HEARTY NOTE FROM AN INVESTOR TO FELLOW INVESTORS: COME! LET’S CONFRONT OUR STOCK INVESTING WILDERNESS!

INVEST AND GROW RICH IN STOCKS NOW™!

"If you believe you or anyone else has a system that can predict the future of the stock market, the joke is on you!"
-Ralph Wanger.

“The stock market is neither your friend nor your foe. It exist to serve both the seller and buyer of securities...you fix or determines your interface”
-Okoye Pius


Fellow investor/Potential wealth creator,

There is no doubt that we’ve just passed or is still ruminating through agonizing times with our recent individual experiences on the Nigerian stock market. The Nigerian stock exchange has indeed gone through a turbulent period of its existence in recent years...regulatory policies somersaults, market caps, all-share index (ASI) nose-diving and dipping to an all time low, investors funds diminished, individual social status dislocated and disjointed as a direct consequence of invested-capital meltdown in the market.

Majority of us- investors had stories of woes to tell, burnt hands in the market, lost everything – retirement fund, everything we‘ve labored all our life, ran into debt, have priced buildings/properties foreclosed by the Banks as a result of margin trading account with the bank. Though many collapsed, had running high blood pressures, many died, flown abroad for stroke shock therapy, many money managers has being threatened with court action by non-knowledge clients, etc.

Indeed we have reacted indifferently to the situation individually and this can be surmised as market/investment apathy by our sulking investing colleagues. They may be right because naturally that is the very immediate step to take...quit!

But a word from the sage! “...before success comes in any man’s life he is sure to meet with much temporary defeat, and, perhaps, some failure. When defeat overtakes a man, the easiest and most logical thing to do is to quit. That is exactly what the majority of men do.” - Think And Grow Rich, Napoleon Hill.

To me I looked at the situation differently as I seek to probe, evaluate and unearth the reasons that led to the mess that majority...close to 95% of our colleagues suffered. Quitting was not on the card for me as I am too involved to do so because I was not only investing for myself but also overseeing some accounts for family friends and clients alike. I refused to stop three feet from gold...refused to accept defeat or to give-in because of my understanding that ‘all that goes around comes around’.

I stayed-put, dug deeper to find out some home truths on the Nigerian stock market and our investors. These amongst which are that:

 “Risk comes from not knowing what you're doing.”
...Warren Buffet

 “The stock market is neither your friend nor your foe. It exist to serve both the seller and buyer of securities... ...you fix or determines your interface “
...Okoye Pius.

 "If you believe you or anyone else has a system that can predict the future of the stock market, the joke is on you!"
...Ralph Wanger.

 "You get out of an investment what you put into it, so the first decision you have to make is how much time you are prepared to devote to the initial task of acquiring a basic knowledge of investment.
...Jim Slatter.

These thought lines led me to a right diagnosis of the core problems that investors encountered in the unforgettable joyous-times of pre-2007 (boom peak) era to the challenging times of 2007(burble burst) through to the present moment (recovery transition). These are highlighted as follows:

1. Majority of Nigerian investors (classified as retail or average investors) are not responsible for their investments. Little or no investor participation in what happens to their money once it has been staked in the market. A further elaboration is given below:

 Just like in the world of marketing, there is indeed a very clear need for the customer to contribute not only information, but to perform some of the actual work in procuring or using the product or service. These processes provide useful insights into the investment process, particularly on the selling side. But investors buying equities can also learn how to integrate themselves into the process to their own advantage.

 Ideally, all investors should get involved in the money management process. Given the conflicts of interest inherent in the investment industry, as well as the rampant mismanagement and scandals, the more you know and do yourself, the better. This knowledge should be converted into a sensible degree of active participation, instead of leaving things totally to brokers and firms. This is really dangerous.

2. Majority of us cannot locate where they stand in the ‘true picture’ of the stock market and seldom knows who they are too. We need to understand how the stock market works in order to profits from its working. When you don’t have the manual of a product, there is no way you can be able to operate such and effectively at that too.

3. Most investors don’t have a definite purpose and so lack a definite plan to be in the market and to play the market. They tend to drift too soon and follow the crowd because they lack courage to make definiteness of decision on any given situation-buy/sale/hold on their trade.

Dear fellow investor/potential wealth creator,

Becoming a successful investor takes education, patience and maybe even a little luck but my experience has shown that you create your own luck by what you do with the information available or ably assembled by you. My resolve to profit from the calamities of our recent experience led me to a thrilling discovery of a proprietary system that will stem the tide of colossal loss of capital by investors and make us responsible for our faith in the market.

My radar reveals that there are endless possibilities of opportunities for a zero-to-hero status change on the Nigerian stock market or any market worldwide, if one is versed or savvy enough to apply the right tool over the right information and be patient enough to watch/monitor his investment/trade to achieve the desired result. There are so many ways to achieve this but the most effective and result-oriented approach is what I conceptualized, developed and calls the “Maverick Value Strike System” MVSS™. A truly Nigerian home-grown strategy that is designed to be a global brand as stock investing is universal in language and application.

The MVSS™ is a maverick investment strategy, the hallmark of the maverick revolutionary wealth compounding prowess whose catch-word is “maximize the harvest…minimize the loss…then compound wealth over time!”

