I have analysed a few more results in my blog. Unfortunately I won't be able to post each and every one of them here due to time. However, here are the links for those who are interested;

All Reviews==>> [url][/url]http://web.ugometrics.com/category/equities-stocks-results-earning-results-earning-report/

CCNN http://web.ugometrics.com/earnings-analysis-h1-2013-ccnn-rides-on-efficiency-to-post-n1-2billion-pbt/

Julius Berger http://web.ugometrics.com/earnings-analysis-2013-h1-julius-berger-plc-post-n5-2billion-pbt-obtains-loan-from-hsbc-london/

WAPCO http://web.ugometrics.com/earnings-analysis-wapco-2013-h1-results-shows-moderate-increase-in-pbt-of-13-to-n13-8billion/

Courteville http://web.ugometrics.com/earnings-analysis-courteville-plc-post-higher-2013h1-pre-tax-profits-as-efficiency-increases/

Expect that of UBA, FCMB, Afromedia, Tantalizers, 7up, Diamond Bank, Mobil, GSK, Presco, Vitafoam as I will be reviewing them all through this weekend.

For those on my mailing list...expect to be the first to receive updates soon.

Cheers and have a great weekend everyone.

Ugo, abeg put me for ur mailing list.
mercylicious1@mtnnigeria.blackberry.com

I tried viewing ur site yesterday and the message, acnt suspended showed up. Its rather becoming frequent. If its for ur web administrator, let them consider working on ur site at night, this is what others do. If its web hosting, try and find permanent solution. Ill try and get a contact for u. Its one guy dt I trained with in cwg academy and he is very good on web admin/hosting.
I lost his contact but I know I can enquire from other classmates.

[quote author=mercylicious]Ugo, abeg put me for ur mailing list.
mercylicious1@mtnnigeria.blackberry.com

pls include my mail box in ur good move. Adediranaderemi@yahoo.com. Thanks

Add me to ur mailing list omexonomy@yahoo.com God bless you.

Please Oga Ugodre, add me. Jposuagwu@yahoo.com

Good morning. Pls add to mail list. Dinvesta@live.com. Thanks

pls include me to your mail list atunwab@gmail.com

Ugodre, your blog site is suspended. All the links you posted are unaccessible.

Publish here and also send to people's email.

Thank you.

jposuagwu: Ugodre, your blog site is suspended. All the links you posted are unaccessible.

Publish here and also send to people's email.

Thank you.

If You Register To UGOMETRICS BLOG You will See All His Analysis

I have registered since yesterday but no log in password has been sent to me.

jposuagwu: I have registered since yesterday but no log in password has been sent to me.

A password should have been sent to you email address. The one you used to register. If you didn't get it try clicking on forgot password. Let me know if you are successful. Cheers

Ugodre, i clicked forgot button and after typing my password was told my email COULD'VE NOT BE SENT. MAIL FUNCTION MAY HAVE BEEN DISABLED BY HOST. Pls send link to Jposuagwu@yahoo.com.

[quote author=ugodre]I have analysed a few more results in my blog. Unfortunately I won't be able to post each and every one of them here due to time. However, here are the links for those who are interested;

All Reviews==>> [url][/url]http://web.ugometrics.com/category/equities-stocks-results-earning-results-earning-report/

CCNN [url]http://web.ugometrics.com/earnings-analysis-h1-2013-ccnn-rides- Hello ugo, pls put my e-mail in your list ihedioramma@yahoo.ca

jposuagwu: Ugodre, i clicked forgot button and after typing my password was told my email COULD'VE NOT BE SENT. MAIL FUNCTION MAY HAVE BEEN DISABLED BY HOST. Pls send link to Jposuagwu@yahoo.com.

Try Using Different User Name And Put Your Email, If Your Email Was Already Used Then Ask Ugodre.

Ok!! I will add every one who have indicated interest in being on my mailing list. Check your email box for passwords and user names. Pls not that you can change the password but may not be able to change the user names. Cheers

ugodre: Ok!! I will add every one who have indicated interest in being on my mailing list. Check your email box for passwords and user names. Pls not that you can change the password but may not be able to change the user names. Cheers

Lol, I Was Able To Register Successfully Yesterday But Can Not Log In Now. So Pls Add Me To Your Mailing List & Send User Name And PassWord To asywudil@yahoo.com

Hello stock enthusiasts and business minded colleagues. Please sign up to try AmfiNet internet service for free when we launch. You need stable, reliable and cheap service that is not dependent on nepa to power our transmitters and receivers.

http://www.amfinetworks.com/tryAmfinet.html

You can find more information via our forum link below: http://www.amfinetworks.com/phpbb3/viewtopic.php?f=4&t=16.

soloniger:
Lol, I Was Able To Register Successfully Yesterday But Can Not Log In Now. So Pls Add Me To Your Mailing List & Send User Name And PassWord To asywudil@yahoo.com

Same here!
9free@mail.com

Does anyone knw wen jos breweries wil present their financial statement for 2012? Am tinking of investing in their stocks.

peperempe: Does anyone knw wen jos breweries wil present their financial statement for 2012? Am tinking of investing in their stocks.

