Comeback

Sorry its being a while,I have been busy,I hope I will be able to update you as regards my positions.Presently I am in Sterling bank,Platinum and Aiico,am also considering firstbank and Zenith seriously,when I am chanced i will update my charts,this is the best time to make money in NSE,pls dont miss out.Merry Xmas

Investor's Sentiment Part 1

First of all, when people talk about investor sentiment, or market sentiment, they are referring to the aggregate attitude in the investment community. Essentially, investor sentiment is an approximate measurement of the stock market's attitude at a given time - it could be overly bullish, bearish, or somewhere in the middle. This type of analysis would usually be employed by a short-term trader or technical analyst trying to reap profits from short-term movements in stock prices.
In the analysis of securities to trade,the most important thing to consider after considering other things is the investor's sentiments.No matter how sound your analysis is both fundamentally and technically if you refuse to consider what investors are doing then you might be in for a goof,for instance my analysis of first inland and flour mills was faulty due to partial lack of investor's sentiment on these stocks but i have rectified that.
Infact it has being found that traders who had a background in psychology are better traders because they can study human behaviors to trading(investor's sentiment inclusive).
How to decipher investor's sentiment
Knowing investor's sentiment requires skill and research,in my own opinion every sentiment is based on either experience or information,for instance the financial statement is an information that determines bias,the charts are also pictorial information that investor's can use to determine their bias(whether to be long or short).
In part 2 I will discuss how technicals and fundamentals reveal investor's sentiment.

Update

I will like to apologize for not updating this blog,I have got many thing on my hands and alot of research has also being going on to fine-tune my analysis.
The first inland trade and flour mills trade was a technical goof,the only advantage is we can turn it to long term.
I will try my best to always update the blog as at when due,thank you

Flourmills Analysis

Background:

Flour Mills of Nigeria Plc (FMN) is one of the largest and most successful industrial conglomerates in Nigeria.

The Company’s activities span flour milling, pasta manufacturing, port operations, cement trade & manufacturing, fertilizer blending, bags & other packaging materials manufacturing and agricultural business.

Since its incorporation in 1960, FMN has not only survived all macroeconomic challenges but also grown into a market leader with popular and highly recognizable brands, an extensive distribution network, a turnover in excess of N90 billion (USD 700 million), strong profitability, healthy Balance Sheet and a highly skilled workforce.

FMN has been listed on the Nigerian Stock Exchange since 1978. With a broad ownership base of approximately 67,000 shareholders, it is constantly ranked amongst the top 25 companies in terms of market capitalization. In 2005 the Company successfully completed a N5.24 billion (US$40.7 million) rights issue which was oversubscribed by 8%.

FMN group employs approximately 5,200 staff with diverse ethnic, cultural and religious backgrounds who work harmoniously together to deliver superior value to Nigerian consumers nationwide.

Analysis:

Looking at the chart attached,we see that the price is in a downward range,with the downward channel in place price tested labelled areas 1 and 2 before going south,tested 3 and went up to 4 before going down to 5.
If you observe the movement,that its ranging and going down.Presently price touched 5 and its moving up(the circled area consist of a reversal candle),we are looking to catch the move up.Also if you look at the second attachment price is turning at a resistance(turned to support) of 12/7/2002 as seen below.




Recommendation/Conclusion:

- Buy flourmills at the present price and our first target will be 40 naira,personally this is a good price to buy.




Any question/suggestion please send a mail to lordgbengs@gmail.com .
Disclaimer: Use of recommendations cited on this blog is at personal monetary risk, the owner of the blog does not accept loss as a result to the use of this information

New Season/Update

Happy New yr to everybody,we hope this year will bring better ROI(returns on investments),Concerning the wapco Trade we can exit now or sell 80% of our position,but for the first inland we hold it.