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Nigerian Stock Exchange Market Pick Alerts - Investment (4196) - Nairaland

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Re: Nigerian Stock Exchange Market Pick Alerts by mendes911: 2:42pm On Dec 18, 2018
fxuser:


umm

Understanding Candlesticks and patterns i think is just a necessary TA , FA or GUT approach pipu

Recommend:
Steve Nison: (he covered everything)
https://www.scribd.com/doc/122132782/01-Japanese-Candlestick-Charting-Techniques-Second-Edition-Steve-Nison-pdf

Then u can read TA:

1) Schabacker (d daddy of TA)
2) Edwards and Magee (d disciples )




Thanks FX.
Re: Nigerian Stock Exchange Market Pick Alerts by mendes911: 2:48pm On Dec 18, 2018
DeRuggedProf:


I will borrow you three kidnappers, don't worry.
Sometimes you need the tactics of Adolf Hitler to survive... grin

Bros, those kidnappers might turn around and kidnap me instead. LOL.

My GUTS have saved me so far but I need to incorporate this TA. If only Agba will also introduce me to his JAZZMAN, 2019 will then be complete.

1 Like

Re: Nigerian Stock Exchange Market Pick Alerts by DeRuggedProf: 2:48pm On Dec 18, 2018
AN APPEAL TO BECOME A FEMALE MEMBER OF THIS FORUM.

I hereby write to seek your permission as forum member to allow me to change my sex from male to female.
I promise to be a well behaved female member till December runs out.
This will enable me to convince Yayira to open the cockpit of Diamiond bank and allow me in.
I have gotten a spare engine and landing gear for her.
I will appreciate if this appeal is given urgent and desired attention.
Best regards..... grin grin grin
Re: Nigerian Stock Exchange Market Pick Alerts by Nobody: 3:16pm On Dec 18, 2018
DeRuggedProf:
AN APPEAL TO BECOME A FEMALE MEMBER OF THIS FORUM.

I hereby write to seek your permission as forum member to allow me to change my sex from male to female.
I promise to be a well behaved female member till December runs out.
This will enable me to convince Yayira to open the cockpit of Diamiond bank and allow me in.
I have gotten a spare engine and landing gear for her.
I will appreciate if this appeal is given urgent and desired attention.
Best regards..... grin grin grin


NOT GRANTED !

This has nothing to do with diamond but a lot to do with shortage of blokos.. it’s already 7 women for 1 man.. mba we no want more..

1 Like

Re: Nigerian Stock Exchange Market Pick Alerts by DeRuggedProf: 3:16pm On Dec 18, 2018
onegentleguy:


I stated it here in my analysis yesterday that the current shareholders in DIAMOND are far better off in terms of returns than their counterparts in ACCESS as far as this merger deal is concerned.


DISCLOSURE: ONEGENTLEGUY has already sold off his stake in ACCESS bank... including that from the small portfolios he manages.
DISCLAIMER: NOT a recommendation. ...due diligence still applies.


https://nairametrics.com/access-bank-plc-and-diamond-bank-plc-merger-a-lofty-deal-or-a-damp-squib/
Re: Nigerian Stock Exchange Market Pick Alerts by DeRuggedProf: 3:17pm On Dec 18, 2018
Yayira:



NOT GRANTED !

This has nothing to do with diamond but a lot to do with shortage of blokos.. it’s already 7 women for 1 men.. mba we no want more..

Lol.... grin grin grin
Re: Nigerian Stock Exchange Market Pick Alerts by Nobody: 3:26pm On Dec 18, 2018
DeRuggedProf:


Lol.... grin grin grin

Lol why you dey laugh on the bold?
The door it is open but you have to be in line.. so join and wait for someone kind to allow you enter
Re: Nigerian Stock Exchange Market Pick Alerts by Nobody: 3:31pm On Dec 18, 2018
Has the money from US market entered NSE ? shocked shocked The land is green everywhere

1 Like

Re: Nigerian Stock Exchange Market Pick Alerts by MonkeyHunter: 3:33pm On Dec 18, 2018
onegentleguy:
Given the proposed merger between ACCESS and DIAMOND, it makes some sense to run an in-depth but cursory review and analysis to find out who amongst the shareholders of the 2 are up for a better deal from it all.
Put differently, where would be best for u to align with on the back of this merger?

