SOME USEFUL ADVICE FOR NEW & SMALL INVESTORS

1. Best Way To Start:
Though I don't know how much you want to start with, but as a new or small investor, it is better to start in a way that will minimize cost to you. I will advice you to start with public offers. In this way, you will not pay commision to anybody. Another thing, it will be easy for you to manage. If your portfolio grows then you can start buying through the secondary market.
2. Buying Strategy: If you are saving and investing i.e. buying on regular intervals, say monthly, quarterly or yearly for long term. Then it will not be easy for you to be buying shares of different companies each time you want to invest. If you continue like that, in five to ten years time you will not be able to monitor the perfomances of the numerous companies. There is nothing wrong in buying more shares of a company you already had in your portfolio e.g. I bought fidelity bank in 2005 at N2.50 and bought it again in 2007 at N8. I also bought oceanic bank in 2004 at N5.30 and bought it again in 2006 at N16.50. So there is nothing wrong in buying more shares of companies you already own their shares. It will even help you to minimize cost.
3. Bank Account: As an investor in the nigeria stock market, you are required to maintain a current account in the event you want to sell your shares or receive a dividend warrant. If you sell your shares, you will only be paid with a cheque which you can only pay in a current account, the same for dividend warrant. To save cost, you can now pay in cheques into special savings account like ESA A/C BY OCEANIC BANK, IPSA A/C BY INTERCONTINENTAL BANK. Other banks has similar accounts with different names. Just ask and compare their terms. With this savings a/c, you will not pay C.O.T and the opening procedure is not cumbersome as current a/c.
4. Regular Signature: In a situation, your share certificate is misplaced, missing or with incorrect information, the only remedy is to go to the register representing that company. The first thing they will request from you is your signature. And the moment it is not the same with the one in their computer, they will request bankers confirmation.You have to understand that bank confirmation cost between N2500 to N5000 depending on the bank.As a small investor, such an amount will not be easy for you. There were cases of people paying N5000 for an investment that worths N5000. Please, to avoid such, make sure you signed that signature you are used to. Also always photocopy the application forms of any public offer or private placement you buy. You should do the same with CSCS form. With photocopies you can easily refer back in case you are not sure. If you don't have a regular signature, it is better for you to use thumb print and initials. It is better than paying N5000. You can also consult a stock broker for more advice.

HOW TO BUILD A FORTUNE INVESTING IN STOCK

In our life's endeavour we work, sells, e.t.c. to make a living or to add to what we already have. But in stock market we are multiplying our money.
Stock market gives you the easiest route to financial freedom. It gives you the opportuinity to participate, no matter your income level.
TO LEARN HOW TO USE STOCK MARKET TO BE FINANCIALLY FREE, then order my manual " HOW TO BUILD A FORTUNE INVESTING IN STOCK MARKET " it comes with 2 months mentorship. you can contact me through my email : wealthmag08@gmail.com

PENNY STOCK REPORT

Penny stocks are lowly priced stock, normally below N5 in the nigeria stock exchange. Some of these stocks are yesterday's blue chips, but due to one problem or the other, their prices was pushed down to penny stock level. Some on the other hand are small companies that are just coming to the market.
As any informed investor will tell you, penny stock are risky. Some of the companies are struggling financially. But as peter lynch said, "stock market is like a gamble,you only manage to tilt the odds in your favour". So, as pennystocks carries a big risk I will quickly add that it is highly profitable if you know how to pick a promising ones. Now lets see how you can spot a promising pennystock when many people are not looking in their direction.
HOW TO SPOT A PROMISING PENNYSTOCK
1. Restructuring programme:
Any pennystock company that is restructuring is worth looking into. The reason being that they are trying to fix an identified problem. e.g. UTC, UAC, JOHN HOLT.
2. New Investors:
For somebody or group of people to stake their money and manpower in a moribund company means they have strong believe and vision to take that company to the next level. e.g. ACCESS BANK, CHAMPION BREWERY.
3.Capital Injection:
Many pennystock companies are only suffering from lack of capital. Once they are able to come to the capital market to raise long term fund in the form of public offer, right issue or debenture stock, they will pick. And this will translate to increase earnings.
4. New Technology:
Our world is dynamic and so is the way we do things. There may be smart entrepreneurs with access to new innovatic products or services that may change the way certain things are done for the better.
5. Growth Trend:
If the stock is having upward growth in all its indices for sometime, then the stock is likely to do well.