Northeastern:


Oga, just say your bank is a troubled bank or it doesn't have money for expansion. How can you be a bank with zero budget for branch expansion in Nigeria?

Bank of America is to open 500 new branches in the next 4 years, JPMorgan is opening 400 over the next 5 years, and you guys are mocking Access for this landmark deal. AIG had his mind on this, and he would do anything not to fail.

The comment you are alluding to, so because technology will take over banking in 20 to 30 years we should not grow our network? I just wonder why anyone would even doubt the value Access is going to get from this, all this value erosion is because ya all are just looking at it from the point that you chose to.

How can buying a company with a SHF of 222bn, deposits of over 1trillion naira and a monthly revenue of about 15bn for 75.5bn be a bad buy?

Lol! One of the things I have learnt in life is time is a teacher. Not even experience. Time always decides who is right or wrong.

So because JP morgan and Bank of America is doing something, they must be smart? They must be doing the right thing to make them more money? You are assuming too much. If you want us to go there simply ask Goldman sachs how they lost billions of dollars to Dr Barry in the Big short against the Real Estate mortgage backed securities market, it's the same reasoning that real estate is safe and a sound investment that got the last financial crash back then. For a reason people always forget that when unemployment increases and salaries stay the same or lower, increase in real estate prices from rents, to lease to mortgage is stupid, because no one will pay.

With that said, could the Access deal turn out to be good, yes, but it could also be bad, definitely. As for me? At this point in time I choose bad. If conditions remain the same and the current deal goes through, after Unity Bank, I have a feeling Access will be next to fall. No matter how nutritious a meat is, you can't swallow it in one go, if is too hard and big.

That's my 1 kobo.

Oh! And one last thing...

If you think Digital banking is not the future, you are in for a good surprise. Banks have been evolving for a while, I can bet opening branches will be seen as a waste in the future. Think I am joking? Ask the companies Amazon removed from business. People like comfort and flexibility, Digital banking provides that. I opened all my investments accounts from brokerage houses to money market funds etc from home! I didn't step out of my house. That is the way the world is going now, there are people who work from home! All they use is their laptop. Armed robbery is evolving too, people hardly take guns to the banks again to rob, what do they do? They hack accounts! ATM's, Internet banking, buying things with POS without cash, buying airtime from your bank app without going to scratch a card, paying for DSTV and all other utility bills like PHCN from your phone, sending people money without stepping out from your house, what do you think is all this? Very soon there will be banks that don't even have a branch house and will have only websites.
The world is evolving. Companies or businesses who don't evolve will eventually die.

This unity bank you guys are predicting it's fall, there is God ooo. Lol.
I understand the angle you are coming from @Gonfreecss1 but will the North close their eyes and allow it to go under just like that? I doubt it.
Also, I want to ask, Is Wapco that distressed that CCNN may take over one day? Just curious, pardon my naivety.
I'm enjoying the discussions anyway. Lots of great minds to learn from here.

Mcy56:
This unity bank you guys are predicting it's fall, there is God ooo. Lol.
I understand the angle you are coming from @Gonfreecss1 but will the North close their eyes and allow it to go under just like that? I doubt it.
Also, I want to ask, Is Wapco that distressed that CCNN may take over one day? Just curious, pardon my naivety.

My dear, I agree. As the saying goes the stock market can stay longer irrational than you can stay solvent. When we create analysis, we do so on the numbers that exist. In an ideal/logical world, Unity bank should have died already, but then there are other factors involved.

Let me explain it clearly, if I as a person had a business worth 1 million naira, but I have a total debt of 1.5 million naira and I only make losses, so I barely have anything to pay back what I owe. Is this sustainable? No! But someone could inject cash and voila! I am better, we could even use the injected cash to create better ways to make money and part of the injected cash to pay debt. Anything can happen or be done to revamp my business. This is a classic case of Unity bank, the way things are going they should be dead by now, but like I said they could also become one of the best out there, but my question to everyone here is this, do any of you feel like opening an account with unity bank right now? Or do business with them? If you asked Nigerians, are young people interested in an account with unity bank? We all know the answer to that.

GonFreecss1:
My dear, I agree. As the saying goes the stock market can stay longer irrational than you can stay solvent. When we create analysis, we do so on the numbers that exist. In an ideal/logical world, Unity bank should have died already, but then there are other factors involved.

Insightful! Thanks.
Who can believe that diamond will go before it self. That's why sometimes, there's more to what is seen or analyzed as long as NSE is concerned.

Northeastern:


Oga, just say your bank is a troubled bank or it doesn't have money for expansion. How can you be a bank with zero budget for branch expansion in Nigeria?

