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INVESTORS’ SPEAK: How to manage risk of investment in shares

Mr. Samuel Iserhien:
By nature, the capital market is highly risky. And that is why some people call it a gambling exercise, but I am telling you that every investment, be it in the capital market, in housing, construction and others are kinds of gamble.

Nevertheless, profit potential is worth risk taking. But still, the higher the profit potential, the higher the risk. In other words, if you are expecting high gain, you must be able to take high risk.

In the last one year, the market has been interesting, most especially because of the recovery from the huge losses experienced between 2008 and 2010 when the market recorded a collapsed. But in the past one year, those who still held on to their stocks were able to regain part of the losses.

Some of the stocks have even risen beyond the point they were before the crises of those years. For instance Nestle was never as high as N200 in the good days like 2006, but currently, Nestle is now selling between N950 and N1000 ,the same can be said of Unilever, UAC and Cadbury.

Though Cadbury rose up to N60, at a time, but you know it fell to as low as N8 in 2009. But today, it is around N60. So, such stocks have actually risen very high even higher than they were in the good days before the crisis.

Today, the only sector that is appreciating at a slow pace is the banking sector. I will say that it is sluggish, but the fact remains that the market is currently recovering from the downturn. And this is the right time for those who have the money and are willing, should go and invest in the market.

Mrs Oteh
Mrs Oteh

But to reduce their level of risks and errors, they need to invest on expert’s advice, because they can’t just go in like that and be victim of some of the risks. Therefore, they need to look for an expert, most especially a stockbroker for advice and if possible look for other reputable sources where they can get enlightenment about the happenings in the market.

I think some of the point that one needs to understand before going into the market is to know about the company he wants to invest in. Ensure you are aware of their performance, financial record and statements, their annual reports, their chairman and director’s statements and see what they are forecasting in relation to the general economy situation.

If after looking at all these you are convinced that the company is heading towards a good time of huge performance and good profits, and then you can join in holding a part of their shares.

COMPLAINTS AND INVESTIGATIONS

I need a stock broker in Calabar
How can I locate a registered stockbroker in Calabar, Cross River State? (Asuquo Ene)

Investors Forum
Check the website of the Nigeria Stock Exchange (www.nse.com.ng) for list of registered stock brokers.

I need information on First Inland Bank
I bought shares from First Inland Bank plc at Awka in Anambra State since 2008. But ever since then, no certificate or dividend was given to me. I even opened a CSCS account as the bank instructed me to do, but all to no avail. I am beginning to get confused. I bought 200 units at rate of 19,000 that is 8,500 per unit. (Adinde Chukwuemeka).

Investors Forum
You need to tell us the shares of the company you bought. If it was the shares of First Inland Bank that you bought from one of their branches, then you should contact the registrar of FCMB, the bank which acquired First Inland Bank. However, we suspect foul play as the shares of First Inland Bank was never sold as high as N95 per share. The registrar of FCMB is City Securities Limited. The address is Primrose Tower, 2nd Floor, 17A Tinubu Street, Lagos. Tel: 234-1-2641298, 234-1-7924462.

No dividend from Zenith, Union and AIMs
I have shares in Zenith Bank and Union Bank, but since 2010 I have not received any dividend. Also, I invested N1.5 million with an investment company called AIMs Asset Management Company some time ago. I visited their office and they were not there. I fear that they have folded up. (Egbulem Chukwudi Clement)

Investors Forum
For your investment in Zenith Bank, contact Zenith Registrars Limited at Plot 89 Ajose Adeogun Street, Victoria Island Extension, Lagos.  Tel: 234-1-2708930-4. E-mail: enquiry@zenithregistrars.com. For Union Bank, please contact Union Registrars Ltd at No. 2, Burma Road, Apapa, Lagos. Tel:  2793160 – 2; 0700 826 7341.  The contact of Aims Asset and Management is 23, Ajao Road, Off Adeniyi Jones, Ikeja. Tel: 2347029523916, 8095988382; Email: aims@aimsassetmgt.com.