The import of this new investment/trading strategy is an integration of the investment philosophies and strategies of the three most legendary investment icons- Benjamin Graham, Warren Buffett and Carl Icahn.

It brings to birth the MAVERICK INVESTMENT PARADIGM of freedom, independence of thought of purpose to live life to its fullest using uncommon sense approach to wealth creation and retention.

The maverick investor is a qualified investor because he is endowed with vast financial intelligence and knowledge.

He applies both fundamental and technical skills in analyzing a company before making a buy decision as he understands that he is operating from outside of the company- thus he is a buying shareholder.

He also understood he is investing in business developed and run by others, he also knows that for him to achieve success in this chosen endeavor, that he must have sound financial education to enable him make informed decisions as per analyzing a company from her financial statements.

Dear investor,

Permit me to spill my sweet secrets...discovery...my ‘market advantage’ to you as I invite you to my seminar to unfold a ‘completely new way of approaching stock market investing and compounding wealth’. Some early birds called it a new "recipe for success in a market melt-down but I call it “an investing insurance” that shield you from huge losses in an up and down market. It is your magic wand in a market crisis...value entry locator…a manager in times of great uncertainty!

Though you may have your reservation on the stock market which is clouded in fears- your only imaginary limitation to initiatives, success and ultimately comfort of wealth. You might have sworn ‘No, not again!’ with the stock market; but like every pregnant woman in the labor room, detests her husband-source of her pain, usually (101%) have a re-think after safe delivery. You will...I know you’d be back in no distant time... that time is right NOW!!!

My optimism of your return is based on the time tested fact that no asset class - bond market, real estate, gold etc, can give you the kind of returns on your investment than the stock market especially the Nigerian stock market, being an evolving market rightly because there are lots of ignorant, ambitious market players, market fools or greater fools with easy, idle funds- corrupt government officials who stole or will still steal public funds to pump-up the market when full enthusiasm returns to the market. The market thrives on ignorance and petty emotional greed but the better prepared, positioned savvy investor will profit from the folly of such people and cause a wealth transfer to their self

Grab this once-in –a-life-time opportunity to discover how to recover your lost capital in the stock market with interest on your terms- guaranteed!

I invite and welcome us to this all important revealing, maverick investment wealth empowerment revolutionary seminar titled:

INVEST AND GROW RICH IN STOCKS NOW:
Become a Maverick Investor and Compound Wealth Effortlessly Using The MVSS™ Investing/Trading Strategy.

Highlights of what to learn at this seminar are:

1. Introduction to the Maverick investment paradigm- a new concept in investment success.

•  Investing like the sages- Warren Buffett, Benjamin Graham, and Carl Icahn.

2. How to start participating in your investment- taking responsibility by fixing your unique interface with the market.

• How to analyze and buy top, but best companies on the Nigerian stock exchange for peanuts and harvest a windfall using the ‘MVSS™’ stock investing/trading strategy!

• Industry/market sectoral cross-comparative analysis using MVSS™ to pick best value stocks.

• Tools for stock investing task: practical application session of the ‘MVSS Ultimate Wealth Codes™’

• Websites to help you conduct stock market research and investment monitoring.

3. Understanding how the stock market works. The need to truly locate where you stand on the ‘TRUE PICTURE’ of the market at every point in time.

• How to understand and play market emotions and intrigues to increase your bank accounts digit

FAQ:

Why am I sharing this knowledge with you?

ANSWER: This is due to my understanding that we exist as a solution to somebody else problem that informed my personal vision in life which is expressed thus:

"To eradicate poverty on a global scale by helping people become masters of their own wealth and achievement through education and entrepreneurship, and by researching and teaching the most advanced mindset, strategies, skills and systems that produce real world results in a forum designed to provide educational access to as many people as possible (regardless of situation or circumstance). I believe that all people should have the opportunity to create the wealth and fulfillment they most desire and truly deserve."

Why you must heed this call to attend this all-important seminar?

ANSWER: I don’t think you would like to remain a life member of the ‘stock market donors club’. A club dedicated to transfer wealth to the prepared, knowledge-based investors, year-in, year-out. They pump-up the market and create the momentum that pushes or accelerates reward for the savvy investors.

Why am I giving out so much for such a low fee?

ANSWER: This is the pilot insemination of the MVSS™ investing/trading strategy ideas to the public. I need only 50 Nigerians for this pilot-test seedling. It is also my contribution to financial and investing literacy as called by Nigerian CBN governor, Mallam Sanusi Sanusi when he indicted Nigerian investor’s ignorance of investment skills as being responsible for the crash of the equity market in Nigeria. The next seminar will not come so cheap when those who attends now will come up with their testimonies.

SEMINAR INFORMATION:

Date: September 4th, 2010

Time: Registration starts 9.am prompt. First session 10am- 12.30pm, Break12.30-1.00pm, Second session commence 1.00-4.30pm.

Venue: Mission Support International, Hall (MSI) 33 Airport rd., beside Old Airport, Warri.

FEE: N5, 500.00 FLAT AT BANK ONLY, WHILE PAYMENT @ SEMINAR VENUE/DATE is N7, 500.00 ONLY.

