18
BUSINESSES
YOU CAN
DO WITH
LITTLE CAPITAL
(with an investment 20 years investment plan)
Have you taught of investing half the time you spend on paid labour to grow your personal concern?
Why labour for someone else when you can do the same thing for yourself!
Start-Ups Business School Lagos, is offering you a selected group of 18 businesses you can do with little capital. These businesses are your surest bet of starting a personal enterprise and investment and growing it at your own pace.
Whats special about this product?
# All the businesses discussed are service oriented. You need not import or sell anything.
# They form the base of growing needs in the nation seeking prompt attention with endless income opportunities
# The nature of the demand makes its income generation automatic and guaranteed.
# You need as small as N50,000.00 (fifty thousand naira) to start it
# It could be done by students, working class or even retirees irrespective of age and gender
# It has a hint on Nigerian population that will assure you of faster success
# The approach is not bookish
This product being offered is prepared by a bunch of consultants who grew their businesses from the scratch to enviable heights. Their recommendations are based on street smartness and productive experiences.
The said selected 18 businesses could be done by less educated people thus you can delegate and supervise from afar if the need be, yet your success is guaranteed. One good thing about this offer is that you can start some of them in your bedroom with little or no equipment.
One more thing is peculiar with this businesses discussed, you will be informed about how to start with a knowledgeable and competitive edge.
Remember, it has 18 selected businesses discussed, each would have cost you at least N500.00 (five hundred naira) to order but we compiled and compressed all of them into a single offer at a great discount. You will get it for N4,500.00 (four thousand, five hundred naira) only!
Lastly, you will have a wonderful tabulation delivered to you. This tabulation shows you how to grow your business started with N100,000.00 (one hundred thousand naira) only to over N20,000,000.00 (twenty million naira) in 20 years with a simple investment approach.
Special Bonuses:-
• We shall help you with a marketing skills and techniques to sell your services at a zero fee!
To download this e-book, take the following steps:-
1. Pay the sum of N4,500.00 into this account:- PHORTIZO ENTREPRISES, A/C No. 139430000034401, Bank—FINBANK
2. Text the following to 08136006949:- Your name, e-mail, deposit slip number and phone number.
On receiving your information, the product will be forwarded to you in less than 24hrs.
Thursday, August 19, 2010
Friday, February 27, 2009
Investing in developing towns
Many investors in the real estate and investors to be do not always see anything good in the developing or underdeveloped areas. Everyone desires a portion in the high brow zones of the city. This had led many who would have gotten their own personal properties to remain tenants to their own detriment.
The choice and likeness for the major cities account for population influx and the attendant northward rise of cost of living. The surge for the cities creates an unsatisfied demand for both living and business premises. The Nigerian experience is quite different as normally, people do maintain dual living apartments. A property in their villages and another in the town, thereby decreasing available spaces for others to use. Above all these, the developing towns or areas are best suitable for consideration in terms of property acquisition.
As major cities are almost full with its attendant high cost of living, developing areas of today are growing faster than expected, turning to the big cities of tomorrow. The developers of these areas are begging people to consider these areas with its juicy offers attached to it. Such areas do look barren but just a few years to go, it turns into yet another city with unimaginable cost of acquisition.
Take a look at the invoice above, it attests to the cost of acquiring a flat in Festac town Lagos. The town was built in 1977 for the Festival of Arts and Culture which was held in Nigeria year. When that town was built, it was on the out skirts of the Lagos city then. Many Lagosians will not like to migrate to this area then for the fact that it’s off the main Lagos. Today in 2009, that apartment goes for a whopping N4.500.000.00 (four million, five hundred thousand naira, approximately $30,000.00). Also, the area is rented for N300.000.00 per annum now.
A flat that cost N6,380.00 in the year 1995 as the receipt said is now being sold for N4.500.000.00 in the year 2009. it looks ridiculous yet totally true. The idea of investing in a developing area is not a fluke as your investment increases in its worth as the city gets filled up.
That was in Lagos, we went out of town to seek information in other areas to justify these trend and our finding corresponded. A headmaster in Anambra state, eastern Nigeria, Mr. Okeke bought two plots of land at the price of N450.00 in 1974. Just opposite him, in 2005 another kinsman of his bought a plot of land at the price of N1.300.000.00
Should Mr.Okeke sell one of his plots that cost him N175.00 only now, he will pocket N1.300.000.00 or more in 2009. thus an investment of N175.00 in 1974 is now worth over N1.300.000.00 having farmed on it for 35 years. If we compare the price it was bought and what it could be offered for now, the investment must have appreciated in value to the tune of 742, 757% in 35years.
Now, if the major cities of today are very costly for people, the developing areas are super spots to clinch without delay. If you take time to interact with the older folks and real estate happens to be the subject of discussion, you will but learn so much.
In a real estate seminar recently, one of the facilitators in his early 70’s reminded us that times have not changed. According to Mr. Ahmed, a surveyor he was part of the team that mapped out the current Nigerian capital city Abuja. He never belived that the seat of power will ever be relocated to Abuja, this he rejected the offer of signing an application which came to civil servants as peanuts then. According to him he could have paid for a plot of land in any area of Abuja then in full with ease. Living at Obalende then,he never wanted to stay away from where the action melts. He equally saw Surulere then a swampy town being populated but never took action. According to him a Plot of land by 1978 was going for a paltry N4.000.00 but considered there a place for low income earners. As his lecture winds up, the last chance he missed was annoying. In 1993, during the election crisis, he fled to Benin Republic the nearest country to Nigeria from Lagos state.
On his way home when the situation returned to normalcy, in the company of one of his friends who hails from Badagary a boarder town with Benin Republic, his friend asked him to invest the excess funds on him on land but he said no! These plots of land was offered to him at the price of N1,000.00 each and he had over N40,000.00 unspent on him. As he recounted, that area of Lagos for him is not worth thinking about. Today that area offered to him at the rate of N1.000.00 by 1993 is being sold for N200,000,00 in the year 2009.
As pathetic as the story was, this situation is not limited to Lagos state alone. It is same with all the cities all over the world. There are reasons why real estate is a nice option to consider in terms investment.
• As land diminishes in quantity, it increases in its worth as its demand gets higher due to increase in population.
• It has low depreciation if not zero depreciation, yet it yields income in multiple ways depending on how you put it to use.
• It is a better option as a collateral for business transactions
• Landed properties could be remodeled to serve various purposes.
• In the process of government acquisition of an area, proper compensation is made to the owners.
