samguru:
https://doclib.ngxgroup.com/Financial_NewsDocs/34280_AFRICAN_ALLIANCE_INSURANCE_PLC%20_NOTICES_OF_ANNUAL_GENE.pdf


Good move by African Alliance

They sold and re-purchased the same shares in PAL. How is it a good move?

can you shed more light here about this move.
AA sold its subsidiary company (PAL) for 16.6 billion (cash we no see) to Conau Ltd owned by a core investor. Now AA claims to have discover a bigger opportunity and will like to rebuy the same subsidiary for 18.6 billion, paying back conau with cash, shares owned in Universal insurance and a landed property in Victoria Island.

No be JUJU be this.

may be a plot to strip AA of choice assets.

samguru:
https://doclib.ngxgroup.com/Financial_NewsDocs/34280_AFRICAN_ALLIANCE_INSURANCE_PLC%20_NOTICES_OF_ANNUAL_GENE.pdf


Good move by African Alliance

Flash360:
can you share more light here about this move.
AA sold its subsidiary company (PAL) for 16.6 billion (cash we no see) to Conau Ltd owned by a core investor. Now AA claims to have discover a bigger opportunity and will like to rebuy the same subsidiary for 18.6 billion, paying back conau with cash, shares owned in Universal insurance and a landed property in Victoria Island.

No be JUJU be this.

may be a plot to strip AA of choice assets.

Unless you are a trader, avoid insurance companies. Corporate governance is zero

Reaching N20 will be a pleasant great record for an elephant . It will need a minimum of N2.0 dividend to keep it up there. Looks tough.

yMcy56:
FBNH
These guys aren't joking!!!
Over N3 Billion staked within 15mins of market opening.......@12
First bank may end up reaching N20 or more if it continues like this......

My UCAP stock is up by 67% at the moment. Should Sell or hold?

One of the great advices I have gotten in a long time investing in NSE.

emmanuelewumi:



Unless you are a trader, avoid insurance companies. Corporate governance is zero

locodemy:
My last 14 days trade.
From mansard to Royalex.
From Japaul to champion
Chams bus stop not yet close.
We move on watching like hawk.......Fidson on the rader right now.

By next week, we will try to put all our money in Transcorp hoping for the best.

You dey try oo, but na like how many percent you satisfy B4 you sell?

does your fundamental analysis support the current price?

steveneche:
My UCAP stock is up by 67% at the moment. Should Sell or hold?

Hi yMcy56,
Do you work with Morgan Capital or have contact of any of their reps? I will like to switch brokers or at the minimum open another account with them.

Honey don land o. God bless Oba yanfu yanfu. Like Oliver Twist, please give us more next year sa. Igi pawpaw o ni wo pawa o.

veecovee:


You dey try oo, but na like how many percent you satisfy B4 you sell?

Any stock I purchased and the daily trade signals sell I will do that without looking for profit.
I made 17% in mansard, Japaul sold at Neutral....No gain no loss.For chams.....I still hold and looking for a way to average down in this Fintech company with brighter future.Bought at 21kobo.

Now I am over 10% in Royalex, I am over 30% in champions.I am 6% in Transcorp and today I joined ubn currently 3.6%

Tomorrow we move on.Any of my stocks that signals sell will automatically leave my portfolio and fund will be available for another stock whether at profit or loss .I don't keep stocks like most of you do and I don't rely on fundamentals much.Technicals/sentiments helps a trader than fundamentals.

[quote author=Heishere post=106733398]

They will sell their 49% shareholding in pension alliance limited and use the proceeds to recapitalize African Alliance PLC

while their 49% stake will be repurchased back with proceeds from the sale of their shareholding in Universal Insurance PLC and the property located at 29A and B Akin Adesola street in Victoria Island.

Flash360:
can you shed more light here about this move.
AA sold its subsidiary company (PAL) for 16.6 billion (cash we no see) to Conau Ltd owned by a core investor. Now AA claims to have discover a bigger opportunity and will like to rebuy the same subsidiary for 18.6 billion, paying back conau with cash, shares owned in Universal insurance and a landed property in Victoria Island.

No be JUJU be this.

may be a plot to strip AA of choice assets.

They will sell their 49% shareholding in pension alliance limited and use the proceeds to recapitalize African Alliance PLC

while their 49% stake in pension alliance limited will be repurchased back with proceeds from the sale of their shareholding in Universal Insurance PLC and the property located at 29A and B Akin Adesola street in Victoria Island.

arduino:


I don't understand again oh..
By this time, Every other banking stocks suppose dey move in tandem with FBNH but NGX village people no gree.
This same FBNH I left @N6.8 port to UBA. Na wa oh.