"According to the report from both banks, the proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger.
Based on the agreement reached by the boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising of N1.00 per share in cash and the allotment of two(2) New Access Bank ordinary shares for every seven(7) Diamond Bank ordinary shares held as at the implementation date."

...a quick math:

On the DIAMOND side of the curve;

Today's closure price- N1.04. ...hence MoS gap from proposed merger price = 3.13-1.04 = N2.09.
Consideration price = N3.13
Cash allotment = N1
Hence allotment figure = Price consideration discounting for cash = 3.13-1 = N2.13.
Allotment ratio fulfilling implementation date- 7:2 (7 diamond for 2 access)
This means that post cash allotment, an investor's N14.91(7×2.13) worth in DIAMOND is EXPECTED to be equivalent to a N16.30(2×8.15) worth of ACCESS (assuming today's closing price of N8.15).
But DIAMOND's current price is N1.04. ...and so with reference to this allotment, an investor's N7.28(7×1.04) in DIAMOND should complement a N16.30(2×8.15) value in ACCESS.
...the interpretation of this is that an Investor/trader who managed to KEY in at the pre implementation date should at the very least be entitled to a stake of 2 units of ACCESS BANK for just N7.28. ...or per equity stake(1 unit) for only N3.64 !!
Which presents the plausibility of an already 114% ROI given ACCESS BANK'S closing price of N8.15 today.
Even if the price of DIAMOND should appreciate to the allotment figure price of N2.13, there would still be an over 9% MoS discount[(16.30-14.91)/14.91] from the current price of ACCESS. ...and we have not even factored in the N1 cash figure.
Add that up, and the chance of any possible return can only increase. (a likely 180-210% ROI).

On the ACCESS side of the curve;

We need to look at things in reverse view.
If a shareholder who keyed into DIAMOND pre implementation date can(given the above computation) get an equity stake of ACCESS BANK with just N3.64, it makes sense to assume in part(given access' current market price of N8.15) that value accretion is less here.
The best case scenerio would be to run an estimate in line with the fair value of ACCESS BANK, and do a repeat computation to see where there would likely be more 'gap' to tap from with regards to value.
At my FV estimate of N15.50 for ACCESS and using a Mix of valuation model to weigh in on the best price post merger (after dilution), ACCESS' best price would come in at slightly higher than today's closing price. (N9.40 to be precise)
Note that 'best price' in this instance refers to what I believe an equity stake of ACCESS should come to as an equivalent to DIAMOND and not necessarily the fair value of ACCESS.

Conclusion:
It makes sense to believe that the chances of reaping higher gains is more with DIAMOND than ACCESS.
...and so UNLESS THERE IS MORE TO THIS MERGER THAN WE ALREADY KNOW, the shareholders of DIAMOND has got themselves a better deal ahead of ACCESS.
So in the short term, I see a much better derivable value in DIAMOND than ACCESS. That said, there's also a high possibility of a great value with the latter in the long term, should this drive be effectively managed.

My advise:
If I were an Investor with positions in both coys, I would look to book my profit from DIAMOND within the N2-2.09 price band and no more than N9.40 in ACCESS. This should also serve to guide ur target entries if u wish to KEY in. (read between the lines from the estimates above)
...but that's just me.

NOTE: The sole aim of this run down is to look in on which among the 2 coys offers the possibility of a better baigain in terms of price appreciation.

DISCLAIMER: This analysis is purely information driven. ...and NOT a reference to any sought of recommendation !!
Due diligence should still remain ur 1st priority.


I am not a financial expert but I am of the opinion that the share exchange will be treated using the fundamental principle that on the stock exchange you cannot manufacture or destroy value so if you pay dividend or bonus shares your shares must be marked down.

1) The cash payment to diamond bank share holders will be treated as a dividend payment so Access Bank shares will be market down for the dividend payment.

2) Shares issue to Diamond bank share holders will be treated as a bonus issue by Access Bank and the Acess Bank shares will also be marked down for the issue of these shares.

3)Diamond banks shares (Diamond banks market cap) that are cancelled will be treated as a reconstruction and Access Bank shares will be marked up for the cancellation of these shares.