Investing in real estate today is even more lucrative than what it has been before now. Today’s properties are in estates built with better layout, design, landscaping, security network and better business opportunity. The cost of buying a bungalow in a high density area can afford you acres if not hectres of land in the developing towns.
As these new towns are springing up, road networks are extended into these areas, making movement faster and easier.
The choice and likeness for the major cities account for population influx and the attendant northward rise of cost of living. The surge for the cities creates an unsatisfied demand for both living and business premises. The Nigerian experience is quite different as normally, people do maintain dual living apartments. A property in their villages and another in the town, thereby decreasing available spaces for others to use. Above all these, the developing towns or areas are best suitable for consideration in terms of property acquisition.
As major cities are almost full with its attendant high cost of living, developing areas of today are growing faster than expected, turning to the big cities of tomorrow. The developers of these areas are begging people to consider these areas with its juicy offers attached to it. Such areas do look barren but just a few years to go, it turns into yet another city with unimaginable cost of acquisition.
Take a look at the invoice above, it attests to the cost of acquiring a flat in Festac town Lagos. The town was built in 1977 for the Festival of Arts and Culture which was held in Nigeria year. When that town was built, it was on the out skirts of the Lagos city then. Many Lagosians will not like to migrate to this area then for the fact that it’s off the main Lagos. Today in 2009, that apartment goes for a whopping N4.500.000.00 (four million, five hundred thousand naira, approximately $30,000.00). Also, the area is rented for N300.000.00 per annum now.
A flat that cost N6,380.00 in the year 1995 as the receipt said is now being sold for N4.500.000.00 in the year 2009. it looks ridiculous yet totally true. The idea of investing in a developing area is not a fluke as your investment increases in its worth as the city gets filled up.
That was in Lagos, we went out of town to seek information in other areas to justify these trend and our finding corresponded. A headmaster in Anambra state, eastern Nigeria, Mr. Okeke bought two plots of land at the price of N450.00 in 1974. Just opposite him, in 2005 another kinsman of his bought a plot of land at the price of N1.300.000.00
Should Mr.Okeke sell one of his plots that cost him N175.00 only now, he will pocket N1.300.000.00 or more in 2009. thus an investment of N175.00 in 1974 is now worth over N1.300.000.00 having farmed on it for 35 years. If we compare the price it was bought and what it could be offered for now, the investment must have appreciated in value to the tune of 742, 757% in 35years.
Now, if the major cities of today are very costly for people, the developing areas are super spots to clinch without delay. If you take time to interact with the older folks and real estate happens to be the subject of discussion, you will but learn so much.
In a real estate seminar recently, one of the facilitators in his early 70’s reminded us that times have not changed. According to Mr. Ahmed, a surveyor he was part of the team that mapped out the current Nigerian capital city Abuja. He never belived that the seat of power will ever be relocated to Abuja, this he rejected the offer of signing an application which came to civil servants as peanuts then. According to him he could have paid for a plot of land in any area of Abuja then in full with ease. Living at Obalende then,he never wanted to stay away from where the action melts. He equally saw Surulere then a swampy town being populated but never took action. According to him a Plot of land by 1978 was going for a paltry N4.000.00 but considered there a place for low income earners. As his lecture winds up, the last chance he missed was annoying. In 1993, during the election crisis, he fled to Benin Republic the nearest country to Nigeria from Lagos state.
On his way home when the situation returned to normalcy, in the company of one of his friends who hails from Badagary a boarder town with Benin Republic, his friend asked him to invest the excess funds on him on land but he said no! These plots of land was offered to him at the price of N1,000.00 each and he had over N40,000.00 unspent on him. As he recounted, that area of Lagos for him is not worth thinking about. Today that area offered to him at the rate of N1.000.00 by 1993 is being sold for N200,000,00 in the year 2009.
As pathetic as the story was, this situation is not limited to Lagos state alone. It is same with all the cities all over the world. There are reasons why real estate is a nice option to consider in terms investment.
• As land diminishes in quantity, it increases in its worth as its demand gets higher due to increase in population.
• It has low depreciation if not zero depreciation, yet it yields income in multiple ways depending on how you put it to use.
• It is a better option as a collateral for business transactions
• Landed properties could be remodeled to serve various purposes.
• In the process of government acquisition of an area, proper compensation is made to the owners.
Investing in real estate today is even more lucrative than what it has been before now. Today’s properties are in estates built with better layout, design, landscaping, security network and better business opportunity. The cost of buying a bungalow in a high density area can afford you acres if not hectres of land in the developing towns.
As these new towns are springing up, road networks are extended into these areas, making movement faster and easier.
Real Estate- Alternative way of property acquisition
Acquisition of assets such as those of real estate has been an issue many do not want to face. In most countries, the cost seem so high while the process looks cumbersome. Many who left the rural areas desire to enjoy the ambience of major cities thereby opting for rented apartments as long as they live in the cities.
Today, people are getting better informed than before. Different ways are evolving on how to bridge the gap on house ownership. Here are some issues to consider-
• Enlist the services of a grassroots estate agent to search for properties in the area you choose. They are a good option due to the reason that they are close to the real owners instead of publicly quoted advertisements. Their offers are always juicy as most of the said properties from them may have been in the market for a long time without any good offer.
• Involve your personal lawyer to effect a thorough search on any property you wish to invest in. do not make the mistake of believing and acting on the information coming from any property vendor no matter how responsible and genuine they might appear. Your personal and independent search result is all that you need to work with.
• Look at as many properties as possible. Try to enjoy the job of checking properties. It will reveal a lot to you and allow you spot the best bargains available.
• Do not consider any offer on any property owned by anyone who died interstate. The same is applicable to properties owned by a polygamous family or person. These set of properties have high rate of legal litigations
• Find a partner among various property developers and banks who offer loans on home acquisition for as low as 30% or more of equity contribution. With just 30% down payment, you are a property owner. These services are available on the desk of many banks world wide.
• Consider properties that are already vacant or the ones that the transactions will be completed i.e exchange of cash, only when the last tenant vacates his apartment.
• Turn the newly acquired property to a professional property manager who will manage the property professionally. His duty must be spelt out to include regular positive cash flow from the investment as at when due. He must screen the tenants to note their financial stand both present and previous. He many include a clause whereby the intending tenant must present a guarantee that he can maintain regular payments.