Me too. Been kicking myself for abandoning FBNH that I bought for cheap at 5.05. Sold at 6.40. Only to pitch tents with disappointing UBA. E pain me sha

Projectx21:
Hi yMcy56,
Do you work with Morgan Capital or have contact of any of their reps? I will like to switch brokers or at the minimum open another account with them.

Send mail to info@morgancapitalgroup.com
Someone will reply you from there.

emmanuelewumi:



Unless you are a trader, avoid insurance companies. Corporate governance is zero

Hahaha......
After the bloody nose I collected from Aiico and Mutual Benefits, I promised never to near insurance sector again.
But, seeing WAPIC @0.42, I couldn't resist the urge. I just pray Wigwe and Corona go do something different and magical.

Curry30:


Me too. Been kicking myself for abandoning FBNH that I bought for cheap at 5.05. Sold at 6.40. Only to pitch tents with disappointing UBA. E pain me sha

Like say we plenty for this boat

samguru:



They will sell their 49% shareholding in pension alliance limited and use the proceeds to recapitalize African Alliance PLC

while their 49% stake in pension alliance limited will be repurchased back with proceeds from the sale of their shareholding in Universal Insurance PLC and the property located at 29A and B Akin Adesola street in Victoria Island.

Oga Sam, I smell corporate scam in what this guy's did here. I was going to raise the same concerns other raised before I saw their comment.

Paying a 2bn premium over what you just sold only tells me someone is milking the company.

Now you want to sell a choice property/asset of the company including shares held to buy back. Na we the Kobo Kobo investors de suffer pass.

arduino:

Hahaha......
After the bloody nose I collected from Aiico and Mutual Benefits, I promised never to near insurance sector again.
But, seeing WAPIC @0.42, I couldn't resist the urge. I just pray Wigwe and Corona go do something different and magical.

Na my Jara units remain with wapic Sha. Made 100% since and moved on

Curry30:


Me too. Been kicking myself for abandoning FBNH that I bought for cheap at 5.05. Sold at 6.40. Only to pitch tents with disappointing UBA. E pain me sha

It's a full bus, mine was from 4.95 to 7.10, left small unit then and it's over 130% in my portfolio.... congratulations to those still in the boat...na turn by turn

arduino:

Hahaha......
After the bloody nose I collected from Aiico and Mutual Benefits, I promised never to near insurance sector again.
But, seeing WAPIC @0.42, I couldn't resist the urge. I just pray Wigwe and Corona go do something different and magical.

Wapic is not bad, i foresee Access bank opting for a Holdco structure in the future. This should be a plus for Wapic

We plenty

arduino:

Like say we plenty for this boat

onegentleguy:


Just be careful dear.
As I said then, there might be interest given that other better coys are also pushing up in price, but just be vigilant.

…and yes, it (universal ins) might merge with a coy like AFRI ALLIANCE INS or both forming a bond to merge with any of the few as cited in my initial post, given the nature of their equity structure and BS stand(they have some link and possible unfinished business together).
Both were amongst the coys I highlighted might well tour that line. (refer to my 1st post from 2 days ago)
AFRI ALLIANCE actually owns over a quarter(approx 26%) of UNIVERSAL INS while Stanbic Nominees holds over 9.3%... in turn, UNIVERSAL INS owns an approx 5.8% stake in AFRI ALLIANCE, while one chief Mr Cyril Onyekwelu Ajagu, a major core investor, owns a near 53.4% stake (in afri ins), via the CONAU GROUP (owners of FRENCHIES FOODS).

However, my model which seeks to weigh the health stand of company's in the sector using yardsticks like CGPR, ROTE, Net ROIC, Sloan ratio, CCC efficiency, Solvency Margin (surplus/deficit peg in view) etc as a barometer to gauge VALUE raking-off risk shows that both coys have some worrying items in their financial print.
…Play safe!!

Selah

samguru:
https://doclib.ngxgroup.com/Financial_NewsDocs/34280_AFRICAN_ALLIANCE_INSURANCE_PLC%20_NOTICES_OF_ANNUAL_GENE.pdf
Good move by African Alliance

Yes the move to repurchase PAL is indeed a good one.
The key line from the report is... "the company becoming aware of an OPPORTUNITY, repurchased it's PRIZED ASSET..."

