What N50,000 Investment in Stocks Can Give You
Some stocks in the equities market are trading below N5 per share. Stockbrokers told MarketForces Africa that the essence of stock trading is to trade highs and lows.
Each price movement signal either entry or exit points or huge numbers of local investors are cashing out while others are waiting buy.
Investing in stocks is a risky adventure but it always worth taking. On its own, life is also risky and those that make millions or billions are nothing less than risk takers.
If you are not trading shares on the Nigerian Exchange true your devices from various investment and stockbroking firms, you are not anywhere under the current market conditions in the country.
Check it, no one has ever become rich without appetite for taking risk. Even gamblers, lottery players and ‘naija bets’ investors are taking a rather too strong risk in the investment environment.
If you are a kind that like to test the water before you dive in, N50,000 can get you 10,000 shares at least to check what you are up and against as investor on the Nigerian Exchange.
While you N5000 can get you less than 23 units of Airtel Africa, it can still get you at least 75 units of Dangote Cement Plc.
Airtel Africa is dividend paying and less volatile stock with thin trading which may cap your capital appreciation but rest assurance something, no matter how small will come to you in term of dividend payments.
If you want to buy GTBank in the market, the amount can get you 1000 units while MTN Nigeria will be willing to give you more than 230 shares.
For GTCO, past recorded showed that the orange brand financial services group has been a top performer. GTCO will distribute dividend to you and you will see price appreciation depending on the market temperature.
MTN Nigeria Plc will pay you dividend irrespective of whatever that is happening at the telecom sector. The company has standard dividend policy like major market movers on the Nigerian Exchange.
Why not try Honeywell Plc. The food company can comfortably give you more than 15,000 shares. The advantage investors have here is that when the stock price surge, it has massive impacts on your returns.
But don’t be so sure that you will always have an uptrend pattern. For dividend, Honeywell Plc hasn’t proven to be bad investment options despite market uncertainties.
If you want plenty shares, there are companies selling below N2 per share. Mostly, insurance stocks are trading within the range. While you are trying to take position, it is important for you to know if you will be able to get out when you want to sell.
That’s liquidity. It is not all stocks that have it. Here is where your stockbrokers’ advice comes to play. But in all, it is not all too risky as their movement is like thunderbolt. It hit the deep and pushed your gain higher than most of the bellwether in the market.
But these cheap stock may halt momentum for a long time, maybe mild trading activities can nudge their price higher or even lower depending on investor’s sentiment at the time.
These stocks are cheap
Abbey Mortgage is N2.70, you can get as much as 18,518 shares
ABC Transport is less than N1, you can get more than 50,000 shares
Academy Press share price is less than N2, you can get more than 25,000 shares
AIICO Insurance is cheap, you can get more than 40,000 shares
Chams Holdings PLC was N2.11 and you can get enough to play with,
Cornerstone Insurance is less than N2, you can get more than 25,000 of it.
CIleasing is N3.10, and you can get enough to play with in the market.
Custodian Insurance Plc is N10 per share, you can as much as much 5000 units.
Etransact is N5 per share, investors can test drive with this, getting 10,000 unit wont be a bad idea. Kuramo Capital Names as Fund Manager for Nigeria Wholesale Impact Investment Fund