• When signing the mortgage tenure, opt for a repayment period where the number of years taken for its liquidation will be long enough so that you will not be on stress. When this is done, the burden of the loan repayment will be on the tenant totally. Even at that schedule it all that after the periodic payments some funds will be credited to your own personal account.
• Consider some upfront payments. In most places it could be as much as 24months rents are paid up front. So also are some other commissions and default deposits. These monies could be rolled over into yet another property or it will serve as returns on your 30% earlier deposited.
• Intending tenants will be informed initially of rent increment on four year term at a desired percentage rate.
Following these laid down options, individuals and organizations can acquire properties of their own with ease.
Today, people are getting better informed than before. Different ways are evolving on how to bridge the gap on house ownership. Here are some issues to consider-
• Enlist the services of a grassroots estate agent to search for properties in the area you choose. They are a good option due to the reason that they are close to the real owners instead of publicly quoted advertisements. Their offers are always juicy as most of the said properties from them may have been in the market for a long time without any good offer.
• Involve your personal lawyer to effect a thorough search on any property you wish to invest in. do not make the mistake of believing and acting on the information coming from any property vendor no matter how responsible and genuine they might appear. Your personal and independent search result is all that you need to work with.
• Look at as many properties as possible. Try to enjoy the job of checking properties. It will reveal a lot to you and allow you spot the best bargains available.
• Do not consider any offer on any property owned by anyone who died interstate. The same is applicable to properties owned by a polygamous family or person. These set of properties have high rate of legal litigations
• Find a partner among various property developers and banks who offer loans on home acquisition for as low as 30% or more of equity contribution. With just 30% down payment, you are a property owner. These services are available on the desk of many banks world wide.
• Consider properties that are already vacant or the ones that the transactions will be completed i.e exchange of cash, only when the last tenant vacates his apartment.
• Turn the newly acquired property to a professional property manager who will manage the property professionally. His duty must be spelt out to include regular positive cash flow from the investment as at when due. He must screen the tenants to note their financial stand both present and previous. He many include a clause whereby the intending tenant must present a guarantee that he can maintain regular payments.
• When signing the mortgage tenure, opt for a repayment period where the number of years taken for its liquidation will be long enough so that you will not be on stress. When this is done, the burden of the loan repayment will be on the tenant totally. Even at that schedule it all that after the periodic payments some funds will be credited to your own personal account.
• Consider some upfront payments. In most places it could be as much as 24months rents are paid up front. So also are some other commissions and default deposits. These monies could be rolled over into yet another property or it will serve as returns on your 30% earlier deposited.
• Intending tenants will be informed initially of rent increment on four year term at a desired percentage rate.
Following these laid down options, individuals and organizations can acquire properties of their own with ease.
Wednesday, February 11, 2009
THE CRASHING STOCK MARKET- A GODMINE IN DISGUISE
The news that prices of stocks worldwide has depreciated greatly is old news. The Nigerian stock market is not spared at all as most of its listed equities experienced free fall. The worldwide financial melt down attests to the fact that the world indeed is a global village. Words like recession, credit crunch, job cuts / lay offs are now household names. In a lay mans words, funds were lost at a great magnitude while the remaining fraction can not get within reach of all citizenry. Thus, a plethora of unmeet demands. This is traceable to reduction on expenses by major agencies, institutions and organizations.
If you have been playing the Nigerian stock market prior to this time, how have you been involved?
What stocks did you buy?
Are you buying from the secondary or primary market?
What did you know about the characteristics of stocks?
Did you join the train because a friend, relation, spiritual leader, investment broker or stockbroker pulled you in?
What did you plan to achieve with your investment?
Can you repeat any desirable result achieved?
Do you have an investment plan?
Do you have and know your stockbroker?
How do you monitor your investment?
Everyone who owns part of any quoted company shares claims to be an investor. However, it is not every player that is an investor. Among the lot, we have the following: -
Gambles and speculators
Spectators and cheerleaders
Real investors
GAMBLERS AND SPECULATORS:
These are individuals and groups who heard that the stock market has been giving positive returns on investment and jumped into the market. They know little or nothing about fundamental or technical angle of the market. Their only desire and expectation is to buy today and sell tomorrow with mouth watering profits. Over 80% of their decision is embarked upon by guess work with zero facts and figures. They are interested on price appreciation only. They made money, informed friends and well wishers and even borrowed to invest. They form the bulk of losers in the present situation.
SPECTATORS AND CHEERLEADERS:
These set of people are involved in the capital market officially. They appear and speak like the main actors. They form the bulk of the media and spokes persons of co-operate or individual investment houses. They inform the whole populace of daily events on the trading floor and trade information about quoted companies. Unfortunately, most of them do not make their profit directly from taking positions on different listed equities; rather they are salary and commission earners. They promote upcoming companies, bring recent news emanating from the desk of existing companies and lastly, they are mostly behind some buy and sell recommendation about capital market. The information frenzy for or against the market emanates from them. Just call them an equivalent of supporters club in a sports arena. They laugh and cry more than the real actors.
REAL INVESTORS:
Investors are value driven men and women. They are actively responsible for the relative stability in the market place. They are synonymous with long term investments backed with the basic information. Investment for them begins with their education about the goings on in the market first. In the short run they are slow, while in the long run, they achieve lesser results. The dogma of slow and steady wins the race is their personal law. Market panics do not affect their them. They gain both in bearish and bullish periods of the market. Long time experience and consulting on already successful mentors via the capital market fashions their pattern of investment.
THE NIGERIAN STOCK MARKET:
The Nigerian Stock Market witnessed an upward spiral trend from 2006 till the first quarter of 2008. Within this said period of time, the Nigerian stock market was the toast of Tom, Dick and Harry. Following the re-capitalization and
Consolidation of Nigerian Banks and Insurance companies, almost all of them and other companies from other sectors of the capital market approached the publics with juicy public offers and private placements.
Funds flew into the country from various destinations into the capital market and the tempo of equity investment hit the roof top.
As the indices of the market gathered points on daily basis, the banks increased their lending capacity with many products which led to high liquidity, stock oriented publications hit the news stand, radio and television programmes evolved, stockbrokers unleashed marketers into all the nooks and crannies of Nigeria and abroad.
In the middle of progressive expectations, the market gradually headed southwards. Unannounced, things fell apart and tales of woes ensured. On the average today, almost all listed equities on the Nigerian Stock Exchange has lost about 65% of its highest price of 2008. None of the odd and newly listed stocks were spared.
IS NIGERIA STOCK MARKET SICK?
The answer is No!
