How to Buy Shares of Listed Companies in Tanzania

Currently, Dar es Salaam stock exchange market has listed 17 companies. Ten of the listed companies are Tanzanian and beside Africa Barrick Gold the remaining are Kenyan companies. The market has being expanding and growing modestly since its inception in 1998. DSE is working on introducing a parallel exchange market for small companies which will likely spur more business.
   Although DSE has being in existence for many years now(decade plus) most of the indigenous have not been benefiting from the opportunities it has come up with. This may be attributed to lower understanding of the benefits the market may bring to the economy and livelihoods of many.Investment in stocks and fixed income securities have being mainly left to financial institutions, social security funds and few high net worth individuals.
   Individuals, business persons, entrepreneurs, employees and SMEs have much to benefit through Dar es Salaam Stock Exchange(DSE). I am briefly going to explain how each part may benefit from this institution and business.

Individuals/Employees:
Individuals can have a plan of building investment portfolio through buying their stocks on Dar es Salaam Stock exchange. With as much as TZS50,000 you can buy shares at DSE. This being the case you can buy shares of listed companies on a monthly basis. In the long run(at least 5 years) consistently following your investment/saving strategy you will build a formidable portfolio. Through consultancy from your investment adviser you can build a strong portfolio.
  Alternatively, one can invest in collective investment schemes which invest in Listed stocks, example Umoja Fund and other schemes which are managed by professionals who have experience in dealing with risk and exposed to more information.
  How do you buy shares? Shares of listed companies are sold through agents called Stock brokers. For DSE there are Eight registered and authorized stockbrokers. If you go on DSE web page you will find the list of brokers and partners. You choose a broker from the list and you start arranging with your choice broker on the amount of shares you want to purchase and price willing to pay for a share. Brokers will charge you some commission and  will buy for you the amount of shares you requested.

Business persons/Entrepreneurs:
To this group of people DSE presents an avenue for them to diversify their investments. Relying on your business 100% is risky even though its doing well. Instead of re-investing all your earnings in the same business you can diversify by buying other businesses out there which have good prospect and well managed. This is an alternative way of building an investment portfolio that is independent of your businesses. Good news! Some financial institutions recognize investment in stock markets and they can offer you a loan based on your share certificates. These institutions discount value of your stocks to about 80% and they give you equivalent amount of cash/loan.
   Strategic investment in stocks provide an avenue for business persons and Entrepreneurs to build independent assets from their daily businesses. This mitigate the risk of rely on one business.

SMEs:
Dar es Salaam stock exchange presents a spectacular opportunities to SMEs. One is, Opportunity to raise much needed capital/financing. Through sale of shares or issue of bonds SMEs Can raise capital from local and international investors. Preferably, raising capital through sale of shares mobilizes less expensive capital.
Second is an opportunity for entrepreneurs to be rewarded through selling part of their ownership at better market prices contrary to private deals. Third, enhancing of company profile.Listed companies attract best talents therefore listing your company makes it a target for the best personnel.These are just few benefits that  DSE presents to the Small and Medium Enterprises.

 Consulting professional investors, advisers and investment consultants is prerequisite before investing in stocks. Discuss your investment strategy with a knowledgeable person before investing in stocks. Over time, say three years you will have build some knowledge and skills which may strengthen your investment skills.Investment strategies differ from different group of investors therefore your adviser will help you come up with suitable strategy.

By Emmanuel Akyoo

Value Creation

For life to keep on getting better for you, your company and for whatsoever, value creation is inevitable. Better chances matches simultaneously with your ability to create value in your system. Many forget to compare value they create versus benefits or returns they get.

How much value do you create daily? How much value do you add to your business daily? How much value do you create to your current employer? Your going concern will always increase or crumble as a result of your current productivity!

I have been tracking investments, personal finance and SMEs for some years now and results show that the best performers are the real value trackers! Value is key to your success. 

  

1200% Return on Investment in 2011/2012!