One Chance!!!!
Bros, I will advice you to search and go through their 2010, 2011 and 2012 before reaching that decision.

[quote author=9free]
Same here!
9free@mail.com [I am having similar problem. pls.add me johnpraisel@yahoo.com]

ugodre: REVIEW: UPDC REITS OFFER - TO BUY OR NOT

Offer Value - N30billion

Offer Price - N10 per unit

Opening Date - February 19

Closing Date - March 28

Fund Promoter - UPDC

Fund Manager- FSDH Asset Management Ltd



The Deal Synopsis?

UPDC has been into property development for years holding major property assets in Nigeria. The company which I reviewed sometime last year has had to deal with rising operational expenses as well as debt. As such it does not surprise me that the basis of the offer is to flog some of the assets that they have in exchange for cash ostentatiously funded by the proceeds of the offer.



UPDC plans to raise about N30billion from the sale of 3billion units of shares in a Real Estate Investment Trust (REIT) at N10 per unit. As the promoters of the REIT they will also subscribe to shares in the REIT even though they will not be stumping up any cash. They will own 40% of the REIT via an exchange of assets and shares. So in exchange for about 40% of the REIT (N12billion), they will be selling some of their choice properties for a value of N12billion. In other words, by subscribing to the REIT the utilization of N4 of your N10 share in the REIT is already determined.



Another N8.8billion out of the N30billion will also be used to purchase properties already owned by UPDC as detailed in the offer. Unlike the N12billion which was exchanged for shares, the N8.8billion cash will be paid to UPDC.



After the exchange of shares and cash payments subscribers to the deal will also expect to incur an additional cost of N673.7million as offer cost (2.2%) and another N1billion as VAT. The VAT amount is based on 5% of the asset cost of N20.8billion. For those who wonder whether VAT should be paid on sale of properties, I guess VAT is paid here because UPDC holds those properties as stock in its balance sheet rather than as Assets. Thus necessitating the VAT payment. Whilst this may seem logical, there is a reason to challenge this payment, and I expected UPDC to offer explanatory notes explaining the basis for charging VAT on this exchange.



At the end of this the REIT will have about N7.4billion in investable fund and based on the fund managers allocation proposal, the rest might be invested in some Fixed Income Securities such as Bonds. Actually 10% of the N30b raised will be invested in liquid assets/cash.



Interestingly, the assets would be transferred under a Declaration of Trust structure (DOT). The D.O.T basically involves a system of transferring beneficial ownership of assets to a trust without actually transferring title thus avoiding taxes and statutory fees associated with the sale of assets. This perhaps is where the VAT fees arose since an exchange of beneficial interest will surely be seen as vatable. An uncanny way of transferring taxes to the buyer rather than the seller right?



How did they value the assets and what assets are they selling to the REIT?

UPDC has some choice properties scattered all over Nigeria which has earned them rental income over the years. However, they are only selling 5 properties. One of the properties on sale the Victoria Mall Plaza on Aboyade Cole VI, is currently occupied by KPMG. See below;







UPDC has placed the combined "Open Market Value" of the assets at about N21.9billion and will be transferring to the REIT at about N20.8billion offering discount of about 5% on the asset value. They also claim the assets generate a combined N1.297billion in average annual income historically representing yield of about 6.26%. To make the investment look good they project the revenue will rise to N1.6billion or about 7.7%. The problem with this valuation metric is that cap rates in Nigeria is mostly 10% at least which would place the average vale of the combined assets at about N12billion instead of the N20billion transfer value.





What are the risk?

The offer prospectus outlines some risk for investors in the REIT which includes obvious ones such as political risk, market risk etc. However, one that comes to mind is the very unpredictable nature of the Nigerian market. Real Estate in Nigeria today is currently over valued due to a mixture of higher than normal construction cost, inefficiency in management of projects, high cost of taxes, and over bloated land cost. This stand the risk of a huge correction should the market find better and cost efficient way of construction thus bringing down values of properties including older ones which were built at a higher cost. The ability for businesses to continue to pay high rental cost is also a huge factor in determining the viability of income projections.



However, this may not be enough to deter investors who have an exit option should they sense a likely softening of the market in future. Shares on the REIT are tradable on the floor of the NSE.



What do I benefit from this?

Basically, you get to own part of a pool of real estate assets which will be managed by experienced managers. The assets is expected to generate income and the promoters project 7.8% payout yield at the ned of the first year and then 8.4%, 9.7% for the second and third year respectively. This essentially means for every N10 you invest you will be getting 78kobo per annum. Surely, you could get better returns in a government debt but the surely at 7.8% you get a better dividend yield than the 5% the stock market pays out on an average. You can also make capital gains on the sale of the units in the event that the Net Asset Value of the REIT goes up.



Should I buy

That depends on how deep your pockets are. REITs are an attractive investment for Pension Funds and large mutual funds who depend a lot of a fixed stream of income to fund periodic payment obligations. In Nigeria, most pension funds are mandated to invested on Real Estate businesses with a purely rentable model and as such buying into a REIT is a no brainer. For individuals who sort of fall into the category of those with deep pockets and looking to invest in the future then this may also seem like an attractive investment outlet. This REIT however posses some doubts as to the verifiability of the value placed on the assets being transferred by the promoters UPDC. In addition, REITS are relatively unknown investment outlets in Africa making the assumed liquidity of the trust units somewhat illiquid. Whats the point investing in an traded equity that can't be easily sold or exited. For me though, I could certainly generate better yield on my investment without investing in a REIT. But then, portfolio diversification is always welcome.



Finally,

REITS are an increasingly essential option in investing in Real Estates. Its very popular in the middle east and is gradually increasing its footprint in Africa. Nigeria certainly needs more of this to create a deeper market helping investors make better informed decisions. The Nigerian Stock Exchange only has two RIETs the Sky Shelter Fund (which I reviewed recently) and the Union Homes fund and they both witness minimal trade by volume and have a combined market value of about N14.5billion. The inclusion of UPDC's REIT takes the number of REITs to three with a potentially combined value of about N44billion still about 0.09% of the combined market value of the equities on the NSE. For now though, this is a good development for the Real Estate Market in Nigeria.

Bro, thank you for sharing your knowledge here. I find I have a growing interest in the workings of financial markets so finding threads like yours here on NL is priceless to me.

I'm a bit confused about the above though. I get the impression that you're saying that the REIT was more or less a swindle. If so, does it matter how deep my pockets are? Would I not lose money investing in it? Perhaps I'm failing to appreciate some crucial point, I would be immensely grateful if you explained it to me. What does one gain buying into an over-valued stock of real estate with a burden of "fraudulent" taxes and a real risk of a downward adjustment of value in time?

ugodre: REVIEW: UPDC REITS OFFER - TO BUY OR NOT

Offer Value - N30billion

Offer Price - N10 per unit

Opening Date - February 19

Closing Date - March 28

Fund Promoter - UPDC

Fund Manager- FSDH Asset Management Ltd



The Deal Synopsis?

UPDC has been into property development for years holding major property assets in Nigeria. The company which I reviewed sometime last year has had to deal with rising operational expenses as well as debt. As such it does not surprise me that the basis of the offer is to flog some of the assets that they have in exchange for cash ostentatiously funded by the proceeds of the offer.



UPDC plans to raise about N30billion from the sale of 3billion units of shares in a Real Estate Investment Trust (REIT) at N10 per unit. As the promoters of the REIT they will also subscribe to shares in the REIT even though they will not be stumping up any cash. They will own 40% of the REIT via an exchange of assets and shares. So in exchange for about 40% of the REIT (N12billion), they will be selling some of their choice properties for a value of N12billion. In other words, by subscribing to the REIT the utilization of N4 of your N10 share in the REIT is already determined.



Another N8.8billion out of the N30billion will also be used to purchase properties already owned by UPDC as detailed in the offer. Unlike the N12billion which was exchanged for shares, the N8.8billion cash will be paid to UPDC.



After the exchange of shares and cash payments subscribers to the deal will also expect to incur an additional cost of N673.7million as offer cost (2.2%) and another N1billion as VAT. The VAT amount is based on 5% of the asset cost of N20.8billion. For those who wonder whether VAT should be paid on sale of properties, I guess VAT is paid here because UPDC holds those properties as stock in its balance sheet rather than as Assets. Thus necessitating the VAT payment. Whilst this may seem logical, there is a reason to challenge this payment, and I expected UPDC to offer explanatory notes explaining the basis for charging VAT on this exchange.



At the end of this the REIT will have about N7.4billion in investable fund and based on the fund managers allocation proposal, the rest might be invested in some Fixed Income Securities such as Bonds. Actually 10% of the N30b raised will be invested in liquid assets/cash.



Interestingly, the assets would be transferred under a Declaration of Trust structure (DOT). The D.O.T basically involves a system of transferring beneficial ownership of assets to a trust without actually transferring title thus avoiding taxes and statutory fees associated with the sale of assets. This perhaps is where the VAT fees arose since an exchange of beneficial interest will surely be seen as vatable. An uncanny way of transferring taxes to the buyer rather than the seller right?



How did they value the assets and what assets are they selling to the REIT?

UPDC has some choice properties scattered all over Nigeria which has earned them rental income over the years. However, they are only selling 5 properties. One of the properties on sale the Victoria Mall Plaza on Aboyade Cole VI, is currently occupied by KPMG. See below;







UPDC has placed the combined "Open Market Value" of the assets at about N21.9billion and will be transferring to the REIT at about N20.8billion offering discount of about 5% on the asset value. They also claim the assets generate a combined N1.297billion in average annual income historically representing yield of about 6.26%. To make the investment look good they project the revenue will rise to N1.6billion or about 7.7%. The problem with this valuation metric is that cap rates in Nigeria is mostly 10% at least which would place the average vale of the combined assets at about N12billion instead of the N20billion transfer value.





What are the risk?

The offer prospectus outlines some risk for investors in the REIT which includes obvious ones such as political risk, market risk etc. However, one that comes to mind is the very unpredictable nature of the Nigerian market. Real Estate in Nigeria today is currently over valued due to a mixture of higher than normal construction cost, inefficiency in management of projects, high cost of taxes, and over bloated land cost. This stand the risk of a huge correction should the market find better and cost efficient way of construction thus bringing down values of properties including older ones which were built at a higher cost. The ability for businesses to continue to pay high rental cost is also a huge factor in determining the viability of income projections.



However, this may not be enough to deter investors who have an exit option should they sense a likely softening of the market in future. Shares on the REIT are tradable on the floor of the NSE.



What do I benefit from this?

Basically, you get to own part of a pool of real estate assets which will be managed by experienced managers. The assets is expected to generate income and the promoters project 7.8% payout yield at the ned of the first year and then 8.4%, 9.7% for the second and third year respectively. This essentially means for every N10 you invest you will be getting 78kobo per annum. Surely, you could get better returns in a government debt but the surely at 7.8% you get a better dividend yield than the 5% the stock market pays out on an average. You can also make capital gains on the sale of the units in the event that the Net Asset Value of the REIT goes up.



Should I buy

That depends on how deep your pockets are. REITs are an attractive investment for Pension Funds and large mutual funds who depend a lot of a fixed stream of income to fund periodic payment obligations. In Nigeria, most pension funds are mandated to invested on Real Estate businesses with a purely rentable model and as such buying into a REIT is a no brainer. For individuals who sort of fall into the category of those with deep pockets and looking to invest in the future then this may also seem like an attractive investment outlet. This REIT however posses some doubts as to the verifiability of the value placed on the assets being transferred by the promoters UPDC. In addition, REITS are relatively unknown investment outlets in Africa making the assumed liquidity of the trust units somewhat illiquid. Whats the point investing in an traded equity that can't be easily sold or exited. For me though, I could certainly generate better yield on my investment without investing in a REIT. But then, portfolio diversification is always welcome.



Finally,

REITS are an increasingly essential option in investing in Real Estates. Its very popular in the middle east and is gradually increasing its footprint in Africa. Nigeria certainly needs more of this to create a deeper market helping investors make better informed decisions. The Nigerian Stock Exchange only has two RIETs the Sky Shelter Fund (which I reviewed recently) and the Union Homes fund and they both witness minimal trade by volume and have a combined market value of about N14.5billion. The inclusion of UPDC's REIT takes the number of REITs to three with a potentially combined value of about N44billion still about 0.09% of the combined market value of the equities on the NSE. For now though, this is a good development for the Real Estate Market in Nigeria.

Bro, thank you for sharing your knowledge here. I find I have a growing interest in the workings of financial markets so finding threads like yours here on NL is priceless to me.

I'm a bit confused about the above though. I get the impression that you're saying that the REIT was more or less a swindle. If so, does it matter how deep my pockets are? Would I not lose money investing in it? Perhaps I'm failing to appreciate some crucial point, I would be immensely grateful if you explained it to me. What does one gain buying into an over-valued stock of real estate with a burden of "fraudulent" taxes and a real risk of a downward adjustment of value in time?