What opportunity might this be? Well, we wait for more guidance over time.
A brain teaser though... whatever would've warranted the coy to repurchase the very same asset it had initially sold to enable it recapitalize (and meet the Naicom guideline) after due authorization from shareholders and stakeholders alike, then chances are that that opportunity(whatever it is) might well be a better deal/option.
There's a reason the deal(sale) was facilitated by the core investor.(Conau group)

As for the sale of property, that shouldn't be a cause for concern. The sale of asset(including PP&E and/or business subsidiary) is expected as these insurance coys work to beat the recap deadline. The likes of cornerstone INS and a few others did that in the past... more may likely do so in future.
That said, It'd be nice to know if the said VI property asset was properly valued before sale.
AFRI INS still hold other choice properties in their books though.

On why the repurchase deal was brokered at a N2B premium?
It should be noted that the sale was initially done at a huge premium to what is actually the valuation of AFRI INS equity stake in PAL.
This might suggest that a FORWARD VALUATION approach(CCC/CGPR/earnings persistent approach bench-marked on DCF) may have been used. Perhaps the reason the face value of N2B was added back to the initial sales peg of N16.6B.
Again note that the N18.6B repurchase peg will not all be cash. ...it will mostly be in asset(property & shares)
So in essence, it won't be out of place to assume that AFRI INS simply executed an asset for cash deal retaining a huge portion of the initial N16.6B cash proceed (which might thereafter be channeled towards meeting their recap need)... while equally getting back that which it desires; the prized asset- PAL.

Which brings us to the $1M question; is it(pal) really a prized asset?
PAL(pension alliance plc), a JV btw FSDH and AFRI ALLIANCE INSURANCE is a PFA with a clientele base of over 450,000 including entities like 1st tier banking coys FUGAZ, their tier 2 counterparts, FFSSE, oil & gas giants TOTAL, SCHLUMBERGER, HALLIBURTON and other big names/conglomerates like MTN, 9MOBILE, GUINNESS, UNILEVER, The DANGOTE GROUP, COCA COLA, GSK, P&G, MICROSOFT, HUWEI, MULTICHOICE and many more.
A dig on the company(PAL) financials shows that it can quite possibly be a great income generating stream if well managed. With TE(total equity), NI, and CGPR growing by approx 34%, 11% and 301.7% respectively in 2020 compared to the proceeding yr.

But why choose to dispose of their near 26% stake in UNIVERSAL INS?
Well, it could be that the management of AFRI INS foresees that retaining PAL should present a better opportunity cost.
AFRI INS was the single largest shareholder of UNIVERSAL INS(with over 4.155B shares followed by Stanbic Nominees)
In one of my past post, I had mentioned that the duo of AFRI INS and UNIVERSAL INS are the only 2 insurance coys I'd prefer to avoid until certain lines in their books become clearer.
At the time, both were the only coys I attached a stay-away tag on following an extensive research on 20 quoted insurance companies.
Things are beginning to change though.
A brief...

A cursory look at their YtD financial print reveals that while UNIVERSAL INS did some cleaning in Q1, H1 2021 threw up some worries which I'd like to see them improve on in H2 2021.
AFRI INS seem to have done a bit more though.
The coys H1, 2021 FP was a huge step in the right direction and this move is part of a few others necessary to solidify it.

Giving what they share in common (see part in bold from post above), my initial assertion was that both coys will most likely merge and thereafter carry on with a RSS(reverse stock split) of no less than 1 for 5.
But it does seem that they can now stand on their own.
It looks like it's gonna be easier for AFRI INS (which operate in the LIFE insurance class of business giving the need for N8B as minimum paid-up capital) than UNIVERSAL INS(that operate in the general class of business)
On a side note, it's possible that the latter(uni ins) may still carry out a RSS. There might be need for some external financing.

Bottom line: Both companies are great at their present mkt price. I like both coys... but at this point, one appear to be a step ahead of the other... and so it's only natural to like a bit more the one ahead.

Some of these insurance firms are far bigger than their current mkt peg would suggest.
Money will be made... but by the patient folks.

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

Selah

arduino:

Hahaha......
After the bloody nose I collected from Aiico and Mutual Benefits, I promised never to near insurance sector again.
But, seeing WAPIC @0.42, I couldn't resist the urge. I just pray Wigwe and Corona go do something different and magical.

That urge u had will in time pay off.
Just hang in there!

