I was reviewing my exploits in the stock market in 2007 and has come to the following thoughts, please read them and criticize me if am wrong or pass your general comment as a guide to future portfolio constructions and reconfigurations, thank you all.

There has been much argument about how an ideal portfolio should look like, like how many stocks should an investor hold. Many prefer to hold as many stocks as possible, like spreading out so thin than you have no ‘huge’ holding in any one company. The advantage of this is you are spared from ‘collateral damage’ in a collapse of any of the companies since you are ‘thin’ on the company. Yet you will all agree that in the event of a huge gain, like a fat bonus or a geometric appreciation, you will wish you have all your cash in that single company.

Some sectors have been identified to be more risky than the others, let us look at the building industry, the food industry, there is never going to be a time people will stop eating or building houses. So it will be assumed that companies operating in these sectors are ‘safer’ than, say the insurance sector, where a turn in govt. policy can turn the tables, negatively.

Let us return to the number of stocks an investor should hold, many stocks are good, because you always have some mail in your box every week. Cheques, annual reports, invitation to AGM’s, right issues etc. some people just love to visit the mail boxes and collect mails, it gives them some sort of control, a feeling of being important and remembered. Ask some retirees and they will tell you it gives them reason to stroll out daily, (can even increase their days)

I read somewhere that having many stocks in your portfolio is not the best of ideas. You may not be able to manage all of them effectively. And you will run the risk of hanging on with losers and you won’t sell since you want the ‘crowd’. The concentrated portfolio is good, since it is easy to manage, according to some investors.

So, what should be the ideal portfolio mix, for long timers like me? I suggest three banks, one ‘old’ bank (FBN), a second generation bank (INTERCONT. Or GTB) and a no hoper, like UNITY or SPRING bank. I also suggest at least two insurance firms, a large one(WAPIC) and a small one(LASACO). One food company should be considered, I am currently torn between NBC and Dangote sugar. One drug firm is good for the pot, but since NGC does some drugs, I will go for them as they cover some domestic products as well. A brewer is needed, and I will vote for NB ahead of Guinness, I have my reasons.
In the conglomerates sector, UACN or UNILEVER should do the magic. I will not forget to buy one really lousy stock, a stock that your broker should ask you ARE YOU CRAZZZZZY! Transcorp, and other bad stocks (top losers) make a very good BUY at this stage.

I intend to sit tight on these holdings and see what happens after one year, the dividends will be reinvested into the stock that paid it. Other incomes should also be used to buy from this my list. I will call them my top ten for 2008.

Comments are awaited.

@Invisible,

Hurray, welcome the birth of another school of thought!

Issue is the NSE is so dynamic (unpredictable), so folks are advised to keep to their winning game plan whilst also looking out for other winners in a different school of thought.

@All,

A belated Happy New Year to everyone. It's surely our year of Fulfilment; all the dreams you have for your portfolio will be fulfilled this year, did l hear an Amen?

walcolm:

@Blueband & easimoni,

the return is 5% annualised interest aka per annum; which means, they'd probably calculate from the day the offer officially opened to the official allotment day (about 6 weeks in all). if you do the interest rate calculation on the portion of your money that would be returned to you, you'd find that it wont clean out a tenth of the quarterly profit.

i expect it will happen but that interest portion will probably not come until May/June 2008

Happy NEW YEAR Y'all

Plus, since the prospectus says the Receiving Banks are to keep the application monies in interest-bearing accounts, it should be that not only FBN will bear the cost of this interest,

@ lokwe
one day he asked me why i am buying a particular stock, when i broke it down for him, forward/Backward PE, Earnings, trendline, DIvidend Yield,  Moving averages, Bollinger bands, Offer and Bid positions, PVI, DMI, OBV, RSI and NVI etc he was dumbfounded, so smarten up, don't ask your broker anything again, do your own research and be responsible for your investments/wealth,

U can all this stuff at www.investopedia.com --  thx to easimoni for showing me the site

@Fatherof2

my lasaco has really appreciated 35.6% from my bought price.  l just hope it wont decrease before l sale.  l am on the final stage of transfering the share to my present broker.

But do you know when they will likely publish their full year result which ended Dec 31st?

Thx for your concern.

@all

After rain comes sun, after sowing come reaping, after night come morning.
So, as the wake of 2008 comes into our lives so the blessings of the Lord Jesus Christ will fill all our ways.

