BUYING TO HOLD

HELLO THERE, I HOPE YOU HAVE BEEN DOING GREAT? WELL LETS CONTINUE OUR SERIES ON INVESTMENT. WE TALKED LAST ON SPECULATIVE BUYING WHEREBY ONE BUYS TO SELL WHEN THE PRICE IS FAVOURABLY HIGHER THAN WHAT WE BOUGHT AND REMEMBER WE SAID THE PERIOD TO HOLD BEFORE ONE SELLS, IS NOT FIXED. GOOD.
LET'S SEE THE REPORT FROM CASHCRAFT RESEARCH TEAM BEFORE WE GO ON.
There was not much difference in the market today when compared with yesterday’s trend;
the number of gainers dropped from 51 of yesterday to 44 today, while 44 stocks lost and 46
remained the same. The All-Share index rose very insignificantly by 0.0095% against 1.576%
of yesterday and Market capitalization gaining N562.302 Million as against N91.359 Billion of
yesterday.

The market seems to be moving towards full stability, though it will be gradual. Certainly market had experienced its worst so better days should be expected hence forth. The much acclaimed potential of the market to boost investors’ returns will be showcased as more impressive results are released with fantastic returns declared. This will surely bring more players into the market while the existing participants get renewed interest.

Besides, the ongoing Central Bank audit of banks when completed will do market a lot good as the true nature of the banks will be made known and it will be expected that at the end of the audit no bank should have too much toxic assets in their books; the uncertainty beclouding the banking sector would have been cleared. So, discerning investors may begin to take strategic positions in stocks with strong potential for good returns.


TODAY, LETS LOOK AT ANOTHER FORM. SOMETIMES WHEN WE SAVE MONEY IN THE BANK WE END UP USING THEM IN A WAY WE DID NOT PLAN BUT ONE WAY WE CAN SAVE FOR A LONG TERM WITHOUT USING THE MONEY IS TO BUY SHARES OR LAND. THIS IS BUYING TO HOLD. YOUR INTENTION IS TO KEEP FOR AS LONG AS POSSIBLE, SAY 10YEAR ETC. SO WHEN DOING THIS TYPE, ONE HAS TO CONSIDER THE FOLLOWING. IF IT IS SHARES, ONE HAS TO CONSIDER THE COMPANY AND THE OWNERS BEFORE BUYING. WHAT IS THEIR TRACK RECORD IN TERMS OF PROFIT, DIVIDEND AND SCRIPT ISSUES? WHO ARE THE POEPLE MANAGING THE COMPANY AND WHAT ARE THEIR TRAITS? ARE THEY DUBIOUS OR NOT? THE PRODUCTS OF THE COMPANY IS IT SOMETHING THAT THE DEMAND WILL CONTINUE TO BE THERE? IE IS IT SOMETHING THAT PEOPLE CANNOT DO WITHOUT? OR IN THE NEXT TEN TO TWENTY YEARS, WILL THIS COMPANY STILL BE EXISTING? IF YOU CAN GET POSITIVE ANSWERS TO THIS QUESTION THEN YOU BUY INTO THOSE COMPANIES, AS THE YEARS PROGRESS, YOU WILL SEE YOUR CAPITAL INCREASE. HOW? YOU MAY ASK. AND I WILL SAY THIS. LETS TAKE FOR EXAMPLE YOU MAKE A PURCHASE OF 10,000UNITS OF FIRSTBANK @ N20 PER SHARE BY THE NEXT YEAR FIRSTBANK GIVES A SCRIPT ISSUE OF 1:2 MEANING FOR EVERY 2UNITS U HAVE YOU GET ADDITIONAL 1UNIT. YOUR TOTAL UNITS BECOMES 15,000UNITS AND SINCE THEY GIVE EVERY YEAR, AT DIFFERENT RATIOS, IT MEANS YOUR UNITS INCREASES WITH INCREASE IN YEARS AND SO IS THE WORTH OF THE SHARES AND THIS IS ASIDE THE DIVIDEND YOU GET.......I GUESS YOU ARE GETTING WHAT I AM SAYING?

FOR LAND YOU HAVE TO CONSIDER THE SECURITY OF THE LAND AND THE TRUE OWNERSHIP AND THEN YOU HAVE TO CONSIDER IF THE AREA IS STILL OPENING UP OR STILL DEVELOPING REASON BEING THAT THE PRICE WILL APPRECIATE WITH TIME IF IT IS A DEVELOPING AREA. TAKE FOR EXAMPLE A PLACE LIKE YENAGOA THE CAPITAL OF BAYELSA STATE NIGERIA. YOU SEE THAT IT IS STILL UNDERGOING DEVELOPMENT AND AS SUCH THE LAND BUSINESS IS HAVING HIGH PROSPECTS FOR BOTH SPECULATORS AND THOSE BUYING TO KEEP.

WELL WE WILL CONTINUE LATER ON THIS. REMEMBER YOU CAN BUY FOR SPECULATIVE PURPOSE OR TO HOLD BOTH FOR REAL ESTATE OR FOR SHARES AND YOU CAN ALSO KNOW MORE BY CALLING AKATA 08055816625 FOR SHARES AND TO ADVERTISE OR SUBSCRIBE TO BottomLINE BUSINESS NEWSLETTER OR CHRISTIE 07032335367 FOR REAL ESTATE IN YENAGOA.