Regards

steveneche:
My UCAP stock is up by 67% at the moment. Should Sell or hold?

I sought similar opinions last week, when I intended to sell 20% of my holdings in UCAP. My reasoning was that the 2021FY dividend yield of UCAP might not be as "sweet" as it has been in the previous years. I got only one response, but I'm sharing with you other posts here that I found helpful. As someone has suggested, your view of the company's fundamentals matters. For me, my current age also matters. A mentor recently told me to grab every golden and harmless opportunity to multiply my capital now that I am young (relatively), so that I will be going into the value investments with huge capital later in life. So, if I see 70-100% gain, I think I would want to sell a fraction of my holdings and invest the proceeds in another stock with strong fundamentals. On the other hand, I would like to refer to the 3rd quarter of 2016 when UCAP rose from N1.6 to N3 and then to N4. Many people sold their holdings to pocket the 100% gain (I was in Afriprid at the time). Another wave blew UCAP to N6, and then this current wave. Bottom line, neither of the options in front of you is wrong.

fxuser:
UCAp
- this is the star boy chart ! wow wow wow
- 11 green monthly candles out of last 12 . . . 8 green monthly consecutive candles
- dis a the type of price action u make monney
- looks like a crypto chart , lov it

- i hope people are still tking profits or are u buying here ?? umm den ure doing this thing wrong

pls dont give profits aways
always keep banking
profits is only wen its in ur akant loll

that last push above N6 just soaked in JJC's , issorai

The insightful response I got from a fellow member of this forum...

Ades1:





When did you start investing in UCAP? My strategy has always been if a stock runs up too fast, I am selling! If this 120% profit happened within a year, I would sell some and deploy the returns elsewhere. If you've been a holder for 2+ years I'd say hold on to your shares and look for more capital to deploy in Dangote sugar.

I am currently in the process of going in heavy on dangote sugar myself, I see value in it. Last year, they upped their dividend payment by around 50%! If they can continue with that or even 20% increment for the next 5 years, my Naija retirement don sure be that

Another helpful one (though not in response to my post), which I took one or two lessons from...

maishai:

Someone here bought United capital(ucap) at 0.90k about 8 years ago and has refused to sell through thick and thin

That stock paid .50k last year.....,,, how do you convince this man on real estates, bring the figures and do the maths.........

What's happening with Redstar Express Bonus please?

its like our FBNH buyer has resume work early

Superb analysis. Still leaves a lot of questions to be asked.

* How was the property to be sold valued.
* What big opportunity is seen in PAL to rebuy 49% of the company at 18.6bn, when the current equity (100% shareholding) is not upto 5bn and profit is 1.4bn as at 2020FYe.
* when was Pal initially sold and did the cash reflect in the books.

African Alliance is far off the recapitalisation target unlike Universal insurance that should scale through within this last quarter if earnings are consistent.

Something fishy going down.

To me: The core investors is just cornering all the juicy assets from AA, before a possible takeover by new investors, force closure by niacom for failing to meet recapitalisation or even bankruptcy. Wetin I sabi sef. We need an insider on this matter.

It's high time members here create an investors association, that can represent us in AGMs and ask tough question about poor actions that this yeye boards get away with.

onegentleguy:




Yes the move to repurchase PAL is indeed a good one.
The key line from the report is... "the company becoming aware of an OPPORTUNITY, repurchased it's PRIZED ASSET..."

What opportunity might this be? Well, we wait for more guidance over time.
...............

gbengafaro1986:
its like our FBNH buyer has resume work early

At a point they will be tired.

Fundamentals(EPS) will no longer support the price.

BabsO2:
Reaching N20 will be a pleasant great record for an elephant . It will need a minimum of N2.0 dividend to keep it up there. Looks tough.

Indeed. Only good earnings and dividend moves prices sustainably. I am waiting for the pull back.

Otedollar going for FBNH is one. Strong rumour also has it that;

They are willing to sell off a minority stake in FirstMonie.

Valuation for FirstMonie i hear is Unicorn - $1.3bn dollars.

And there is a deal on the table to take 20 percent stake.

OBAGADAFFI:


At a point they will be tired.

Fundamentals(EPS) will no longer support the price.

Flash360:
Otedollar going for FBNH is one. Strong rumour also has it that;

They are willing to sell off a minority stake in FirstMonie.

Valuation for FirstMonie i hear is Unicorn - $1.3bn dollars.

And there is a deal on the table to take 20 percent stake.

pls which of the company are taking 20%