So-brit:
Pls someone eplain the effect of the international energy insurance share reconstruction

Meringe: Is it advisable to invest in Oando and firstbank for short-term investment?

9free:
NO!!!

Omexonomy: why no. I know first bank will soon bounce back but as for oando i have nothing to say.

Meringe: Is it advisable to invest in Oando and firstbank for short-term investment?

Elai147:

When you register they will send your login and password to you by email. You can print your statement yourself when you log.

ihedioramma: so how do i start now? thats very good if i login and se all the share's in my portfo, the #2,500 is it for 1yr? are you useing it now?

soloniger:
Just Go To Their Website For Direction On How To Sign Up, It Is Self Explanatory

Elai147:

The share reconstruction formula is 1 share for every 5 shares held by investors. See details below.
http://blueprintng.com/new/2013/06/10/nse-suspends-shares-of-international-energy-insurance/

ihedioramma: Thank's let me have the website

ihedioramma: Thank's let me have the website

stockbull: it simply means investors/shareholders will lose 80% of their stake in the stock

So-brit:

how does this happen? Can u throw more light on this

soloniger:
http://www.cscsnigeriaplc.com/web/guest/signup

So-brit:
Thanks again Elai.. This was exactly my calculation since it was .50k and after the construction company, it was made #2.50, so i'd said it was just a play of nomenclature as nothing was lost nor gained except the recent drop from 2.50 to 2.25.
Maybe stockbull got more info about this. He should share

So-brit:
Thanks again Elai.. This was exactly my calculation since it was .50k and after the construction company, it was made #2.50, so i'd said it was just a play of nomenclature as nothing was lost nor gained except the recent drop from 2.50 to 2.25.
Maybe stockbull got more info about this. He should share

stock4life: The message below was sent by GT Bank. Pls will this cushon the effect of the CRR policy on banks stock?

UPWARD REVIEW OF INTEREST RATE ON FACILITY

Thank you for banking with us.

We write to inform you of the recent increase of the Cash Reserve Requirement on Public Sector funds from 12% to 50% by the Monetary Policy Committee of the Central Bank of Nigeria. This recent upward review has reduced liquidity in the financial market and has ultimately led to increase in the cost of funding within the financial system.

As a result of this, it is imperative that the bank reviews its interest rates in response to market dynamics.

Please be informed that the interest rate on your loan facility or facilities will be reviewed upwards by 200 basis points (2.00%p.a) with effect from August 13, 2013.

RichYoungRuler:
Hi Bosses in the house; My thoughts on the above is that if the number of outstanding shares in this said company is about the same with other insurance coys now, the price will soon nosedive to the 0.50k it was before the reconstruction and if things don't change in the insurance sector for good, one may find it difficult to sell after a while, reminds me of equity assurance.

Elai147:

Yes the intention is to reduce the number of outstanding shares which in turn improves the value of the company's shares in the market but this will not affect the total book value (at present) of those shares. However, share reconstruction in Nigeria can be very unfavourable. I have noticed that the increase in price of the stock after reconstruction is not always sustainable and the price falls steadily, maybe due to market condition. So even if the Directors of the company try to justify the action, investors still see it as a rip-off. In my opinion, share reconstruction of a failed company is a total waste of time and a ripoff to investors because there is already a negative perception of the stock. For example, in 2008 Ecobank did share reconstruction (1 for 3) and my holdings were drastically reduced and the new price could not be sustained. As if that was not enough, in 2011 the parent company (ETI) absorbed Ecobank and performed another share reconstruction (1 ETI share for every 5.16 Ecobank share). At the end, my 70,000 units of Ecobank turned to 4,641 units of ETI. The reconstruction was a failure and a rip-off.

RichYoungRuler: Bosses in the house, a quick one here; Do you think the banking sector forecasts and bottom-lines will be reviewed downwards with the said increase in CRR? if yes do you see this impacting negatively in the share prices now or by the time the full 2013 results are announced? Going forward,what will be your strategy if you have substantial percentage of your portfolio in this sector?

Elai147:

I don't think the banks will alter their forecasts as it will give a negative connotation to investors. Investors are already aware that increased CRR will lead to reduced liquidity and will affect bank's profitability. So there is no need for banks to make it sound like it's a big problem otherwise this can have negative effect on their share prices. Ordinarily investors expects competent banks, especially those that are not too exposed to public sector funds, to try and minimise the effect of increased CRR.

I have substantial amount of bankings stocks (Zenith, FBNH, GTB, Access and ETI) in my portfolio, most of which are for the long term. So if the increased CRR eventually leads to fall in share prices of banking stocks as perceived by investors (perhaps due to reduced profitability), my strategy will be to take advantage of the situation by increasing my holdings and waiting for them to get back to profitability. This is because the increase in CRR will only be temporal. So I don't think there is cause for alarm if you have good banking stocks.

anyanwu58:


CRR will be temporal.............. like how many months?
Thanks

soloniger:
http://www.cscsnigeriaplc.com/web/guest/signup