Access Banks Market Cap post-Merger = (Market Cap of Access bank at cut-off date + Market Cap of Access bank at cut-off date) - Cash payment to diamnd bank share holders

Access Bank Market Cap Post Merger = Adjusted Access Bank Shares (i.e marked down or up) * shares in issue post merger

Shares in issue post merger = Issued Access bank shares pre-merger + (2 *Issued diamond bank /7)


In effect the sharing formula (shares to be given to each shareholders) is already know but the value to be shared (combined market Cap of each party) is not know.

The adjusted share price of Access Bank post merger will be a function of the final share price of Diamond and Access on the cutoff date.The increase in the share price of diamond bank works in Access Bank share holders favour as it implies that there will be less reduction in the value of the shares by virtue of a markdown.

For Example if Access stays at N7.85 and Diamond rises to N5

Access pre merger market Cap = 28,927,971,631 * 7.85 = N 227,084,577,303.35

Diamond pre merger market Cap = 23,160,388,968 * 5 =N 227,084,577,303.35

Combined Market Cap = N 227,084,577,303.35 +N 227,084,577,303.35 - N23,160,388,968.00 (cash payment) = 319,726,133,175.35

Shares issued to Diamond bank = 2 * 23,160,388,968.00 / 7 = 6,617,253,990.86

Post Merger Shares in Issue = 6,617,253,990.86 + 28,927,971,631 = 35,545,225,621.86

Adjusted Share price post merger = 319,726,133,175.35 / 35,545,225,621.86 = N8.99

In summary, till share prices of both parties are frozen things are still fluid as per but Access gets 81% of the combined party while diamond gets 19% plus N23b cash

Apologies for my long posts

1 Like

Re: Nigerian Stock Exchange Market Pick Alerts by akinssan(m): 3:35pm On Dec 18, 2018
Glue don comot for FCMB chair, l no even know whether na India or Chinese Gum hold am for 1.55 cool
Re: Nigerian Stock Exchange Market Pick Alerts by yok: 4:06pm On Dec 18, 2018
NIGERIA STOCK MARKET GENERAL COMMENT/MSCI NIGERIA PORTFOLIO MOVEMENT - AS AT 18 DECEMBER 2018

The closing figure today is showing that a lot of money is in the market. The closing figure surpassed the projection widely. For tomorrow, the closing figure is likely to be higher than the projected high, so much money in the market looking to buy (good stocks)

For Wednesday 19 December 2018, expected High is 30,894.16 low at 30,678.66. The next level for the All Share Index,we need to watch is 31,213.11

This is the market for us, last week bearish, now there is so much cash in the market

By tomorrow morning we will see what MSCI Nigeria did today in the market.

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, unless the fund is exiting from the particular Country involved. This is an equity fund investing in the Nigeria market. The date displayed may not be the actual date of purchase/sale of equity (this is lega and allowable under the regulations guiding funds operations in general).

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.

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.
Re: Nigerian Stock Exchange Market Pick Alerts by Mcy56(f): 4:07pm On Dec 18, 2018
....

1 Like

Re: Nigerian Stock Exchange Market Pick Alerts by OGOg: 4:08pm On Dec 18, 2018
akinssan:
Glue don comot for FCMB chair, l no even know whether na India or Chinese Gum hold am for 1.55 cool
Fcmb broke the 1.69 resistance today
Formed a marubuzo today
Trend is bullish
Fxuser shebi I try

1 Like

Re: Nigerian Stock Exchange Market Pick Alerts by GonFreecss1: 4:11pm On Dec 18, 2018
Yayira:



NOT GRANTED !

This has nothing to do with diamond but a lot to do with shortage of blokos.. it’s already 7 women for 1 man.. mba we no want more..


Lol... shortage of... ?? Hahahahaha
Re: Nigerian Stock Exchange Market Pick Alerts by Mcy56(f): 4:18pm On Dec 18, 2018
Mobil 170 today. Is it not last week I saw it at 151? Anyone that had the gut to buy then will be in profit now.
I hope Oando too will take off for the sake of my classmate. smiley
Re: Nigerian Stock Exchange Market Pick Alerts by onegentleguy: 4:41pm On Dec 18, 2018
MonkeyHunter:



I am not a financial expert but I am of the opinion that the share exchange will be treated using the fundamental principle that on the stock exchange you cannot manufacture or destroy value so if you pay dividend or bonus shares your shares must be marked down.