Bank of America is to open 500 new branches in the next 4 years, JPMorgan is opening 400 o nover the next 5 years, and you guys are mocking Access for this landmark deal. AIG had his mind on this, and he would do anything not to fail.

The comment you are alluding to, so because technology will take over banking in 20 to 30 years we should not grow our network? I just wonder why anyone would even doubt the value Access is going to get from this, all this value erosion is because ya all are just looking at it from the point that you chose to.

How can buying a company with a SHF of 222bn, deposits of over 1trillion naira and a monthly revenue of about 15bn for 75.5bn be a bad buy?

I do not know where Mr. Northeast is getting his isolated opinion, regarding bank branches.
For the record, all over the world, the rate of opening new bank branches is reducing due to advent of technology... This year I have done transactions across all products ranging from treasury bill, FGN bonds, fixed deposits, domicilary transactions, off shore investment, money market funds, diaspora remittance, online tax filing n clearance, Active buying and selling of shares, complaints against financial institutions,.... Etc without physically being present in a bank or stock broker branch.
The 5th industrial revolution is also knocking
A study conducted in the United States shows that the overall no of bank branches are declining due to revolution in technology.
The situation is terrible in Nigeria where banks tend to concentrate in a locality... For instance in VI, surulere, dugbe in ibadan, taiwo Ibrahim Street in Kano, you have most branches in opposite and adjacent area. In egbeda akowonjo road you have a big diamond branch...... Crossing to abeokuta road, a big diamond branch... Not too far in d same axis another diamond branch... Within the locality in egbeda akowonjo /iyana ipaja abeokuta road we can count 3 branches of diamond and 4 branches of access... In the past some of the branches were for incontinental Bank, some were shut down while others continue.
The story is the same in katsina, jigawa, porthacourts, warri, Benin city, oturkpo, makurdi.... So, what are you acquiring in branches in the face of Tech revolution?
Customers wise,.... Remember it was the lack of innovation that drove millions of clients from first bank to the defunct intercontinental bank... From archive of history, 40 to 60 %of the intercontinental bank were from first bank. They left when the elephant refused to move. I learn't the big elephant is now moving with time, unfortunately it was too late for sleeping elephant to catch up with its peer in the world.
Ideally, when we talk about first bank Nigeria, we should be comparing them with Lloyd bank, Morgan JP Morgan chase, bank of America, citi Bank...
Here is a bank that is dwelling and competing with access. If access cannot meet the expectations of existing diamond clients, they will loose them. Coz the clients of diamond bank love the brand, many of them are proud of the brand despite not having a share in diamond bank.
In summary, it makes no business sense to acquire a bank with huge liabilities, some of which might never be recovered, Coz the loans was given to friends and family of the dozies that ventured into oil and gas bizness, with the oil and gas assets as collateral.
If the oil field yield no recoverable oil n gas deposit.... Loan = voicemail... Commonly called toxic loans in Nigeria.


https://www.stlouisfed.org/on-the-economy/2018/february/why-banks-shuttering-branches

Why many banks in Nigeria have trillion in toxic assets.

Majority of investors in NSEMPA are optimistic investors (emotional investors) We invest coz we believe things we turn around in our direction.
For this reason we should know one of the reasons our expectations are not being met.

Oil is the mainstream, the mainstay of Nigeria economy, the driver of this economy is the crude oil in Niger Delta onshores and offshores.
For banks to fulfill their primary responsibility of granting debts, they need many people to deposit their money, this deposit is given out as loans to borrowers.
If for instance you deposit N1000. 00 in your savings account, the bank has secured a legitimate right to print N100, 000 in loans book, this money is given to borrowers at a high rate and the bank pay you an interest at the end of the month.. A way of telling you thanks for keeping your money with them ..
In Nigeria, most of the borrowers are in the oil and gas sectors, despite the prospect and profitability in oil n gas business, even in a country like Saudi arabia, you still run the risk of not striking profitable oil deposits despite positive seismic data that suggests presence of huge oil deposits (dry oil well)
For you to access the loans to fund an oil exploration n and production, you must have a huge counterparts funding + using the oil well as a collateral, Trust the Sharp Nigerian investors, they will give bank the counterpart funds for the project, once the loan is granted, they manipulate and recover the counterpart deposit and kick run the project with bank loans.
If things turn otherwise in this capital Intensive project, the bank is left alone to bear the toxicity.
For you to access this loan, your relationship with the CEO must be extra ordinary.
Once the project Kickstart, the bank cannot back out, same way investors are captured in Mutual funds(one sided funds) you cannot exit without recording a loss
This is the type of gift Mr. Bisi Onadanya of fbn gave to firstbank investors and shareholders (he helped us to invest our money in the oil and gas assets)
This is the same path followed by uzoma Dozie et al
Same path access is acquiring liabilities in.

