Stock Market Tips For Nigerians

You sound very funny, Isn't it?
Thanks for your caution but if you are in Lagos why not confirm their address and location.
The mails i upload is sent from PHB Asset MGT and you can find out from the branches when you have time.

Attached is their CSCS Account opening forms

Windywendy,

On UBA, move with care. Everything is right with UBA except the penchant for some huge 'provisions' to cover some extraneous items. This started during Bello Osagie's deals. Since then, UBA has become a cautious BUY. Fraud is so rampant in that bank. Unsecured loans and insider credit is regular. Breaking of banking rules seems to be an habit. At the old STB, they were just paying fines like no mans business. In terms of corporate gorvernance, UBA ranks very low.

So, the N4bn provision this year is not a one off for UBA. It is a regular occurence that you should factor in going forward.

For me, the bank to stick with is the elephant. People will be suprised by the kind of profit that First Bank will post next year. Just watch out!!!!

I got a message from IBTC on Diamond Bank GDR Conversion form
so it goes:

Dear Sir/ Madam

Further to our earlier emails, please find attached a GDR Conversion Form to be completed by subscribers who want to receive Diamond Bank ordinary shares instead of GDRs (in addition to the application form).

In addition, please note the following important modifications to the domestic Offer:
1.        The GDR conversion charges have been waived for subscribers who elect to receive ordinary shares. This implies that subscribers can now receive Diamond Bank shares at an attractive reference price of N16.50 without paying any additional fees or charges.
2.        The arrangements for converting Diamond Bank GDRs into ordinary shares have now been finalised and subscribers who elect for ordinary shares will have the shares credited to their CSCS accounts by the second week in January 2008.

Please note that the domestic Offer closes on Monday. 10 December 2007

Best Regards


Attahced is the form

May be the chartists and the trendists do not have Oand O

Also, is anyone here who wants to purchase a An intercontinental Bank shares of 5,000 units worth, please contact me.

My phone number is 07039645226, or write me at dmillerworld@yahoo.com.

Thanks,

Fred.

@ Pumping777,



Thanks a lot Pumping for those words of wisdom.

I just want to let the house know a few things here.

I remember that some few years ago at IBTC (old Investment Banking and Trust Company) people thought that Atedo Peterside did not have a succession plan for his bank and that he was majorly the face of the bank.

At that time, th bank shares were sold at an IPO price of N4.30.

I would like to say that currently, it is a subsidiary of a global bank and he still remains the largest individual shareholder and he is also the bank's chairman.

Sola David Borha pioneered the bank with him and was relatively unknown to most people until recently when she was appointed MD and CEO.

The same can be said of GTB also.

look into the history of Zentih and find out the pioneers of the bank and whatb their vision is for the bank. I am sur you will be surprised that there is a well laid out plan for succession.

Remember nobody lives forever and the best organisations are those that outlive their founders.

Hmmm Orient's management is very questionable, not the MD but there are other factors (that I wouldnt be privileged to discuss on here) that would make me very hesitant to throw in money there.

True true, our obsolete national refineries
still have my hesitation though from an insider's perspective I guess, but like everything I'm sure folks will be ok for short term, but long term is another ball game.

Lets put it this way throw in a couple of thousand pounds and wait till when it comes on stream in '09 and hopefully they will do a PO and knowing the psychology of the market you can expect an over-subscription and you can sell your private holding to the highest bidder just before they go on TS(if i'm that lucky to time the market correctly) hopefully i can afford to tie down about two thousand pounds till then.

Back in '05 they were going to do the PP for a minimum subscription of N1M then but not sure what happened

If they do a PO for a refinery (they have to because they need the money!) that's already in production and making money i expect that to come a lot more than the N100 per share for the PP they are doing now and we are talking a timeframe of  less than 18 mths

I'm assuming my permutaions are correct

Couldnt agree more!

