Lion123:


For those of you who are looking to buy dollars because of fear, please be careful o. We've been here before. In 2016, people panicked and sent dollars to N520 to $1 in the black market. It was the ultimate pump and dump. The BDCs cashed out big time, and then it eventually dropped to circa N340+. Those who panicked and bought dollars at N400 and N500+ were left with the short end of the stick and nothing but their d*ck in their hands.

If there's one thing these cycles have taught me, it is that EVERYTHING will eventually correct itself. Everything. There's really no need to panic unnecessarily. It might take some time, but markets will stabilize, this Coronavirus will be thing of the past, Russia and Saudi Arabia and everyone engaged in this dick measuring contest will come back to the table, and everything will be well with the world. There is a massive opportunity to buy fundamentally sound stocks at these prices. Take advantage of this bonanza. Don't overthink things. I have lost nine figures in paper net worth in the past couple of weeks on some banking stocks. It was painful for me the first few days, but I'm very calm now. I realize that I have held some of these fundamentally sound stocks since April 2016 and they've been good to me. I'm just waiting for Monday's dividend to enter again to keep buying.

Short recap: 1. Don't panic and buy dollars at these high prices. 2. These (banking) stocks at these prices are too good to pass up.

I endorse this post !!

Hmmmmmm

RabbiDoracle:


If DOW starts to go up after breaking 21,700, then everything has been pre-planned. It then means that there is an ultimate hand controlling all markets.

If all forms of stimulus is announced soon, then dem don get what they wanted.

This is the maximum fear. Enjoy it. Embrace it. Live it.

Tomorrow those sellers should come out again.

The part in bold is how an investor should look to interpret risk when weighed against reward.
Good one !!

For those buying stocks, please buy in trenches, don’t be emotional to buy big. We are no where near the bottom. Just wish to share this little information to you all. BUY in trenches, don’t go too big. All the best to you all

Godisfaithful:
For those buying stocks, please buy in trenches, don’t be emotional to buy big. We are no where near the bottom. Just wish to share this little information to you all. BUY in trenches, don’t go too big. All the best to you all

Buy small small has always been the rule.

Still loaded to go in more.

Till Monday, we go see what they are plotting.

RabbiDoracle:


That is what I am waiting for.

If after breaking below 27 and it goes up or The oil price war is resolved , then everything for this world na script. Nothing more.

On the part in bold; u should know this naw !!

RabbiDoracle:


Buy small small has always been the rule.

Still loaded to go in more.

Till Monday, we go see what they are plotting.

Facts. A friend just holla me about the information about NSE. You know sometimes how we emotionally get carried away and neglect our strategy because of the irrational behavior of stock price lol

bigjay01:
This is the koko

That too is coming.

Just relax. It will be maximum fear.

See EU markets losing over 10%.

Where is Chibuking? come out here.

Come and see what they call bonanza.

alwayshigh:
My question is simple. Please, Access bank now and Zenith Bank, which is a better buy given their current prices. Thanks.

Cc: kind hearted BnSITL
Pls Rabbi, Mcy, CP, Rebekah,OGG

Do your Dividend yield calculations.

Then choose.

Currently Zenith has Dividend yield of almost 26% based on the previous /recently paid dividends of N2.80.

So wait for those dudes at 9.80 tomorrow and catch them. Buy small small. He will be tired very soon.

robobo:


the thing go come

u know Russia never officially given response to the trade war started by MBS. i think that might be the trigger

Russia is also still binded by a previous supply management agreement due to expire April 1st, 2020.
There is a reason why they(russia) have not reacted as everyone would've expected.

There's also a limit to what every opec and opec+ member nation can do.
...they will later sit down to broker terms.

A major part of this whole drama is a script !!

Oya see am nauw.

https://www.cnbc.com/2020/03/12/fed-to-pump-more-than-500-billion-into-short-term-bank-funding-expand-types-of-security-purchases.html

RabbiDoracle:
Oya see am nauw.

https://www.cnbc.com/2020/03/12/fed-to-pump-more-than-500-billion-into-short-term-bank-funding-expand-types-of-security-purchases.html

They are very predictable.

Wait for BOE, BoJ, BoC, ECB.

More dey come

I would be shocked if he/she/they/it is willing to sell @ 9.8 tomorrow. I need to find a buyer for my land ....

RabbiDoracle:


Do your Dividend yield calculations.

Then choose.

Currently Zenith has Dividend yield of almost 26% based on the previous /recently paid dividends of N2.80.

So wait for those dudes at 9.80 tomorrow and catch them. Buy small small. He will be tired very soon.

Can you see the reversal of Dow.

Guys, any rise you see now is liquidity driven. So don't sleep on the express. It has nothing to do with fundamentals.

onegentleguy:


I cannot help but smile when I see some certain things play out around the markets.

Now Gold is also crashing.
On a day that the ECB decided to hold rates but announced a €120B stimulus(effectively offering a 6x multiple from previous stance) at -0.75% interest rate, which gives European banks a 25bp incentive borrowing from their apex banks and lending to the real sector, and a presumed 'safe haven' of an asset like Gold is falling?