No communication from Oando
For four years, no dividend or report has been paid to me on my investment in the shares of Oando.  Kindly verify for me why my annual reports and dividend from Oando were not sent to me for almost five years now (Ekanem, Mfon Udoh )

Investors Forum
Please contact First Registrars, Plot 2 Abebe Village Road, Iganmu or call  08033018295, 08191410456

No dividend from First Bank
No dividend from First Bank, I have shares with First Bank of Nig Plc, but I have not been able to get my dividend since 2011. Help me find out why it is so (Ogbolo O. Francis)

Investors Forum
Please contact First Registrars, Plot 2 Abebe Village Road, Iganmu or call  08033018295, 08191410456

I want to recover Oceanic Bank dividend
I have shares in Oceanic Bank, now Ecobank, and I am having dividend of Oceanic Bank of Oceanic Registrar and I want to change it to Ecobank dividend.

Investors Forum
Oceanic Registrar was merged with ESL Registrars Limited (the registrar of Ecobank Plc). Your unclaimed dividend should still be valid. So, contact ESL Registrars at  16/A Rauf Taylor Close, Off Idego Street, Victoria  Island, Lagos  or call 01-7301260

Is Zenith Point Capital genuine?
Is Zenith Point Capital Investment Limited in Minna a genuine company?  (Yakubu)

Investors Forum
Our investigations did not reveal any registered stockbroker, or dealer with the name of the company.

How can I reclaim unclaimed dividend
I have shares with UBA and Diamond Bank, but I have not been able to get my  dividend since I bought them in 2005. I have my share certificate with me.  How do I recover the unclaimed dividend from UBA and Diamond Bank?  Please sir, help me find out what the problem is. Also, I bought Mutual Benefit Assurance Plc shares during its I.P.O,  but up till now, I  have not received  my share certificate. (Tommy Esegbona)

Investor Forum
For your investment in UBA, contact Africa Prudential Registrars Plc at 220B,  Ikorodu Road, Palmgrove, Lagos. You can call 01-8401153, 01-8931501,  and 01-4606460 or send message to info@africaprudentialregistrars.com. For Diamond Bank contact Centurion Registrars Limited, via 59, Ogunlana Drive Surulere, Lagos.  Tel 012710574, 01 8446896.  For Mutual Assurance Plc contact BOI Investment and Trust Company Limited, 23 Marina, Lagos. Tel 01-2715215

Is Sun Insurance still existing?
I invested in Sun Insurance Plc in the early 2000, but suddenly, l did not hear again from them and all my efforts to trace them to recover my premiums proved abortive. Help me find out if the company still exists and how l can locate them.  (Mr.Wale Salako)

Investors Forum
Sun Insurance Plc was one of the seven insurance companies recently liquidated by the National Insurance Commission (NAICOM) for inability to meet new capital base.  Consequently, the company was delisted from the Nigeria Stock Exchange.  The implication is that the company does not exist again, and the fate of shareholders investments rests with NAICOM.

I want to sell Daar Communications shares
I invested in Daar Communication since 2008, but I have not received any dividend and I want to sell, but they said I can’t sell. My broker is Golden Security Limited please help me investigate.

Investors Forum
Daar Communications has not paid dividend since it was listed on the stock exchange.  You can’t sell because there is no demand for the shares.

I need contact of Union Bank registrars
Please, I need help with the Union Bank’s shares I bought in 2007. What’s the contact of the registrars?  (Eric Benin city)

Investors Forum
Please contact Union Registrars Ltd at No. 2, Burma Road, Apapa, Lagos. Tel:  2793160 – 2; 0700 826 7341

I need reliable stockbrokers
I bought shares from UBA, STB, EIB, WEMA, Skye, Ocean Bank, Transcorp and DAAR Communications between 2004 and 2008. Kindly get reliable stockbroker to dispose of the certificates (Dan Pedro, Benin)

Investors Forum
We don’t recommend stockbrokers to readers. Please visit the website of Nigeria Stock Exchange (www.nse.com.ng) for list of registered stock brokers.


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.