Saturday, November 18, 2006

Investment Seminar

Today, I attended an investor’s seminar at nse, organized by sterling securities lTD.

1000/= payable at the entrance

About 30 people. Evenl;y distributed between laldies and men. All people who have invested in the past and mostly laymen (in stocks trading terms)

Issues of Interest
Lots of stock agents acting for brokers have set up SHOP of late. Some cases of lost cash Eere reported at the seminaR. Aparently, the brokers are responsible for an agent's 'fuck ups'. a broker should refund cash stolen/misappropriated by his by their agent.

Nominee accounts
Its illegal for brokers to use nominee accounts for normal trading or application for IPOs. However, some brokers are using them big time.

Private transfer of shares
One can privately transfer shares without going though the nse sale procedures.

Investment banks vs brokers
Investment banks are allowed to trade in shares in their name, brokers are not. However, brokers still do trade.

Raising campaign cash from nse
There were fears that the upcoming privitisation (see safcom, kenya -re, mumias, kengen) could be used for politics and not govt deficit financing

Share splits
Look out for nay shares selling @ 200+. all these are candidates for splits in the next 12 months

Investment clubs
Most clubs are unabel to agree on how to split profits arising from contributions, where people contribute differently. A guy has come up with a software to value members' worth.

Eveready IPO
The company is not doing well. Generating negative cash flows, sales declining, compe from counterfeits etc. However, a massive oversubscription expected.