Like my other thread, this thread will, by God's grace usher you into wealth come in 2008. I say AMEN!

The Nigerian Stock Exchange [NSE] trading activities have consistently in recent times been dominated by the Nigerian banks stocks. This trend could be partly attributed to the Central Bank of Nigeria directive which required all universal banks operating in the country to increase their capital to a minimum of N25 Billion Naira with effect from January 2006.  In pursuance of the attainment of the policy objective, a number of the banks resorted to the capital market to raise additional capital. Also, with our burgeoning foreign reserves in excess of US$48 billion up for management, banks have sought to shore up their capital base to N100 billion in line with CBN requirements.

Within the period of July 2004 when the policy was enunciated and August 2007, about three years, not less than ten banks have gone to the market to raise additional capital. In fact about six of the banks have either gone to the market twice within that period, or are preparing to return to the market for the second time; while one bank has in fact obtained regulatory approvals to go to the market for the third time within that period. In most of the outings, the banks have reported successful outings evidenced by the large over-subscriptions. As I type this, Zenith is bracing up for about N130 billion expected to be raised next month, bank PHB is on for about N80 billion IPO 9infact the shareholders approved N200 billion IPO – they’re aware of the 33% discount it offers), FCMB just closed, Fidelity is rounding-off, Afri Bank is receiving various boost for its N100 billion offer, Japaul Oil may have been 200% oversubscribed, Access, we heard, is also over subscribed, Dangote Flour IPO was also a success, Oceanic and UBA were also oversubscribed, First Bank was 400% over subscribed (raised N5000 billion but absorbed N250 billion as applications above 10,000 units were turned down), I can go on and on…

The reported successful outings of most of the offers could be attributed to the intense publicity campaign mounted by the banks on the expected gains derivable by the investing public; which also no doubt helped in boosting the awareness and participation of the public in the various offers. The campaigns among other things emphasized the derivable capital appreciation, dividends history of the offering banks, and other mouth watering attractive returns on the investments.

An E.D during the investors’ forum of the Fidelity offer revealed that 4 weeks after allotment, the CSCS will be credited with the shares from its PO – remember, Fidelity sticks to their word. Also note that buying public offer during a period of endless POs is profitable as the secondary arm may witness a downturn during that period. We are expecting Firstinland, Costain WA, Aiico, Wema, Zenith, Diamond GDR is on, and we’re also expecting Union Bank, Skye spring, Unity Bank, Standard Alliance, Staco, Mutual Benefit, the list is inexhaustive.

In order to improve the awareness of investors in bank shares, we highlight some important factors to consider from regulatory perspectives and observed trends before going ahead with their investment decisions:
1. On the average it takes a minimum of a period of about one year for a successful offer to be placed in the market and the shares to be issued to allotted investors. And even after the allotment the dispatch of the share certificates by the respective registrars of the banks could take a minimum of additional six months. With your CSCS Account, maybe within six months since CBN has stopped verifying the proceeds.

2. Prospective investors should not expect to start realizing the benefits of capital gains from the shares through disposal in the secondary market even if you have with you your share certificates.  This is because you have to submit the share certificate to your stockbroker, who will have to submit same together with your authorized transfer form to the bank registrar for signature verification. This process could take a minimum of three to eight weeks depending on the efficiency level of the registrar and other factors which may not be disclosed to you.

3. With enforced rules from SEC and CBN, dividend approved by the Central Bank of Nigeria [CBN] for payment may also be forthcoming as soon as declared. However, enabling laws governing publication of bank annual reports require that every bank publishes its annual account not later than four months after the end of the financial year to which the accounts apply; and after obtaining the approval of Central Bank. While banks would strive to attain the publication deadline, the dispatch of the dividend warrant could take another two to three months after publication of the accounts.

4. I reiterate that If you have a Central Securities Clearing System [CSCS] account, the delays outlined above could be minimized.

5. Prospective speculative investors who aspire to reap the benefits of capital appreciation through early disposal of their share holdings will be well advised to buy from the secondary market. The price at the secondary market which will be higher than the price of issue on offer is the price at which the concerned bank is placed on “technical suspension”. During the technical suspension period, the secondary market price will remain unchanged pending the conclusion of the new issue. Notwithstanding, having considered the atmosphere in the capital market right now, I STRONGLY SUGGEST THAT INVESTORS GO FORCELY FOR POs and PRIVATE PLACEMENTs., more of POs due to the market awareness and regulations.