Mind you, there is nothing bad in banks giving loans to oil and gas barons and barronesses, the underlying problem is the sharpness and greediness among the oil sector players. They know how to manipulate the system due to their unfair advantage in using paddy paddy concepts. Everybank want the petrodollar more than you and I and eventually leads to bad investment decisions.
This same scenario played out after the commercialisation and unbudling of the defunct Never Expected Power Always (NEPA)
Many of the bid winners drafted a tempting proposal to banks, promising excellence outlooks, today the winners have manipulated the system in their favor, participatory banks cannot back out, they must keep giving more and more loans to the gencos, the distributing firms.... Nigeria is still in the dark, story is the same yesterday, today and possibly tomorrow. Nothing has changed.
The trap was escaped by GTB.... The managent of the bank suggested to the Gencos, transmission, and distribution companies.. that instead of loans, they are ready to buy equities with the money. This they all declined.
All the banks that granted them loans arel crying today

This are the reason Nigeria economy is down, they made it difficult for core manufacturing industries to access loans, made it easy to grant toxic loans with risky collateral... Industries are folding up, workers are being retrenched and sacked, unemployment is rising. Now 20 million plus are unemployed.
Investors are crying
The foreign n portfolio investors are wiser than many of us, few greedy one among them are caught in the trap.. The sharp one have seeing what we are talking about today in March /April. They invested at the peak of deflation and bailed out at the right time. Today you will think twice before investing your money in the market, not because you are not a wise investor but because the ongoing manipulation of the system is 2nd to none

The long awaited global crash is here
Brace for impact

Agbalowomeri:
The long awaited global crash is here
Brace for impact

Agba u're right.But it not affectin the NSE for now. Maybe it will not.

tritritri:



Agba u're right.But it not affectin the NSE for now. Maybe it will not.

It has been affecting the NSE for a while, and it's about to hit us even harder if oil prices drop which smart foreign investor will leave their money in Naira assets, when the strength of the naira is dependent on basically said oil?

The Treasury bill people arguing with me are about to understand the consequences of a short term memory and too much optimism without logical analysis. The same with most NSEMPA people, many will understand that if something bad happened to you before, if you don't learn from it, you will continue to suffer the consequences.

GonFreecss1:


It has been affecting the NSE for a while, and it's about to hit us even harder if oil prices drop which smart foreign investor will leave their money in Naira assets, when the strength of the naira is dependent on basically said oil?

The Treasury bill people arguing with me are about to understand the consequences of a short term memory and too much optimism without logical analysis. The same with most NSEMPA people, many will understand that if something bad happened to you before, if you don't learn from it, you will continue to suffer the consequences.

so where do will put our monies, savings in the bank?

GonFreecss1:


It has been affecting the NSE for a while, and it's about to hit us even harder if oil prices drop which smart foreign investor will leave their money in Naira assets, when the strength of the naira is dependent on basically said oil?

The Treasury bill people arguing with me are about to understand the consequences of a short term memory and too much optimism without logical analysis. The same with most NSEMPA people, many will understand that if something bad happened to you before, if you don't learn from it, you will continue to suffer the consequences.

The treasure bill rates might rise in 2019
Remember, the government has nothing to loose
They will pay back with counterfeit Naira.
Today, you give them your money, they do not even need to print a single naira note to pay you back , all they need to do is digital credit alert . This is why 50% of circulating naira notes in Nigeria are torn coz government is not printing money for maturing Treasury bills bonds and OMO,the sukuk ijara Islamic bond. The existing physical naira(fiat currency) are those notes that were signed by soludo and lamido.... Maybe few new notes are signed by EMEFIELE.
You can check the note with YOU to confirm, i still have naira notes signed by soludo and lamido with me. ...
Government can decide at anytime and adjust the value n rates of TB to suit the economic team of the president

Godlylifeoneart:


