emmaodet:


Hello bro.
Please help me with this bond report.
The 12.50% FGN Mar 2035 bond.
It has face value os #1,000/ coupon of 12.5% but current price of #20.
Does it mean if I want to buy 1m worth now, I will buy it at #20?
And what will be my payout value by 2035?

What is YTM? I guess year to month.
Also, what is Term to Maturity?

emmanuelewumi:




That should be an error

How can the market price be N20 and the coupon is 12.5%. That will give a yield of about 60%.

Based on what I have below the current price is about N72. 20k

lionshare:

https://nairametrics.com/2024/03/28/breaking-cbn-increases-capital-base-for-mega-banks-to-n500-billion-smaller-banks-n200-billion/

yMcy56:

This new recapitalization no be small amount oo....
Deadline is 2026
This people with their gbelo-gbebo all the time......
*Those who cancelled their unissued share capital will now be blaming themselves......and will be planning to bring back IPO again!

Meanwhile, what about UNITY, JAIZ, NPF, LIVING TRUST, INFINITY, ABBEY and other unlisted banks?
I think theirs will be N50bn...

emmaodet:


So it means that a bond with an initial face value of #100 is now #72.20k, correct?
Which means I only need to buy the bond at #72.20k per bond and still benefit from the yearly coupon of 12.5% till 2035 while I get paid the face value of #100 by 2035, right?

lionshare:
Maybe at best we will have 5-7 tier-1 banks.

chipa:

Read through the release from CBN. For the new minimal capital base the only recognize capital is paid capital and share premium. Retained capital, shareholder fund and other retained capital are not recognize. That means all banks are coming to the market to raise funds.
To be Frank with you there will be a lot of pumbing of bank share price. So try to be in the banks so that when they are pumping the bank share price your funds in the share will also be pumped up. This is my 2 Kobo advice.

Streetinvestor2:
GTCO too dey fear.Look how long it took it to just touch #50.I hope it will not take it this long to hit #60 which is the target for this yr

chipa:

Read through the release from CBN. For the new minimal capital base the only recognize capital is paid capital and share premium. Retained capital, shareholder fund and other retained capital are not recognize. That means all banks are coming to the market to raise funds.
To be Frank with you there will be a lot of pumbing of bank share price. So try to be in the banks so that when they are pumping the bank share price your funds in the share will also be pumped up. This is my 2 Kobo advice.

emmanuelewumi:


Because you are buying at a discount. Buying at N72. 20k and getting coupon of N12. 5, your yield will be about 18.5%

onegentleguy:


On the part in bold, broadly yes.

But there's also plan B.

A few banks may decide to go the route of a bonus issue, which is another means of issuing share capital and increasing their paid-up/paid-in capital, instead of a rights issue.
The way to guage the probability that a bank could do a plan B would be to look at the anatomy of her SCS and juxtapose it with her SPA.

There's also a possibility that some banks might decide on both a plan A and B (,ref: rights issue and bonus issue)

There was a reason I initially recommended STERLING BANK @ N1.4+ and still went ahead to include it in my 1st outline/recommendations and investment guide (not series 2) @ N3+ after it had already achieved a massive 126% CGY.
Well, Mr STERLING would later rally to N7+ printing an astronomical 415% and 110% CGY from the initial entry peg of N1.4+ and N3.4 respectively.
Aside fundamentals and technicals, the decision to adopt a holding coy structure was going to be a favourable one for the bank.
There was also a reason I fell in love with GTCO @ N17+ prior to that time.
Recall I kept screaming that the bank was a buy at the time but perhaps some persons were waiting for the price to drop to 80k.

Saying that I also like JAIZ BANK, another asset that was recommended in the 1st outline @ N1.4--1.5, should already be taken for granted.
Congratulations to all those who sold @ N4 booking an impressive 185% CGY.
...I still like JAIZ BANK! (gave reasons and clue in many of my previous post) and a few other banking names.

But of course, I also love a few other asset names!

For those who've got the outline/recommendations and investment guide--Series 2, hang in there and be happy to hold. Some are already a bit up and rallying... others will follow suit in time!

It is well

emmaodet:


Okay. Thanks

emmanuelewumi:




That should be an error

How can the market price be N20 and the coupon is 12.5%. That will give a yield of about 60%.

Based on what I have below the current price is about N72. 20k

onegentleguy:


On the part in bold, broadly yes.

But there's also plan B.