The basic fundamentals of the market are still intact. The colossal free fall of prices of stocks is as a result of global financial meltdown. You have to understand that though prices of stocks are related to the management of companies, it does not holistically determine the earning of a company.
None of Nigerian listed company has announced a major lay off or loss in their quarterly results. Rather, we have a situation where they are expanding both locally and abroad with mouth watering results in quarterly results.
So, the challenges being faced now are not fundamental one.
WHY DID PEOPLE LOSE SO MUCH MONEY IN THE MARKET?
There was an absolute lack of adequate dosage of information about the capital market. Many of the market leaders were carried away with the income accruing from commissions on daily sales coupled with good results churned out respective companies. Regrettably, many stockbrokers never had access to the required information that rules the market, they lost more than their clients having borrowed to invest before the burble burst.
According to Punch Newspaper report of 4th February, 2008, stockbrokers are owing banks over N300billion.
The regulatory bodies of the market never gave any information regarding in-flow and out-flow of income sourced from abroad. These funds came in announced but left unannounced.
A greater percentage of the market players are short term investors who plays the market with borrowed funds. Thus, their investment never had tap root.
Here, table A show few selected stocks and how they faired in the present economic meltdown. The table shows their percentage losses between the months of March 2008 and February 2009.
TABLE ‘A’
MARCH 2008 FEBRUARY 2009 % LOSS DIFFERNCE
Zenith 43.60 12.07 - 72.32
UPL 9.59 4.49 - 53,18
NAHCO 23.50 6.25 - 73.40
LASACO 3.69 1.01 - 72.01
DUNLOP 3.69 0.57 - 84.55
FIDELITY 10.20 3.20 - 68.63
THOMAS WYATT 7.00 2.34 - 66.57
FIRST BANK 42.44 15.09 - 64.44
JAPAUL OIL 9.59 1.93 - 79.87
TRANSCORP 3.01 0.76 - 74.75
DONGOTE FLOUR 27.30 6.67 - 75.57
COSTAIN 28.82 6.36 - 77.93
FLOUR MILLS 83.02 14.35 - 82.72
GUINESS 123.01 70.31 - 42.84
NESTLE 221.10 127.05 - 42.54
ASAKA CEM 44.90 9.05 - 79.84
ADSWITCH 5.19
TATALIZER 3.25 1.4 - 64.92
WAPCO 54.06 12.50 - 76.88
HOW IS THE STOCK MARKET A GOLDMINE NOW?
In normal business transactions, the ruling practice is buy low, sell high. What goes up must come down and what went down must equally go up. As the market has crashed, it means that now it’s within reach at low prices. A look at Table ‘A’ shows that among the selected stocks analyzed, a greater majority have lost above 60% of its price as at 2008 March.
If the practice of buy low, sell high should be considered, now is the time to enter the market at a vantage position. Why? These equities will move back towards their real prices in no distant time. This is a rare opportunity to fortunes for nothing.
On the contrary, the stock market remains totally unattractive to the average mind. So is gold. It’s not found on the surface, even when seen on the surface, not everyone can recognize it until it’s purified. Now that prices are down people run away, they only come back when the price starts going up.
For example, few years ago, Intercontinental Bank Plc, JAPAUL Oil and Maritime Services sold its public offers at N14.50 and N3.95 respectively. Now the prices goes to N45 and N14.00 in 2008, while in February, 2009 it stands at N6 and N1.83 respectively. If you bought it then at public offer, and it was good, why shy away now? As warren Buffet puts it, stocks are what people sell when they should buy and buy when they should sell.
SUGGESTED INVESTMENT ROUTE:
To get the best out of the stock market investment, a long term approach is a better option. Why long term? It naturally affords one the chance to observe and learn the different ups and down of the market. Also you effortlessly take the profits of compounding returns on your investment. A long term investment is 5 to 10 years on the minimum.
To enjoy the best of long term investment choice, an additional input to the principal investment at various short intervals are prescribed for a greater positive profitability.
When this route is taken, you enjoy a 3-fold return on your investment. These include bonuses or script issues, dividends and lastly price appreciation.
With this approach you enjoy a relative peace of mind while your money labours for you.
Here is a cursory look at the returns on FIRST BANK OF NIGERIA Plc in the last 10 years
TABLE ‘B’
EXAMPLE OF COMPOUNDING OF INVESTMENT IN LONG TERM
An example with an investment worth 10,000 units of First Bank of Nigeria Plc last 10 years showing bonuses and dividend accruing from the investment.
YEAR NOS. OF UNITS BONUS DIVIDEND INCOME
1998 10,000 - 10k 1,000
1999 10,000 1 for 4 N1.00k 10,000
2000 12,500 1 for 4 N1.25k 15,625
2001 15,625 1 for 4 N1.30k 20,312.50
2002 19,531 1 for 4 N1.30k 25,391.60
2003 24,413 1 for 5 N1.50k 36,619.50
2004 29,295 1 for 8 N1.55k 45,407.25
2005 32,956 1 for 8 N1.60k 52,729.60
2006 41,195 1 for 4 N1.00k 41,195.00
2007 82,390 1 for 6 N1.00k 82,390.00
2008 96,121 1 for 4 N1.20k 115,342.20
2009 120,151
TOTAL = 446,272.00
Thus an investment worth 10,000 units of FBN in 1998, today worth 120,151 units which about N446,272,000 was received as cash income in ten years just doing nothing else.
Note, this investment in the year 2008 was at the tune of about N100,000 (ONE HUNDRED THOUSAND NAIRA) only. If it is sold today as the market is at its lowest position of N15,00 you will be cashing out at the total sum of N1,817,265.00!
ANY CHANCE OF EARLY RECOVERY:
Yes! The chances are great.
In the nearest future, many companies are likely to opt for the stock buy back option. (SBB) The share buy back option is a situation where a listed company individually buys its own shares from the secondary market. This happens when due to some market risk, the price of a given share depreciates below its intrinsic value. Such companies buys its stocks, holds it till the price returns to a desirable level, then they sell it back to the publics. With this approach the investors are protected while the stock remains well managed.
These quoted companies are turning out good results while their co-operate looks are not balanced, thus it’s a likely option.
Secondly, as the prices have bottomed out, the capitalist who made it big before and new ones are gradually staging a come back into the market.
Thirdly, some individuals or organizations who have been eyeing board membership of some listed companies are at advantage to do so as a smaller cash investment can earn them a sit now that the prices are low and apathy entails.
Lastly, as government resumes spending for the 2009 fiscal year, such funds might find their way back to the stock market.