My subsequent postings will X-ray value stocks that will blow your mind in 2008. Watch Out!

THANK YOU.

Here comes the much awaited man and thread!!!!. Thank you for that of 2007, it was a bomb and 2008 will be "bombier" We await ernestly for your immense contributions.

Happy Xmas in advance

aylala2002:


5. Prospective speculative investors who aspire to reap the benefits of capital appreciation through early disposal of their share holdings will be well advised to buy from the secondary market. The price at the secondary market which will be higher than the price of issue on offer is the price at which the concerned bank is placed on “technical suspension”. During the technical suspension period, the secondary market price will remain unchanged pending the conclusion of the new issue. Notwithstanding, having considered the atmosphere in the capital market right now, I STRONGLY SUGGEST THAT INVESTORS GO FORCELY FOR POs and PRIVATE PLACEMENTs., more of POs due to the market awareness and regulations.


My subsequent postings will X-ray value stocks that will blow your mind in 2008. Watch Out!

THANK YOU.

If you can get the same stock to buy on the NSE why wait for the PO? I mean why tie your money down for so long with the attendant risk of refund money?

If there is something to avoid it is PO's!!!

MyPeace:

Here comes the much awaited man and thread!!!!. Thank you for that of 2007, it was a bomb and 2008 will be "bombier" We await ernestly for your immense contributions.

Happy Xmas in advance

To make it BOMBIER[i][/i], bring my Trans Express. It is now close to 1.40 from 0.68!!!

@Wanajo

l can see ur oral diarharr and premature ajeculation in action here , lt will surely be bombier, whether u get transexpress or not.

Nice info bro.

Mypeace,one luv! Well Bro wanj0, the investors should use their descretion to judge wether an IPO will suite their portfolio and investment motives. Various classes of investors with various risk elements and approach, with a sound PO, your capital is guarnteed if not about 70% returns. So bro, why don't you try Zenith IPO and your finances will never remain the same agin. Think about Fitch AA rating for Zenith,   

But really, are we all interested in POs or buying on the floor?

thanks aylala2002 for the post. I sincerely prefer PO!

@aylala2002,

great write up, well done.

i think we should stick with 'Stocks that will make you RICH in 2007' (you have a typo in the present topic, you typed RICK instead of RICH)

when you say 'Hot Stock, ' it dampens the incisive and well thought out contributions of the members

well done again aylala2002 and a very merry christmas to us all

PO comes with more guarantee of capital but not necessarily superior capital gain. It also has disadvantage associated with certificates (not being able to take profit as soon as one fancies), till the new direct credit to CSCS takes effect. Still looking for FirstBank direct credit to CSCS if they will lead on this.

I think Insurance Stocks will give good returns in 2008 if one selects well and takes position right away before they come with an avalanche of PO's. If one can make good selection and buy now, he/she will make good gains in 2008.

Also some non-bank / insurance stocks need to be identified. More info is needed on Interbrew, Transcorp etc. Any one with clues ?

can anyone please enlighten me on the meaning of PO (just to clarify) - does it mean 'Private Offer' or 'Public Offer' and what are the fundamental differences with 'Private Placement'.

@ Babs_O
I have had my eye on the insurance firms for a while now - my problem is that they are just tooo many; now their recapitalization has ended - there is good opportunity for growth as you rightly pointed out. Based on sector uniqueness (i.e. with things peculiar to the insurance sector apart from PE and common ratios) - could anyone please enlighten me on fundamentals of the insurance sector (short summary).

Finally, what does anyone think of rt briscoe - the share price has been appreciating and i wonder if this momentum will be sustained; my concerns however are that their traditional business is a high ticket item and the sector returns has been historically average or below as far as i know.

Obalende:

can anyone please enlighten me on the meaning of PO (just to clarify) - does it mean 'Private Offer' or 'Public Offer' and what are the fundamental differences with 'Private Placement'.

PO is public offer. There is no "fundamental difference" between a PO and a private placement (PP as we like to say). A PO is open to everybody and their uncle. A PP is often carried out by companies not yet listed in the NSE to raise money prior to getting listed. PPs often approach high-networth people and have minimum limits often in the millions. They also sell at deeper discounts than typical POs.

@ Easioni

Are you saying in away getting the PP's are preferable?

aylala2002:

But really, are we all interested in POs or buying on the floor?