I do not know where Mr. Northeast is getting his isolated opinion, regarding bank branches.
For the record, all over the world, the rate of opening new bank branches is reducing due to advent of technology... This year I have done transactions across all products ranging from treasury bill, FGN bonds, fixed deposits, domicilary transactions, off shore investment, money market funds, diaspora remittance, online tax filing n clearance, Active buying and selling of shares, complaints against financial institutions,.... Etc without physically being present in a bank or stock broker branch.
The 5th industrial revolution is also knocking
A study conducted in the United States shows that the overall no of bank branches are declining due to revolution in technology.
The situation is terrible in Nigeria where banks tend to concentrate in a locality... For instance in VI, surulere, dugbe in ibadan, taiwo Ibrahim Street in Kano, you have most branches in opposite and adjacent area. In egbeda akowonjo road you have a big diamond branch...... Crossing to abeokuta road, a big diamond branch... Not too far in d same axis another diamond branch... Within the locality in egbeda akowonjo /iyana ipaja abeokuta road we can count 3 branches of diamond and 4 branches of access... In the past some of the branches were for incontinental Bank, some were shut down while others continue.
The story is the same in katsina, jigawa, porthacourts, warri, Benin city, oturkpo, makurdi.... So, what are you acquiring in branches in the face of Tech revolution?
Customers wise,.... Remember it was the lack of innovation that drove millions of clients from first bank to the defunct intercontinental bank... From archive of history, 40 to 60 %of the intercontinental bank were from first bank. They left when the elephant refused to move. I learn't the big elephant is now moving with time, unfortunately it was too late for sleeping elephant to catch up with its peer in the world.
Ideally, when we talk about first bank Nigeria, we should be comparing them with Lloyd bank, Morgan JP Morgan chase, bank of America, citi Bank...
Here is a bank that is dwelling and competing with access. If access cannot meet the expectations of existing diamond clients, they will loose them. Coz the clients of diamond bank love the brand, many of them are proud of the brand despite not having a share in diamond bank.
In summary, it makes no business sense to acquire a bank with huge liabilities, some of which might never be recovered, Coz the loans was given to friends and family of the dozies that ventured into oil and gas bizness, with the oil and gas assets as collateral.
If the oil field yield no recoverable oil n gas deposit.... Loan = voicemail... Commonly called toxic loans in Nigeria.


https://www.stlouisfed.org/on-the-economy/2018/february/why-banks-shuttering-branches

Oga, you know what I am saying but you are looking away. So, because the world is going digital Access should not merge with Diamond right? I gave the example of the 2 US banks to drive home the point that banks in economies where the infrastructure for online banking to succeed are still opening branches.

And don't get the context wrong, the Oga I was responding to said his bank has stopped opening new branches since the past 2 years. I agree that banks are cutting down the rate of increase in branches, saying that they should stop like the poster I was responding to submitted is what I am against.

And yes, it is because diamond bank is having a huge NPL that it is being priced at 75.5bn, despite its woes, it is still a profitable bank. You don't just pick one aspect of a business to make acquisition decision, you look at the whole business. The bank has a positive SHF of 222bn. The liabilities and equities of diamond bank are represented by assets and because they have a positive SHF, you should have said they have huge assets and not liabilities.

aremso:



so where do will put our monies, savings in the bank?

Nope. You are already better off than people with money in bank accounts. Always remember, in the land of the blind the One eyed man is King.

Diversify into assets that hedge each other, like insuring your investments. Tbills is okay, money market funds, bonds, and stocks are all good. I am sure most of you already do this. Consider putting your money in low risk FX assets like Eurobonds etc. Remember, low risk!

Then if you are feeling really frisky you can take a look at C**pto.

The USD is hedge if naira falls, C**pto is a hedge for USD or a global financial market problem or crash?

GonFreecss1:


Lol! One of the things I have learnt in life is time is a teacher. Not even experience. Time always decides who is right or wrong.

So because JP morgan and Bank of America is doing something, they must be smart? They must be doing the right thing to make them more money? You are assuming too much. If you want us to go there simply ask Goldman sachs how they lost billions of dollars to Dr Barry in the Big short against the Real Estate mortgage backed securities market, it's the same reasoning that real estate is safe and a sound investment that got the last financial crash back then. For a reason people always forget that when unemployment increases and salaries stay the same or lower, increase in real estate prices from rents, to lease to mortgage is stupid, because no one will pay.

With that said, could the Access deal turn out to be good, yes, but it could also be bad, definitely. As for me? At this point in time I choose bad. If conditions remain the same and the current deal goes through, after Unity Bank, I have a feeling Access will be next to fall. No matter how nutritious a meat is, you can't swallow it in one go, if is too hard and big.

That's my 1 kobo.

Oh! And one last thing...

If you think Digital banking is not the future, you are in for a good surprise. Banks have been evolving for a while, I can bet opening branches will be seen as a waste in the future. Think I am joking? Ask the companies Amazon removed from business. People like comfort and flexibility, Digital banking provides that. I opened all my investments accounts from brokerage houses to money market funds etc from home! I didn't step out of my house. That is the way the world is going now, there are people who work from home! All they use is their laptop. Armed robbery is evolving too, people hardly take guns to the banks again to rob, what do they do? They hack accounts! ATM's, Internet banking, buying things with POS without cash, buying airtime from your bank app without going to scratch a card, paying for DSTV and all other utility bills like PHCN from your phone, sending people money without stepping out from your house, what do you think is all this? Very soon there will be banks that don't even have a branch house and will have only websites.
The world is evolving. Companies or businesses who don't evolve will eventually die.