PAYMENT DETAILS: You can pay into any of these bank accounts nationwide:

PISKOYE NIGERIA LIMITED
OCEANIC BANK - 0481101008773
FIRST BANK - 5152030002233
UBA. PLC - 01150030003401

AFTER PAYMENT: Send text or call 07069545121 or 08078682111(Pius) with “your name, teller number and “I have paid to become a maverick investor”

Please endeavor to come to seminar venue with bank payment teller to confirm and facilitate your registration into the hall.

EARLY BIRDS BONUS:

• First 10 respondents to send payment text “I have paid to become a maverick investor” will automatically be recipient of my paying online newsletter ‘ultimate investors edge” subscription for three 3 months free. Annual subscription fee for this newsletter is N24, 000.00 while monthly it is N2000.00 only.

• Free mentorship and guidance to profit from the market for the remaining days of this year, 2010 (31-12-2010).

ATTENDANCE BENFITS AND BONUS:

• New investors who are desirous to start their investment career immediately will have their CSCS account opened for them under The Bridge Securities Ltd.

• You will be entitled to 25% discount on my upcoming book - INVEST AND GROW RICH IN STOCKS NOW™ (...secret...)

•  Special mentorship program to assist attendees between seminar date and last day of the year 2010.

Dear Fellow investor and potential wealth creator,

I thank you for giving me your busy time by your reading this note of mine though lengthy but worth the stress because it sure is going to change your destiny by showing you how to catch fish and not giving you fish as most seminars speakers used to give hot stock tips that ultimately fail before you enter the trade as the stock market is time strung.

Finally “if we are related” according to Emerson, “we shall meet” at the seminar venue and together we can change our destinies and move our nation and the world forward.

Okoye Okechukwu Pius,
A maverick investor, founder and promoter of the MAVERICK INVESTMENT PARADIGM, conceived and developed the MVSS™ investment/trading strategy.

5 foreign, 6 local banks scramble for sick bank

Written by Odidison Omankhanlen, Lagos
Monday, 12 July 2010

THE race to acquire the troubled banks in the country has assumed a frightening and unhealthy dimension, as both international and local banks are scrambling and jostling to be part of the exercise.

As of the weekend, the Nigerian Tribune gathered that five foreign financial institutions and six local banks were in the queue to acquire some of the banks.

The bidders’ renewed interest might not be unconnected with the apex bank’s effort to clean the balance sheets of the banks through the Asset Management Company (AMC); impressive first quarter financials posted by the affected banks; ongoing holistic reforms in the sector, and re-assuring message from the Minister of Finance, Mr Olusegun Aganga, that local banks should join the acquisition race.

Nigerian Tribune gathered that while the foreign banks had indicated preferred interest in Intercontinental Bank, Oceanic Bank and Union Bank, local banks, including Fidelity Bank and Ecobank, wanted Afribank.

Governor, Central Bank of Nigeria (CBN), Mallam Lamido Sanusi, had maintained that securing the future of the above-named banks was his priority, as they were the most systematically important.

A competent source at the CBN, who pleaded anonymity, told the Nigerian Tribune that they were taking their time to carry out a detail scrutiny of the documents submitted by the bidders, in order not to sell the banks to wrong organisations.

Barring any unforeseen circumstance, the source said the apex bank would soon hand over five of the 10 banks to new owners earlier than scheduled, following sustained pressures from the bidders.

The CBN governor had said the banks would be handed over to new owners by September or October.

Standard Bank Group Limited, FirstRand Limited and Old Mutual Plc, three of the largest financial institutions in South Africa, in January, said they might be interested in buying stakes in Nigerian banks, while local banks like Fidelity Bank Plc, Ecobank Nigeria, First Bank and Skye Bank were also said to be in the race.

The planned sale of the banks has divided the shareholders’ group in the country.

While some see the plan as part of the current reforms in the industry, others are opposed to the move.

Meanwhile, an Abuja high court will, today, be hearing a suit filed by the Proactive Shareholders Association of Nigeria (PSAN) against the apex bank, to determine the latter’s competence to sell any of the banks.

In a telephone interview, the legal adviser to the association, Mr Nnodi Okeke, said his clients were in court to stop the sale process as CBN could not sell what it did not own.

He said before any bank was sold, shareholders should be consulted, adding that the interest of the shareholders had not been taken into consideration by the CBN.

“In fact, this is against reasoning. How can you sell what you don’t own? CBN is never the owner of these banks. The directors of the affected banks and their shareholders should be allowed to recapitalise their banks. If the banks are now declaring profit, what is the yardstick for selling them?” He queried.

However, the chairman of Nigeria Professional Shareholders Association, Godwin Anono, enjoined the apex bank to go ahead with the sale, advising stakeholders to avoid litigation but join hands with the CBN governor in his effort at revamping the sector.

He noted that the sale of the banks would be beneficial to the shareholders in the long run, as the banks would be handed over to organisations that could better manage them.

As a boost to the proposed sale plan, the National Assembly, last week, sent the harmonised Asset Management Company of Nigeria (AMCON) bill to President Goodluck Jonathan for assent.

When signed, it is expected to give birth to Asset Management Company (AMC), which will soak up bad debts in the banking sector, thereby cleaning the banks’ balance sheets and enable them to resume lending to other sectors of the economy.

http://www.tribune.com.ng/index.php/front-page-news/8101-5-foreign-6-local-banks-scramble-for-sick-banks

5 foreign, 6 local banks scramble for sick banks

5 foreign, 6 local banks scramble for sick banks

NIGERIAN STOCK EXCHANGE: Daily Market Summary, New Awaited Corporate Actions And Latest News Update.