@Aylala2002
Thank you for the 2007 thread, though I missed the train, this thread na "pass me not oh gentle saviour, "
to reply to your question, me I like both sides especially the ones that are seriously undervalued.
Merry Xmas in advance to you and ALL

@All gurus,
When is the best time to hit these hot stocks. December or early Jan.?

@nazzyon
PP can give higher return on investment,
but carries more risk than ipo.

Are we saying buying from the secondary is better than public offers?

Obalende, I no get any special data on insurance stocks. However read from stockwatch newspaper that LASACO and GUINEA INSURANCE have very low PE's. However by the time I checked the prices I notice they have gained 20% and 100% respectively in November. Now not sure if the momentum will continue or the price will drop in December and recover next year to new higher levels.

hi aylala,
are u seriously saying that some one like me who snaped up 27,550 units at the firstbank IPO last july, will have my application turned down?? i almost threw up when i read that bit of your post. pls reply soon, b4 i get UHF! , thats Ultra high fever . cheers

, or you probably meant the amount of units bought, scaled down and the balance returned to me via a cheque (or wht ever).

@iylala2002First Bank was 400% over subscribed (raised N5000 billion but absorbed N250 billion as applications above 10,000 units were turned down), I can go on and on…




please can u through more light on this, i subscribed for 42000 units of the first bank po not sure yet the units i was alloted. but are u saying that they are alloting only 10000 units? and if so how and when do i get the money refund. thanx waiting for your reply.

@Aylala2002,

There is a lot of good stuff in your write-up. Keep up the good work.

Peace.

@ Aylala2002,

Nice piece, keep it up.

A friend's got 5,000 Zenith shares and intends keeping it. I advised her to sell at the TS rate and buy back at PO rate, to earn extra 1,000 shares but she's hesitant.

Please advise.

@  Aylala2002


Thanks for the nice write-up, how can I forget the benefits of your 2007 write-up?

I remember in May 2007 when I first read the 2007 write-up I ask questions and based on people’s advice (i.e. Easimoni, Frank, Wanaj0 etc) I was able to sell my very first stock on NSE at the right time (Afroil) and it gives me more than 2000% gain.

I really appreciate guys, Up to 2008!!!

Good day all,

To keep u posted on market updates on a weekly basis, i put up the brief below, it also includes stocks you may wish to invest in during the last quarter of 2007.

Last week, the CBN on behalf of the Federal Government of Nigeria gave a Tender Notice on the Nigerian Treasury Bills of 91, 182 and 364-day tenors amounting to N5 Million N35 Million, N25 Million respectively which would be issued by Dutch auction on Thursday, 06/12/2007.This may further tighten the liquidity situation in the economy as the CBN makes conscious effort to control inflation and also strengthen the naira vis-à-vis other currency of the world.  Two equity prices were adjusted for dividend as recommended by the Board of Directors. Chellarams Plc was adjusted for dividend of N0.15 per share. Guaranty Trust Bank Plc was adjusted for an interim dividend of N0.25 per share.
…Supplementary Listing
A total of 549,452,531 shares were added to the shares outstanding in the name of Intercontinental Bank Plc following supplementary allotment from the recently concluded share offerings made up of 537,281,740 shares from public offer and 12,170,791 from rights issue.

Technical Suspension
The technical suspension on International Breweries Plc and Japaul Oil & Maritime Services Plc was lifted on Monday November 26, 2007.Also, the technical suspension on the price of Ecobank Transnational Incorporated was lifted on Wednesday, November 28, 2007.

Change of Name: The name of Wapic Insurance Plc has been changed to Intercontinental Wapic Insurance Plc on the recommendation of the Board of Directors to reflect the current ownership structure. The change of name was ratified by the shareholders at the Annual General Meeting on Wednesday, August 8, 2007.
Nigerian International Debt Fund: Notice of 21st Coupon payment. The Fund Managers are recommending a coupon of N221.03 or $1.87 per Note. The date of closure of register of Note Holders is 8th December 2007 while payment date is 21st December 2007.

On the European scene; UK. stocks erased gains. Kazakhmys Plc, Kazakhstan's largest copper producer, and British Sky Broadcasting Group Plc paced the drop. The benchmark FTSE 100 Index retreated 3, or less than 0.1, to 6,346.1 at 8:30 a.m. in London, having earlier risen as much as 0.8 percent. The FTSE All-Share Index fell 0.2 percent to 3,235.52. Ireland's ISEQ Index retreated 0.1 percent to 6,949.73. Kazakhmys lost 53 pence, or 3.9 percent, to 1,295. BSkyB, the UK.'s biggest pay-television provider, fell 16.5 pence, or 2.6 percent, to 618.