Goldman Sachs did not lose money in "the big short"

Lehman Brothers did.

Goldman actually bet against subprime mortgages.

aremso:



so where do will put our monies, savings in the bank?

I will rather suggest to NSEMPA members to put their money in short term financial instruments.. I. E
TB, Money market savings account

Or buy pure gold from malams(Aboki) same way you buy $ from them and keep
Also gambling on few companies that are well managed.... Less than 25 on NSE... Some of them returned 35 % on the average in 2018 financial yrs despite the ravaging bear
Why gold.... The US dollar has lost about 95% of its value in the last 45 yrs... Analysts believe it wouldn't take another 40 yrs for the $ to loose the 5%
There is possibility of gold being used as net foreign reserves in the nearest future... The conspiracy against bitcoin and other crypto currency render it a ceveat... The conspiracy is gaining ground daily and many investors are backing out.
Investing in crypto is like playing nairabet or Jimi agbaje contesting against sanwo olu in lagos guber election... He will try, just as white ants may try but they can never devour a rock...( Ara nla ni ikan nda, ikan Kan o le je okuta)
Other Green area is pooling resources together and invest in a rental properties... Capital demand is high, especially when most banks in Nigeria would rather loan our deposits to oil and gas companies rather than loaning an upcoming entrepreneurs with interest in real estates.

Godlylifeoneart:


The treasure bill rates might rise in 2019
Remember, the government has nothing to loose
They will pay back with counterfeit Naira.
Today, you give them your money, they do not even need to print a single naira note to pay you back , all they need to do is digit credit alert . This is why 50% of circulating naira notes in Nigeria are torn coz government is not printing money for maturing Treasury bills bonds and OMO,the sukuk ijara Islamic bond. The existing physical naira(fiat currency) are those notes that were signed by soludo and lamido.... Maybe few new notes are signed by EMEFIELE.
You can check the note with YOU to confirm, i still have naira notes signed by soludo and lamido with me. ...
Government can decide at anytime and adjust the value n rates of TB to suit the economic team of the president

True enough, but this won't still save the naira. Never has, and never will.

Let me go on to enlighten the house further...

Good economy make a strong nation a strong nation makes not a good economy. This is key.

There is a reason the USD is not doing so bad, even with the trade wars. I saw someone in the other Tbills thread say something like some governments are planning bad things for the US dollars... hahahahaha, this is funny. Let's do the quick analysis, the only industry in Nigeria that makes money well is still banking. That's the only innovation we have. We have nothing else, and we can all see this from the high profit margins of the banks. It's one of the things that actually solves problems for Nigeria on a large scale. People need to put their money somewhere. Oil companies? Cement companies? No matter the industry, they all need banks in Nigeria. I am sure they also have more workers than any other industry. But tell me, are your banks serving the world?

The US economy has been serving the world for a long time, Coca cola? Pepsi? IBM? Exxon Mobil? Now we have the likes of Apple, Microsoft, Google, Amazon, Twitter, Facebook that encompasses both Instagram and WhatsApp. Look at this companies, many of us can't do without them. We can't! The world can't do without them! Their method of payment to be collected is ultimately in US dollars! I don't know why people forget this. Which other country has this much good companies that not only affect the US economy, but the whole world? Look at the power of Google from YouTube to android phones, look at apple. Look at Microsoft. They basically control almost all gadgets we use. Even IBM? All in US dollars! They control almost all the O.S. we use worldwide. This is the true power of the US dollars. You can't compare the Nigerian naira to that kind of currency. I don't care what other governments are planning, you can't force an economy to be good, at the end of the day it's demand and supply. Don't even get me started on their movie industry, Marvel, DC with things like Avengers, superman an co... look at the way people flock worldwide to watch them, ultimately people will change their currency to US dollars to pay for this things, it might not be you but someone you pay your naira to does.

GonFreecss1:


Lol! One of the things I have learnt in life is time is a teacher. Not even experience. Time always decides who is right or wrong.

So because JP morgan and Bank of America is doing something, they must be smart? They must be doing the right thing to make them more money? You are assuming too much. If you want us to go there simply ask Goldman sachs how they lost billions of dollars to Dr Barry in the Big short against the Real Estate mortgage backed securities market, it's the same reasoning that real estate is safe and a sound investment that got the last financial crash back then. For a reason people always forget that when unemployment increases and salaries stay the same or lower, increase in real estate prices from rents, to lease to mortgage is stupid, because no one will pay.

