05/15/2012   Close Prices:    |  7UP 0.00 41.70 41.70 |  ABCTRANS 0.00 0.50 0.50 |  ACADEMY 0.00 1.90 1.90 |  AGLEVENT 0.00 1.17 1.17 |  AIICO 0.00 0.51 0.51 |  ARBICO 0.00 26.00 26.00 |  BAGCO 0.09 1.85 1.94 |  BECOPETRO 0.00 0.50 0.50 |  BERGER 0.14 8.86 9.00 |  BOCGAS 0.00 6.00 6.00 |  CADBURY 0.70 15.00 15.70 |  CAP 1.00 24.30 25.30 |  CAPHOTEL 0.00 6.78 6.78 |  CAPOIL 0.00 0.50 0.50 |  CCNN 0.00 5.01 5.01 |  CHELLARAM 0.00 6.43 6.43 |  CILEASING 0.00 0.50 0.50 |  CONOIL 0.00 25.46 25.46 |  COURTVILLE 0.00 0.50 0.50 |  CRUSADER 0.00 0.50 0.50    Top Losers:    | ACCESS -0.20 6.87 6.67    | ASHAKACEM -0.01 11.01 11.00    | CONTINSURE -0.02 0.78 0.76    | DIAMONDBNK -0.11 2.99 2.88    | ETERNAOIL -0.15 3.23 3.08    | ETRANZACT -0.22 4.47 4.25    | FCMB -0.25 5.25 5.00    | FIDELITYBK -0.04 1.31 1.27    | FIRSTBANK -0.47 11.10 10.63    | GUARANTY -0.38 16.25 15.87    | IKEJAHOTEL -0.05 1.15 1.10    | INTBREW -0.29 5.92 5.63    | MAYBAKER -0.01 1.42 1.41    | NAHCO -0.09 6.59 6.50    | NEIMETH -0.03 0.68 0.65    | REDSTAREX -0.01 2.70 2.69    | SKYEBANK -0.17 3.50 3.33    | STERLNBANK -0.05 1.25 1.20    | UBA -0.10 4.00 3.90    | UBN -0.23 4.75 4.52

Investment Tips

Investment Tips for Every Age

Never Invest more than You can Afford to Lose:

Since micro cap stocks are highly risky, only a small percentage of your assets should be committed to micro cap stocks. Consult a professional licensed financial advisor (e.g. Marina Securities Ltd) if you are unsure about a suitable amount to invest in this high-risk end of the market.

Be Prepared to Invest With at Least a One to Two-Year Time Horizon:

While one month might seem like an eternity to a "short-sighted" investor, one year is a merely a small fragment in the life cycle of a successful company. An investor who bought into a firm like Nestle in September 2003 at N92.50 per share would have recorded about 300% returns if sold at N347.14 per share in first half this year in addition to dividend paid within the investment window.

Learn to Accept Losses:

There is a much higher failure rate among micro cap companies. Successful micro cap investors need to develop the capacity to tolerate a loss. You must be secure in the knowledge that a few really large winners will result in success.

Most unsuccessful investors become pre-occupied with their mistakes, Rather than accept responsibility and moving on, they blame their broker, analysts, company management. Successful investors expect losses and learn to manage them. Most successful investors enjoy the process of investing as much as they enjoy making money.

Stocks can go up infinitely, but they can only go down to zero. Investing for the long-term in a micro cap stocks provides upside potential much greater than the downside risk. Cut your losses. Let your winners run

Take Profits When a Stock is Making a Dramatic Move Higher:

There is nothing wrong with locking in a profit when your stock is climbing the charts. One effective and recommended strategy is to sell 50% of your position after a stock doubles in value.

This allows you to recoup your initial investment and hold the remainder for the long term with no risk. However, don't sell your entire position. You never know how high a stock will go, so don't lose your entire position too soon.

Learn to Tolerate Bear Markets:

Small and Micro cap stocks may trade higher or lower than you might have thought possible. We go through extended periods of time when market conditions are unfavourable for small and micro cap stocks. This can be psychologically damaging to undisciplined investors.