I therefore urge investors with a medium to long-term* horizon to seek investment opportunities in the following stocks with good growth prospects over the medium to long term yield. Medium Term refers to an investment horizon of between 6 months and 1 year, while Long-Term spans over a year.
Recommended Stocks
Security Entry Price Projected
Price Mkt. Price Earnings’ Yield % EPS PE Ratio Year End
Niger Insurance 4.00 5.50 4.37 3.89 0.17 25.71 December
Lasaco 3.10 5.40 3.29 3.65 0.12 27.42 December
Lawunion 4.00 5.50 4.15 2.65 0.11 37.73 December
Unic 3.00 4.21 3.20 4.69 0.15 21.33 December
Sovereign Insurance* 2.90 4.45 3.09 3.24 0.10 30.90 December
Access 20.50 26.00 20.51 4.24 0.87 23.57 March
Guaranty 30.25 40.00 30.25 4.36 1.32 22.92 April
FCMB 17.45 28.00 17.45 3.55 0.62 28.15 April
Dangsugar 35.00 45.00 35.21 4.74 1.67 21.08 December

*Sovereign Insurance may soon hit the capital market soon for a public issue
Aiico is on a suspension, but you may also it by January, Crusader - the best insurance stock right now, but get in at N5.00 or below.

Once again; my caveat stands!

The information on this thread has been obtained from sources believed to be reliable. AYLALA takes no responsibility for investment decisions made by any nairaland user as this piece is just a mere invitation to threat, hence i will not be liable for any loss in asset based on my opinion. However, you can trust ma judgement. Thank you.

hi aylala,
are u seriously saying that some one like me who snaped up 27,550 units at the firstbank IPO last july, will have my application turned down?? i almost threw up when i read that bit of your post. please reply soon, before i get UHF! , thats Ultra high fever Grin Grin. cheers

or did u mean that the amount of units bought will be scaled down, and the balance returned to me thru a cheque (or whatever).
pls reply soon.

I just received a credit card with £20,000 in it from my bank.I have been given 12 months interest free balance transfer cheques which I can use as cash advance.

I am stuck for what to do with the money.My friends have advised me to buy FCMB on the floor now as once it comes out of technical suspenion we should expect to see "an angry bull".On the other hand FCMB has succesfully sold 100 millions dollars of GDRs on the LSE in an unlisted private placement,will this not affect the expected bull run on FCMB shares when the technical suspension is lifted?

Can someone give me genuine advise as to which shares to buy.Thanks

Visit this thread
https://www.nairaland.com/nigeria/topic-31554.6624.html

Thanks ayalaa

I love the post, -- I love investment, but I need a Stock Broker to help me in making decisions and I also need a CSCS Account,

Ma people, i think we should learn from the GTBank GDR on the London Stock Exchange, with an unlisted GDR convertibility may be difficult, when listed, European stock pricing may be very conservative and with the weakening dollar against other currencies in the world, i wont suggest a buy on all GDRs for now, for FCMB, I think it would have been impressed if you went for the PO rather than on the floor, my fair value for FCMb come 2008 April is N25.00. After lifting the TS, FCMB will should rally marginally and then dip at N20.00 or before, barring all unforseen circumstances.

Investors who bought 10,000 units and below of FBN PO will be given full allotment. The while 75% in excess of the oversubscribed portion would the alloted as a supplementary allotment. For the rights offer, investors who applied for 16,000 units and below got full allotment. People borrowing money to invest should stick to POs which they are sure would give a 100% allotment, I warned people about excessive investment in Dangote Flour because of the low free float, they should expect much monies to be returned.

Please do not sell your Zenith, find mre money, pick up your rights and also buy more from the POs. You'll soon call back to thank me for this. Remember, Zenith has the highest banking rating in NIGERIA from fitch Rating Agency, an International Agency. AA rating no be yam o!!!


Regards.

Plz can anybody help me out by giving me companies that are in Private Placement (PP) and their websites or links to get them. If you know any profitable one,don't hesistate to tell me. u can reach me at petelives247@hotmail.com.

thx 2 all

Plz can anybody help me out by giving me companies that are in Private Placement (PP) and their websites or links to get them. If you know any profitable one,don't hesitate to tell me. u can reach me at     petelives247@hotmail.com.

thx 2 all