Those who understand these 'melodies' know that what's currently happening in the mkt is a well crafted script.
That point of inflection is NOW NEARER THAN EVER !!
Folks who know the bit on how to detach fear from risk will definitely reap reward from certain select assets in the Intl market.
From the domestic front, the NSE is about to create the next set of millionaires.

As I stated in the article above, equities offers the brightest opportunity for a greater reward/return over a time-adjusted period.
The shrewd ones will hit it big !!

It is well.

RabbiDoracle:


Look at Gold. Also losing heavily.

Before now as stocks and indices around the world falls, Gold rises sharply. Now Gold is falling with it. And that doesn't tell you anything?

U are a shrewd fellow !!
See post above.

RabbiDoracle:
Can you see the reversal of Dow.

Guys, any rise you see now is liquidity driven. So don't sleep on the express. It has nothing to do with fundamentals.

Lol wait till market close
Dow na epileptic patient o

NDIC to Pay Defunct Continental Merchant Bank Shareholders March 23
https://businesspost.ng/banking/ndic-to-pay-defunct-continental-merchant-bank-shareholders-march-23/

Katsis to Replace Giannopoulos as PZ Cussons Nigeria CEO
https://businesspost.ng/jobs/katsis-to-replace-giannopoulos-as-pz-cussons-nigeria-ceo/

Godlylifeoneart:
IS IT WORTH GETTING A LOAN TO INVEST IN EQUITY?

RECENTLY THE MASS MEDIA HAS BEEN FLOODED WITH OFFER OF LOANS BY FINANCIAL INSTITUTIONS.
A FRIEND WAS CAUGHT BY GT BANK ADVERT OF NON COLLATERISED LOAN OF N5 MILLION.HE IS DETERMINED TO GET THE LOAN WITH UTMOST AIM OF INVESTING IT IN EQUITIES.
I HOPE THE HOUSE CAN SCRUTINIZE THIS MOVE AND POSSIBLY GIVE OUR DIVERGENT VIEWS,
We should consider the fact that investing is a marathon and not a sprint which is the order in Trading.

His view, if he can afford the monthly repayments, is it worthy taking out a personal loan of N5, 000,000 to invest in EQUITIES, NOW THAT THE INDEX IS DEPRESSED. His thinking is that the big lump sum investment will allow compounding to work its magic all the faster when the bull returns. – more so than (much) smaller monthly INVESTMENT over time.

My view , a preferable strategy would be to invest a monthly amount into a diversified portfolio.
Judging from unpredictability of NSE and other global bourses during this Donald Trump Era. Precisely, no one has a crystal ball to tell us what the market will do next week
Obtaining loan with no collateral at 17% to 21% interest rate is not advisable judging from the bourse that has returned - 12% YTD at the close of market on 30th August 2019.
The TB and return on bond hover @ 13.5% to 15%.
MMF is lesser. This is excluding inflation rates gazetted by the FGN @11 to 12%.in order word, The absolute yield on TB - inflation is 3 to 4%.
The cost of borrowing money in the form of a personal loan is likely to be higher than the long-term returns one can expect to achieve from investment markets.

Expected returns from the NSE are approximately +/5%, @inflation plus11%. Therefore, with inflation currently at 11%, we can expect the market to provide a total return of around 5% per year over the long term.This is the best case scenario. Just my permutations.

As interest rates on personal loans generally start at 17% per year, it does not make sense to borrow money in order to invest.

Rather than borrowing a lump sum to invest in the markets and servicing debt on a monthly basis, a preferable solution would be to invest a monthly amount into a diversified portfolio with mix of fundamentally sound and dividends paying equities,
TB, Bonds and Forex edging. Coz no one can predict the direction of Nigeria economy due to government of personal interest, poor regulatory activity of listed companies, executives exorbearance, executives attitude of CEOs (winner) take all. Cooking of audited results to reflect CEO interests and wishes. Exaggerated cost of running businesses, pandemic corruption in listed companies.This made investing in Nigeria bourse a high risk.
While your financial position may be similar in the long run, your risks will be greatly reduced as you will be investing in the markets on a monthly basis as opposed to investing everything on a particular day.

Given the poor market returns and volatility experienced over the past few years, I would caution against trying to time the markets with a single lump sum investment from borrowed money.
If you are borrowing money at a much higher cost than investment returns have achieved, you will effectively create a situation where compounding is working against you.
THANKS, YOUR SCRUTINY IS WELCOME.

First posted I September 2019

bigjay01:


I am incline to agree with you.

It will be prudent to discount FY2019 by at least 40% to inform FY2020 expectations

That 40% discount is a bit too much.
Infact, some banks may likely deliver near previous pegs. We have highlighted some of these points in times past here.

Look at their 2019 FP and u'll see that some banks(ZENITH, GTB, UBA...) are in line for massive earnings from arbitrage plays(revaluation gains, trade plays etc) given the current system dislocation from the twin 'evil' of covid-19 and oil price drop. ...especially those with a healthy loan sector allocation and lower risk with recovery drive.