CONCLUSION:
The capital market remains one of a country’s gradation index, thus the regulatory bodies cannot leave it to hit the rocks.
History has shown that stock market crashes worldwide gives rise to a better and stronger new structure as it recovers.
On a parting note, if the richest man on earth, the sage of Omaha and CEO Berkshire Hartaway Warren Buffet invests on stock only, do you still doubt the potentials of the market?
If you have been playing the Nigerian stock market prior to this time, how have you been involved?
What stocks did you buy?
Are you buying from the secondary or primary market?
What did you know about the characteristics of stocks?
Did you join the train because a friend, relation, spiritual leader, investment broker or stockbroker pulled you in?
What did you plan to achieve with your investment?
Can you repeat any desirable result achieved?
Do you have an investment plan?
Do you have and know your stockbroker?
How do you monitor your investment?
Everyone who owns part of any quoted company shares claims to be an investor. However, it is not every player that is an investor. Among the lot, we have the following: -
Gambles and speculators
Spectators and cheerleaders
Real investors
GAMBLERS AND SPECULATORS:
These are individuals and groups who heard that the stock market has been giving positive returns on investment and jumped into the market. They know little or nothing about fundamental or technical angle of the market. Their only desire and expectation is to buy today and sell tomorrow with mouth watering profits. Over 80% of their decision is embarked upon by guess work with zero facts and figures. They are interested on price appreciation only. They made money, informed friends and well wishers and even borrowed to invest. They form the bulk of losers in the present situation.
SPECTATORS AND CHEERLEADERS:
These set of people are involved in the capital market officially. They appear and speak like the main actors. They form the bulk of the media and spokes persons of co-operate or individual investment houses. They inform the whole populace of daily events on the trading floor and trade information about quoted companies. Unfortunately, most of them do not make their profit directly from taking positions on different listed equities; rather they are salary and commission earners. They promote upcoming companies, bring recent news emanating from the desk of existing companies and lastly, they are mostly behind some buy and sell recommendation about capital market. The information frenzy for or against the market emanates from them. Just call them an equivalent of supporters club in a sports arena. They laugh and cry more than the real actors.
REAL INVESTORS:
Investors are value driven men and women. They are actively responsible for the relative stability in the market place. They are synonymous with long term investments backed with the basic information. Investment for them begins with their education about the goings on in the market first. In the short run they are slow, while in the long run, they achieve lesser results. The dogma of slow and steady wins the race is their personal law. Market panics do not affect their them. They gain both in bearish and bullish periods of the market. Long time experience and consulting on already successful mentors via the capital market fashions their pattern of investment.
THE NIGERIAN STOCK MARKET:
The Nigerian Stock Market witnessed an upward spiral trend from 2006 till the first quarter of 2008. Within this said period of time, the Nigerian stock market was the toast of Tom, Dick and Harry. Following the re-capitalization and
Consolidation of Nigerian Banks and Insurance companies, almost all of them and other companies from other sectors of the capital market approached the publics with juicy public offers and private placements.
Funds flew into the country from various destinations into the capital market and the tempo of equity investment hit the roof top.
As the indices of the market gathered points on daily basis, the banks increased their lending capacity with many products which led to high liquidity, stock oriented publications hit the news stand, radio and television programmes evolved, stockbrokers unleashed marketers into all the nooks and crannies of Nigeria and abroad.
In the middle of progressive expectations, the market gradually headed southwards. Unannounced, things fell apart and tales of woes ensured. On the average today, almost all listed equities on the Nigerian Stock Exchange has lost about 65% of its highest price of 2008. None of the odd and newly listed stocks were spared.
IS NIGERIA STOCK MARKET SICK?
The answer is No!
The basic fundamentals of the market are still intact. The colossal free fall of prices of stocks is as a result of global financial meltdown. You have to understand that though prices of stocks are related to the management of companies, it does not holistically determine the earning of a company.
None of Nigerian listed company has announced a major lay off or loss in their quarterly results. Rather, we have a situation where they are expanding both locally and abroad with mouth watering results in quarterly results.
So, the challenges being faced now are not fundamental one.
WHY DID PEOPLE LOSE SO MUCH MONEY IN THE MARKET?
There was an absolute lack of adequate dosage of information about the capital market. Many of the market leaders were carried away with the income accruing from commissions on daily sales coupled with good results churned out respective companies. Regrettably, many stockbrokers never had access to the required information that rules the market, they lost more than their clients having borrowed to invest before the burble burst.
According to Punch Newspaper report of 4th February, 2008, stockbrokers are owing banks over N300billion.
The regulatory bodies of the market never gave any information regarding in-flow and out-flow of income sourced from abroad. These funds came in announced but left unannounced.
A greater percentage of the market players are short term investors who plays the market with borrowed funds. Thus, their investment never had tap root.
Here, table A show few selected stocks and how they faired in the present economic meltdown. The table shows their percentage losses between the months of March 2008 and February 2009.
TABLE ‘A’
MARCH 2008 FEBRUARY 2009 % LOSS DIFFERNCE
Zenith 43.60 12.07 - 72.32
UPL 9.59 4.49 - 53,18
NAHCO 23.50 6.25 - 73.40
LASACO 3.69 1.01 - 72.01
DUNLOP 3.69 0.57 - 84.55
FIDELITY 10.20 3.20 - 68.63
THOMAS WYATT 7.00 2.34 - 66.57
FIRST BANK 42.44 15.09 - 64.44
JAPAUL OIL 9.59 1.93 - 79.87
TRANSCORP 3.01 0.76 - 74.75
DONGOTE FLOUR 27.30 6.67 - 75.57
COSTAIN 28.82 6.36 - 77.93
FLOUR MILLS 83.02 14.35 - 82.72
GUINESS 123.01 70.31 - 42.84
NESTLE 221.10 127.05 - 42.54
ASAKA CEM 44.90 9.05 - 79.84
ADSWITCH 5.19
TATALIZER 3.25 1.4 - 64.92
WAPCO 54.06 12.50 - 76.88
HOW IS THE STOCK MARKET A GOLDMINE NOW?
In normal business transactions, the ruling practice is buy low, sell high. What goes up must come down and what went down must equally go up. As the market has crashed, it means that now it’s within reach at low prices. A look at Table ‘A’ shows that among the selected stocks analyzed, a greater majority have lost above 60% of its price as at 2008 March.