1) The cash payment to diamond bank share holders will be treated as a dividend payment so Access Bank shares will be market down for the dividend payment.

2) Shares issue to Diamond bank share holders will be treated as a bonus issue by Access Bank and the Acess Bank shares will also be marked down for the issue of these shares.

3)Diamond banks shares (Diamond banks market cap) that are cancelled will be treated as a reconstruction and Access Bank shares will be marked up for the cancellation of these shares.



Access Banks Market Cap post-Merger = (Market Cap of Access bank at cut-off date + Market Cap of Access bank at cut-off date) - Cash payment to diamnd bank share holders

Access Bank Market Cap Post Merger = Adjusted Access Bank Shares (i.e marked down or up) * shares in issue post merger

Shares in issue post merger = Issued Access bank shares pre-merger + (2 *Issued diamond bank /7)


In effect the sharing formula (shares to be given to each shareholders) is already know but the value to be shared (combined market Cap of each party) is not known.




I agree with u Sir MH. ...and to be very honest, I also thought along that line.
But then again here's my little worry;
• This is Nigeria, where things tend to sometimes play out in the most unconventional ways.
•The greatest benefit to ACCESS with this merger shall be that of increased non-interest income(fees and commission) and maybe higher cash base to play the investment space.
The problem however is that DIAMOND has been witnessing a contraction in their deposit base(even ACCESS) Again historically, ACCESS has not been a very efficient bank(observe the trend in their cost to income ratio and EM), so I am not so confident in their ability to better manage the post merger funding base. ...they could, but i'll prefer to thread with caution. ...history teaches us to be !!
• There are also issues with synergy, legacy and the effect from dilution which hitherto should impact on their profitability line. It would also be interesting to see how ACCESS manages the very bad loan portfolio of DIAMOND.
• Even if things eventually play out in line with ur postulations(which I doubt), the pros with it in terms of value accretion to shareholders of ACCESS would still be suppressed by the cons. ...particularly in the short term(this is where my inclination lies) Maybe things might be different in the mid to long term.
With ACCESS, valuation should very likely come in lower than its FV estimate post merger.
...and so the 'gap' with VALUE that an investor is looking to tap from might no longer be that juicy.

The truth is that there are immediate benefits(returns) with DIAMOND than there are with ACCESS in the short term. ...which is why we chose to be friends with the former.
With the latter, we decided on a 'temporal divorce' until such a time in future when we believe it shall be worth considering as a friend again.

Regards.

2 Likes 1 Share

Re: Nigerian Stock Exchange Market Pick Alerts by tiar: 4:41pm On Dec 18, 2018
Wrong! It is a share and cash acquisition. Don't mislead others.

MonkeyHunter:



I am not a financial expert but I am of the opinion that the share exchange will be treated using the fundamental principle that on the stock exchange you cannot manufacture or destroy value so if you pay dividend or bonus shares your shares must be marked down.

1) The cash payment to diamond bank share holders will be treated as a dividend payment so Access Bank shares will be market down for the dividend payment.

2) Shares issue to Diamond bank share holders will be treated as a bonus issue by Access Bank and the Acess Bank shares will also be marked down for the issue of these shares.

3)Diamond banks shares (Diamond banks market cap) that are cancelled will be treated as a reconstruction and Access Bank shares will be marked up for the cancellation of these shares.



Access Banks Market Cap post-Merger = (Market Cap of Access bank at cut-off date + Market Cap of Access bank at cut-off date) - Cash payment to diamnd bank share holders

Access Bank Market Cap Post Merger = Adjusted Access Bank Shares (i.e marked down or up) * shares in issue post merger

Shares in issue post merger = Issued Access bank shares pre-merger + (2 *Issued diamond bank /7)


In effect the sharing formula (shares to be given to each shareholders) is already know but the value to be shared (combined market Cap of each party) is not know.

The adjusted share price of Access Bank post merger will be a function of the final share price of Diamond and Access on the cutoff date.The increase in the share price of diamond bank works in Access Bank share holders favour as it implies that there will be less reduction in the value of the shares by virtue of a markdown.