A few banks may decide to go the route of a bonus issue, which is another means of issuing share capital and increasing their paid-up/paid-in capital, instead of a rights issue.
There's also a possibility that some banks might decide on both a plan A and B (ref: rights issue and bonus issue)

The way to guage the probability that a bank could do a plan B (either alone or coupled with a plan A) would be to look at the anatomy of her SCS and juxtapose it with her SPA and FF/OS
For instance, FCMB could decide to do a bonus issue. (note the use of the term [i]"could")

There was a reason I initially recommended STERLING BANK @ N1.4+ and still went ahead to include it in my 1st outline/recommendations and investment guide (not series 2) @ N3+ after it had already achieved a massive 126% CGY.
Well, Mr STERLING would later rally to N7+ printing an astronomical 415% and 110% CGY from the initial entry peg of N1.4+ and N3.4 respectively.
Aside fundamentals and technicals, the decision to adopt a holding coy structure was going to be a favourable one for the bank.
There was also a reason I fell in love with GTCO @ N17+ prior to that time.
Recall I kept screaming that the bank was a buy at the time but perhaps some persons were waiting for the price to drop to 80k.

Saying that I also like JAIZ BANK, another asset that was recommended in the 1st outline @ N1.4--1.5, should already be taken for granted.
Congratulations to all those who sold @ N4 booking an impressive 185% CGY.
...I still like JAIZ BANK! (gave reasons and clue in many of my previous post) and a few other banking names.

But of course, I also love a few other asset names!

For those who've got the outline/recommendations and investment guide--Series 2, hang in there and be happy to hold. Some are already a bit up and rallying... others will follow suit in time!

🌻🌻🌻🌻🌻🌻🌻🌻🌻🌻🌻🌻🌻🌻🌻🌻🌻
Good and excellent analysis. I love this analysis.🌹❤️🙏.
What else can I say. I would prefer to be in the Almighty 5 (fugaz) my reasons are, if this banks are prevented from using their shareholders fund and retain earnings to beef up their capital base what else can they do? In the presence of Hugh amount of shareholders fund they can use their retain earnings to pump up their prices and come for fund raising at very high price to reduce the dilutive effects of issuing out much shares. I would also among all the 5 fugaz banks pinched my tent with first bank who has a new sheriff that knows how to play the game. This is going to be an interesting time for the banking stocks. I wouldn't be surprised to see GTB selling above N60 in a very short time.
Please this is not an advice to enter any stock do your due diligence before entering any stock.

It is well

Ginalex:
No offense sir but I think we've gone way past this era but I notice you keep making reference to it over and over again especially when you want to talk about your outline/recommendation guide. Can we just focus on current market realities/prices Thank you

ositadima1:


Yes, I have confirmed that the calculations in this table are accurate. Bond units are typically denominated in increments of 100. When purchasing at a discount, the number falls below 100, hence the bid/ask price columns. Meanwhile, the bid/offer columns, also known as the yield-to-maturity (YTM), aligns with the calculations derived from the Excel YIELD function. Although it took me a while to comprehend the meaning of each column, the process was ultimately rewarding.

Unfortunately, these tables often lack accompanying legends or explanations, which would have been beneficial.

Thank you for your assistance. I currently high as a Mofo on cheap local vodka

Penboy:
Hmm.. Nice o.
What bank do you recommend ?

E99E:


What era? Must you comment on what you dont know? Cant you read and ignore and leave for others to pick one or two clues. Enough of these unnecessary second opinions

E99E:


What era? Must you comment on what you dont know? Cant you read and ignore and leave for others to pick one or two clues. Enough of these unnecessary second opinions

Ginalex:
No offense sir but I think we've gone way past this era but I notice you keep making reference to it over and over again especially when you want to talk about your outline/recommendation guide. Can we just focus on current market realities/prices Thank you

yMcy56:
DIVIDEND / DIVIDEND PAYMENTS
- This is earning season whereby Listed Companies will be declaring Dividends for 2023 Financial Year End (FYE).......some already announced....

- If you're a newbie who's interested in collecting dividends or you're a long termer, pls note that:

* You have to buy the particular stock on/before the QUALIFICATION DATE
* Dividends will be paid electronically to your provided bank account on PAYMENT DATE
* IF you're yet to register with the REGISTRAR of the said Company, you need to download the REGISTRAR's E-DIVIDEND MANDATE FORM, fill it and.submit back to the Registrar for processing/approval
* Remember to follow up with the Registrar and provide them with necessary documents as may be required
* After Qualification Date or CLOSURE OF REGISTER, you can sell the stock if you so wish, you'll still be paid your due dividend

** Pasting this here because of the questions received on similar issue**

DrAkpamudehe:
Pls What is qualification date or when is a qualification date?

ositadima1:


Excel can do the magic for you ooo! Use the Yield function in excel.

