This week ahead
The market continued its slide as the news of “no bail out” for the market continued to reverberate. Operators came to finally accept the fact that they and the regulators alone can resuscitate the market.
Operators are strategizing on what to do to bring back the good old bullish days. Some are picking up equities in the real sector for the anticipated government intervention in this sector. The government has indicated that it will rather intervene in the real sector where massive employment will be generated than the volatile capital market with far less employment opportunities. So investors are already buying into this sector.
Analysts and observers are agreed on one thing - the market will definitely bounce back whether the government intervenes or not. They are optimistic that when all the measures put in place since early 2008 are operated to work synergically, nothing can stop the market from an early rebound.
They are referring to measures like market makers that have not taken off, uniform financial year-end for banks, regulated public offers, prompt and regular presentation of quarterly and year-end results, prompt and proper sanctions on defaulting operators and other sundry in-house measures. They are also optimistic that the early passage and approval of the budget, though a deficit, is a welcome sign that at least money will be released early; because it is a very substantial source of fund for workers and investors.
While the populace is waiting for government intervention and the above measures to synergize, there is a new mentality we would love our numerous readers and investors to adopt. This new mentality is important because it will also help the market to recover quickly. If all the measures put out by the government are not matched by the investors, they might not yield the expected results.
What is the new mentality we are talking about? It is the mentality of “forget the past and press on to the future”.
So the import of this statement as regards the capital market is leave your past and start buying for your future. The prices are very, very okay for you to reap bountifully in the future. Moreover, as you buy cheaper now, you bring down your average cost per unit of shares bought. So, let’s stop dwelling on the past and move ahead. If you’ll be courageous enough to sell off your existing portfolio and start afresh, it is well and okay. If you’ll leave what you already have and start investing again, it is also fine. Whichever way, start investing.
While we are waiting for the implementation of the budget and your how to invest, there are some stocks that hold out good prospects. Be informed that in spite of the risks (of course there are risks in any investment), the capital market remains the highest yielding window.
As the markets are down, companies are considering giving dividends as a way of compensating their investors. Therefore full advantage should be taken of the quarterly and full-year earnings of quoted companies.
There are certain stocks whose end-of-year results might be released into the market in the next few weeks and their performance in the last one year as well as their history can support some dividend pay out. Investors will do well to consider them.
 
African Petroleum Plc
This equity is in the petroleum market sector. The company deals in refined products such as prime motor spirit (PMS) Automotive Gas Oil (AGO), Duel purpose kerosene  (DPE) and Aviation Fuel (jet-A). a look at its quarterly earnings shows that it has progressively been increasing it. A look at its compensation history also shows an encouraging one; especially in the last two years.
From its historical data within the last four years, it has rewarded its shareholders three times. No dividend payment in 2005; but a bonus of one for every previous five was given in 2004. Shareholders were heavily compensated in 2006 and 2007.
From the current year, 2008, under consideration, Q3 EPS has already hit N6.78 and analysts are very sure that Q4 EPS will surpass Q3. Therefore, investors should expect that a handsome dividend awaits them at the end of the year. Analysts believe that the slump in oil prices will not affect it much because its products are in high demand, year in, year out.
Investors are therefore advised to buy into this stock. The price is cheap, at N85 at press time). Its outstanding shares is equally small 740 million. The last public offer shares have not been listed. The price-to-earnings ratio is 11 times, which is quite okay for short term investors.

Oando Plc
This equity like AP Plc, is in the petroleum marketing sector, and markets the same products as AP - Pons, DPK, Ago, and Jet-A1; but has recently diversified into exploration and production of crude oil. A look at its quarterly earnings also shows a consistent increase in its earnings. Another look at is historical data shows a robust history of investor compensation.
The current quarter earnings has consistently been improved upon and average of 84% of its earnings has always been paid as dividend to shareholders and quarter four earnings has progressively been growing by as much as above 100%.
On the strength of the current year’s performance, the Q4 EPS is expected to peak at N8+. Even with the addition of about 94.25 million shares as the total bonus shares for 2007, it will not affect is earnings because its products are heavily patronized locally and internationally. Its low price-to-earnings ratio of 9.7 times makes it much more attractive.