5% as transaction costs (to the brokers). If one factors 13% inflation rate for one year then we are talking about a total exposure of 38%.
Ensure that whatever stocks you pick (at the correct timming) must return more than 38% for the exrecise to be worth it. 25% return merely ensures you are not owing anyone anything - you just enriched the Lender & your stockbroker(s). Ability to stay above inflation rate is now hypothetically subsidized by personal efforts in other areas.

Having said that it might make sense for you to do more analysis on the following stocks :
Oceanic Bank, Diamond, Skye, Dangote Sugar, Mutual Benefits, Standard Alliance and RT Briscoe. (This assumes that both banks will not be negatively impacted by the December end year rule by the CBN)

The final choice is yours!

Like I said earlier, goodluck.

Oceanic and skye are on my list,l have been increasing my holdinds in both banks.l dont think they will be adversely affected by the Uniform year policy, rather it should favour both banks.

[emmanuel ewumi]

Originally Posted by nwoyearoh

I assume the interest you quoted (20%) is for borrowing the N30 million. If you turn over the N30million just once over a one year period (i.e buy + sell) this adds 5% as transaction costs (to the brokers). If one factors 13% inflation rate for one year then we are talking about a total exposure of 38%.
Ensure that whatever stocks you pick (at the correct timming) must return more than 38% for the exrecise to be worth it. 25% return merely ensures you are not owing anyone anything - you just enriched the Lender & your stockbroker(s). Ability to stay above inflation rate is now hypothetically subsidized by personal efforts in other areas.

Having said that it might make sense for you to do more analysis on the following stocks :
Oceanic Bank, Diamond, Skye, Dangote Sugar, Mutual Benefits, Standard Alliance and RT Briscoe. (This assumes that both banks will not be negatively impacted by the December end year rule by the CBN)

The final choice is yours!

Like I said earlier, goodluck.

Oceanic and skye are on my list,l have been increasing my holdings in both banks.l dont think they will be adversely affected by the Uniform year policy, rather it should favour both banks.

[tula007]

Originally Posted by emmanuel ewumi

Oceanic and skye are on my list,l have been increasing my holdinds in both banks.l dont think they will be adversely affected by the Uniform year policy, rather it should favour both banks.

i see oceanic has a good buy at the current market price.i dont have much money i for buy plenty too

[emmanuel ewumi]

Originally Posted by tula007

i see oceanic has a good buy at the current market price.i dont have much money i for buy plenty too

You can get a personal loan from your bank.What are banks for if they can not help their customers,to make more money.

[nwoyearoh]

Originally Posted by emmanuel ewumi

You can get a personal loan from your bank.What are banks for if they can not help their customers,to make more money.

Well spoken!