onegentleguy:
Nice job you're doing in keeping the forum abreast with recent developments/reports in the market.
...you are doing well!
More power to your elbow!

Thanks boss.
We're just emulating you our Ogas
Thanks for doing much for us too.
Well appreciated!
....and pls don't take any perceived negative comments to heart.....just continue doing your good works sir.
May God reward your selfless services bountifully IJN.

Mfunkynation:

Chai...
I never knew that you can look for trouble 🤣

I no like trouble honestly. But the era of sterling @₦1.40, Chams @20k and livestock at 92k don pass na... Prices are no longer on those levels na. Make we focus on current market realities and prices. Doesn't change the fact that OGG is one person I respect here

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, STANBIC IBTC and ETI could decide to do a bonus issue. (note the use of the term "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 and a few other banking names. (gave reasons and clue in many of my previous post)

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

Update...

Following my post above, someone brought to my attention a section of the CBN recent circular that reads in part;
"For existing banks, the capital requirement specified above shall be paid-in capital (paid-up + share premium only). Bonus issues, other reserves and additional tier 1 capital shall not be allowed or recognized for the purpose of meeting the new minimum capital requirements"

I honestly didn't notice that part.
So my assertion of the possibility of a bonus issue as a mode of increasing paid-up capital will not hold.
..it's likely gonna be RI and/or PP all the way.

Cc: @ Chipa

It is well

Ginalex:
I no like trouble honestly. But the era of sterling @₦1.40, Chams @20k and livestock at 92k don pass na... Prices are no longer on those levels na. Make we focus on current market realities and prices. Doesn't change the fact that OGG is one person I respect here

You can't say never in NAIJA stock market

Ginalex:
I no like trouble honestly. But the era of sterling @₦1.40, Chams @20k and livestock at 92k don pass na... Prices are no longer on those levels na. Make we focus on current market realities and prices. Doesn't change the fact that OGG is one person I respect here

My love abeg leave OGG alone

yMcy56:

Thanks boss.
We're just emulating you our Ogas
Thanks for doing much for us too.
Well appreciated!
....and pls don't take any perceived negative comments to heart.....just continue doing your good works sir.
May God reward your selfless services bountifully IJN.

My Pleasure!

We should all learn to be tolerant of others and not give too much attention to trivial matters.

onegentleguy:


My Pleasure!

We should all learn to be tolerant of others and not give too much attention to trivial matters.

Thank you for ignoring riff raff.
Please keep on sharing your wealth of information. Some of us look forward to it.

Agbalowomeri:


My love abeg leave OGG alone

No one is holding anyone.

Like I said; We should all learn to be tolerant of others and not give too much attention to trivial matters.

Time to focus on more important things.

ositadima1:


Yield to maturity (YTM) is a metric used to calculate the total return an investor can expect to earn if they hold a bond until its maturity date. It takes into account the bond's current market price, par value, coupon interest rate, and time to maturity. Here's a simple explanation:

Imagine you buy a 100 bond that pays 5% interest per year (the coupon rate). You pay 95 for this bond, which is less than its 100 par value at maturity.

The yield to maturity tells you what your total investment return will be if you hold this bond until it matures and you get paid the full 100 par value.

In this case, the yield is higher than the 5% coupon rate because you bought the bond at a discount of 95. The YTM calculation figures out what that higher annualized return is based on the purchase price, par value, coupon rate and years to maturity.

So if the YTM is say 6%, it means that with the 5 annual coupon payments plus the extra 5 you make from buying at a discount, you're earning an equivalent 6% annual return on your 95 investment by holding to maturity.

In simple terms, YTM is the true annual return you will make on a bond investment from the purchase date until the bond matures, accounting for the purchase price versus the par value.

Thank you very much.

I guess this is Claude 3 workings too.
One Love

onegentleguy:


Update...

Following my post above, someone brought to my attention a section of the CBN recent circular that reads in part;
"For existing banks, the capital requirement specified above shall be paid-in capital (paid-up + share premium only). Bonus issues, other reserves and additional tier 1 capital shall not be allowed or recognized for the purpose of meeting the new minimum capital requirements"

I honestly didn't notice that part.
So my assertion of the possibility of a bonus issue as a mode of increasing paid-up capital will not hold.

It's likely gonna be RI and/or PP all the way.

Cc: @ Chipa

It is well

But bonus share issue capitalizes part of retained earnings by converting it into paid-up share capital. Is this correct?

https://nairametrics.com/2024/03/29/cbn-law-enforcement-agencies-to-monitor-banks-in-nigeria-for-illicit-financing-of-recapitalization/
No be small thing....