Helo guys i need ur advice i bought FBN stock at 12.6 last yr and is at N15, am no longer comfortable wit its fallin rate, i want to sell it whts ur take? And if u agree dt i should sell whch stock do u advice me to buy?

HLLO GUYS, I JUST GOT SOME LITTLE CHANGE, AND I WANT TO TIE IT TO SOMETHING REALLY COOL, WHAT DO YOU SUGGEST?

Hi People, sorry I haven't been here in a while. I have reviewed some of the results recently released in the Nigerian Stock Exchange. As usual, I will post a link to each analysis and feel free to click on any stock you are interested in. Remember, some companies are technically sound but fundamentally deficient. Don't throw your money away;

1. Analysis 2013 9 Months: Drop In Gas Supplies Dent Dangote Cement Q3 Results But Profits Rise 43% YoY - http://web.ugometrics.com/analysis-2013-9-month-drop-gas-supplies-dent-dangote-cement-q3-results-profits-rise-43-yoy/

2. Analysis 2013 9 Months: Total Needs To Be More Efficient To Keep Profits Growing - http://web.ugometrics.com/analysis-2013-9-months-total-needs-efficient-keep-profits-growing/

3. Analysis 2013 9 Months: Fidson Plc Needs To Reduce It’s Opex And Start Generating Cash - http://web.ugometrics.com/analysis-2013-9-months-fidson-plc-needs-reduce-opex-start-generating-cash/

4. Earnings Analysis 9 Months: Julius Berger Plc Post Flat Earnings As Growth Stalls - http://web.ugometrics.com/earnings-analysis-9-months-julius-berger-plc-post-flat-earnings-growth-stalls/

5. Earnings Analysis 2013 9 Months: Is Skye Bank’s Poor Q3 Results A Call For Change At The Top? - http://web.ugometrics.com/earnings-analysis-2013-9-months-skye-banks-poor-q3-results-call-chang-top/

6. Earnings Analysis 2013 9months: Diamond Bank Increases Profitability But Loan Write Offs Remain High - http://web.ugometrics.com/earnings-analysis-2013-9months-diamond-bank-increases-profitability-loan-write-offs-remain-high/

7. 2013 9 Months Result: Tantalizers Plc Continues To Serve Losses & Bleed Cash - http://web.ugometrics.com/2013-9-months-result-tantalizers-plc-continues-serve-losses-bleed-cash/

8. Earnings Analysis: Poor Lagos Sales Hurt Dangote Sugar As Revenues Slide Into Negative Territory - http://web.ugometrics.com/earnings-analysis-poor-lagos-sales-hurt-dangote-sugar-revenues-slide-negative-territory/

9. Earnings Analysis 2013 9 Months: In The Wake Of Tepid Revenue Growth Lafarge Wapco Relies On Markup To Boost Operating Profit - http://web.ugometrics.com/earnings-analysis-2013-9-months-wake-tepid-revenue-growth-lafarge-wapco-relies-markup-boost-operating-profit/

10.Earnings Analysis 2013 9 Months: UACN Has Sale Of Property To Its REITS To Thank - http://web.ugometrics.com/earnings-analysis-2013-9-months-uacn-sale-property-reits-thank/

These are the most recent 10 analysis. Cheers and Happy Investing

I've got sum cash..wanna buy shares.advice plz..am just 2oyrs..need 2 start investing

Please any information about Eternal Oil Plc? And your advice about buy their shares.

Toomaxi: Helo guys i need ur advice i bought FBN stock at 12.6 last yr and is at N15, am no longer comfortable wit its fallin rate, i want to sell it whts ur take? And if u agree dt i should sell whch stock do u advice me to buy?

When investing in the stock market, you have to decide on the strategy to adopt. This will be based on your understanding of the market. If you do not have sufficient information for now, I will advise you do not rush to sell. If you must sell, wait for it to reach N20 or more. You need to be really patient and you may even have to hold on for up to 10 years if you want to get the best from your investment! FBNH is very good for the long term at the price you bought.

When you rush to sell one stock and buy another, you expose yourself to greater risk. First step is to go through other threads and read books that will help you get a better understanding of the market.

@Toomaxi.Firstbank is not a stock you rush to sell because of sliding prices.There are all sorts of reasons why stocks go up and come down,however,the key thing for you must be is the company solid?Does it have potential to grow,is the management strong?Then what are the fundamental parameters?For FirstBank,the fundamentals are solid.Therefore,don't sell it.Hold it tight.Fundamentals include.E ratio,PEG growth,EPS,ROE.

generaljosh: start earning 4rm dis site asap by jst clicking on dis link
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We don't click to earn but we invest to earn sorry