NSE Daily Market Report Of 08/07/2010.

The equities market closed lower at the end of today’s trading session. The NSE ASI depreciated by 1.19% to close at 24,776.04 points, compared to the depreciation of 0.38% recorded 07/07/2010. The return on the NSE ASI year-to-date (YTD) is 18.96%. The NSE ASI depreciated because of the losses recorded in the share prices of Dangote Flour, Dangote Sugar, U A C N, Skye Bank and UBA. The market capitalization also depreciated by 0.76% to close at N6.06trn (US$40.80bn), compared to the depreciation of 0.38% recorded yesterday to close at N6.11trn (US$41.13bn). The difference between the ASI and the Market Capitalization was due to supplementary listings.

All share Indices depreciated, except the Petroleum Marketing Index which closed unchanged, at the end of today’s trading session. The total value traded on the NSE today was N2.92bn, a decrease from N3.64bn recorded yesterday, while the total volume traded was 266.18mn in 5,916 deals. The three most actively traded stocks for the day are GT Bank (29.91mn), UBA (26.31mn) and Access Bank (25.74mn), while the three most actively traded sectors are Banking (153.92mn), Insurance (29.13mn) and The Foreign Listings (20.04mn).

Expected Corporate Actions @ full year result, Dec. 2009:

GOLDLINK INSURANCE PLC: Dividend per share of N0.02, closure of register date of 12th July 2010 while payment date is 26th July 2010.

MRS OIL NIGERIA PLC: Dividend per share of N1.25, closure of register date of 12th July, 2010 while payment date is 28th July 9, 2010.

FIRST CITY MONUMENT BANK PLC: Dividend per share of N0.05, closure of register date of 13th July, 2010 while payment date is 28th July 9, 2010.

DANGOTE SUGAR REFINERY: Dividend per share of N1.00, closure of register date of 14th July, 2010 while payment date is 30th July 2010.

PRESCO PLC: Dividend per share of N0.20, closure of register date of 19th July, 2010 while payment date is 16th August 2010.

PRESTIGE ASSURANCE CO. PLC: Dividend per share of N0.10, closure of register date of 20th July, 2010 while payment is 2nd August 2010.

LATEST MARKET NEWS!

The Nigerian Stock Exchange today listed a total of 6,661,876,000 ordinary shares of Ecobank Nigeria Plc being application for placing in favour of Ecobank Transnational Incorporated Plc. Also, the NSE listed a total of 189,499,295 ordinary shares of Interlinked Technologies Plc being successful Subscription of its Rights Issue and Placing.

Compiled By Okoye O. Pius- http://investtoprofitfromstocks.blogspot.com/

Nigerian Stock, Africa’s Second Best . . . DaMina

By EMMA OKENYI
Nigeria’s main stock index, Africa’s second-best performer in the first half of this year, may gain a further 20 percent in 2010 as the government absorbs the bad debt of the country’s banks, DaMina Advisors said.

The 213-member Nigeria Stock Exchange whose 21 percent gain is second in the continent to the 28 percent advance of Kenya’s benchmark index, may reach 30,490 by year end from 25,409 on June 30 as the Asset Management Corporation. set up by government to buy toxic assets from lenders starts operating, said Sebastian Spio-Garbrah chief executive officer of DaMina.

If Amcon does “only half of its work well,” this will still trigger “a consolidation in the banking landscape, catalyze more foreign interest in the local market, and spur it to even higher values by year end,” New York-based Spio-Garbrah said by e-mail. Banks, which make up about 60 percent of the Nigerian equities market by weighting, will lead the resurgence, he said.

A debt crisis in 2009 left the country’s lenders with toxic assets of about $10 billion, Spio-Garbrah estimated a year ago while working as an Africa analyst at Eurasia Group. The central bank of Nigeria fired the top managers of eight of the 24 bank chief executives and gave the industry an injection of N620 billion ($4.1 billion) to stem the decline. Buying that debt will cost the central bank “roughly” $5 billion as commercial banks don’t have collateral to cover the bad loans, Central bank Governor Lamido Sanusi said last week.

“Although the Amcon is itself initially capitalized by less than $100 million, it will have the authority to issue up to $5 billion in Nigeria sovereign-guaranteed bonds to buy the impaired assets from the banks,” Spio-Garbrah stated.

Some stocks that will benefit include First Bank of Nigeria Plc, the biggest bank by market value, United Bank for Africa Plc and Zenith Bank Plc, he said. These banks would want to “unload their difficult and bad debts in exchange for fresh cash,” he said.

Others that will increase are First City Monument Bank Plc, “which was just on the cusp of the crisis,” and bailed-out banks including Oceanic Bank Plc, Unity Bank Plc and Afribank Nigeria Plc.
The national assembly passed the Amcon bill on June 23, and the document now awaits assent by President Goodluck Jonathan before it becoming law.

CBN boss, Sanusi said last year that he expected the law creating the company to be passed by December 31, 2009, and that it would start operating in January this year. The central bank extended the recapitalization deadlines for two bailed-out banks, Wema Bank Plc and Unity Bank Plc, by three months, the central bank said last week.

Amcon “will face its toughest hurdles in pricing the impaired assets and in the choice of assets to buy,” Spio- Garbrah said. “If Amcon is successful, Nigeria will emerge with some of the best capitalized banks in Africa.” It will also “catalyze an expansion of money supply and unfreeze credit,” he said.

Three Critical Questions Any Beginner Must Answer On The Way To Extreme Stock Market Success

The fact that there are so many stocks to choose from on the NSE or in other stock market around the world and the enormous data associated with them which you are expected to examine carefully and also the attendant fact that these stocks, data, keeps changing every minute of every business day makes the possibility of you having all the information to help you make the right decision very remote; or sometimes confusing and incomprehensible when you lay your hands on them.

My advice is that these should not bother or cause you to view investing in the stock market as too technical or cumbersome for the beginner or the newbie. It is going to be a thrilling experience when you get along if only you can concentrate or rather focus on these three simple jobs:

– Sifting out
– clocking in
– clocking out

These three undertakings represent the three Critical questions any beginner or newbie investor must answer on the way to extreme stock market Success.

How do I know which stock to buy? (Sifting out the bad ones)

How do I know when to buy? (Clocking in your purchases)

How do I know when to sell? (Clocking out your sales)


How Do I Know Which Stock To Buy? (Sifting Out the Bad Ones)


To make money in the stocks market requires first, an understanding of how the stock market works and a sound strategy for buying, selling or holding. A stock is more commonly known as a share which means a portion of ownership or equity in a company.

If you are looking to make some money in the stock market, then it is important that you know how the market works and have some kind of a plan for buying, selling, and holding.
One who holds stock in a company is basically one of the owners of the company who has specific rights and obligations. Companies list themselves on a stock market or a particular stock exchange in order to sell their company equity to the public.

This result in additional capital being gathered which can then be used to further grow the company. Once a company is listed on a stock exchange, its shares can be sold or traded on a regular basis by investors and traders alike.

Companies look forward to selling their stock to the public by listing on a stock exchange. Following their initial public offering of stock or "IPO", the shares of public companies can be traded on that exchange. There are many stock exchanges around the world and they all make up what we call the "stock market

Stock market trading involves placing orders to buy or sell stocks with a Stock broking house. Brokers are compensated by charging either a flat fee or a commission, which is based on the value of the trade. To be successful in stock market trading, the stock that is purchased must be sold at a higher price. In theory, the increase in the value of the stock is largely based on the increase in the value of the company and its financial performance.

Fundamental investors are individuals who do in fact take the view that, over time, stock prices reflect the value of a company. Investors charge value by studying a range of fundamental information that will allegedly give them a glimpse into the future prospects of the company. This ranges from the company's own financial health, to the health of the industry in which it functions, to the strength of the economy at large. After performing such fundamental analysis, such an investor chooses how to go about stock market trading they're interested in.


SIFTING OUT: HOW TO FIND HOT STOCKS TO WATCH

The issue of how to find hot stocks to watch really is the ultimate question. While nobody has discovered the magic formula for picking the hot stocks that will perform best, there are trusted and tested guideposts to go about tracking down hot stocks that have fairly good prospects

 Set your investing goals

Needless to say, chasing after hot stocks without a particular goal in mind isn’t a very sound financial strategy. Before you start looking around for hot stocks to watch, think about what you hope to get out of it. Consider how much money you want to make, how much you can stand to lose and how much you really need to get started.

 Chose an industry

If you already know a lot about an industry with great growth potential, you’re in luck. In fact, you probably already have some ideas of which company’s stock to buy. If you don’t know where to start, though, reading the business journals is the easiest way to pin-point industries that are picking up steam. Another approach is to list few industries that at least mildly interest you and check into their growth potential. Sometimes, simply noticing which new products are increasingly popular can lead you to a hot stock.

 Sought out quality companies

While you definitely want to make sure any company you invest in has its financial house in order and no major problems brewing, that won’t necessarily be enough to tell you its growth potential Look into companies currently leading their industries and to what they’re doing right in terms of things like prices, quality, and customer service. Then look for similar companies that are just starting to emerge as winners.

 Seek advice

There’s a lot of research and analysis that goes into finding companies with great potential. No one can do it all alone. That’s why so many financial newspapers, magazines and newsletters publish lists of hot stocks to watch that even professional investors read. Track down one that best suits your investment goals and strategy and keep up with the stocks they pick. Just be careful where you get your advice. While getting stock tips from spam emails is obviously a bad idea, there’s also some danger in listening to stock promotions. These promotions are really just advertisements and may exaggerate the potential of the stock.

 Be aware of scams

Promotions are one thing, but some of the tips out there on hot stocks to watch are outright scams designed to prey on inexperienced investors looking for quick profits.

Think twice about accepting any stock tips from someone who has any immediate gains to make if you buy and verify any claims made, even if those claims sound realistic.

Knowing where to look to find hot stocks to watch takes some experience, but by keeping tabs on growing industries and regularly reading the financial magazines and newsletters, you have a fairly good chance of finding a winner.