An investor enjoying great achievement

Imagin your investment growing Twelve times in two years! This could have happened to you if you followed the move I have depicted below with your seed investment of TZS 10 Million. Your TZS 10 Million would have turned to TZS 120 million. May be this time around you could be mulling of firing your scary boring boss, going for further studies, Launching your dream venture, or taking a Tzs 20 Million vacation to South Africa, US and return back home via Barbados!

                                                                                               Investors couple taking a vacation after making  killing returns

This time you missed, what about next time? I normally remind my self that there is plenty of money around. If an indian investor could turn his TZS 10 Million to TZS 117Million why dont i try doing it?

Writen by : Emmanuel Akyoo

Are u a billionaire in the making or Infatuated?

To become successful most of the times you have to go through some tedious and boring processes. Through doing some things as you negotiate your way out of a situation you are required to acquire and adapt some serious techniques. We can together review budgeting and saving habits as important tools that may act as stepping stones for your ascension.

Budgeting: Planning and living within your budget is a tedious job. Most people fail to do this. But mind that if you are a billionaire in the making you must learn and understand that you can only get there if you adore your budgets. Budget will shield your long term goals against short term unimportant wishes.

Savings: Through budgeting and continued effort to keep part of your earnings for your self indefinitely you will build strong financial muscles. Channeling your savings into safe investments with fair returns your money will start working for you. If you consistently do this over time your money will be generating more money than that which you generate directly labouring. This mostly depends on how much you keep for your self consistently. If you keep for yourself at least 10% of your earnings for yourself forever you will likely be a billionaire in the making.

Discipline: Discipline is a foundation of success. And I don't mean respecting your parents or your brothers and sisters which I presume you do, but I mean financial discipline. You honor your money and the sweat of yourself with utmost respect. Without respecting the little money you earn and have how can you respect the billion? Rich people are not as abusive to money as paupers! Respect for pennies gives you guts to go for the big bucks. How do you want to be rich if you keep on acting like poor man? If you want to be rich you should live like rich people right from the start! There is no saying when I get a lot of money I will be careful, NO WAY! Start now and move on.

Failures: Losers are there to stay! If you are undisciplined you are for sure a loser in the making! If you want to be a billionaire and you are living a life of poor men! You are just infatuated and no where you will get. Be realistic see through with a billionaire eye! Getting successful is a sure process and not dice tossing!  

Article By: Emmanuel Akyoo,

+45.63% Gain on TBL in 2012!

TBL is among the best stocks one can hold on DSE. With current year events and environment I see the stock hitting TZS 3000/= per share.
Currently, we are standing on a gain of 16.5% upon last November Mini-IPO price of  TZS 2060 per share. The shares have traded at TZS 2400 per share today! There is still a big room for this stock to perform better.
   As I have been advising strategic long term investors, long term approach on shares is one of the ways one can build a good fortune. Actually, at this price level TBL stand at 33% gain on the start of 2011 market price of TZS 1800 per share. And the share is about 380% up from its IPO price about ten years ago, the rate excludes dividends paid out. Currently, the banks can pay you a maximum rate of 13% per annum which is far less to what we are talking about here. You can balance your portfolio between stocks and fixed income investments.

Regards,

Emmanuel Akyoo.

Successful Enterprenuers Vs Risks!

     What is the difference between successful entrepreneurs and unsuccessful ones? It all starts from risk point! Successful entrepreneurs take calculated risk while others on the contrary take incalculably risk. Have a look on the two pics u may deduce something concerning risks.
        Let me narrate a story about two guys who had equal capital and they wanted to engage themselves in gold trading business. One guy was an expat in gold business and the other guy had no experience in gold trading. One time a gold bullion deal was offered to them. They both offered to buy it. Although the gold bullion offered to them was genuine their level of risk was not equal. The guy with background in gold trading was taking much less risk(calculated risk) compare to the other entrepreneur was taking big risk.
Overtime because the level of risk in the guy with gold trading background  is consistently lower the chances of success are much higher. Whereas, by the time the inexperienced entrepreneur gets experience, the capital would have find its way far from him and broke he would be.