OldBeer:
Thank you for ignoring riff raff.
Please keep on sharing your wealth of information. Some of us look forward to it.

I see you useful human

BabsO2:
The 2022 Accounts are scheduled to be approved by the Board of Oando PLC on or before the 15th of April 2024 and will thereafter be sent to the Financial Reporting Council of Nigeria for regulatory approval prior to its release to the market. The interim results for 2023 will also be released to the market soon after the 2022 Accounts are published.
https://doclib.ngxgroup.com/Financial_NewsDocs/40697_OANDO_PLC-OANDO_PLC_-PRESS_RELEASE_CORPORATE_ACTIONS_MARCH_2024.pdf

Kudos to JSE on this.
With this OANDO will think twice about the delisting proposition.
I am glad OANDO isn't listed only on NGX.
Fingers crossed.

ositadima1:


But bonus share issue capitalizes part of retained earnings by converting it into paid-up share capital. Is this correct?

Bonus issues in this instance, would have a relationship to the banks share premium A/c than their retrained earnings position.

In practice, a bonus issue should've been an allowable option as it has a direct impact in expanding a coys contributed/paid-up capital via her share premium A/c.
The problem is that if you decide to go that route, you would indirectly be reducing the value of the total share capital (issued), given that the apex banks approved mode of increasing capital base is using paid-up capital + share premium only.

I think the CBN might be looking to ensure that the banks incorporates less of 'risky capital' by utilizing only the subscribed or paid-up portion of their current capital base in view of present economic reality.

Depending on their share capital structure, any equity financing has to be using their called-up capital and/or issued capital via rights OR using their unissued capital (where it hasn't been cancelled) via private placements.

There's also the option of mergers and/or acquisition.

If you go by the part in bold, then I think ETI is safe and may not need to raise funds, while UBA followed by FCMB and FIDELITY (in decreasing order) will probably be needing more capital among the quoted banking coys in view of their operational license.

Regards

sky2891:

Kudos to JSE on this.
With this OANDO will think twice about the delisting proposition.
I am glad OANDO isn't listed only on NGX.
Fingers crossed.

Low-key a nice nudge for Wale and Co. What is it that they're marinating over a result? Just do this thing and let's get done with business. The whole psychological play is becoming stale.

onegentleguy:


Bonus issues in this instance, would have a relationship to the banks share premium A/c than their retrained earnings position.

In practice, a bonus issue should've been an allowable option as it has a direct impact in expanding a coys contributed/paid-up capital via her share premium A/c.
The problem is that if you decide to go that route, you would indirectly be reducing the value of the total share capital (issued), given that the apex banks approved mode of increasing capital base is using paid-up capital + share premium only

I think the CBN might be looking to ensure that the banks incorporates less of 'risky capital' by utilizing only the subscribed or paid-up portion of their current capital base.

Depending on their share capital structure, any equity financing has to be using their called-up capital and/or issued capital via rights OR using their unissued capital (where it hasn't been cancelled) via private placements.

There's also the option of mergers and/or acquisition.

If you go by the part in bold, then I think ETI is safe and may not need to raise further funds, while UBA followed by FCMB will probably be needing more funds than others in view of their operational license.

Regards

Sir OGG what's your take on Cadbury?

onegentleguy:



Depending on their share capital structure, any equity financing has to be using their called-up capital and/or issued capital via rights OR using their unissued capital (where it hasn't been cancelled) via private placements.

There's also the option of mergers and/or acquisition.

If you go by the part in bold, then I think ETI is safe and may not need to raise further funds, while UBA followed by FCMB and FIDELITY (in decreasing order) will probably be needing more funds than others in view of their operational license.

Regards

Tight rope for some of these banks. A seemly unsustainable EPS for FY2024 against this? Operation aggressive marketing. A possible merger looms.

Insurance sector should be waiting for their own.

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**

I hope those of us that have our investments majorly in ETFs will benefit from this dividend payment

Please help with the formula you use for this.

Regards.

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%

STNWAUME:


Sir OGG what's your take on Cadbury?

