Why Cadbury Nigeria’s Sugar Rush Could Be Harmful to Your Wealth

Cadbury Nigeria: Sugar Rush?

Get ready for a stomach ache.

Investors’ big binge on Cadbury Nigeria shares may be nearing an unpleasant conclusion.

Like a sugar rush, the stock’s meteoric 372% rise over the past 24 months was fun while it lasted, but judging from the company’s 2013 results, the stock’s valuation is now sickly sweet.

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Nigeria’s 10 Best Stocks of 2013

Nigerian Stock Exchange

It was a remarkable year for the Naija exchange. The All Share Index surged 44.6% in US dollar terms thanks to impressive profit growth and a raft of market reforms.

Let’s take a closer look at the year’s best performers.

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How to Sell Your Shares If Your Broker Goes AWOL

Photo by Gary Simmons

Reader Tomi writes, “My mum wishes to sell shares of her Nigerian stock, but her broker seems to have disappeared. How can she go about getting her shares sold?”

Unfortunately, Tomi’s mum isn’t the only Nigeria investor to face this problem. In the wake of Nigeria’s financial crisis, the Nigerian Stock Exchange made an attempt to restore investor confidence by suspending 61 brokerage firms that failed to meet minimum capitalization requirements. This resulted in lots of confusion for these brokers’ customers, leaving them with questions much like Tomi’s.

But don’t despair, Tomi. Your mum’s shares most likely haven’t disappeared, and as I’ve learned from the Nigerian brokers quoted below, there are a number of people who can assist you with tracking them down.

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New ETF Makes Nigerian Stocks More Accessible Than Ever

Photo by S. Remeika

I literally jumped out of my chair last week when Jan Schalkwijk told me a new Nigeria ETF had just listed on the New York Stock Exchange.

Why was I bouncing around my office like I’d hit a buzzer-beating jump shot?

Because, at this moment, I believe the Global X Nigeria Index ETF is one of the most accessible, pure, and cost-efficient ways for US retail investors to tap into the Sub-Saharan growth story.

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Who Else Wants to Invest in Nigerian Stocks?

Photo by World Bank

In case you missed it, the Nigerian Stock Exchange is making investors wealthy of late.

Thanks to a raft of reforms and a growing realization of the investment opportunities in Africa’s most populous nation, the MSCI Nigeria Index is up 78.6% over the past 12 months.

And this bull run looks like it may have some real legs. The market remains well below its five-year high. The five largest companies on the exchange have an average P/E ratio of 15.4 in spite of them averaging earnings growth of 40.6%. And 23 foreign portfolio managers are poised to dive into the market.

I’m guessing some of you would like to do the same. Unfortunately, the market isn’t as easily accessible as its larger counterpart in Johannesburg. So how exactly can a non-resident invest in Nigerian stocks?

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The Nigerian Stock Exchange Website Ups Its Game

Nigerian Stock Exchange

Kudos to the folks running the Nigerian Stock Exchange’s revamped website!

You may recall that I complained about the confusing format in which the exchange published listed company results in a post last week.

Well, it appears that the squeaky wheel gets the grease!

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Beer Battle: Which Nigerian Brewery Stock Is the Best Buy?

Photo by Chiolachic

Guinness Nigeria and Nigerian Breweries (NB) both released quarterly earnings in the past several weeks.

As the largest brewers in Africa’s most populous country, they command substantial attention from global investors.

Let’s take a close look at their most recent income statements.

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Stock Showdown: Ranking Nigeria’s Best Banks

Photo by André Silvestre

If you’ve ever taken a look at the stocks listed on an African market, you likely noticed that they tend to be dominated by banks. Quite often banks are the exchange’s largest, most liquid shares.

It’s for this reason that I spend considerable time coming up with quick and easy ways to evaluate the relative attractiveness of bank stocks.

I walk through my method here.

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Buyers Wanted: 9 Cheap Nigerian Stocks

Photo by Shawn Leishman

Nigeria investors must feel a tad punch-drunk after the drubbing they’ve been dealt over the past five years. The Nigerian Stock Exchange has lost nearly half of its value since March 2007.

With local investors cautious, disillusioned, and happy to sit on the sidelines, I’m beginning to see some very interesting opportunities among the exchange’s 200-plus listings.

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How to Invest on the Nigerian Stock Exchange

Nigerian Stock Exchange

The Nigerian Stock Exchange hasn’t exactly sizzled of late. But the potential of Africa’s most populous nation is enormous. First things first, however. I need a Nigerian brokerage account. So, how exactly do I go about opening one?

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