swilo:

Sir OGG,

I have some questions, I have asked before but didn't get practical response:

1. will the OS double?
2. will the PE remain the same?
3. if question 1 is yes, is N3.40 FP with respect to the N1.85 post bonus issue?
4. if it were a stock split, how would it be different from this?
5. Lastly, why give dividend if the bonus is suppose to be an added advantage?

Please, use this CUTIX as a direct reference so it will be clear to me.

It will soon fall. It is just experiencing what glaxo experienced when it declared bumper dividend and jumped to 32, now it sits comfortably at 14. To me, in this bearish market and with the bonus shares, cutix should be selling at 1.3 or less. If market were to be bullish, then I would say 2.3 fair value.
Disclaimer: I am just a student. Chorus answer na him I give. Make the teachers correct us.

[quote author=ndidigood post=72127180][/quote]
U assumed something is wrong with cutix,u don't know this coy
I bet,u will be proved 100% wrong..

[quote author=ndidigood post=72127180][/quote]
U assumed something is wrong with cutix,?
u don't know this coy
I bet,u will be proved 100% wrong..

swilo:

Sir OGG,

I have some questions, I have asked before but didn't get practical response:

1. will the OS double?
2. will the PE remain the same?
3. if question 1 is yes, is N3.40 FP with respect to the N1.85 post bonus issue?
4. if it were a stock split, how would it be different from this?
5. Lastly, why give dividend if the bonus is suppose to be an added advantage?

Please, use this CUTIX as a direct reference so it will be clear to me.

Soon it will go down to #1, they intentionally pump it to #4, in order to divide it into two, by giving 1 for 1 bonus.
Cutix always like their stock price to hover around #2, both during the bull and bear. It will go down to #1 even below, watch and see. Notwithstanding they always maintain good result.

BE COMFORTED

https://www.nairaland.com/3560501/holineness-righteousness-revival-daily-messages/18#72128789

Chibuking81:

Soon it will go down to #1, they intentionally pump it to #4, in order to divide it into two, by giving 1 for 1 bonus.
Cutix always like their stock price to hover around #2, both during the bull and bear. It will go down to #1 even below, watch and see. Notwithstanding they always maintain good result.

Is this a fact or just some random tumbum-tumbum assumption

Chibuking81:

Soon it will go down to #1, they intentionally pump it to #4, in order to divide it into two, by giving 1 for 1 bonus.
Cutix always like their stock price to hover around #2, both during the bull and bear. It will go down to #1 even below, watch and see. Notwithstanding they always maintain good result.

Why pour sand for other people's gari? . Though I believe the price will moderate once the bonus shares become tradeable.

After recording a 50% gain in Union Dac. You guys have moved over to Cutix to scalp out gains.

I pity those wey dey follow una wey no no when to take off.

swilo:

Sir OGG,

I have some questions, I have asked before but didn't get practical response:

1. will the OS double?
2. will the PE remain the same?
3. if question 1 is yes, is N3.40 FP with respect to the N1.85 post bonus issue?
4. if it were a stock split, how would it be different from this?
5. Lastly, why give dividend if the bonus is suppose to be an added advantage?

Please, use this CUTIX as a direct reference so it will be clear to me.

1. Yes. Cutix OS will move from 880m units to 1.76b units (x 2)
2. The PE cannot remain the same again because the EPS will now be divided by the new OS.
3. To me, the fair price now should be hovering around 170k until the company releases the Q1 which will determine its present value (This is @currentprice area of specialization)
5. The management thought that the company is a bit bouyant to give both dividend and bonus. Subsequent release of quarterly result will determine if the management is right or wrong.

arduino:

Is this a fact or just some random tumbum-tumbum assumption

What are you trying to say? That our own Prof Prophet uses tumbum tumbum methods?
Bia nwanne you beta not expose embarrass any prof here o.

Mpeace:

What are you trying to say? That our own Prof Prophet uses tumbum tumbum methods?
Bia nwanne you beta not expose embarrass any prof here o.

I have not exposed and don't intend to embarrass our erudite prof.....I just wan make sure say prof never use sapele water dirty him eyes this morning before posting

swilo:

Sir OGG,

I have some questions, I have asked before but didn't get practical response:

1. will the OS double?
2. will the PE remain the same?
3. if question 1 is yes, is N3.40 FP with respect to the N1.85 post bonus issue?
4. if it were a stock split, how would it be different from this?
5. Lastly, why give dividend if the bonus is suppose to be an added advantage?