For Example if Access stays at N7.85 and Diamond rises to N5

Access pre merger market Cap = 28,927,971,631 * 7.85 = N 227,084,577,303.35

Diamond pre merger market Cap = 23,160,388,968 * 5 =N 227,084,577,303.35

Combined Market Cap = N 227,084,577,303.35 +N 227,084,577,303.35 - N23,160,388,968.00 (cash payment) = 319,726,133,175.35

Shares issued to Diamond bank = 2 * 23,160,388,968.00 / 7 = 6,617,253,990.86

Post Merger Shares in Issue = 6,617,253,990.86 + 28,927,971,631 = 35,545,225,621.86

Adjusted Share price post merger = 319,726,133,175.35 / 35,545,225,621.86 = N8.99

In summary, till share prices of both parties are frozen things are still fluid as per but Access gets 81% of the combined party while diamond gets 19% plus N23b cash

Apologies for my long posts




Re: Nigerian Stock Exchange Market Pick Alerts by Mpeace(m): 4:44pm On Dec 18, 2018
Mcy56:
Mobil 170 today. Is it not last week I saw it at 151? Anyone that had the gut to buy then will be in profit now.
I hope Oando too will take off for the sake of my classmate. smiley
lol. Pray for fidelity, transcorp and fcmb. Na where I dey now.
But come oh, which bus u dey sef. I don dey suspect say you still day diamond. No forget to pay ur tithe when you drop oh.
Re: Nigerian Stock Exchange Market Pick Alerts by musty00: 4:56pm On Dec 18, 2018
fxuser:



- there are bullish cross deals and bearish ones . . we de observe una for learning purposes
- once price can reject its low of the day and even close above it opening , dats d signal u want to see

#hammer

Can we say Transcorp showed the signal today? smiley
Re: Nigerian Stock Exchange Market Pick Alerts by DeRuggedProf: 5:02pm On Dec 18, 2018
Mpeace:
lol. Pray for fidelity, transcorp and fcmb. Na where I dey now.
But come oh, which bus u dey sef. I don dey suspect say you still day diamond. No forget to pay ur tithe when you drop oh.

Una no dey ever grant tithe holiday after dis kind of bumpy ride? grin
Re: Nigerian Stock Exchange Market Pick Alerts by Mpeace(m): 5:20pm On Dec 18, 2018
DeRuggedProf:


Una no dey ever grant tithe holiday after dis kind of bumpy ride? grin
Na time of bumpy ride tithe dey sweet important pass. You need to pay more to supplement falling collections sow seeds for better days.
Re: Nigerian Stock Exchange Market Pick Alerts by Agbalowomeri: 5:21pm On Dec 18, 2018
Eku Santa Claus o
Re: Nigerian Stock Exchange Market Pick Alerts by OBAGADAFFI: 5:23pm On Dec 18, 2018
Access was the worst performing stock today shedding 5.52%.
Re: Nigerian Stock Exchange Market Pick Alerts by Agbalowomeri: 5:31pm On Dec 18, 2018
Brent collapsing again
Merry Xmas, reminds me of 2014 grin

1 Like

Re: Nigerian Stock Exchange Market Pick Alerts by Nobody: 5:37pm On Dec 18, 2018
https://www.voiceheadlines.com/access-bank-to-launch-200m-rights-issue-after-diamond-bank-acquisition/





Exclusives
Access Bank to launch $200m rights issue after Diamond Bank acquisition
by David Pilling, FT
December 18, 2018 | 8:09 am
| | | Start Conversation

Related Story: Access Bank to buy rival Diamond to create Nigeria’s largest lender

Access Bank which announced the acquisition of Diamond Bank to create Nigeria’s largest banking institution will launch a subordinated rights issue of about $200m to keep its capital well above regulatory requirements, bankers working on the deal told the Financial Times. Access Bank reached an agreement in principle on Sunday o buy Diamond Bank in…
Re: Nigerian Stock Exchange Market Pick Alerts by onegentleguy: 5:47pm On Dec 18, 2018
Godlylifeoneart:
https://www.voiceheadlines.com/access-bank-to-launch-200m-rights-issue-after-diamond-bank-acquisition/





Exclusives
Access Bank to launch $200m rights issue after Diamond Bank acquisition
by David Pilling, FT
December 18, 2018 | 8:09 am
| | | Start Conversation

Related Story: Access Bank to buy rival Diamond to create Nigeria’s largest lender

Access Bank which announced the acquisition of Diamond Bank to create Nigeria’s largest banking institution will launch a subordinated rights issue of about $200m to keep its capital well above regulatory requirements, bankers working on the deal told the Financial Times. Access Bank reached an agreement in principle on Sunday o buy Diamond Bank in…

Good a thing we decided to divorce 'the person of ACCESS'.
Why do I get the feeling that the bank probably lacks enough funding power to facilitate this merger deal. Unless there's more to this, existing shareholders in ACCESS might be in for some value erosion.
More possible impact from dilution loading...