"Excel's YIELD function calculates the yield to maturity (YTM) on a security that pays periodic interest, typically used for bonds. Here's a breakdown of the function's arguments:

* Settlement: (Required) The date you purchase the bond (settlement date).
* Maturity: (Required) The date the bond matures and you receive the principal repayment.
* Rate: (Required) The annual coupon rate of the bond.
* Pr: (Required) The price you pay per 100 face value of the bond.
* Redemption: (Required) The redemption value at maturity per 100 face value (usually 100).
* Frequency: (Required) The number of coupon payments per year (e.g., 1 for annual, 2 for semi-annual).
* Basis: (Optional) The type of day count basis used to calculate cash flows (defaults to 0 or 30/360).

Note: Dates in Excel are serial numbers, and the function truncates some inputs to integers. Ensure your dates are valid and entered correctly."

onegentleguy:

...
I recall advising folks to accumulate CHAMS, highlighting its solid inherent value following an extensive analysis at the time the company was still trading for 20k.
...well, the coy already prints a CGY of approx 240% with CMP closing @ 68k on Tuesday.

Does it have the potential to deliver more?
There is indeed a near 1 probability!

Fundamentally, CHAMS is primed to trade above N1 in the short to mid term, with FVE/CIV pegged @ N1.37... using a mix of valuation model that assigns a conservative approach (just 5% QoQ GM to H1, 2023) but attaches a RPM 10% above current surrounding figure.

Technically though, there may be bumps along the way as certain key indicators slow down to build up/reproduce a fresh momentum for another push up.
But it's safe to say that a period of HL and HH is likely in the near term.

By the way, congratulations to all those who aligned with STERLING BANK and LIVESTOCK FEEDS @ N1.4 and 92k respectively following our guide here.
Both names already delivered ROI of over 160% and near 130% before the slight pull back in price.

Anyone can still earn a great return from taking position now, but like I always tell folks; It's always best to key in early.
I repeatedly called for a buy in CHAMS @ 20k.

What to do now?
Pls follow your instinct.

The good thing is; there are still a few coys we also highlighted here that are yet to record appreciable returns, including some select names in a certain sector which though has printed a bit of gains, still has a lot of POTENTIAL TO DELIVER MORE!

CAVEAT: NOT to be interpreted as any sought of recommendation. The need for due diligence should still take higher precedence ahead of this post.
Saleh

Ginalex:
@Mcy56 my reason for buying CHAMS...

E99E:


What era? Must you comment on what you dont know? Cant you read and ignore and leave for others to pick one or two clues. Enough of these unnecessary second opinions

emmaodet:


Thanks very much Mr Osita.
If I get it right, yield to maturity only works if I decided to be reinvesting my coupon rate but if I decided to be taking my interest every year, yield to maturity will not work rather bond yield is what am getting, right? Since am not compounding my interest into reinvestment

emmanuelewumi:



That of March 2035 is an error. It is not N20, the correct price is about N73.

Try to buy it at N20 next week to see if it will fly

yMcy56:
MORE CORPORATE ACTIONS....
UACN
Final Dividend: 0.22k
Qualification Date: 6th June, 2024
Payment Date: 21st June, 2024
https://doclib.ngxgroup.com/Financial_NewsDocs/40736_UAC__OF_NIGERIA_PLC.-CORPORATE_ACTION_ANNOUNCEMENT_CORPORATE_ACTIONS_MARCH_2024.pdf

MRS
Final Dividend: N2.36k
Qualification Date: 28th June, 2024
Payment Date: 2nd August, 2024
https://doclib.ngxgroup.com/Financial_NewsDocs/40731_MRS_OIL_NIGERIA_PLC.-CORPORATE_DISCLOSURE_CORPORATE_ACTIONS_MARCH_2024.pdf


Results....
https://doclib.ngxgroup.com/Financial_NewsDocs/40733_JULIUS_BERGER_NIGERIA_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/40732_CWG_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/40729_LIVINGTRUST_MORTGAGE_BANK_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/40726_NIGERIAN_AVIATION_HANDLING_COMPANY_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/40723_MRS_OIL_NIGERIA_PLC.-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/40717_JAPAUL_GOLD_AND_VENTURES_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf