UBA launches the first ever online public offer.
here is the link
http://www.ubaoffer.com/
Here's the link to the prospectus
http://www.ubaoffer.com/UBAProspectus.pdf.
will comment on the offer after I have gone through the prospectus.

@windywendy
Its not impossible to sell shares during a public offer. The fact that most shares are sold at a discount makes it difficult but if you look at the statistics even when a share is on technical suspension trades still go on. Most of the trades that are reported are basically cross trades.
that is the buyer and the seller use the same broker so the broker is just crossing the shares from one person to the other. In such trades it is only the commission and charges that are done at the market price. The buyer and the seller settle the actual price paid between themselves.
People may decide to buy shares on the floor in spite of a public offer to take advantage of any price gain that may accrue after the conclusion of the offer. Also the shares offered in most POs dont rank for dividend.
So if you know someone that wants to buy your shares you can negotiate a price.
As I said to do arbitrage all you need is to know that two different prices exist in the market . If they are not sold during the IPO then after the IPO it will be executed once it gets to the stated price. Mine was actually sold after the IPO because I gave a price that was above the market price so they had to wait until that price was reached( and even exceeded. )
I have heard of margin trading.
I know a couple of banks and brokers in Nigeria offer the facility.
In a bullish market its alright to use margin trading but I will suggest that you use it with care. It is a doubled edged sword. Imagine investing in cadbury and having that scandal wipe out 50% of the value of your investment. The banks will call in your loan immediately and you will be forced to sell at a loss.

b/w oceanic and uba which will invest into

Can the recent tumble in world stock affect Nigeria at all?

i don't realy know, the gurus in this post r all sleeping

LoverBwoy:

Can the recent tumble in world stock affect Nigeria at all?

If it is prolonged,it will.The "tumble" seems to be a correction in the markets after stellar growth.It will soon blow over,we had a similar thing last May and it did not affect Nigeria

Should be more worried about how political developments might the market.

If we have a smooth transition then expect a bullish market.

nkc:

b/w oceanic and uba which will invest into

I'm buying into both of them for long term HOLD

***yawns and stretches out***
toot, toot who dares disturb a sleeping giant
As I said earlier will comment on the offers in the market when I have had the time to study their prospectuses. But my first hand impression of UBA is that it is too pricey while oceanic has a lot going for it.

1. A specific need must be funded with specific assets dedicated for that need: If you are saving for a car which you expect to buy in a years time then, then invest in one year bonds and treasury certificates.
2. Develop appropriate sources of investment information: Subscribe to financial magazines like businessday, financial standard, stockwatch and moneywise.
3. Choose a broker with a large and well respected research department: The broker should be one that does a large amount of institutional business so that you will have access to the ideas that are making the rounds in the investment community.
4. Confine stock purchases to companies that appear able to sustain above average earnings growth for at least five years: Consistent growth not only increases the earnings and the dividends of the company but may also increase the multiple that the market is willing to pay for those earnings
5. Never pay more for a stock than its firm foundation value: Though it is difficult to gauge the exact value of a stock, it can be estimated by comparing the multiple the stock is selling at with the market. Buy stocks whose multiple are low relative to their growth potential. If the growth takes place you will get double benefit as earnings and the multiple increase. Conversely beware of stocks with very high multiples and many years of growth already discounted in its price. If earnings decline rather than increase you will get double trouble as the earnings and the multiple will fall resulting in heavy losses for you.
6. It helps to buy stocks with the kind of stories of anticipated growth on which investors can build castles in the air: Investors are emotional beings driven by hope, gambling instinct, fear and greed in their stock market decisions. The key to successful investing is being where the other investors will be several months before they get there.
7. Trade as little as possible: Frequent trading reduces your overall return as you have to pay transaction costs to get in and out.

http://frankiriri.bloggerteam.com/

i just got the news that the DANGOTE SUGAR offer would be listed today at N18, is that not wrong as it is suppose to have appreciated since december.

Thats true, it should have gone up!!

they normally have stocks on suspension during IPOs but it should have gone up after the IPO hmm

The dyamics of the market is what influences the price at which the sock will be listed. I can bet you that the stock will rise to N30 in about two weeks time.

frankiri, i respect ur take on the stock market
do u advise us to sramble for more of it now?

@ Tmoni
Well, if you can get it by all means do Dangote Sugar is headed northwards.
Its the kind of stock people can build castles in the air around and it has solid fundamentals. Dangote is also a monopolist so its a sure bet.
My fear is that the stock will be too scarce until the price is very high.

1. hw long do u thnk i shld stay in it

2. is it true that GTb is also going to float a public offer, i thought they just secured a sort of loan which i know is cheaper than equity


Ps--is there sth wrong with the lanlines in VI, cant get through to my stock broker

@ loverbwoy
All those of you that fear that the Nigerian capital market will toe the line of the global markets should see this link
http://businessdayonline.com/?c=56&a=11772

if dangote gets to N30, should we sell hoping it comes down again for a buy- back

@ Tmoni
Sorry, I dont give market timing advise on publc forums. I beleive more in long term investments. If I have to do in and out then I weigh my risk.  I can't be sure that you will do the same so my answer is 'No cant do'.
If you thik it is a good buy then get it and hold it until you have a reason to sell.
GTB may be wanting to reach the $1b capital requirement that CBN has imposed on banks that want to partake in forex management.

you can send me a mail

sent the mail

Hi guys,

A new entrant, But I have always been reading your posts. Respect to the profs in the house!. I don't know if anyone in da house knows something about the services of BGL Ltd and LeadCapital. I am considering opening a stock broking acct with them. It seems to me that BGL doesn't have a strong stock research unit, may be I am wrong sha. Anyone can also recommend any other strong research firms. Thanks and Kudos to you all

Plz, does anyone know whether intercontinental and dangote have started issuing their share certificates

dangote appreciated the full 5% today,
hope to get some tommorow
looks like it might hit the roof before people get their certificates!!!!