CAVEAT: NOT to be inferred as any sought of recommendation. ...due diligence still applies.

2 Likes

Re: Nigerian Stock Exchange Market Pick Alerts by MonkeyHunter: 6:00pm On Dec 18, 2018
No attempt to mislead anyone here. The cash portion of the transaction was accounted for in my analysis. Kindly check and confirm.

tiar:
Wrong! It is a share and cash acquisition. Don't mislead others.

Re: Nigerian Stock Exchange Market Pick Alerts by DeRuggedProf: 6:05pm On Dec 18, 2018
onegentleguy:


Good a thing we decided to divorce 'the person of ACCESS'.
Why do I get the feeling that the bank probably lacks enough funding power to facilitate this merger deal. Unless there's more to this, existing shareholders in ACCESS might be in for some value erosion.
More possible impact from dilution loading...


CAVEAT: NOT to be inferred as any sought of recommendation. ...due diligence still applies.


Not good looking. I have been through similar experience.
UBA & FBNH are better for ME.
Can't withstand the cutting of onions.. angry
One Oga told me to allow the dust settle at this bend very well before I will display my overtaking skills. It's beginning to be clearer. Immediate/long term benefits for Access might be the biblical SOON... angry

1 Like

Re: Nigerian Stock Exchange Market Pick Alerts by Mpeace(m): 6:11pm On Dec 18, 2018
If that is true then we are looking at 10billion new shares by rights issue, plus 6billion shares by acquisition. Hmm Access bank is set to be the biggest bank by everything.
Na diamond pple get this thing well. Na dem go enjoy the main goodies.
Re: Nigerian Stock Exchange Market Pick Alerts by DeRuggedProf: 6:13pm On Dec 18, 2018
Mpeace:
If that is true then we are looking at 10billion new shares by rights issue, plus 6billion shares by acquisition. Hmm Access bank is set to be the biggest bank by everything.
Na diamond pple get this thing well. Na dem go enjoy the main goodies.

The correct headline should have read: Diamond bank shareholders acquire Access bank!

1 Like

Re: Nigerian Stock Exchange Market Pick Alerts by Nobody: 6:24pm On Dec 18, 2018
onegentleguy:


Good a thing we decided to divorce 'the person of ACCESS'.
Why do I get the feeling that the bank probably lacks enough funding power to facilitate this merger deal. Unless there's more to this, existing shareholders in ACCESS might be in for some value erosion.
More possible impact from dilution loading...


CAVEAT: NOT to be inferred as any sought of recommendation. ...due diligence still applies.


Like I mentioned in a previous posting.... Access bank shareholders will pay for the acquisition. The lure of biggest bank by customers base in Africa is intoxicating Wigwe.
We are talking of toxic debts, debt to asset ratio that is not sustainable for diamond bank. I expect access bank to negotiate better for their shareholders, Now Wigwe is floating $200million right issues. Take it or leave it.
This is one of the greediness that killed sky bank when Ayeni et al bought a grossly indebted mainstreet bank in a move to wade off competitors.
The oxymoron in this move is the toxic Liability of diamond bank.
Once this right issue is approved there will be mass dumping of access bank shares by minority shareholders.
The dumping will continue after the final allocation of access bank shares to diamond bank benefitiaries.
In my forecast, I forsee access bank trading at sub N5.00 by mid 2019.
This is just my opinion based on state of the Nigeria investment environment, past experience... Not an advise in any way.
I hold 15000 units of access bank

2 Likes 1 Share

Re: Nigerian Stock Exchange Market Pick Alerts by DeRuggedProf: 6:28pm On Dec 18, 2018
If Access is not very careful, one day, it will beg GTB to come and buy it. But GTB will refuse.
Pride of position was the key bias that notoriously impregnated this deal that has started birthing financially epileptic children.

1 Like

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