 From research Successful entrepreneurs take minimum risk and gets highest returns. Its time you take a look on your portfolio. Don't be mislead by public opinions that entrepreneurs expose themselves lousily!

Think and analyse your circumstance and chances. Research well on your stuff and idea. Start with a portion of your portfolio. Reduce your risks by leveraging(seek counsel of experienced). Dont be emotional, be reasonable.Be bold on your well engineered/thought strategies! Lastly, life is full of worthwhile things, enjoy and rejoice!

Regards,

Emmanuel Akyoo

CRDB 33.33% DOWN!

CRDB Bank share price on DSE has tumbled to an IPO price level of TZS150 per share from last year's peak of TZS225 per share. This fall is an equivalent of 33.33% fall in price level. As per September report CRDB net Asset stands at TZS123 per share. At this level CRDB market value is 22% above net asset level.
   CRDB is expected to issue a dividend of TZS 10 per share for the financial year 2011 which is an equivalent of 7% dividend payout ratio to the current market price of TZS 150 per share.To the longterm Investors I would advise them to take a long position with this stock. Longterm investor are those who will buy and hold the stock at least for five years.

Regards,
Emmanuel Akyoo.

The Law of Continuous Improvement

PDCA-PLAN, DO, CHECK, ACT

Through reading a book(The 7 Pillar of Financial Success)written by a Kenyan author, Murori Kiunga, I struck a goldmine that I would like to share with you! Many people believe that they must make a big leap for them to become successful. But I do believe that, changing your mind and nourishing it with strong information and abiding to some simple rules will make one achieve unimaginable level of success.

The Law of Continuous improvement states that, "small improvement, made continuously over a long period, can fundamentally reshape life and improve processes."

This law is phenomenal. Imagine you make 365 small improvement this year! How happy will you be in the coming Dec, 31, 2012 review? I treasure this law because it can make one become a complete different person in life. One can become very efficient through applying this law.

Improve your productivity everyday by just learning a new way of cutting your process time. Imagine how important you will become in your department when you become the most efficient personnel. definitely this will reflect in your paycheck overtime.Imagine how your business will flourish if you cut time of saving one customer by 20%. Imagine how big your business will change by improving your marketing skills daily.

Build a big purse full of monies through improving on your expenditures behavior. Start by cutting the volume of liquor you take daily. And channel this saved money into investments through buying TBL shares! You will definitely see how great you will become over 10yrs.

Improve your relationship with wife, fiancée, girlfriend, children, relatives and friends by just doing small things every time. The good of doing small things is that you wont feel like its costing you too much.

This law makes a lot of sense to me and I think same will be to you. We do not have to toil hard for our lifes to change enormously. It is just by doing small improvement continuously.

Everyday ask your self how am i going to improve my time use today? Is what am doing today the best? If not what small improvements should I adapt overtime to become the best? As usual I like talking about Investment, What investment do I have? What small continuous improvements should i do this year to optimize my investment goals?

Finally, the law rests on two fundamental things! Small and continuous! You just have to do small but continuous! If your improvement strategy is not continuous you are cheating yourself!

Regards,

Emmanuel Akyoo

2011 Roundup! The Big Money U missed Out

  
I have taken sometime to recap on opportunities that came to us in 2011 through DSE. Most of you guys missed out. You could not spare some pennies for this lifetime opportunity of owning part of efficient running and profitable companies. If you find out that this year was not for you next year will be there for you. But remember procrastination is the mother of all misses. However, you must understand that what happened in this year will not take the same trend next year it will be in some other ways!


Winners: 


DCB:  Up 129%. Dar es Salaam Community Bank was the best performer stock in 2011, It has gained from Tsh 280 per share in January 2011 through TSh. 640 per share in December 2011. I advised my followers to take an aggressive position with this stock in February 2011.

TCC: UP 39%. Tanzania Cigarete Company was the second best performing stock though far behind DCB. The shares have moved from price of Tsh.2,260 in January to Tsh 3,140 in December 2011.

