Eyes opener to mtn chasers from Nairametrics old news. EPS of #8, indeed I have taken my time to carried out research and find out that by tomorrow with 10% upward selling of mtnn, it will reach it recommended pick of nairametrics of #90 to #160.

https://nairametrics.com/2019/05/15/how-to-buy-mtn-nigeria-shares-on-the-nigerian-stock-exchange/

It’s official, Nigeria’s largest GSM Company, MTN Nigeria, will be listed on the Nigerian Stock Exchange on Thursday 16th of May 2019. As followers of the Nigerian Stock Exchange, we have waited for years for this to happen and we are glad to finally see this long-awaited announcement come alive.

What does this mean? By listing MTN on the Nigerian Stock Exchange, its shares can now be traded everyday by buyers and sellers. Until, now this was not possible as its shares were held privately by its investors. You could only previously buy and sell MTN shares in South Africa and until last year’s Ghana IPO.

Why buy MTN shares? MTN Nigeria is a behemoth of a company reporting massive profits that run into over N160 billion. In its latest investor conference, it said that it reports a return on equity of about 90%. This means it makes a profit of N90 for every equity of N100 it investS. That’s unheard of for any quoted company in the country.

MTN also claims that to pays over 80% of its profits as dividends. It is also likely to list at N90 (and expected to climb as investors scramble for the shares), thereby placing it at a price-earnings multiple of 11x. It’s double-digit revenue and profit growth suggest this is actually a cheap price.

What price is great? Going by the numbers we have seen, MTN might be listed at N90 giving it a price-earnings ratio of 11x (we assumed an earnings per share of N8 based on profits of N160b). If you consider that MTN‘s price-earnings ratio has the potential to rise to as high as 30x, then the share price could easily be N240 by year end. MTN South Africa trades at 29x earnings per share, so this theory is far fetched. MTN could, therefore, be a good stock to buy for any price between N90 and N160 giving investors a good upside.

Mcy56:

Lol.

Pa Emma, welcome in advance sir.

Welcome back from where? When WAPCO dey #9ish and Flourmills is #14ish.

This NSE can be so unforgiving shaaa.

#RunsAway.

Mpeace:
Region of what? Mtn is overpriced but not to that extent.

Do you have any info to back this claim?

I have averaged down wema to the point my dividends too are swallowed.

Any bright days ahead for wema.

Surprisingly MTN has taken the front/back /center stage in the investment world in Nigeria in the last few weeks. The truth remains that every stock has the potential of making good returns for the owner.
But unfortunately, quite a number of people want to own MTN shares, but they don't even know why (either for short /medium /long term, or perhaps for egoistic reasons).
Looking at my kind of investment style /philosophy, i would rather stay on the sidelines for now, I would rather not buy a stock at the peak of its popularity, moreover MTN has so many issues for now (fine inclusive), it does not have monopoly of the market (has glo, Etisalat, airtel) to contend with. But since we have different pockets /investment philosophy /level of risk appetite, this may however be the best investment for some set of people (All the best)

"Creat/invest in companies that have, a strong monopoly in the same niche "—Peter Thiel.

" It is not what you buy that's important, it is what you pay for it "--Howard Mark.

" Being rational is a bigger determinant of investment success than a high IQ or any other skill"--Rohit Chauhan.

Jejebabaa:

If this market should remain low like this till Jul, i will be one of the most happiest guy on NSEMPA. I am planning to get a foreign loan at 4% interest rate the major risk to it is devaluation. I must not miss this opportunity oo.

I didn't want to talk about this devaluation of a thing, but for your sake sir, I keep doing the numbers, trust me the probability for a devaluation is far higher currently. Will something come along to change this? Maybe, but you taking a forex loan, is basically trusting the Nigerian government to use financial analysis magic to stop the pressure on the naira, it is also you assuming oil prices won't crash in that period. So many assumptions in you taking that loan. Of course you might be lucky, but luck? Hope? Are not strategies.


I have been saying for while that market will keep going down, this partial bull by MTN is creating an Illusion that all is well, with the confidence I have seen about people buying.

I will say this again the probability for capitulation still looks high. Something will be the catalyst, all in all play carefully people.

rebekah2011:
Devaluation fit kill person oooo. That trans forcados pipeline dey give person concern.

Someone asked one of my mentors recently if they should buy MTN shares, my oga said "no, buy dollars".

mendes911:


Once MTN join, the bear run will get stronger across all stocks.

The beginning of all mother of all catalysts?

mendes911:


Once MTN join, the bear run will get stronger across all stocks.

