Open Secret: Making money from Trading Stock

[alhaji_aminu]

Hi all,

I will go straight to the point. A question for you, if dumb people are making billions, yes billions, by buying equities in certain sectors of the stock market in Nigeria, why shouldn't you?  The answer is, well...... you should also. You see, the things is I have, as have many others, noticed that the building materials sector of the NSE is BOOMING....

I'll give an example. Ever since Aliko Dangote, at the AGM of BCC,  stated that the company has ironed out all its difficulties with its host community and will, from then on, start paying dividends (this was on 20 August 2006), the stock has shot up from N 12.18 to N 37.19 today! If that is not astonishing, I wonder what is.

WAPCO is another example of what I am talking about. Those conversant with the company will recall that WAPCO has embarked upon an ambitiuos expansion project which tied up its WC.  This has resulted in depressed earnings and low interest by investors. Since this project was concluded in the first quarter of the year, smart investors took notice. The resulting gain has been that the stock, which was selling for N 22 in June, is now selling at an impressive N 64.82.

Similar spectacular results were achieved by Ashaka and CCNN. I wish I can say this will continue but I cannot. What I can asure people of is that there is still time to get a piece of this pie. The companies in this sector (called the real sector because the produce tangible goods) pay the most generous dividends of all. Infact, if we are to believe Mr Dangote, then come the end 2007 financial year, BCC will pay a dividend of N 5.00 which is more than a 10% pay out ratio at current prices.

To give you a practical example, I invested N 17,000 in BCC (mid June), it is now worth more than N 36,00. Can you think of a better or faster way of achieving this transformation within 2 months? I think not.

The best way to start "milking the cow" is by getting educated about the capital markets. You can also learn more by checking out daily prices or charts on www.nigerianstockexchange.com


Finally, please view this( www.nigerianstockexchange.com/quoted_company.jsp?case=*0*BCC)  chart to see how spectacular some of what I saying are.

Be a capitalist pig. It is healthy!