With that said, could the Access deal turn out to be good, yes, but it could also be bad, definitely. As for me? At this point in time I choose bad. If conditions remain the same and the current deal goes through, after Unity Bank, I have a feeling Access will be next to fall. No matter how nutritious a meat is, you can't swallow it in one go, if is too hard and big.

That's my 1 kobo.

Oh! And one last thing...

If you think Digital banking is not the future, you are in for a good surprise. Banks have been evolving for a while, I can bet opening branches will be seen as a waste in the future. Think I am joking? Ask the companies Amazon removed from business. People like comfort and flexibility, Digital banking provides that. I opened all my investments accounts from brokerage houses to money market funds etc from home! I didn't step out of my house. That is the way the world is going now, there are people who work from home! All they use is their laptop. Armed robbery is evolving too, people hardly take guns to the banks again to rob, what do they do? They hack accounts! ATM's, Internet banking, buying things with POS without cash, buying airtime from your bank app without going to scratch a card, paying for DSTV and all other utility bills like PHCN from your phone, sending people money without stepping out from your house, what do you think is all this? Very soon there will be banks that don't even have a branch house and will have only websites.
The world is evolving. Companies or businesses who don't evolve will eventually die.

Yes, is happening already four new banks were granted licenses to operate digital banking in South Africa. They are starting fully in the 1st quarter of 2019
They are ready to disrupt the banking business with very little charges
And for depositors to deposit physical cash, they just go to shoprite, Walmart, truworth, spar, pick and pay, pep stores, etc..... The digital banks have made it clear that they are not opening new branches. One of them is Bank zero... the bank has only a branch.
The staff of all the grocery stores will be used to conduct physical transactions like you do not want to withdraw from ATM... the cashier at the grocery store will give you the cash you requested..
The big banks in SOUTH AFRICA are already treaming branches and I doubt if they ever plan to open new branches in the nearest future.
The digital wave is fast spreading and wish the sleeping giant in Africa will not be left out

einsteine:


Goldman Sachs did not lose money in "the big short"

Lehman Brothers did.

Goldman actually bet against subprime mortgages.

Lol! Goldman bet late. In the beginning they did not and at first couldn't even pay Dr Barry, go and rewatch.

There is a reason Goldman borrowed money from Warren Buffet in that period, they were hit hard too. They were exposed.

Godlylifeoneart:

I will rather suggest to NSEMPA members to put their money in short term financial instruments.. I. E
TB, Money market savings account

Or buy pure gold from malams(Aboki) same way you buy $ from them and keep
Also gambling on few companies that are well managed.... Less than 25 on NSE... Some of them returned 35 % on the average in 2018 financial yrs despite the ravaging bear
Why gold.... The US dollar has lost about 95% of its value in the last 45 yrs... Analysts believe it wouldn't take another 40 yrs for the $ to loose the 5%
There is possibility of gold being used as net foreign reserves in the nearest future... The conspiracy against bitcoin and other crypto currency render it a ceveat... The conspiracy is gaining ground daily and many investors are backing out.
Investing in crypto is like playing nairabet or Jimi agbaje contesting against sanwo olu in lagos guber election... He will try, just as white ants may try but they can never devour a rock...( Ara nla ni ikan nda, ikan Kan o le je okuta)
Other Green area is pooling resources together and invest in a rental properties... Capital demand is high, especially when most banks in Nigeria would rather loan our deposits to oil and gas companies rather than loaning an upcoming entrepreneurs with interest in real estates.

If you think Gold has value and then go on to say buying c**pto is gambling, then you don't understand what they are I am sorry to say.

GonFreecss1:


Lol! Goldman bet late. In the beginning they did not and at first couldn't even pay Dr Barry, go and rewatch.

There is a reason Goldman borrowed money from Warren Buffet in that period, they were hit hard too. They were exposed.

Nairaland is blessed with many people that are conversant with global investment news. I can bet, if this forum is domiciled in US it would have produced the like of Warren buffet... I see this investment forum metamorphose in the future to a hedge Fund, where members will bet against the NSE, TB, MMF, and protect themselves from the Nigeria system that was designed to make people believe in Providence, not necessarily what they can offer.

Nice read but you guys have been wrong 99% of times and will be wrong again..

Berkshire Hathaway was a failing textile company but what is the market cap as of today ?