GonFreecss1:


The beginning of all mother of all catalysts?

It will join soon. It's always good to share idea, I was about concluding to place mtn buy other tomorrow, but I will not, rather let observe market first. With mtn EPs and PE they suppose to be competing in price with Okomo oil of 8.91 eps, GTB of 6.54, Stanbic of 7.04, and Zenith of 6.15, not with Dancem that has 2018 FY EPS of 22.83 and pay #16 as dividend. Only Dancem dividend of #16 is times two of mtn 8 EPs.

And after their IPO more share will be added thereby neutralizing down the more their EPS, maybe then due to number of additional share through IPO, their EPS will come down to 4 or 5.

Mtn price might still get to #160 this week, but it's a bad decision to enter at this material point in time. Its overprice and overvalued from data available.

One buying mtn at tomorrow current price he or she is on his own.

mendes911:


Welcome back from where? When WAPCO dey #9ish and Flourmills is #14ish.

This NSE can be so unforgiving shaaa.

#RunsAway.

. Oga mende md

BrokerHaruna:
https://www.dailytrust.com.ng/breaking-nigeria-may-slide-to-another-recession-cbn.html

This is not surprising to some of us. From current trend, to avoid economic collapse, naira has to be devalued again and full deregulation of the downstream sector implemented...

Mpeace:
Region of what? Mtn is overpriced but not to that extent.

https://nairametrics.com/2019/05/15/how-to-buy-mtn-nigeria-shares-on-the-nigerian-stock-exchange/
MTN listed at N90 giving it a price-earnings ratio of 11x (we assumed an earnings per share of N8 based on profits of N160b

Agbalowomeri:


Oando has sent Uchenson&sons and B2Brich back to village and locked the village gate

Hahhahahahahahahahaha.

Chibuking81:



It will join soon. It's always good to share idea, I was about concluding to place mtn buy other tomorrow, but I will not, rather let observe market first. With mtn EPs and PE they suppose to be competing with GTB, Stanbic and Zenith in price, not with Dancem that has 2018 FY EPS of 22.83 and pay #16 as dividend. Only Dancem dividend of #16 is times two of mtn 8 EPs.

Mtn price might still get to #160 this week, but it's a bad decision to enter at this material point in time. Its overprice and overvalued from data available.

One buying mtn at tomorrow current price he or she is on his own.

Never buy the hottest asset in town. That is a rule to always live by, no matter how tempting it looks to break the rule.

Chibuking81:



It will join soon. It's always good to share idea, I was about concluding to place mtn buy other tomorrow, but I will not, rather let observe market first. With mtn EPs and PE they suppose to be competing in price with Okomo oil of 8.91 eps, GTB of 6.54, Stanbic of 7.04, and Zenith of 6.15, not with Dancem that has 2018 FY EPS of 22.83 and pay #16 as dividend. Only Dancem dividend of #16 is times two of mtn 8 EPs.

And after their IPO more share will be added thereby neutralizing down the more their EPS, maybe then due to number of additional share through IPO, their EPS will come down to 4 or 5.

Mtn price might still get to #160 this week, but it's a bad decision to enter at this material point in time. Its overprice and overvalued from data available.

One buying mtn at tomorrow current price he or she is on his own.

Those who smile as the pump it, should be the one to bear the brunt, I am not available for now, till they come down to #70 or #80, Okomo oil level.

mendes911:
Welcome back from where? When WAPCO dey #9ish and Flourmills is #14ish.
This NSE can be so unforgiving shaaa. #RunsAway.

You sha want to drag him out by all means. Weh done sir.

robobo:


My Oga u dey fall my hand oooooo

why are you bothering ursef whether there is panic creation?

im even disappointed in those creating the panic that they are not doing enough

they shld do more by letting us get to 20% div yield quickly. zenith at 19.05 / UBA at 5.70/ GTB at 31 is still very far from this target (20% div yield) so i am disappointed that it is taking them centuries to achieve this little milestone.

They shld do quick biko. they shld push d prices of these counters to 20% div yield. then we can start talking if there is panic creation or not as at this junction they have not done enough at all.

Savagery!
Deadly grave robber!

mendes911:


Welcome back from where? When WAPCO dey #9ish and Flourmills is #14ish.

This NSE can be so unforgiving shaaa.

#RunsAway.

Not all, UBA at 10

Add other people's wisdom join your own otherwise na NSE go knock sense into u

Agbalowomeri:
Add other people's wisdom join your own otherwise na NSE go knock sense into u

It's more profitable to learn from other people's mistake than your own mistake.