If the practice of buy low, sell high should be considered, now is the time to enter the market at a vantage position. Why? These equities will move back towards their real prices in no distant time. This is a rare opportunity to fortunes for nothing.
On the contrary, the stock market remains totally unattractive to the average mind. So is gold. It’s not found on the surface, even when seen on the surface, not everyone can recognize it until it’s purified. Now that prices are down people run away, they only come back when the price starts going up.
For example, few years ago, Intercontinental Bank Plc, JAPAUL Oil and Maritime Services sold its public offers at N14.50 and N3.95 respectively. Now the prices goes to N45 and N14.00 in 2008, while in February, 2009 it stands at N6 and N1.83 respectively. If you bought it then at public offer, and it was good, why shy away now? As warren Buffet puts it, stocks are what people sell when they should buy and buy when they should sell.
SUGGESTED INVESTMENT ROUTE:
To get the best out of the stock market investment, a long term approach is a better option. Why long term? It naturally affords one the chance to observe and learn the different ups and down of the market. Also you effortlessly take the profits of compounding returns on your investment. A long term investment is 5 to 10 years on the minimum.
To enjoy the best of long term investment choice, an additional input to the principal investment at various short intervals are prescribed for a greater positive profitability.
When this route is taken, you enjoy a 3-fold return on your investment. These include bonuses or script issues, dividends and lastly price appreciation.
With this approach you enjoy a relative peace of mind while your money labours for you.
Here is a cursory look at the returns on FIRST BANK OF NIGERIA Plc in the last 10 years
TABLE ‘B’
EXAMPLE OF COMPOUNDING OF INVESTMENT IN LONG TERM
An example with an investment worth 10,000 units of First Bank of Nigeria Plc last 10 years showing bonuses and dividend accruing from the investment.
YEAR NOS. OF UNITS BONUS DIVIDEND INCOME
1998 10,000 - 10k 1,000
1999 10,000 1 for 4 N1.00k 10,000
2000 12,500 1 for 4 N1.25k 15,625
2001 15,625 1 for 4 N1.30k 20,312.50
2002 19,531 1 for 4 N1.30k 25,391.60
2003 24,413 1 for 5 N1.50k 36,619.50
2004 29,295 1 for 8 N1.55k 45,407.25
2005 32,956 1 for 8 N1.60k 52,729.60
2006 41,195 1 for 4 N1.00k 41,195.00
2007 82,390 1 for 6 N1.00k 82,390.00
2008 96,121 1 for 4 N1.20k 115,342.20
2009 120,151
TOTAL = 446,272.00
Thus an investment worth 10,000 units of FBN in 1998, today worth 120,151 units which about N446,272,000 was received as cash income in ten years just doing nothing else.
Note, this investment in the year 2008 was at the tune of about N100,000 (ONE HUNDRED THOUSAND NAIRA) only. If it is sold today as the market is at its lowest position of N15,00 you will be cashing out at the total sum of N1,817,265.00!
ANY CHANCE OF EARLY RECOVERY:
Yes! The chances are great.
In the nearest future, many companies are likely to opt for the stock buy back option. (SBB) The share buy back option is a situation where a listed company individually buys its own shares from the secondary market. This happens when due to some market risk, the price of a given share depreciates below its intrinsic value. Such companies buys its stocks, holds it till the price returns to a desirable level, then they sell it back to the publics. With this approach the investors are protected while the stock remains well managed.
These quoted companies are turning out good results while their co-operate looks are not balanced, thus it’s a likely option.
Secondly, as the prices have bottomed out, the capitalist who made it big before and new ones are gradually staging a come back into the market.
Thirdly, some individuals or organizations who have been eyeing board membership of some listed companies are at advantage to do so as a smaller cash investment can earn them a sit now that the prices are low and apathy entails.
Lastly, as government resumes spending for the 2009 fiscal year, such funds might find their way back to the stock market.
CONCLUSION:
The capital market remains one of a country’s gradation index, thus the regulatory bodies cannot leave it to hit the rocks.
History has shown that stock market crashes worldwide gives rise to a better and stronger new structure as it recovers.
On a parting note, if the richest man on earth, the sage of Omaha and CEO Berkshire Hartaway Warren Buffet invests on stock only, do you still doubt the potentials of the market?
Tuesday, February 3, 2009
ARE YOU TAKING ADVANTAGE OF THE CREDIT CRUNCH?
Its not news any longer that the world financial system is at the brink of complete recession.
The glut in cash resulted to loss of jobs and slashes in prices of quoted equities and real estate units in some cases.
In the minds of investors and entreprenuers what could be going on?
Its nothing but a moment of planting or sowing in hectres of fertile ground with high breed seeds for less a fair price.
In times of ecomomic crises, there is always a transfer of wealth. People are always on the run while only those who have mastered the tarrain will be entering and taking vantage positions.
In Nigeria today, many investors are selling off their holdings in a frenzy. Even the most priced stocks are going for prices lesser than that of pea nuts!
Real estate looks like a better option and those who understands the loop sided nature are making a kill in short periods of investments.
You can buy with or without money!
The situation will never remain the same, the much awaited corretion is not far from today.
Unfortunately, as the burst came without notice, so shall the bubble arrive in no distant time.
Many companies could be taken over by hard core investors in few moments from now.
The market is open for you.
Take a position today.
The glut in cash resulted to loss of jobs and slashes in prices of quoted equities and real estate units in some cases.
In the minds of investors and entreprenuers what could be going on?
Its nothing but a moment of planting or sowing in hectres of fertile ground with high breed seeds for less a fair price.
In times of ecomomic crises, there is always a transfer of wealth. People are always on the run while only those who have mastered the tarrain will be entering and taking vantage positions.
In Nigeria today, many investors are selling off their holdings in a frenzy. Even the most priced stocks are going for prices lesser than that of pea nuts!
Real estate looks like a better option and those who understands the loop sided nature are making a kill in short periods of investments.
You can buy with or without money!
The situation will never remain the same, the much awaited corretion is not far from today.
Unfortunately, as the burst came without notice, so shall the bubble arrive in no distant time.
Many companies could be taken over by hard core investors in few moments from now.
The market is open for you.
Take a position today.
Monday, October 27, 2008
The Rules Have Changed!
The Rules Have Changed!
Three Ages
In the Agrarian Age, the rich were those who owned a castle that overlooked large tracks of fertile agricultural land. These people were known as the monarchs and the nobles. If you were not born into this group, you were an outsider with very little chances of becoming an insider. The 90/10 rule controlled life. Therefore, the 10%who were in power were there because of marriage, birth, or conquest, the other90% were serfs or peasants who worked the land but owned nothing.