HOW TO ANALYSE AND BUY TOP, BUT BEST COMPANIES ON THE NIGERIAN STOCK EXCHANGE FOR PEANUTS AND HARVEST A WINDFALL USING THE ‘MVSS™’ TRADING STRATEGY! (1)

“The greatest opportunities in the markets come at times when investors desert them in droves. The end of the biggest global stock market bull run in history at the beginning of the new millennium caused many investors to shun equities but this is the one investment class that has outperformed all others over time.”
- Steven Vine

There are endless possibilities of opportunities for a zero-to-hero status change on the Nigerian stock market if one is versed or savvy enough to apply the right tool over the right information and be patient enough to watch/monitor his investment/trade to achieve the desired result. There are so many ways to achieve this but the most effective and result-oriented approach is what I call the “Maverick Value Strike System” *(MVS SYSTEM) and is identified by this formula:

Locate intrinsic value – margin of safety = Entry Point (MVSS)

To locate the intrinsic value of any stock you have to calculate with this formula thus:

P/E (Price earning) ratio X EPS (Earning per share) = Total Obtained (intrinsic Value.)

Then compare the total obtained with the current market price/value to arrive at a destination scenario below:

*If the obtained result (intrinsic value) is lower than the current price, the stock is under-valued. But if the reverse is the case, when total is higher than the stock’s current priced, the stock is said to be over-valued.

This approach could be further used to get BEST VALUE STOCK by doing same over different sectors in the stock market, picking the best rated on each and then doing a comparative analyses on them by matching the best of the best of each competing sector begging for your money and casting your lot with only the best and keep the very top seeds of the better on your watch list.

Practical Session: Calculating the Intrinsic Values of Companies and Applying Margin of Safety to Determine Best Buys.

Applying the above formula over each stock in a given or selected sector, then doing comparative sectors analysis to determine the most-undervalued stocks and sectors and then applying the margin of safety rule will greatly enhance your stock picking skills and reduce the incidence of market panic that is associated with the spur-of-the- moment buys of stocks and its attendant seed capital losses.

TOOLS FOR THIS TASK:

I implore you to visit www.fsdhsecurities.com and subscribe to their daily stock market report- It is Free. You will be receiving daily report to your email box at the close of each trading day.

On this report at the first page which is the closing share price, at the heading bar you will find divided sub-data categories, about 24 in all (numbered in the sequence of alphabets B-Y). Each category is important but for the purpose of the task before us, we are to concern ourselves only with the following data categories which are the major mechanism on which the MVSS™ strategy thrives - the P/E, EPS, Current Price, Year Low, Year High, Market Caps, Outstanding Shares, YTD % Change and current year marked-down price @ closure date. I call these data categories the Ultimate Wealth Codes™

-continues on my next post.

ABOUT ME!
Written by OKOYE OKECHUKWU PIUS.
Mr Okoye Pius is a Maverick, Investment Consultant/Stock Market Analyst And Publisher ‘Ultimate Investors Edge’ Online Newsletter with a mission to:
“Help you make better investment decisions possible"
Developed and Originated the 'MVSS' Stock Trading Strategy.
An Author, Internet Marketer, Seminar Speaker and Host
http://www.facebook.com/pages/Warfare-Against-Losses-On-The-Nigerian-Stock-Exchange-Initiative-WALONSEI/393528339697?ref=ts,
http://investtoprofitfromstocks.
blogspot.com/
http://tinyurl.com/2we99wq
Email:ultimatewealthmastermind@gmail.com
Contact number: +2347069545121

THE MAVERICK INVESTMENT PERSPECTIVE AND YOUR WEALTH TOOL

The maverick investor is a qualified investor because he is endowed with vast financial intelligence and knowledge. He applies both fundamental and technical skills in analyzing a company before making a buy decision as he understands that he is operating from outside of the company- thus he is a buying shareholder. He also understood he is investing in business developed and run by others, he also knows that for him to achieve success in this chosen endeavor, that he must have sound financial education to enable him make informed decisions as per analyzing a company from her financial statements.

PRICE EARNING RATION (P/E)

The maverick investor understands that the price earning ratio (P/E) of a stock is an indispensable tool in his hand if he must be successful. It is essential when applying both fundamental and technical inputs in reaching a buy decision. The P/E ration is also called the market multiplier. It is calculated by dividing the current market price of a stock by the previous year’s earning per share (EPS). The result is that, a low P/E would mean that a stock is selling at a relatively low price compared to its earning; while on the reverse a high P/E would indicate that a stock’s price is high and may not be much of a bargain.

Market’s Price (Per Share)
P/E ration = ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬-------------------
Net Income or Earning Per Share (EPS)

The price earning ratio differs from company to company and from market sector to another. Some may be selling for higher prices but with little or no earnings. The high price reflects the market expectation for high earning in the future.

The maverick investor being an embodiment of knowledge and independence of attitude understands that the current P/E is not as important as the future P/E. He wants to invest in a company where the financial future of the company is strong. To fully maximize the P/E ratio he must seek much more information of the company he wants to buy into as a shareholder. He has to compare the company’s ratio for the current year with that of the previous years to determine the growth rate of the company. He will also do cross-comparative analysis of the company’s ratio with those of other companies in the industry or sector of the market.


Written by OKOYE OKECHUKWU PIUS.
Mr. Okoye O. Pius is a Maverick, Investment Consultant/Stock Market Analyst And Publisher ‘Ultimate Investors Edge’ Online Newsletter with a mission to:
“Help you make better investment decisions possible"
Developed and Originated the 'MVSS' Stock Trading Strategy.