Please, use this CUTIX as a direct reference so it will be clear to me.

First, I would have to condense ur 1st 3 questions into 1 and if that is done, then those 3 can best be put out as;
What impact will the expected dilution from the bonus issuance have on the valuation of the company?
The computation of my N3.40 fair value estimate was without consideration to the expected dilution.
However, using a combination of several valuation methods, and including the impact post dilution, My Fair Value now prints @ approx N2.70.
But to be brief, I'd prefer to just highlight a few points:

Yes one of the cons of DILUTION (in this case via script issuance) is a decline in EPS and by extension the PE of a coy. (since it increases the OS) ...especially when its done WITHOUT a corresponding cash consideration/injection. (this is where AIICO is a perfect pick)
However, its important to note that the increase in the share capital of the coy is balanced by an equal decrease in reserve, hence the coys composition remains the same.
Put differently, the coys asset and liabilities is unchanged. So in principle, as long as the QUALITY of their asset and its YIELD is NOT in doubt, there's really no material impact from dilution.
In my view, the pros of this with CUTIX far outweigh any cons.
Recall that liquidity has always been an issue here. But with the issuance of the script issue/bonus, it's expected that that will be minimized. ...and the coys beta rating improved. (as issued shares increases, trade speed/execution increases given the availability of more volume)
The company may have also tour this line to improve the perception of it's size by increasing its relatively small OS.
Again, since the script was issued from un-appropriated earnings (distributable reserve), risk to creditors WILL drastically reduce, making the coy more attractive. ...so expect the key solvency ratios that test their asset quality to improve. (the coys enterprise value and asset yield supports this view)

There are lots to say but I'll stop at this. The important thing is to properly weigh things in balance. Yes there are negatives, but if u can take out time to study their financials (the last 2 AFS), u would see that the pros to this dilution (specifically with cutix) outweigh the cons. With a company's financials (just like in life), where positives outweigh negatives, and there's a clear trajectory to make for more positives, then there's an inherent VALUE to tap from.
My only little worry is that the company may be planning to raise funds in the nearest future. how, u may ask? ...the answer is locked in in this post, if u can read btw the lines.
The answer to ur last question (5) can also be drawn up herein. On question No 4, YES it would've been different. Try and read more about stock split.

Regards.

Good morning.


We begin our pre-market coverage of the Nigerian Stock Exchange (NSE).


Pre market runs from 9.30 to 10am daily on the NSE.


During this period, investors can place orders, but no trade occurs.


Figures will take the format Bid(k) vs Offer(k).


Bid represents the amount of stocks people want to buy.


Offer the number of stocks, people wish to sell.


K represents thousands.


Net bid means there are no offers for a stock.


Net offer means there are no buyers for a stock as at pre market.


Bid vs Offer figures are subject to change all through the day.


Access Bank 300k bid vs 100k offered


Dangote Cement 200 units bid vs 500 units offered


FBNH 1k bid vs 3k offered


Seplat 200 units bid vs 97 units offered


UBA 12k bid vs 34k offered

Wapco 57k bid vs 15k offered


Zenith Bank 8k bid vs 23k offered


Dangote Flour 100 units bid vs 31k offered


Dangote Sugar 6k bid vs 10k offered


Guaranty Trust Bank 5k bid vs 2k offered


Guinness 15k bid vs 13k offered


International Breweries 6k net bid


Nigerian Breweries 10k bid vs 6k offered


PZ Cussons 97k bid vs 2k offered


Unilever Nigeria 25k bid vs 24k offered


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NIGERIA STOCK MARKET GENERAL COMMENT/MSCI NIGERIA PORTFOLIO MOVEMENT - AS AT 15 OCTOBER 2018

MSCI Nigeria’s portfolio is still dormant.

The reduction in volume traded yesterday is a little bit worrisome (send me back to the “safe” mode). However, the negating factor is the low value of the movement, bear still weak. Market is still telling us to slow down opportunities are few. This earning season may likely deceive one to make the wrong move, best decision is to wait till the result is out, wait for about one week for the reaction to become normal.

For today expected High is 32520.63 and low at 32442.94.

In view of the fact that some additional information on our postings will now be added, you can check our twitter handle “Target Technical Analysis”.