During the Agrarian Age, if you were a good, hardworking person, you were respected, the idea of being diligent was handed down from parent to child .it was also when the idle rich began to be loathed-90% of the people worked to support the other 10%, who appeared not to be working .that idea was also handed down from parent to child. There Ideas continue to be popular and are still handed down from generation to generation.
Then came the Industrial Age and wealth shifted from agricultural land to real estate. Improvement such as buildings, factories, warehouses, mines, and residential homes for workers were placed on top of land…improvement. Suddenly, rich fertile agricultural land dropped in value because the wealth shifted to the owners of the buildings upon the land. In fact, an interesting thing happened. Suddenly, rich fertile land became less valuable than rocky land, where farming was difficult. Rocky land suddenly became more valuable because it was cheaper than fertile land. It could also hold taller building such as skyscrapers, or factories, and it often contained resources such as oil, iron, and copper that fueled the industrial Age. When the shift in ages occurred, many farmers` net worth went down, to maintain their standard of living, they had to work harder and farm more land than before.
It was during the industrial Age that the ‘’Go to school so you can find a job’ idea became popular. In the Agrarian Age, a formal education was not necessary since professions were handed down from parent to child; bakers taught their children to be bakers, and so on. Near the end of this era, the idea of ‘’a’ job, or the idea of one job for life, became popularized. You went to school. Got that one job for life, worked your way up the corporate ladder or up the union ladder, and when you retired, the company and the government took care of your needs.
In the Industrial Age, those not of noble birth could become rich and powerful. Rages-to)
-to-riches stories spurred on the ambitious. Entrepreneurs started with nothing and become billionaires. When Henry ford decided to mass-produce the automobile, he found some cheap rocky land that farmers did not want near a small town known as Detroit, and industry was born. The ford family become, in essence, the new nobility, and anyone around them who did business with them also become the new, rich nobility. New names became prestigious as those of kings and queens-names such as Rockefeller, Stanford, and Carnegie. People often respected as well as despised them for their great wealth and power.
In the industrial Age, as during the Agrarian Age, however, only a few controlled most of the wealth. The 90/10 rule still held true simply because it took great effort and coordination as well as a lot of money, people, land, and power to build and control the wealth. For example, to start an automobile company or an oil or mining company is still capital intensive, it takes massive amounts of money, lots of land, and smart formally educated people to build that type of company. On top of that, you often must get through years of bureaucratic red tape-such as environmental studies, trade agreements, labor laws, and so on-to get such a business off the ground. In the industrial age, the standard of living went up for most people, but the control of real wealth continued to remain in the hands of a few. The rules have changed.
THE 90/10 RULE HAS CHANGED
When the Berlin Wall came down and the World Wide Web went up, many rules have changed. One of the most important rules that changed was the 90/10 rule. Although its or the opportunity to join that 10% has changed.The World Wide Web has changed what it costs to join the 10%.Today, it does not take being born into a royal family as it did in the Agrarian Age. It does not require massive sums of money, land,and people to join the 10%.The price of admission today is an idea,and ideas are free.
In the information Age, all it takes is information or ideas to become very, very wealthy. It is therefore possible for individuals who are financially obscure one year to be on the richest people in the world the next. such people often fly past individuals who made their money in the ages gone by. Collage students who have never had a job become billionaires. High school students will surpass their collage student will surpass their collage student counterparts.
In the early 1990’s, I remember reading a newspaper article that said,’’ Many Russian citizens complained that under the communist rule their creativity was stifled. Now that communist us over, many Russians citizens are finding out they had no creativity.’’ Personally, I think all of us have a brilliant creative idea that is unique to us, an idea that could be turned into an asset. The problem for the Russians, as it is with many citizens all over the world, is they did not have the advantage of my rich dad’s guidance in teaching them to understand the power of the B-1 Triangle. I think it is very important that we teach more individuals to be entrepreneurs and how to take their unique ideas and turn them into businesses that create wealth. If we do so, our prosperity will only increase as the information Age expands around the world.
For the very first time in world history, the 90/10 rule to wealth may no longer apply. No longer does it take money to make money. No longer does it take vast tracts of land or resources to become rich. No longer does it take friends in high places to become rich. No longer does it matter if your relatives came over on the MAYFLOWER, it does not matter what university you went to, or what sex, race, or religion you are part of. Nowadays, all it takes it takes is an idea, and as rich dad has always said, ‘Money is an idea.’ For some people, however, the hardest thing to change is an old idea. There is an old truth to the saying ‘You cant teach an old dog new tricks’ I think a more accurate saying is ‘You cant teach someone who clings to old ideas new tricks, regardless of if they are young or old.’
………………..when people simply consider the idea of starting their own B quadrant business, their minds shift from hard work and physical limits to the possibility of unlimited wealth. All it takes is the idea-and we are in the Age of Ideas. I am not suggesting that such people quit their job and leap into starting a company. But I do suggest that they keep their full time job and consider starting a business part-time.
CULLED FROM GUIDE TO INVESTING.
Three Ages
In the Agrarian Age, the rich were those who owned a castle that overlooked large tracks of fertile agricultural land. These people were known as the monarchs and the nobles. If you were not born into this group, you were an outsider with very little chances of becoming an insider. The 90/10 rule controlled life. Therefore, the 10%who were in power were there because of marriage, birth, or conquest, the other90% were serfs or peasants who worked the land but owned nothing.
During the Agrarian Age, if you were a good, hardworking person, you were respected, the idea of being diligent was handed down from parent to child .it was also when the idle rich began to be loathed-90% of the people worked to support the other 10%, who appeared not to be working .that idea was also handed down from parent to child. There Ideas continue to be popular and are still handed down from generation to generation.
Then came the Industrial Age and wealth shifted from agricultural land to real estate. Improvement such as buildings, factories, warehouses, mines, and residential homes for workers were placed on top of land…improvement. Suddenly, rich fertile agricultural land dropped in value because the wealth shifted to the owners of the buildings upon the land. In fact, an interesting thing happened. Suddenly, rich fertile land became less valuable than rocky land, where farming was difficult. Rocky land suddenly became more valuable because it was cheaper than fertile land. It could also hold taller building such as skyscrapers, or factories, and it often contained resources such as oil, iron, and copper that fueled the industrial Age. When the shift in ages occurred, many farmers` net worth went down, to maintain their standard of living, they had to work harder and farm more land than before.
