While the regulators, operators and investors in the Nigerian capital market were counting their losses during the market meltdown, a number of other investors were also praying for stocks to fall further so that they could take advantage of low prices to buy into some of the good stocks with strong fundamentals for high returns on investment.

Majority of the stocks shed more than 50 per cent of their value during the decline, giving investors opportunity to grab the shares at very low prices. According to experts in the financial industry, the decline led to a situation whereby a number of the stocks were traded below their real market value.

Despite the drop in the prices of majority of the stocks, a number of the stocks still remain attractive buy for medium to long term investors who are not interested in short term gains.

According to Mr. Chinenyem Anyanwu, Managing Director, Dependable Securities Limited, the drop in the prices of majority of the stocks has presented enormous opportunities for investors to buy a number of shares which, hitherto, were too high, considering the fundamentals of the company and the market. He disclosed that the meltdown was an occasion for the market to correct itself. |

Speaking in the same vein, Mr. Amaeze Olisaemeka, General Manager, Apex Securities Limited, disclosed that the meltdown gave opportunities to investors to buy stocks at the correct price.

He disclosed that there were many irregularities in the period before the decline, whereby a number of stocks rose to alarming price level without a corresponding increase in the fundamentals of the company.

To this end, a number of stocks were identified by market operators as good buy, going by their attractive low prices, good fundamentals and opportunity for growth.

Despite the fact that a number of the stocks are now selling at very low prices, investors should be aware that not all of the stocks are good buy at their present prices. While some of the stocks are currently trading at their real prices, others are still far from reaching their real prices.

This calls for caution in rushing to buy stocks because of the attractive low prices. Also, speculators are advised to stay away from the market for now, as what the market really needs at this moment is medium to long term investors, who are prepared to stake their money in the market for a very long period of time.

The stocks to buy now

Below are ten stocks identified by experts as 'good buy' for medium to long term investors seeking to take opportunity from the decline that bedeviled the market in the last couple of months:

Access Bank

Access Bank is a very good stock to buy at this moment. From a high of N25.50 per share in the current year to a low of N7.22. It is presently being sold at around N9.00 per share. What makes a good buy is because of its low Price Earnings (PE) ratio. Its PE ratio is currently around 6.72.

PE ratio represents the number of years whereby an investor can recoup his investment in a particular stock, other things been equal. With a PE ratio of 6.72, investors are likely to recover their investments in Access Bank in about seven years.

GTBank Plc

At its current price, GTBank is a good buy. Going by its precedent, of attractive dividend payout and bonus issuance, it is very attractive. It has a PE ratio of about 8.64. Within the present year, its shares recorded a high of N40 and a low of N12.54, it is presently sold at about 17.65 per share.

Oceanic Bank International Plc, Oceanic Bank is also a good buy at its current market price. Its PE ratio is also very low. At 7.6, it is very attractive.

First Bank of Nigeria Plc

First Bank remains good buy any day. Going by its performance in the past, giving attractive dividends and bonuses, it has warmed its way into the heart of investors. It is a very good buy for medium to long term investors.

Nigerian Breweries Plc

In the Breweries sector, Nigerian Breweries Plc (NB) remains a good and attractive stock, with a PE ratio of 13.63. It presents investors with enormous opportunities for improved returns in the future.

Lafarge WAPCO Cement Plc

In the Building Materials sub-sector, Lafarge WAPCO is also a good buy. Its links with Lafarge has opened up new opportunities for its growth and improved performance in the near future.

Transnational Corporation of Nigeria Plc (TransCorp)

In the conglomerates, for medium to long term investment, I would advise investors to put their money in Transcorp. This is because it has a very attractive prospect for growth and it is stock of the future.

Dangote Sugar Refinery Plc,

In the Food, Beverages and Tobacco sub-sector, I will pick Dangote Sugar Refinery Plc, because it enjoys a near monopoly in the industry, and the stock is selling far below its current market value.

Nestle

Despite its high price, Nestle remain an attractive stock to buy at this moment. It has shown consistency in dividends payout. Its dividends payout is among the highest in the capital market. Last year, it paid its shareholders a dividend of N8.20, both interim and final.

NEM Insurance Plc

In the Insurance sub-sector, I will pick NEM Insurance Plc. At a price of N2.05 and a PE ratio of 14.64, it is a very good and attractive stock. It should be noted that the Insurance sector is emerging and would be force to reckon with in the near future.

According to Anyanwu, PE ratio is not the only the measure of attractiveness of a stock at a particular point in time, other factors can also be considered. "We don't take PE ratio in absolute terms; we also consider market hearsay, that is, information making the rounds in the market and also dividend and bonus history of the company, current developments in the company and past financial performance."

He disclosed that manufacturing firms are usually expected to have a high PE ratio because of their heavy investment in capital, such as in machineries, expansion programme among others.