SWISSPORT: UP 37%. This Airport handling company has being performing well and has good dividend policy which attracts dividend focused investors. However, monopoly enjoyed by the company has being endangered by new entrants that will be handling for Precision Air Services and other carriers.The company's shares moved from TSh600 in January to 820 in December 2011.

CRDB: UP 33%. The bank performed well in this year although the share price has fallen from the highest price of Tsh 225. Shares were priced at TSh. 130 in January and Tsh 173 in December 2011. Many investors shun bank shares because they are scared of the turbulent financial markets. Inflation, weakening and unstable local currencies, high borrowing costs and risks of loan default are among challenges facing financial institutions in the region currently.

NMB: UP 29%. NMB is the most extensive bank in Tanzania covering all districts and regional centers. Earlier loss making institution transformed to a profitable bank after being privatized to the most respected private bank, Rabo Bank. Banks financials have stabilized and profitability of the bank has being impressive. However, it has not being spared from current challenges facing financial institutions.

SIMBA: UP 25%. Tanga based Cement manufacturing company has performed well on the market this year. High growth in Construction industry comes with great potential in profitability and stability of this company. Growing competition from new entrants in Tanga, ARM and expected plant in Mtwara region by Dangote group poses a great challenge to the current cement manufacturers in Tanzania.

TWIGA: UP 16%. Cement Manufacturing company

TBL: UP 12%. Largest brewer in Tanzania.

Lossers:


TATEPA: DOWN 56%. This is the biggest losser for this year from the price of TSh.600 per share in January to Tsh 265 in December 2011.

Would you have invested One million TZS in each of the above eight highlighted stocks you will have realized 45% average return on your potifolio. And if you invested in the best 3 performers your potifolio would have resulted into a killing 68% average return. What if you invested TZS 100 million into DCB? This alone would have turned into TZS 228.5 million. Definitely, this is how millionaires get born!

Dar es Salaam Stock Exchange in average was the best Market in the region in this year. Nairobi and Uganda Stock exchanges have had their bad times throughout the year. Some stocks on NSE lost to the level of 88%. For investors in Tanzania Nairobi Stock exchange presents a strategic investment in 2011 and 2012 due to lower levels of valuation. Election in mid next year will make foreign investors in NSE sell off and hence push the NSE all share index further dip which will result to bargain stocks.

By: Emmanuel Akyoo

Precision Air Services Starts trading on DSE!

After poor IPO performance which ended with gross under subscription of fifty eight percent Precision Air Services have successfully registered on the Dar es Salaam bourse for trading.Precision air started trading at TZS495 which is 4.2% above the IPO price of TZS 475. Besides raising additional capital PAL intended to lift its image and credibility to stakeholders through registering on the DSE. Precision Air Services raised TZS 11 billion out of TZS 28 billion which they intended to raise through the IPO. It is however explained that the IPO was ill timed just before TBL Mini IPO which caught more of investors attention. Besides bad timing PAL shares where valued higher than many investors had anticipated.
   Precision Air Services has however confirmed to investors that it will continue to pursue her expansion plan and will cover the capital dificit via potential investors who have shown interest to inves in the company and other available means.
   Airline industry is faced with rising fuel prices and foreign exchange risks.But the good news is that Africa has high rate of growth in passengers volume in the aviation industry. Would Sub saharan Africa airlines withstand this era of market pressure and economic crisis in Eurozone a great future lies ahead.
  Also, PAL is facing competition from other East African carriers which are vieing for stake in the same market. Airlines like Fly540, Coastal,Air Uganda,Rwandair, Safariplus and Air Tanzania are fighting for a slice from the same piece of cake. The strategic aliance with Kenya Airways gives PAL an advantage over other carriers especially for the connecting passangers.
  We are looking forward to see other airlines follow the footsteps of PAL and KA in registering and involving public in their investments. Finnally, I wish PAL a good and bright business future.

By: Emmanuel Akyoo