It was during the industrial Age that the ‘’Go to school so you can find a job’ idea became popular. In the Agrarian Age, a formal education was not necessary since professions were handed down from parent to child; bakers taught their children to be bakers, and so on. Near the end of this era, the idea of ‘’a’ job, or the idea of one job for life, became popularized. You went to school. Got that one job for life, worked your way up the corporate ladder or up the union ladder, and when you retired, the company and the government took care of your needs.
In the Industrial Age, those not of noble birth could become rich and powerful. Rages-to)
-to-riches stories spurred on the ambitious. Entrepreneurs started with nothing and become billionaires. When Henry ford decided to mass-produce the automobile, he found some cheap rocky land that farmers did not want near a small town known as Detroit, and industry was born. The ford family become, in essence, the new nobility, and anyone around them who did business with them also become the new, rich nobility. New names became prestigious as those of kings and queens-names such as Rockefeller, Stanford, and Carnegie. People often respected as well as despised them for their great wealth and power.
In the industrial Age, as during the Agrarian Age, however, only a few controlled most of the wealth. The 90/10 rule still held true simply because it took great effort and coordination as well as a lot of money, people, land, and power to build and control the wealth. For example, to start an automobile company or an oil or mining company is still capital intensive, it takes massive amounts of money, lots of land, and smart formally educated people to build that type of company. On top of that, you often must get through years of bureaucratic red tape-such as environmental studies, trade agreements, labor laws, and so on-to get such a business off the ground. In the industrial age, the standard of living went up for most people, but the control of real wealth continued to remain in the hands of a few. The rules have changed.
THE 90/10 RULE HAS CHANGED
When the Berlin Wall came down and the World Wide Web went up, many rules have changed. One of the most important rules that changed was the 90/10 rule. Although its or the opportunity to join that 10% has changed.The World Wide Web has changed what it costs to join the 10%.Today, it does not take being born into a royal family as it did in the Agrarian Age. It does not require massive sums of money, land,and people to join the 10%.The price of admission today is an idea,and ideas are free.
In the information Age, all it takes is information or ideas to become very, very wealthy. It is therefore possible for individuals who are financially obscure one year to be on the richest people in the world the next. such people often fly past individuals who made their money in the ages gone by. Collage students who have never had a job become billionaires. High school students will surpass their collage student will surpass their collage student counterparts.
In the early 1990’s, I remember reading a newspaper article that said,’’ Many Russian citizens complained that under the communist rule their creativity was stifled. Now that communist us over, many Russians citizens are finding out they had no creativity.’’ Personally, I think all of us have a brilliant creative idea that is unique to us, an idea that could be turned into an asset. The problem for the Russians, as it is with many citizens all over the world, is they did not have the advantage of my rich dad’s guidance in teaching them to understand the power of the B-1 Triangle. I think it is very important that we teach more individuals to be entrepreneurs and how to take their unique ideas and turn them into businesses that create wealth. If we do so, our prosperity will only increase as the information Age expands around the world.
For the very first time in world history, the 90/10 rule to wealth may no longer apply. No longer does it take money to make money. No longer does it take vast tracts of land or resources to become rich. No longer does it take friends in high places to become rich. No longer does it matter if your relatives came over on the MAYFLOWER, it does not matter what university you went to, or what sex, race, or religion you are part of. Nowadays, all it takes it takes is an idea, and as rich dad has always said, ‘Money is an idea.’ For some people, however, the hardest thing to change is an old idea. There is an old truth to the saying ‘You cant teach an old dog new tricks’ I think a more accurate saying is ‘You cant teach someone who clings to old ideas new tricks, regardless of if they are young or old.’
………………..when people simply consider the idea of starting their own B quadrant business, their minds shift from hard work and physical limits to the possibility of unlimited wealth. All it takes is the idea-and we are in the Age of Ideas. I am not suggesting that such people quit their job and leap into starting a company. But I do suggest that they keep their full time job and consider starting a business part-time.
CULLED FROM GUIDE TO INVESTING.
Monday, October 13, 2008
Who are you taking advice from?
A lot have taken place in the economies of different Nations recently.
Blames and counter blames are traded by all and sundry. Many blames the insensitive government, many the politicians, many the economy regulators, while many are on the fence about the whole issue.
Intrestingly the situation on the ground right now seems as if all proffered solutions are not workable. Many of the acclaimed market analysts who are few months ago termed demi-gods are more confused as they are now of the opinion that contradicts what they said earlier on.
Now, who do you run to?
Ask yourself, if your leader can get confused, is he ok to lead.
I can tell you, what we are seeing now is a blessing in disguise.
Mistakes must have been made, but they are easy routes to destinations. America was discovered when the founder was looking for another route. Richard Branson found Virgin airlines when his flight was cancelled and he chartered a flight and sold the remaining seats to other passengers.
If you are keen on investing, review your plans, think buy low sell high.
I remember the story of Joseph in the Bible, seven long years of prosperity followed another seven years of drought. It was the knowledge of storing the excess of today for the expected scarcity that kept the nation of Egypt alive.
Borrowing a leaf from the above, the reverse is the case.
Stocks naturally goes up and comes down. Any analyst telling you that so, so or so are wrong must be doing you a disservice.
Its time to buy good stocks at penny price.
Do not miss it!
Blames and counter blames are traded by all and sundry. Many blames the insensitive government, many the politicians, many the economy regulators, while many are on the fence about the whole issue.
Intrestingly the situation on the ground right now seems as if all proffered solutions are not workable. Many of the acclaimed market analysts who are few months ago termed demi-gods are more confused as they are now of the opinion that contradicts what they said earlier on.
Now, who do you run to?
Ask yourself, if your leader can get confused, is he ok to lead.
I can tell you, what we are seeing now is a blessing in disguise.
Mistakes must have been made, but they are easy routes to destinations. America was discovered when the founder was looking for another route. Richard Branson found Virgin airlines when his flight was cancelled and he chartered a flight and sold the remaining seats to other passengers.
If you are keen on investing, review your plans, think buy low sell high.
I remember the story of Joseph in the Bible, seven long years of prosperity followed another seven years of drought. It was the knowledge of storing the excess of today for the expected scarcity that kept the nation of Egypt alive.
Borrowing a leaf from the above, the reverse is the case.
Stocks naturally goes up and comes down. Any analyst telling you that so, so or so are wrong must be doing you a disservice.
Its time to buy good stocks at penny price.
Do not miss it!
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