Also an author, internet marketer, seminar speaker and host.
http://www.facebook.com/pages/Warfare-Against-Losses-On-The-Nigerian-Stock-Exchange-Initiative-WALONSEI/393528339697?ref=ts,
http://investtoprofitfromstocks.
blogspot.com/
http://tinyurl.com/2we99wq
Email:ultimatewealthmastermind@gmail.com
Contact number:+2347069545121

CROWD MENTALITY IN INVESTMENT PSYCHOLOGY: THE PRECURSOR TO MAVERICK INVESTMENT MINDSET

Humankind has a propensity to have their individual thoughts sacrificed when it comes to buying stocks. Their ability to make individual decision is short-circuited by the overwhelming pressure of collective opinion.

Man by default think in a ‘crowd’ mentality and like every crowd or herds of animals like cows, swine in a flow of fit, they most of the time go mad and only return to their senses slowly but individually.

Gustave Le Bon writing on the characteristics of the crowd mentality sees it this way:

“…The turning in a fixed direction of the ideas and sentiments of
individuals composing such a crowd and the disappearance of
their Personality. The crowd is always dominated by consideration
of which It is unconscious. The disappearance of brain activity
and the predominance of medullar activity. The lowering of
intelligence and the complete transformation of sentiments
-the transformed sentiment may be better or worse than those
of the individual of which the crowd is composed.
A crowd is as easily heroic or criminal.”

Investors are drawn from a wide variety of background, have different level of intelligence and in many ways have little in common. The catch is that it is surprising how these diverse groups of people frequently cluster together to take a view on the market and the dept to which this view changes, and collectively changes too.

One assumed sensible season for crowd behavior is that following crowd is seen as a means of attaching the investor to the market momentum. For as long the momentum is flowing in one direction and money can be made by following that direction, there is little to suggest irrationality. The problems arise over this crowd mentality that can be deemed irrational. This is when the pressure of the crowd causes prices to rise or fall way beyond any basis that reflects the underlying business of companies listed on the stock exchange.

-Written by OKOYE OKECHUKWU PIUS.
Mr. Okoye O. Pius is a Maverick, Investment Consultant/Stock Market Analyst And Publisher ‘Ultimate Investors Edge’ Online Newsletter with a mission to:
“Help you make better investment decisions possible"
Developed and Originated the 'MVSS' Stock Trading Strategy.
Also an author, internet marketer, seminar speaker and host.

http://investtoprofitfromstocks.
blogspot.com/

Email:ultimatewealthmastermind@gmail.com
Contact number:+2347069545121

THE ‘ MAVERICK VALUE STRIKE SYSTEM- MVSS AND THE WEALTH CODES™'

The MVS System™ is a maverick investment strategy, the hallmark of the maverick revolutionary wealth compounding prowess whose catch-word is “maximize the harvest…minimize the loss…then compound wealth over time!”

The “Maverick Values Strike System- MVSS™” and the “maverick wealth codes™” are ideas that are built on the rule ‘break all rules to hit a home run’. No sharp practice applied but the end justifies the means – compounding of wealth with minimal loss of capital but maximal harvest of profits.

The MVSS is an investment strategy that is hinged on five major key skills namely:

 Clear knowledge of how the stock market works with a slant for understanding how the four phases of market circles affects your fortunes, namely: accumulation phase, mark-up phase, distribution phase and mark-down phases.

 Have a flair for or acquire a fundamental investment skill and an in-depth understanding of technical skill with a slant for and application of the power of price earning ratio (P/E) to amass wealth.

 Be able to identify the intrinsic value of an intending investment entry. An investor must determine the intrinsic value of a company by analyzing a number of business fundamentals, including earnings, revenues and assets. And a company's intrinsic value is usually higher (and more complicated) than its liquidation value - what a company would be worth if it were broken up and sold today. The liquidation value doesn't include intangibles such as the value of a brand name, which is not directly stated on the financial statements.

 Application of a self-predetermined margin of safety on any entry point of investment. The margin of safety on any investment is the difference between its purchase price and its intrinsic value. The larger this difference is (purchase price below intrinsic), the more attractive the investment - both from a safety and return perspective.

 Be able to devise an exit strategy that promotes personal target for reasonable profits and limits for losses as it reflects personal tolerance of risk and loss. The biggest nightmare for those who hang on tenaciously to shares that are rapidly losing value is that the price will fall beyond the point of recovery. For that’s the worst case scenario, but well before it is reached investors have to think of their level of loss tolerance. Most investors are more tolerant of losses than they are of risk.

Written by OKOYE OKECHUKWU PIUS.

Mr Okoye Pius is a Maverick, Investment Consultant/Stock Market Analyst And Publisher ‘Ultimate Investors Edge’ Online Newsletter with a mission to:
“Help you make better investment decisions possible"
Developed and Originated the 'MVSS' Stock Trading Strategy.
An author, seminar speaker and host, internet marketer.
http://www.facebook.com/pages/Warfare-Against-Losses-On-The-Nigerian-Stock-Exchange-Initiative-WALONSEI/393528339697?ref=ts,
http://investtoprofitfromstocks.blogspot.com/
http://tinyurl.com/2we99wq
Email:ultimatewealthmastermind@gmail.com
Contact number:+2347069545121

Uncertainty dogs banks’ purchase

Almost a year after the Central Bank started an audit of Nigerian banks and declared some banks open to investors due to eroded capital among other infractions, it has remained mute on the details of potential investors or reveal the names of any interested parties.