I know you guys don’t have problem with Access acquiring Diamond but at the price they are willing to pay because to all of you the bank is dead but to Access there’s still some pulse same way Warren found pulse in Hathaway and those who believed him and took the risk to invest in Berkshire in the early are on profit. HUGELY.

GonFreecss1:


If you think Gold has value and then go on to say buying c**pto is gambling, then you don't understand what they are I am sorry to say.

You definitely cannot rewrite hx... The value of gold is ingraved in the commodity itself, not to talk about the liquidity.... Have you or ever seen a bitcoin before? It is an imaginary asset created to exchange physical value
You need not asked any member on dz forum the difference between gold and crypto currency. We are far above that.
Gold remain a physical commodity, it has surpass the value of the dollar since 1972
An ounce of gold was traded at $30 in 1974 today same once of gold is being traded at sub $1250.00
You don't come here and enlighten us about an imaginary ledger created via an electronic platform for the purpose of exchanging values for physical commodities....
The fall and near collapse of crypto is due largely to awareness, not just the conspiracy theories against it.
The moment people begin to know the truth about crypto, the value begins to decline to where its today.
So bra don't compare gold with crypto... An Aboki on the street of yaba ojuelegba road will enlighten you more

Yayira:
Nice read but you guys have been wrong 99% of times and will be wrong again..

Berkshire Hathaway was a failing textile company but what is the market cap as of today ?

I know you guys don’t have problem with Access acquiring Diamond but at the price they are willing to pay because to all of you the bank is dead but to Access there’s still some pulse same way Warren found pulse in Hathaway and those who believed him and took the risk to invest in Berkshire in the early are on profit. HUGELY.

Madam Yayira... You should have being a brand ambassador for diamond bank before their demise.
Your passion for this bank is beyond that of a common shareholder. In thin and thick you remain with them. No wonder, God is rewarding you with access offers.
Enjoy your Xmas, and keep up your generosity to the universe, it will return it back to you, just as the universe is rewarding you with mega bonuses from access.

DeRuggedProf:
https://trwstockbrokers./2018/12/21/airline-services-and-logistics-plc-to-be-delisted/

The wave of voluntary delisting from the NSE is not healthy for our capital market. I hope one day we won't wake up to see that there is no more stocks to buy because everybody has ran away. I think SEC needs to discourage voluntary delisting by tightening conditions around it.

Good pm members!

Wow! You guys have really put up healthy debate here, devoid of sentiment and blind clinging. It's really an eye opener.
These are also areas of expertise of my ogas on top top, Pa Emma, Sir Wanaj0 and the big Oracle himself.
@Godlylifeoneart is right about this digital banking and technology, only that Nigeria used to come late when it comes to things like that.
It is well.
Mpeace, weekend notes don full ground, exam is coming up by 31st, no talk say I no inform you, na u I dey plan to sit beside in class that day.

Mcy56:
This unity bank you guys are predicting it's fall, there is God ooo. Lol.
I understand the angle you are coming from @Gonfreecss1 but will the North close their eyes and allow it to go under just like that? I doubt it.
Also, I want to ask, Is Wapco that distressed that CCNN may take over one day? Just curious, pardon my naivety.
I'm enjoying the discussions anyway. Lots of great minds to learn from here.

Madam Mcy56.... No one will wake up and wish his or her enemy to die except you are a member of MFM
The redline is all over this bank with enviable potential in Northern Nigeria. The same rain that falls on sugar cane also fell on bitter leaf... The rain that fell on Unity bank also fell on Wema bank
Wema is fighting its way to profitability while unity bank is fighting its way to liability.
The fact remains... The past management in charge of unity bank, did not do enough despite the potential of the bank. Debt is rising yearly , so is liabilities. Things can turn around if the present management of the bank can achieve their mandate of returning d bank to profitability. The milost deal dt was canceled could have given a gold to the American company without digging a ground.
If you read through their most recent balance sheet liability is down from 430+ billion to 300+ billion.
The bank stand a better chance to reward fateful in the long run.... How long No one can tell

https://www.bloomberg.com/news/articles/2018-09-04/unity-bank-sells-1-1-billion-of-bad-loans-to-lure-investors


Attached is the balance sheet of unity bank

Godlylifeoneart:
Madam Mcy56.... No one will wake up and wish his or her enemy to die except you are a member of MFM
Wema is fighting its way to profitability while unity bank is fighting its way to liability. Debt is rising yearly , so is liabilities.
The bank stand a better chance to reward fateful in the long run.... How long No one can tell

See stones. Na joke o
You are so right. Unity balance sheet looks like one meme of salary and expenses seen in a thread, salary thin expenses getting fatter, if care is not taken, they will swallow up salary one day. Lol.
Thanks. It is well. Our help us in the name of the Lord.