@frankiri, opinion pls

The Dangote offer was 139% subscribed. All applications for 50,000 shares and less were alloted in full. The certificates will take a while in getting to you. But if you can get it to buy now then please do as the share will definitely hit the roof. To avoid missing out on price appreciation it is best that you fill out the name of a stockbroker of your choice and your CSCS no on the application form so that the shares alloted to you will be credited directly to your CSCS account.

how will send it to CSCS,
spoke with my stock broker and he said i might not be able to buy dangote 2moro but will try,

could u shed more light on your theory above and how a NRN can apply it

cheers,

so i might not have been alloted in full

@pamit
BGL is one of the biggest stockbroking houses. IBTC is the only broker that I respect more than BGL so in my opinion I think that you are in good hands.

Starting with the Intercontinental bank issue, investors were given the option of stating the name of their broker and their CSCS number on the application forms that they submitted. Investors that provided these info will not be issued share certificates but will have the shares alloted to them paid directly into their CSCS accounts. Thus they wont need to wait for certificates and then verification. If you did not supply this info then you will get a certificate.
If you bought more than 50,000 units you wont get all the shares you applied for.

that has been agreed on,

what do u think are the chances of getting it today?
thanks for all the info

Oga Frank ,thank you for the way you have been helping us here ,now i have me some questions too .
1, prior to buying shares for me ,my broker had registered me with the CSCS and gave me the registration number and the account number ,but after buying the shares ,i wanted to log into my cscs account so i could monitor the stocks there ,but my broker told me that i would be able to do this in about a month time , so do you think this is ok or should i be concerned ? should i as an individual investor be able to log into my cscs account at anytime i want or should this be done by my broker only ?
2 , my broker "bought " shares for me more than the amount i deposited with them ,when i got the statement i asked why and was told that they did that cos the shares (first bank ) is scarce ,so i asked what if i don't have the money to pay for it,what will happen ,she said that in that case they would sell it when the price go up and take their money back,i don t really like this cos i don't understand how shares that i didn't pay for should be bought in my name, is this normal ? is it legal ? should i be concerned ?
3,now that i have scsc account number ,if i buy IPOs ,and asked that it be credited to my cscs account ,how long would this be done ,i ask this so i should know which is faster between crediting my cscs account and waiting for the certificate to get to me if i had chosen to receive the physical certificate .
4,what is the average transaction days from the day that i ask my broker to sell my shares and the time the money would hit my bank account ?

Tmoni:

that has been agreed on,

what do u think are the chances of getting it today?
thanks for all the info

very slim.
The people whose money will be returned may try to buy on the floor and thus create excess demand

thanks,

lets hope 4 the best
i sent u a mail earlier on,
any stock worth taking another look at

u have really been helpful

egoldman:

Oga Frank ,thank you for the way you have been helping us here ,now i have me some questions too .
1, prior to buying shares for me ,my broker had registered me with the CSCS and gave me the registration number and the account number ,but after buying the shares ,i wanted to log into my cscs account so i could monitor the stocks there ,but my broker told me that i would be able to do this in about a month time , so do you think this is ok or should i be concerned ? should i as an individual investor be able to log into my cscs account at anytime i want or should this be done by my broker only ?
2 , my broker "bought " shares for me more than the amount i deposited with them ,when i got the statement i asked why and was told that they did that because the shares (first bank ) is scarce ,so i asked what if i don't have the money to pay for it,what will happen ,she said that in that case they would sell it when the price go up and take their money back,i don t really like this because i don't understand how shares that i didn't pay for should be bought in my name, is this normal ? is it legal ? should i be concerned ?
3,now that i have scsc account number ,if i buy IPOs ,and asked that it be credited to my cscs account ,how long would this be done ,i ask this so i should know which is faster between crediting my cscs account and waiting for the certificate to get to me if i had chosen to receive the physical certificate .
4,what is the average transaction days from the day that i ask my broker to sell my shares and the time the money would hit my bank account ?

I think it is ok. As long as you get a contract note and a monthly CSCS statement of account its all good.
On the excess share purchase ask them what are your rights in respect of those shares and what are the corresponding obligations. The money they have loaned you to buy the shares is it interest free or are they going to charge you interest. What is their benefit there.
Once they give satisfactory explanation there will be no cause for alarm.
What they have actually done is to buy shares for you on margin
It is faster to have your CSCS account credited with your share purchase.
Before any share is sold the transaction must go through the CSCS.
If you have a physical certificate it will be sent to the registrars for verification and this may take two weeks or more. After verification the certificate will be sent to CSCS where it will be demobilised and then your CSCS account will be credited with the value of your shares.
So you can see that having it credited straight away saves time.

You are supposed to get a cheque fpr sales 3 days after the transaction is closed.