However, despite experts’ opinion that the banks are unable to attract potential investors due to their balance sheet state, the Central Bank is saying that an encouraging number of prospective buyers have been approaching it for inquiries on the banks.

On Thursday, Reuters reported that Sanusi Lamido Sanusi, the Central Bank governor, said four international banks were among the likely bidders for banks rescued last year in a $4 billion bailout. Mr. Sanusi also said that he expected bids to be in by the end of the month, but kept silent on the names of interested investors in the banks.

“We expect (the bids) by the end of July from local banks, foreign banks, and private equity firms. The bulk of them are local, there are four international banks,” Sanusi said. Reuters quoted him, adding that the bids results would be released by September or October.

Three options

A report by Merrill Lynch that was published recently says there are three options for entrants contemplating the Nigerian bank market. “We present three options for entrants contemplating the market. Buy one of the larger distressed banks in Nigeria. A transaction of this size would be in the US$150 to 300 million range for a 50+1 per cent majority stake or in the US$300 to 600 million for outright control (100 percent). This type of deal would make sense from the perspective that an entrant would pick up a bank that has a good market reputation, despite recent risk management oversight, a broad distribution network (average branch network size of these banks is 280+), and a universal banking model with a broad product offering (retail, investment banking).”

“The second alternative is to buy one of the smaller distressed banks. “For less than US$100 million one could buy these banks outright. The benefits of this type of transaction are that you buy a smaller bank with a modest branch network and less developed franchise but gradually get on the ground training in Nigeria, learning about the industry and the market.

“The risk of this approach is that the buyer is faced with some of the same problems as Standard Bank for instance, that is smaller player in the market who does not have a broad distribution network, which one has to build.”

The third option is to buy one of the existing mid cap banks. “In our opinion, buying a clean bank that has successfully come through the CBN’s special investigation would be the lowest risk option into entering the market,” the report stated. It added that the cost of buying a stake in one of these banks is likely to be higher, but it enables the acquirer to over time increase their stake and learn the market from successful operators with a sound market position.

Investigations reveal that the nine bailed out banks made provisions by the end of September of more than 2.2 trillion naira for loan losses. Potential investors are anxious to see how quickly an asset management company (AMC) can be set up to soak up bad debts and make the banks attractive.

According to the Central Bank, the AMC, will take impaired assets off the banks’ balance sheets and replace them with government guaranteed bonds, expected to provide liquidity to the entire Nigerian banking system and bolster the prospects for long term growth.

The Central Bank of Nigeria had asked for potential bidders to register their interest in the troubled banks by mid-December, to test the enthusiasm for acquisitions.

Investors’ Exit Depresses Market Performance

nvestors’ exit depresses market performance
By Daniel Osunkoya
July 1, 2010 02:00AM
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A finance analyst has said that the exit of retail investors at the Nigerian Stock Exchange (NSE) contributed to the market’s wobbly performance.

In the last one month, the NSE has recorded over N260 billion losses on its market capitalisation.

Olufemi Awoyemi, managing director and chief executive officer of Proshare Nigeria Limited, an investment advisory firm, in a report, said, “Retail investors are out of the game.” Mr. Awoyemi said the retail market disappeared as a consequence of the illiquid status of investors who are still smarting from the huge wipe-out suffered from the market crash. On why investors have refused to buy stocks, Mr. Awoyemi said, “The access to non-savings leverage (margin loans) hitherto available from banks and brokerage firms is no longer available to all and sundry for obviously risk-based reasons.”

He said the estimated market is now about 80 per cent dominated by institutional investors with foreign investor influence. “Local market participation is dominated by pension fund managers who have the liquidity to continue to play in the market on a short term basis, leading to necessary book balancing adjustments,” he said. He added that the lack of commitment from investors is apparent in “the way stocks are bought and sold on short term basis -as investors are no longer keen about holding stocks for long term, at least for now.”

Asset management

Commenting on the possibility of the Asset Management Company of Nigeria (AMCON) solving most of the fund problems in the market, Mr. Awoyemi said, “It seems investors simply do not buy the argument of regulators that the asset company would ensure that their funds in the stock market are not lost -or their losses will be significantly mitigated. They point to the statements from the Central Bank governor that shareholders in the affected banks have lost their shares just as they deal with debt overhang arising from the leverages obtained through margin loans from brokers -a fate yet to be clarified.”

He said those who have any desire to still engage the market are simply not buying the argument that this is the best time to go in and mop up stocks which are low priced. “The long drawn out delay in executing the AMCON does not suggest to some that the regulators and managers of the economy get it. This view may be a bit far stretched and perhaps presumptuous but its impact is deafening.” Mr. Awoyemi, however, said the AMCON represents one of the solutions to address the economic condition in which the market is operating and not ‘the solution.’ According to him, a greater component of the solution required will have to come from the harmonization of the fiscal and monetary policies Nigerian economy is in dire need of.

Waiting for AMCON to prop up the market? - latest news, breaking news, business, finance analysis, comments and views from Nigeria :: Businessday

Waiting for AMCON to prop up the market? - latest news, breaking news, business, finance analysis, comments and views from Nigeria :: Businessday