May we all reap bountifully from all our sowing this year and may the miracle of Afroil and Capoil in 2007 happen to all our redundant stocks in 2008. Did I hear you shout amen

Happy New Year!!!

please i need your advise on good penny stock to buy that will appreciate within a short period(3-4months).I started late last year but i dont want to miss out this year .Thanx

I just gave a selling order (this morning) for my Lasaco too, it has increased more than 135% (bought it last April) I guess I don wait reach.

@ Father of 2 and other gurus

Am thinking of diverting the money into AGLeventis but this is new year and I don’t want to start with wrong decisions so, which stock do you advise me to offload the money into, BTW I have got Crusader, Mbenefits and International energy insurance so as far as Insurance is concern I thing e don do.

gonziiii:

@ lokwe
one day he asked me why i am buying a particular stock, when i broke it down for him, forward/Backward PE, Earnings, trendline, DIvidend Yield, Moving averages, Bollinger bands, Offer and Bid positions, PVI, DMI, OBV, RSI and NVI etc he was dumbfounded, so smarten up, don't ask your broker anything again, do your own research and be responsible for your investments/wealth,

You can all this stuff at www.investopedia.com -- thx to easimoni for showing me the site

Do you think the quack stockbrokers are happy that you are teaching them their job?
I am sure they always come to this forum to learn work.

It's confirmed-FBN will be paying 5% interest.Less than what dangote paid but at least it means we are getting things done properly ,albeit slowly.

Gave a Sell order for my Lasaco and my broker advised me to hold on to it for now.I use Futureview.I was adamant on selling and asked him to place a sell tomorrow.(I trust nairalanders more).He said I should still hold on and he is ready to refund the balance if it goes below my sell price.Hmmmm, wetin I go do now,it appears something is brewing with Lasaco.

STACO has made 40 percent for me.I bought in November.I hear they are coming to the market soon.Should I hold or sell?
Is EquityAsur a good stock to buy massively into,at least for short term.

blueband:

It's confirmed-FBN will be paying 5% interest.Less than what dangote paid but at least it means we are getting things done properly ,albeit slowly.

Gave a Sell order for my Lasaco and my broker advised me to hold on to it for now.I use Futureview.I was adamant on selling and asked him to place a sell tomorrow.(I trust nairalanders more).He said I should still hold on and he is ready to refund the balance if it goes below my sell price.Hmmmm, wetin I go do now,it appears something is brewing with Lasaco.

If he promised to refund the difference if it goes below your selling price, then I am inclined to say hold. It looks like he knows something which you dont.

My only regret is that I only 30K units each of Lasaco@2.50 and Mbenefit@2.70 agianst my brokers advice to buy more. Please let the house know when he advices you to sell.

So, what should be the ideal portfolio mix, for long timers like me? I suggest three banks, one ‘old’ bank (FBN), a second generation bank (INTERCONT. Or GTB) and a no hoper, like UNITY or SPRING bank. I also suggest at least two insurance firms, a large one(WAPIC) and a small one(LASACO). One food company should be considered, I am currently torn between NBC and Dangote sugar. One drug firm is good for the pot, but since NGC does some drugs, I will go for them as they cover some domestic products as well. A brewer is needed, and I will vote for NB ahead of Guinness, I have my reasons.

@ Invisible, with all the milk and honey flowing in the banking sector you are suggesting ONLY 3 BANKS? I think the banks should be about 50% of one's investment in NSE.
For me I have 70% of my portfolio in 6 banks.

Make una attend to my enquiry pls .penny stock to buy now and that will bring good return in a short whiles

feels great to be back. WISH YOU ALL AHAPPY NEW YEAR.
easimoni,temmie10, pumping and the field marshall, i don miss una ooooooooooooooo

Which of the website is the first to publish daily stock price position, especially before Cashcraft. ?

and any idea as to when  action will start for those of us who bought JAPAUL IPO?

Thanks

Please does anyone have any info on EKOBANK /STERLING merger? I have about 24000 units of EKOBANK bought at #9.60. Can't wait for the suspesion to be lifted so I can offload and put the money some other growth stocks.

question:

@ Invisible, with all the milk and honey flowing in the banking sector you are suggesting ONLY 3 BANKS? I think the banks should be about 50% of one's investment in NSE.
For me I have 70% of my portfolio in 6 banks.

@Question, I am a partaker of bank goodies, I support what you say and that’s why the banks I chose are to be bought massively. More massively than others, and that should bring us to the issue of  percentage of the portfolio each share should cover.

blueband:

It's confirmed-FBN will be paying 5% interest.Less than what dangote paid but at least it means we are getting things done properly ,albeit slowly.

