Buy into the Capital market for 3 months from November

Posted by Felix Okoli on Tuesday November 15, 2011 9:27:27:

If you have some capital now to put away as a form of investment, one good way you can use it to make some money by 2012 is buy buying Nigerian shares from the NSE. Most stock prices are now selling at rock bottom prices but it is not just that we are considering. We also have to look at their profitability and viability for the short and long term. Normally, the best time to buy shares from a capital market is towards the end of the year and then wait for it to appreciate after the new year.
This is the same procedure with the Nigerian capital market and although share prices and performance have really been disappointing over the years, you can still make some good money from it if you really know when to buy and sell and that's how a lot of stockbrokers in Nigeria also make money apart from their commissions. You don't have to buy or sell at the wrong time but if you ask me if November is the right time to buy, then I would say Yes.

What companies should you buy into?
Well there are quite a lot but let's take a look at the ones that are most active and can give you some profit for the 1st quarter of 2012. A good example if Access bank plc now priced at about N5. They've just recently taken over Intercontinental bank which has a lot of branches, good name and can help increase Access bank's profitability. Access on its own has a good balance sheet and still liquid enough to continue as a going concern. Chances are that the share price could reach N8 to N10 by March 2012 when you consider other factors like govt policy and annual inflation. Another company you can buy into is Fidelity bank as their motto says "We keep our word". It seems Fidelity bank has a crop of share holders who are not too greedy or involved in cosmetic accounting as they keep a good balance sheet and passed the CBN test on banks earlier on. Fidelity bank's share is currently at about N2 and chances are that it could reach up to N5 by March 2012. So Fidelity and Access are good stocks to buy by November.

There are still a lot of other companies and shares to buy from the Nigerian stock exchange. Just decide on which ones to buy, meet with your stock broker and make the deal. Your hundreds of thousands could turn to millions by 3 months time if things work right.