@ all nairalanders,

Info on Bank PHB from the home soil

 It is no longer news that Bank PHB is in the market in search of cheap funds to beef up its capital base. But what has informed this analysis is the bank’s antecedents, fundamentals, price and other indices being flaunted before investors.
First, let’s look at the price. The current market price of N25.51 per share for Bank PHB represents an adjusted capital gain of 239 percent in 2007 from a closing market price of N3.12 in December 2006. But an incontrovertible fact is that the bank’s share price had hit a high of N35 early in the year before it was marked down for a bonus issue of 1 for 4 made in its 2007 financial year. At its year high of N35, the banks’ shareholders could boast of a capital gain of 346 percent on December 2006 closing price. Bank PHB share price has made a capital gain of approximately 400 percent since its private placement offer price of N1.95 in 2005. The capital gain is besides a cash dividend of N1.25 billion in 2006 and N4.5 billion in 2007. The 1.61 billion ordinary shares given to shareholders in 2007 is worth N41 billion at current market price. The implication is that, in just two years, shareholders have received approximately N47 billion in both cash and non cash returns from Bank PHB. The Bank projected earnings multiple ratios also offers significant room for upward growth of the bank’s share price. Forecast price earnings ratio based on the offer price is expected to drop from 13.12 in 2008 to a low of 6.18 in 2010. This is against the current market average price earnings ratio of 19 times earnings. This indicates that Bank PHB share has a very strong upside potential post IPO.

Bank PHB’s offer price of N17 per share is discounted by 33 percent or N8.51 below its current market price of N25.51 per share. Stock market analysts agree the fair price for Bank PHB stock lies between N33 to N35 per share based on current and projected earnings.

Again, to establish how expensive an offer is, one must have a cursory look at the company’s price earnings ratio (PE) this is because, the lower the PE, the cheaper the stock. Aside the fact that Bank PHB is one of the fastest growing banks in the country; it is also on record that the bank’s PE ratio of 13.12 seems better than that of its peers. PE ratio, simply stated, is the number of years, or how long an investor will have to wait to recover his investment in a stock based on current earnings. It is hoped that this ration will further reduce to about 6.18 by 2010 as earlier mentioned. With its last three quarters results, the bank has sent a clear message to all its stakeholders that it is capable of breaking new business ground in the drive to increase revenue and at the same time ensure that such revenue is generated in the most cost effective manner.

Bank PHB was among the financial institutions not given a chance to survive the Soludo solution to the ailing banking industry, but the bank survived and waxed stronger, closing as one of the fastest growing banks among others. The stiff competition in the industry post consolidation notwithstanding, the bank has continued to evolve new strategies that would ultimately lead to achieving its aim of being among the dominant financial institutions in the country. A very significant strategy of the bank is its determination to further open its revenue base.

With total assets increasing at a cumulative average growth rate 103 per cent in the last five years, about four times higher than the average growth rate of 27 percent recorded in the same period by the Nigerian banking industry, Bank PHB ranks among Nigeria’s fastest growing banks. Bank PHB’s total assets and contingents stood at N480 billion as June 2007. This represents an average year on year growth rate of 155 percent.

The significance of the growth rate of Bank PHB can be measured against Nigeria’s economic growth rate that has averaged six percent within the same period and the average banking industry growth rate of 27 percent in the last five years. The faster growth rate of Bank PHB against the industry growth rate means it now ranks number eight in the Nigerian banking industry based on total assets and number seven based on profitability and earnings. The top ten banks in Nigeria control about 71 percent of the industry market share based on CBN data.

Bank PHB, also with current total market capitalization of N205 billion ranks among the top 20 most capitalized companies on the Nigerian Stock Exchange (NSE) which together control an average of 70 percent total market value and deals.

The 2007 Bank PHB financial report shows earning is growing at more than three times the Nigerian banking industry average growth rate. While the banking industry is growing earnings at an average rate of 12.41 percent in the last five years, Bank PHB earnings growth is 44.45 percent in the same period, three times higher.