MTN? Not a chance!

As a dividend hunter, how is MTN better than GTB, Zenith, UBA et al? Then again school fees must be paid somehow.

To the guy talking about foreign loan, my advice to you is to be well counselled. In 2007, I took advantage (at least I thought I was) of the dirt cheap credits available here (quite a few 0% rates available at the time). The exchange rate at the time was £1~=N200ish. We know where we are today and the rest they say is history.

Bottom line - not for the faint hearted!

Coolcash1:


This is not surprising to some of us. From current trend, to avoid economic collapse, naira has to be devalued again and full deregulation of the downstream sector implemented...

and for how long shall we keep doing this? is there no smarter alternative?

MTNN is a GAME CHANGER

For those comparing MTNN dividend yield with other stocks,

MTN GROUP is a global BRAND that don't cook their financials like most public quoted coys do in NSE. So its like camparing APPLE with ORANGES.

like I said earlier FOREIGN INVESTORS will comfortably buy MTNN at $1 than leave their fund in other poo called stocks.

Their parent coy MTN GROUP currently trades at 10000 Rands per share which is equivalent of N250000 Naira per share.

Above all (most 90%) fund leaving other stock to take position in MTNN are for LONG TERM so they AIN'T coming back anytime soon..

And its already happening at our very own eyes .Ask yourself how many coys in NSE will be able to pay fine of N330bllion and still stand FIRM.

That's why I said if coy CEO don't sit up and make their shareholders happy. We will wake one day to discover NIGERIA STOCK MARKET (NSE) renamed MTN STOCK MARKET (MSE)

"THINGS will NEVER remain the SAME "

*ThE OcToPuS*

BrokerHaruna:
https://www.dailytrust.com.ng/breaking-nigeria-may-slide-to-another-recession-cbn.html

Why won't they slide into another recession when CBN guvnor and coy were busy cracking brain, looking for 115billion to plug the hole in their financials.

Its that account cooking we are talking about and they think FOREIGN INVESTORS are blind

PETERiCHY:


Why won't they slide into another recession when CBN guvnor and coy were busy cracking brain, looking for 115billion to plug the hole in their financials.

Its that account cooking we are talking about and they think FOREIGN INVESTORS are blind

If you read the news inside the quoted page you would notice the difference between the content and the headline. He did not really say Nigeria may slide into recession

yom2:
and for how long shall we keep doing this? is there no smarter alternative?

The smarter alternative will be quite painful in the short to medium term.

Chaiii! ...

https://www.nairaland.com/3560501/holineness-righteousness-revival-messages-bible/22#78551563

PETERiCHY:
MTNN is a GAME CHANGER

For those comparing MTNN dividend yield with other stocks,

MTN GROUP is a global BRAND that don't cook their financials like most public quoted coys do in NSE. So its like camparing APPLE with ORANGES.

like I said earlier FOREIGN INVESTORS will comfortably buy MTNN at $1 than leave their fund in other poo called stocks.

Their parent coy MTN GROUP currently trades at 10000 Rands per share which is equivalent of N250000 Naira per share.

Above all (most 90%) fund leaving other stock to take position in MTNN are for LONG TERM so they AIN'T coming back anytime soon..

And its already happening at our very own eyes .Ask yourself how many coys in NSE will be able to pay fine of N330bllion and still stand FIRM.

That's why I said if coy CEO don't sit up and make their shareholders happy. We will wake one day to discover NIGERIA STOCK MARKET (NSE) renamed MTN STOCK MARKET (MSE)

"THINGS will NEVER remain the SAME "

*ThE OcToPuS*

Lol
Peter done buy mtn yesterday

bigjay01:
MTN? Not a chance!

As a dividend hunter, how is MTN better than GTB, Zenith, UBA et al? Then again school fees must be paid somehow.

To the guy talking about foreign loan, my advice to you is to be well counselled. In 2007, I took advantage (at least I thought I was) of the dirt cheap credits available here (quite a few 0% rates available at the time). The exchange rate at the time was £1~=N200ish. We know where we are today and the rest they say is history.

Bottom line - not for the faint hearted!

If ZENITHBK is not window dressing their result why does it always tanks after releasing their so called good report

Jejebabaa:

If this market should remain low like this till Jul, i will be one of the most happiest guy on NSEMPA. I am planning to get a foreign loan at 4% interest rate the major risk to it is devaluation. I must not miss this opportunity oo.

If you must take foreign loan, don't play the NSE with it.
Two options:
1. Play the NYSE
OR
2. Play Eurobond @ 9-10% coupon rates.