Caution: This is for information purpose only. Data used are assumed to be correct. However, you may want to verify the data from an appropriate source. Also, Institutions can afford to suffer big losses without going burst compared with an individual, you cannot follow them blindly (you need to at least have some knowledge/your own plan).

N:B


1. Due to the fact so many new people are coming to this forum and may not know this use of following the “big monies that move markets”, I will be indicating why/how to use the information. This will be a permanent future of my post to reduce some comments which may prevent the people that understand the system from confusion by people who have not followed how this started. My comment for today for anybody who doubts the efficacy of following the fund is to look at my recent recommendations for the past 2 months.

2. The fund will still hold some equity, the terms of service states this. Thus no matter the condition of the market, it will not liquidate to Zero. This is an equity fund investing in the Nigeria market.

3. You cannot bear losses like the fund. The pocket of the fund is too deep. Therefore, as an individual you are not suppose to be in the market during the stock market crash. Before or during the crash, reduce your holding.

4. If you are seeing this type of data on MSCI for the first time. You may need to verify the figures. Go to my previous posts (https://www.nairaland.com/yok/posts), you will see the various sources where the data can be verified.

SUNU

INTERNATIONAL BREWERIES !!

WEMA now @ 0.70k, and still rising.
...that's an approx 30% return from the time I called it out here @ 0.54k.
Technically, the stock is now showing a clear bullish pattern.
FUNDAMENTALS very much intact.

One of the best GROWTH coys in the banking sector (tier 2 space)
A case of buying into the very juicy 'gap' of GROWTH BEHIND THE VALUE !!

Well, time shall put things in their right perspective.
We continue to observe.
It is well.

CAVEAT: NOT to be interpreted as any sought of recommendation. ...due diligence should still remain ur 1st priority.

Lafarge Board Holds Emergency Board Meeting Today
https://www.businesspost.ng/2018/10/16/lafarge-board-holds-emergency-board-meeting-today/

Nigeria’s Inflation Rises To 11.28% In September
https://www.businesspost.ng/2018/10/16/nigerias-inflation-rises-to-11-28-in-september/

onegentleguy:
WEMA now @ 0.70k, and still rising.
...that's an approx 30% return from the time I called it out here @ 0.54k.
Technically, the stock is now showing a clear bullish pattern.
FUNDAMENTALS very much intact.

One of the best GROWTH coys in the banking sector (tier 2 space)
A case of buying into the very juicy 'gap' of GROWTH BEHIND THE VALUE !!

Well, time shall put things in their right perspective.
We continue to observe.
It is well.

CAVEAT: NOT to be interpreted as any sought of recommendation. ...due diligence should still remain ur 1st priority.

If I were inside, You would have seen me pushing the window glass to escape, no need disturbing the conductor...

There is a GLASS CEILING @N0.70...
I know people will wait until they see FO and start all over again from square zero...

DeRuggedProf:


If I were inside, You would have seen me pushing the window glass to escape, no need disturbing the conductor...

There is a GLASS CEILING @N0.70...
I know people will wait until they see FO and start all over again from square zero...

Ok ooo ...continue.

DeRuggedProf:


If I were inside, You would have seen me pushing the window glass to escape, no need disturbing the conductor...

There is a GLASS CEILING @N0.70...
I know people will wait until they see FO and start all over again from square zero...

That stock show me something.. it’s a good stock but this time around nobody should go and buy above 0.70 oo.. you’ll just grow gray hair inside there..

DeRuggedProf:
SUNU

Wetin ya eye dey find

out of all the 5 stock i picked only transcorp refuse to move, what is this guy waiting for?

all doing good

Michael11stock:
Please not a recommendation these are my watch list

1. Transcorp
2. Fidelity
3. Zenith
4. Oando
5. Wema.

my power no reach 11 again as too many bears are running after me had to do this one ontop deepsu

DeRuggedProf:
SUNU

Another Lazarus ? Ok oo

Yayira:


Another Lazarus ? Ok oo

Hunter becoming the hunted

PZ indecision phase

GTB U try 4 volume..

Here we are
Waiting to cross the red sea

Agbalowomeri:
Here we are
Waiting to cross the red sea

Lol... ; RED SEA indeed...

Agbalowomeri:
Here we are
Waiting to cross the red sea

Moses shall be dividing the sea by month end and cross-over will commence shortly after that.

Honyflour = Smart Janet...
Sinking with pride ..