@Godlylifeoneart everything for this life na risk.. Access just took its own and the outcome we shall know in some years to come not today not tomorrow..

I remember when 79 post the link someone comment and said It’s just Dozie’s wishful thinking and people should bail out fast.. that Access will never pay such an amount but in fact Access was the first to break the news before diamond and their announcement was the first on corporate disclosure before diamond..

How many time will I be wrong before I learn to fold hands look things?
NSE, the more you look the less you see oo.

Enjoy your Xmas too dear

Northeastern:


And yes, it is because diamond bank is having a huge NPL that it is being priced at 75.5bn, despite its woes, it is still a profitable bank. You don't just pick one aspect of a business to make acquisition decision, you look at the whole business. The bank has a positive SHF of 222bn. The liabilities and equities of diamond bank are represented by assets and because they have a positive SHF, you should have said they have huge assets and not liabilities.

On the bolded part, i completely disagree. There is no way you can say a bank with such humongous toxic asset is profitable- tah! Think about the impact of the impairment on the bank's income statement- it will wipe off a large chunk of its meagre and static revenue. Such monies are never recovered because they were loans given to their cronies, and families to fund moribund or non-existing businesses. However, I see the merger as a smart move by DBN because the management knew CBN's hammer is about to fell on it like the defunct Skye bank. That is why I agree with those members who see the deal as whack on the part of Access bank!

NSE Okays Listing of 11.9m Shares of CCNN After Merger With Kalambaina Cement
https://businesspost.ng/2018/12/22/nse-lists-11-9m-shares-of-ccnn-after-merger-with-kalambaina-cement/

dipoolowoo:
NSE Okays Listing of 11.9m Shares of CCNN After Merger With Kalambaina Cement
https://businesspost.ng/2018/12/22/nse-lists-11-9m-shares-of-ccnn-after-merger-with-kalambaina-cement/

I am liking how the cement guys are stepping up their game...Mad competition in that industry clearly seperating the boys for the men...

By now, investors will now where to stake their hard-earned bucks!...

Northeastern:


Oga, you know what I am saying but you are looking away. So, because the world is going digital Access should not merge with Diamond right? I gave the example of the 2 US banks to drive home the point that banks in economies where the infrastructure for online banking to succeed are still opening branches.

And don't get the context wrong, the Oga I was responding to said his bank has stopped opening new branches since the past 2 years. I agree that banks are cutting down the rate of increase in branches, saying that they should stop like the poster I was responding to submitted is what I am against.

And yes, it is because diamond bank is having a huge NPL that it is being priced at 75.5bn, despite its woes, it is still a profitable bank. You don't just pick one aspect of a business to make acquisition decision, you look at the whole business. The bank has a positive SHF of 222bn. The liabilities and equities of diamond bank are represented by assets and because they have a positive SHF, you should have said they have huge assets and not liabilities.

I do not know if you read your balance sheet upside down, the stats are there... You can subtract the liabilities from assets and give your interpretation.
An asset is an investment that improves your cash flow while liability takes away cash from you.
Diamond and access banks are no exceptions.The CEO of diamond admitted that they are need of capital due high NPL... Liabilities... I made an analysis earlier today that once a bank make a commitment to grant loans to the oil n gas players, they become trapped until the oil field becomes productive, which in some cases it usually turns to a bad business if oil is not found (dry well)
NPL=Liability.... Oil well = collateral asset
The balance sheets of both banks show heavy liabilities... You can read from this screen shot taken from Bloomberg since you now have a new definition for asset and liability
The first image is for ACCESS BANK
2ND IS FOR DIAMOND
DO THE SUMMATION AND TELL US THAT BANKS DO NOT HAVE LIABILITIES.....
Many investors believe if Mr. Bisi Onasanya has not released about N450+ billion loans to the oil and gas players, the bank would be trading at sub N35.... Without trading of a company share, your investment in a well managed company should be growing as the company increases in profitability... What should be growing in your investment has been traded off as non performing loans. Loans granted with no resell value and collaterals. This is the reason we are all gamblers and begin to follow the trend and excuses of global melt down, Trump trades war., election bear, US reserve Bank rate hikes, brexit, foreign portfolios exit... All dz are gabages... The underlying factor is mismanagement and corruption in high high places.
GEJ rewarded people with oil subsidies and ecology funds scam
Today, Buhari led APC is rewarding the masses with trader money, N power etc
The so called oil subsidies scam is now dead in the archive of hx.... To me they are all corrupt practices and a way to punish hard workers and investors and savers, at the end... We are all loosers.