Bank PHB announced earnings of N36 billion in June 2007 representing 172 percent increase over the bank’s N13 billion earnings made in June 2006. The bank’s earnings has shown a consistent increase in the last five years confirming the bank’s increasing market share in the Nigerian banking industry.


Within the same period, Bank PHB also announced a profit before tax of N10.28 billion in June 2007 representing an increase of 197 percent of over the similar profit of N3.25 billion in June 2006. This indicates a cumulative average growth rate of 119.13 percent for Bank PHB in the last five years about eight times higher than the banking industry average growth rate in profits of 14.16 percent. It shows a bank gaining efficiencies in its operations at a faster rate than the banking industry.

Underlying the bank’s rising earnings and profits are signs of significant efficiency gains. The bank’s cost to income ratio has been kept on the downward trend slipping from 74 percent of total earnings in 2006 to 72 percent in 2007. It was a high of 93 percent of total earnings in 2002, a clear indication of the success of management’s cost reduction strategy. The success has translated into an increasing freeing up of earnings to reward shareholders as net profit margins has doubled from a low of 10.57 percent in 2005 to 21.43 percent in 2007.

Bank PHB’s management has been able to keep costs under control and expand profits in the last five years despite growing total assets (including contingents) by 3,329 percent from N14 billion in June 2002 to N480 billion in June 2007. Within the same period, Bank PHB has also grown its capital and reserves (capital base) by 4411 percent from N798 million in June 2002 to N36.19 billion.

Bank PHB made a significant 181 percent increase in deposit liabilities in 2007 to N307 billion and a cumulative average growth of 154 percent per annum in the last five years. This has seen deposits rise from N15 billion in 2003 to its current level of N307 billion, an overall arithmetic increase of 1947 percent within the period.

Bank PHB projects earnings to grow at a cumulative average rate of 35 percent between 2008 and 2010 to hit a high of N174 billion by 2010. This earnings growth projection is considered conservative considering the bank has grown earnings at cumulative average rate of 44 percent in the last five years and by more than 100 percent in the last two years.

The bank is also projecting profit after tax to grow at an average rate of 44 percent in the next two years, rising to N36 billion by 2010. This is conservative estimate considering that profit after for Bank PHB has grown at an average rate of 119 percent in the five years and by more than one percent in each of the last two years.


I already know that this informtion will create  frenzy on Bank PHB shares but remember that oversubscription leads to 25% more being absorbed only.

Happy Investing

 

Hello all,
Please the Zenith PO is finally here, Oga Ololufemi, I hail-oh. Please anyone have news about BONUS??? Are they or are they not giving BONUSES???

@ Upward,

Zenith declared a bonus and dividend payment for the last Financial Year. The cost for these two muchas have been deducted already. that made the price to fall from the all time high of N68 to N4X. This should be credited soon but it still is an issue I have with these companies.

It takes them time to credit your bonus shares. I still dey wait for my GTB, BCC, First bank, etc.

Pray they do soon.

Happy investing this christmas oh.


@ All,

Heard from the grapevine that Zenith is rewarding its employees with 1% of whatever amount is sourced by them during the Public offer.

This has been a strategy they adopted for the last one and may lead to serious oversubscription oh.

Their marketers are so aggressive in terms of marketing.

@ Pumping,

Olawale Edun was a key player but he left. Others too include Taiwo who is at First Capital. She stayed with the likes of Yinka Sanni and others. I am aware that Wale Edun was a major shareholder but he left the bank. I looked at the holding for the past 6 years and she stood out as the next largest single shareholder who was still in employment at the bank after Atedo Peterside.

Thanks

@ Pumping,

Second Question: What is your analysis of flourmills. (Short term and Long term)

looks like I'm going to pick up more Nig-German shares if it drops down to N23, or even N22, I like what I'm seeing so far
got it at N16.7 previously