Gave a Sell order for my Lasaco and my broker advised me to hold on to it for now.I use Futureview.I was adamant on selling and asked him to place a sell tomorrow.(I trust nairalanders more).He said I should still hold on  and he is ready to refund the balance if it goes below my sell price.Hmmmm, wetin I go do now,it appears something is brewing with Lasaco.

Lasaco, Lasaco, Lasacooooo! Seems something is brewing really, maybe a planned PO or Lagos State is about to announce a new policy that will drive price sky high. Anyway, I dey kampe! Might just be about to hit bulls eye on this one; it can't surely get worse than it as been in the past few months!

Prince11:

Which of the website is the first to publish daily stock price position, especially before Cashcraft. ?

and any idea as to when action will start for those of us who bought JAPAUL IPO?

Thanks

This one beats cashcraft most of the time.

http://www.trw-stockbrokers.com/services.aspx

Na wah o!!! Lasaco just close at 4.63 that is 5% gain, who ever hold down to him Lasaco don gain be that and I am very sure that my broker would have sold mine today.

crazyT:


Na wah o!!! Lasaco just close at 4.63 that is 5% gain, who ever hold down to him Lasaco don gain be that and I am very sure that my broker would have sold mine today.

You should avoid looking at things this way otherwise you fall into the habit of chasing spreadsheet profit that is quickly wiped out once profit takers engage. It is great to be able to sell when you want to.

There is no way of accurately predicting when a stock will peak and pull the trigger at the exact moment.

Access on its way up. Am still holding fire beofre i sell. This result had better be good, otherwise all these gains will be wiped off in 3 days. I still dey siddon look. I think am no longer targeting 25 but 27.

compliments all

guys i intend buying some amounts of livestock. does anyone have any clue about its fundamentals?


many thanks for you help

Hello All, Happy new year and I wish you the best in your investments this year.

Hi pumping, can see you are online. Please I sent you a mail, awaiting your response. Cheers

kpineo:

Access on its way up. Am still holding fire beofre i sell. This result had better be good, otherwise all these gains will be wiped off in 3 days. I still dey siddon look. I think am no longer targeting 25 but 27.

Hahahahahahahaha,
my brother you go need to stick to your guns oh.There are many things you consider before deciding to sell oh.If you let greediness tempt you,you will be having only spreadsheet money as i've always said.The market sometimes buys a stock to a point that it already anticpates the results and hence the fair value for the stock.By the time the result comes out,it won't move much.I'll advice that you tell your broker that he should put his ear to the ground tomorrow.If Access releases by tomorrow,let him not sell.If it doesn't and it still gains N1.10 tomorrow,you would have reached your target and also a reasonably fair price for the stock.I can bet a temporary u-turn will occur after this next two days if the result doesn't come out.You can reenter at the end of the u-turn because results are beta released at the lower end of a u-turn in order to give the stock room to rally.Right now,room to rally is getting limited.

CCNN and Continental Re still rising.There's still room for both.
My legs are in both.
Eterna just became a new kid on the block.

Man Jiro:

Attached is an excel sheet with Macro to do the formationg for you. After the formating and saving, use Aptistock to upload the file.

Thanks for sharing this!!!

It saves so much work and works like magic with Aptistock.

I've got aptistock and I just checked out the excelsheet that man jiro uploaded for the macro, I just can't seem to understand the stuff. Please can someone help.

Oga pumping i de greet-o, sent you a mail.

@ Koksieboy, Naijadr, Bigjay01, Upward

Sorry, the first formating sheet had a bug: the protected sections of the sheet prevents the macro from completing its process.

Attached is the latest one.

Let me know if it does not work.

Cheers

WOW! What a start to 08 by the NSE; only 16 stocks dropped points! Hope this continues for a while. I'm a lil ticked off my broker failed to act on several buy orders last week so I'm still sitting on some cash watching my "buys" go off.   Anyway, can't win them all.

@ Father of 2
i beg to differ on this eterna oil. with the result below, it shows they are posting a loss. is there something i don't now.
ETERNA OIL AND GAS PLC
3RD QUARTER RESULTS ENDED 30TH SEPTEMBER 2007
                     2007      2006     %CHANGE
TURNOVER             N4.4b      N1.9m      134
PROFIT BEFORE TAX  (N76.5m)     N40.4m    (289)
TAXATION           (N24.5m)    (N12.9m)     89
PROFIT AFTER TAX   (N49.0m)     N27.5m    (278)