Bottom line: Banks are usually always prepared !!

RabbiDoracle:


They are very predictable.

Wait for BOE, BoJ, BoC, ECB.

More dey come

Well said...BOJ no dey waste time to announce QE.

I expect Yen drop

Agbalowomeri:


I would do the same as your friend if I have the opportunity:
1) To reduce risk, I would target high dividend yield like Zenith only (5M appears too small to spread); the annual dividend will nearly offset the interest on the loan
2) There is a potential for a 100% capital appreciation if you buy from a depressed market
3) Not everyone is disciplined to be buying stocks on a monthly basis so, this approach is like forced discipline. Most times you don't feel it much if there is a forced deduction from your pay. You only adjust accordingly
4) Don't underestimate the power of leverage if you understand the business well and you go for lower risk strategy; I did something similar in the last depressed market (though I had no interest on my source) and came out luckily with almost 200% hit in 2-3 months. Who knows the bull could surface next year and the guy goes home with a 100%

@ Agbalowomeri.... The big boss.
I hope you can still remember the quote above.
We are blessed.

Agbalowomeri:


Lol wait till market close
Dow na epileptic patient o

They must always act irrationally.

Early February, the Chinese govt said even if it will involve them buying shares, they will.

So this move is expected till the virus fades.

After that the quantum money will come to solve economic impact.

Just stay patiently and collect your own. Na father keresi dem be.

RabbiDoracle:


They must always act irrationally.

Early February, the Chinese govt said even if it will involve them buying shares, they will.

So this move is expected till the virus fades.

After that the quantum money will come to solve economic impact.

Just stay patiently and collect your own. Na father keresi dem be.

Omo Igbo

Chibuking81:

It's a high risk to put borrowed money in NSE, most especially loan from bank. In fact it's disastrous, it can kill.
Its never advisable to invest bank loan in NSE.

Nigeria is a country where little news from foreign nation affect the economic, crude oil price affect, politics and election also affect. Manipulation is at great increase.

Country where company will pay dividend this month and go for right issue next month. Country where companies will have positive retain earning for years with low dividend payment, only to declared huge loss in one year and write off borrowed money from the CEO and his gang group as bad debt.

Using bank loan in the individual managing business is better than gambling it in the name of stock jijo. Stock is good for investment, not good for JiJo investment strategy.

Borrowed money from bank never fit in investment ideology, you only invest what you can afford to lose that you have, not what you can't afford to lose that belong to someone else or organization you will continue to pay interest even when the capital borrowed enter voice mail.

Better still let him keep investing between now and December portion of his monthly income that he can do without interest charge than to get his money from bank in the name of loan and keep on paying interest on it. Since the source of deduction is his salary, it's better he invest monthly till December from that of his salary than borrowing his money from bank. Because I see it as his money in advance.
As things are now, he might get some good stocks cheaper in some remaining months before December.

Chibuking81.... You have a crystal ball. Hope you can remember dz post? Playing out in reality today.

Agbalowomeri:


Lol see this Chelsea fan o

My seasonal love. Na u like Chelsea o.

rebekah2011:
The 2 cannot be in the same conversation. Zenith bank all day.

Thanks Rebekah.

RabbiDoracle:


Do your Dividend yield calculations.

Then choose.

Currently Zenith has Dividend yield of almost 26% based on the previous /recently paid dividends of N2.80.

So wait for those dudes at 9.80 tomorrow and catch them. Buy small small. He will be tired very soon.

The Oga kpatakpata of them all. Thanks.

RabbiDoracle:


That too is coming.

Just relax. It will be maximum fear.

See EU markets losing over 10%.

Where is Chibuking? come out here.

Come and see what they call bonanza.

Bonanza season 5.
By 2022 season 6 and 7 will be out.

alwayshigh:


My seasonal love. Na u like Chelsea o.

Hehehehe ayz how many monikers you wan get?

RabbiDoracle:


Do your Dividend yield calculations.

Then choose.

Currently Zenith has Dividend yield of almost 26% based on the previous /recently paid dividends of N2.80.

So wait for those dudes at 9.80 tomorrow and catch them. Buy small small. He will be tired very soon.

Imagine Zenith at #5, the likes of UBA and Access will be @ #1, Fidelity and FCMB at 30 kobo, it will really make sense most especially when they stays at that level for 12 months. One will be buying hundred thousand of unit every month. And within a year one can accumulate 1 million unit of his choicest stock.

Chibuking81:

Imagine Zenith at #5, the likes of UBA and Access will be @ #1, Fidelity and FCMB at 30 kobo, it will really make sense most especially when they stays at that level for 12 months. One will be buying hundred thousand of unit every month. And within a year one can accumulate 1 million unit of his choicest stock.

The end will come tomorrow.If zenith go below 10,begin to prepare for antichrist.

Stock biz is over for me.

I will face my church squarely because it's not ordinary

locodemy:


The end will come tomorrow.If zenith go below 10,begin to prepare for antichrist.

Stock biz is over for me.

I will face my church squarely because it's not ordinary

Lol what's the big deal, it crossed below in 2016