TARGET TECHNICAL REVIEW FOR THE WEEK ENDED 31RD JANUARY 2014- NO.

0014/2014

GENERAL COMMENT The last two weeks from the 20th of January to was another tough month for investors, a lot of equities experienced price falls. For somebody like me, it is not all that bad, as it present another opportunity to cash my gains and also practice the discipline of the fact that as a good investor, there will come a time when you need to liquidate some investments.

TOPIC FOR THE WEEK This week, I will like to talk on the topic TALENT IS NOT ENOUGH. I believe some of us may remember a book that has the above title. In the stock market, we can coin the title to something like, past performance is not enough. Just like for a human being, to succeed demands more than talent; we need discipline and perseverance. In the stock market, the fact that a company is good today does not mean it will be a good company forever. This idea struck me as I heard somebody talking about investment and was telling somebody that as an investor all you have to do is to buy a good company and then just wait for some time and you will reap substantial profit. The person than went on to mention some perceived very good companies in various sectors like: First Bank in the banking sector, RT Briscoe in Automotive etc. I just smiled walk past and never made any comment. This kind of thinking is likely to make an investor loose his shirt in the market and get results that are below average. Do you know how many years LBN and Cadbury stayed in the downtrend when they ran into trouble? As at today, John Holt (a former blue chip in the Nigeria stock market) is in a deep hole, the old UBA was dead, Union Bank was lucky not to have died and can be said to be in the operating theatre as at now. To make money in the market you have to invest at the right time and get out once you discover that the company is about to enter a decline. Just like many people, I was once a believer in long tern investing until I read this http://www.vanguardngr.com/2013/12/oilgiants-wont-invest-nigerian-stock-exchange-apostle-hayford-alile/. It was a big eye opener for me. Now, I believe that as good investors who were caught in the last market crash, here ought to be a time when the right thing to do is to get out of the market. Next week, I will talking about the criteria I used to select stocks. These criteria has been good in terms of performance, and is getting better by the day.

Wish you a profitable year 2014.

Straight to the main business for the week: a) Stock selection for the week/next 2 weeks

The market is down; I see this as opportunity to acquire some good company at cheap prices. For this week I see: - Courtville - Afriprud b) Target Prices for year for some stocks This my target for 2014, has been very interesting and I have been making use of it and the result I will be able to disclose as time goes on. During the last 2 weeks I bought Afriprud at NGN3.24 on 13th January 2014 in line with this forecast, I am looking at the investment for the next 3months. Likewise, I sold some of my Oando and Honeywell at NGN26/3.94 as I see them attain a temporary high. You can see my last newsletter to confirm this. MARKET PRICE AS STOCK/INDEX AT JAN 2 2014 (NGN) Forecast 1ST Top Forecast Final Top Forecast 1st Temporary Bottom Forecast Expected Final Bottom

CONOIL CONTINSURE

67.93
68.88

96.44 1.18 2.09 0.83 3.15 2.30 233.35 13.82 12.98 8.87 3.39 7.67 18.11 4.42 1.51 2.86 1.37 4.28 2.68 264.98 19.27 18.13 12.69 4.59 11.15 21.41 5.37

42.05 0.86 1.35 0.67 2.04 1.75 202.56 8.52 10.67 5.16 2.23 4.28 14.27 3.08

29.68 0.71 1.01 0.60 1.53 1.37 188.36 6.08 7.97 3.45 1.69 2.71 10.97 2.13

1.29 1.27 COSTAIN 0.66 COURTVILLE CUSTODYINS CUTIX DANGCEM DANGFLOUR DANGSUGAR DIAMONDBNK DNMEYER ETERNA ETI EVANSMED FBNH FCMB 2.18 1.95 220 10.23 11.3 7.5 1.41 4.73 16.39 4.04 21.15 16.3 3.84

31.96
4.76 5.66

16.391
3.49

13.03
2.59

FIDELITYBK

2.7

4.12

4.44

2.54

1.27

From the above table, I can make comments as follows: Dangote Cement is close to a temporary high DN Meyer has dropped beyond a buying Zone Eternal Oil is close to a temporary low FCMB has dropped below a buying point Courtville has a good upward potential while risk of price fall is low

a)

Stocks Good For Shorting In line with the lacklustre performance of the market, I will indicate some stocks that are good selling candidates as: Japaul Cl Leasing For more of this you can send me an e-mail to get the full list.

Shorting or selling is necessary to take away your gains or minimise expected losses, although this year, if we look at the volume of money that is likely to be pumped into the market, there should be very little dull moments in the market.

In conclusion, I will very much encourage you to subscribe for the paid version of this newsletter as you will get ideas that are worth trading on, plus have the opportunity for you to talk with me at any critical time you need my opinion. This year we must all make money together and void making any loss. I assure you that you will get full value for your money. The subscription will contain some of the charts and the reasons behind the recommendations.

Writer: Yusuf Kelani ACA. Final Securities Trading Certification from Ghana Stock Exchange There is a better version of this newsletter available (this is the subscription version). At a very reasonable fee. I am sure the gains from the newsletter can more than pay for the cost over

100times. For rate for the newsletter, you can contact me. The newsletter will be sent to you forthrightly. To gauge the performance you can follow my postings on scribd and other blogs. Just google Technical analysis of Nigeria Stock market. Explanation of Terms: Support: Price at which on can start thinking of buying. This is like saying get set to buy. It is a forecast buying Zone. Resistance: Price at which you should think of selling/taking some profit or exercise caution in buying at this price.

Caution: Investing is a risky venture. This is just my opinion and I cannot be liable for any loss suffered as a result of following this recommendation. Contact:+2348023054935, E-Mail- 2002yok@gmail.com

See some of my Videos on stock Investmenthttp://www.youtube.com/user/newyorktraders/feed?filter=2 Get text of my newsletters on scribd.com;