These issues generally trade less volume than their mid- and large cap counterparts, allowing market makers to adjust price levels to favorable extremes in both up and down markets.

The absence of buyers in small and micro cap stocks during a bear market enables market makers to lower prices on little volume. High percentage pullbacks on light volume can create excellent buying opportunities.

Balanced Approach

Rarely does someone get rich sitting on the sidelines. You have to get in the game to achieve your long-term goals. Ignore the pessimism that surrounds short-term disappointments and develop a strategy that helps you achieve your financial goals.

Invest in Quality

We believe in recommending quality investments that have stood the test of time. Although it may not be as exciting as the latest trend everyone is talking about, our research shows that they're usually less likely to disappoint our clients.

Diversify, Diversify, Diversify

Since we have yet to meet anyone who can predict the future, we believe it's important to diversify across a range of industries in a variety of investment types from growth stocks to blue chips. Owning different types of investments can help to reduce risk and potentially increase returns within your investment portfolio.

Think Long Term

We believe that what matters is time in the market, not timing the market. In other words, we recommend that instead of jumping in and out of investments to try for huge gains, it's more important simply to be in - and stay in - the market for the long haul.

Conclusion

While no one can predict exactly what will happen in the future, we feel at Marina Securities Limited we don't need to see the future to help you invest wisely today. By sticking to principles like these, we believe it's easier to overcome the ups and downs of the market.
Nigeria Capital Market The Nigeria Capital Market

The Nigeria’s financial market, like any other financial market in the world is made up of the capital market and money market.

These are market where both long term and short term funds are raised to implement various economic or business activities. The Capital Market is the long-term end for financial market. It is made up of market and institutions, which facilitate the issuance and secondary trading of long-term financial instruments.

Unlike the Money Market, which functions basically to provide short term funds, the Capital Market provides funds to industries and governments to meet their long-term capital requirements, such as financing for fixed investments - buildings, plants, bridges at cetera.

Why the Capital Market ?
  • Provision of an additional channel for utilising domestic savings for productive investment
  • Provision of alternative to bank deposits, real estate investment and the financing of consumption loans.
  • Making available to depositors a better protection against inflation and currency depreciation.
  • Foster the growth of the domestic financial services sector and the various forms of institutional savings such as life insurance and pension funds.
  • Improves the gearing of the domestic corporate sector and helps reduce dependence on borrowing.
  • Provide access to finance for new and smaller companies and encourage institutional development in facilitating the setting up of Nigeria’s domestic funds, foreign funds and venture capital funds.
  • The summary of the above functions is that the Nigerian Capital Market helps to stimulate industrial as well as economic growth and development of the Nigerian economy.
Instruments of the Capital Market

Capital Market includes:
  • Equities - Ordinary Shares and Preference shares
  • Debt - Government Bonds (Federal, States and Local Governments)
  • Industrial Loans/Debenture Stocks and Bonds
The Structure of the Capital Market The Nigeria’s capital market is categorised into:
  • Primary market
  • Secondary market
Primary Market This is a market where new securities are issued. The mode of offer for the securities traded in this market includes offer for subscription, right issues, offer for sales and private placements.

Secondary Market

This is the market for trading in existing securities. This consists of exchange and over the counter market where securities are bought and sold after their issuance in the Primary market.

Intermediaries the Capital Market
  • Stock broking firms
  • Issuing Houses
  • Registrars
  • Audit Firms
Accessing the Capital Market

For individuals wishing to invest in the Capital Market in form of buying shares, what they need do is to consult a Stock broking firm (e.g. Marina Securities Limited) and register with the broking firm.

The Nigerian capital market has witnessed a significant growth in the last eight years. The economy generally has benefited from different economic reforms of the past administration. The commitment expressed by the present administration to sustain the economic reforms is also noteworthy.

Project Financing through Capital Market

There are several projects that could be financed through active involvement in stock market. These projects could be short term or long term. They include:
  • Educational Programme (Tuition Payment)
  • Capital projects (e.g. Building)
  • Raising Initial Capital for Investment
  • Planning Retirement
  • Financing of Short Term Social and Economic Responsibilities ( e.g. family needs)