Going by the amount of money to raise Both GTB and UBA have above 300 billions to raise. GTB has set the motion in place by pushing their price to N52+ and still counting. I seriously believe that the price will get to at least N65 or there are about before coming to the market to raise funds so as to reduce dilutive effects of allotting many shares.
In like manner watch the volume of trade in UBA PLC for the past 2 weeks. The volume has been very high I knew they were up to something. Once the 2023 Audited financial report is out and if it is above market expectations ( which I believe it will surpass ) it will comfortably gallop to N45 or N50 or even above that and then announce it fund raising from the market at high price.
Please this is not a buy recommendation for any stock. Do your due diligence before you buy any stock. ( Conflicts of interest I have had UBA PLC in my portfolio before now)

Corporate Action.....
JULIUS BERGER
Final Dividend: N3.00
Qualification Date: 31st May, 2024
Payment Date: 21st June, 2024
https://doclib.ngxgroup.com/Financial_NewsDocs/40740_JULIUS_BERGER_NIGERIA_PLC-CORPORATE_ACTIONS_ANNOUNCEMENT_CORPORATE_ACTIONS_MARCH_2024.pdf

CAP PLC
Final Dividend: N1.55k
Qualification Date: 31st May, 2025
https://doclib.ngxgroup.com/Financial_NewsDocs/40680_CHEMICAL_AND_ALLIED_PRODUCTS_PLC-CAP_PLC-_FYE_2023_DIVIDEND_ANNOUNCEMENT_CORPORATE_ACTIONS_MARCH_2024.pdf

More results....
https://doclib.ngxgroup.com/Financial_NewsDocs/40744_LIVESTOCK_FEEDS_PLC.-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/40742__UPDC_REAL_ESTATE_INVESTMENT_TRUST-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/40746_R_T_BRISCOE_(NIGERIA)_PLC.-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/40741_MCNICHOLS_CONSOLIDATED_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
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/40707_SKYWAY_AVIATION_HANDLING_COMPANY_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/40718_MAY_AND_BAKER-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/40677_TRANS-NATIONWIDE_EXPRESS_PLC.-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_MARCH_2024.pdf

Who has received Africa Prudential Reg dividend?
Payment date was 28th March.

Can someone give us a clear understanding of what the share capital is and how it's different from the market capitalization of the company. Me am not understanding these o. I used to think that the market capitalization is an advantage but here am seeing some banks like fcmb not needing too much different from the top banks to capitalize to the 500B.

I used to think that when 500B is mentioned, banks like Zenith, GTB and Access will just sneeze it out easily.

vacanci:
Can someone give us a clear understanding of what the share capital is and how it's different from the market capitalization of the company. Me am not understanding these o. I used to think that the market capitalization is an advantage but here am seeing some banks like fcmb not needing too much different from the top banks to capitalize to the 500B.

I used to think that when 500B is mentioned, banks like Zenith, GTB and Access will just sneeze it out easily.

So na customers' money dem go use?😂

Agbalowomeri:


So na customers' money dem go use?😂

Maybe I should have tagged the people I want answers from. Na question I asked because I don't know but u are asking me back.

Please how I call up this Claude 3. I believe its an AI. But how do I use or interact with it for such answers.

ositadima1:


I asked Claude 3:

To calculate the EBIT (Earnings Before Interest and Taxes) correctly, we need to use the information provided about the market capitalization (market cap) and the price-to-earnings (P/E) ratio.

Given information:
- Air Macklon's stock price is $45 per share.
- Market capitalization is $13.5 billion.
- Price-to-earnings (P/E) ratio is 10.

Step 1: Calculate the earnings (net income) using the market cap and P/E ratio.
Earnings (Net Income) = Market Cap / P/E ratio
Earnings (Net Income) = $13.5 billion / 10
Earnings (Net Income) = $1.35 billion

Step 2: Calculate the EBIT (Earnings Before Interest and Taxes) from the net income.
EBIT = Net Income + Interest Expense + Tax Expense

Since we don't have information about the interest expense and tax expense, we cannot directly calculate the EBIT from the given information.

However, we can use the enterprise value (EV) and the provided EBIT value to work backward and find the correct EBIT.

Given information:
- Enterprise value (EV) is $43.5 billion.
- EBIT is mentioned as $3.4 billion.

If the EBIT is $3.4 billion, and the EV is $43.5 billion, then the EV/EBIT multiple is:
EV/EBIT = $43.5 billion / $3.4 billion ≈ 12.8

This matches the information provided in the example, which states that "Macklon's EV was $43.5 billion, or nearly 13 times its $3.4 billion in EBIT."

Therefore, the correct EBIT for Air Macklon is $3.4 billion, and not $1.35 billion, which represents the net income calculated from the market cap and P/E ratio.

In summary, the EBIT of $3.4 billion is the correct value based on the given information about the enterprise value and the EV/EBIT multiple."

Good. MS Excel has help me out.

STOjo:
Please help with the formula you use for this.

Regards.

Sometimes, our policy makers come up with positions that look somehow. Why will the CBN discount retained earnings of banks as part of their capital? I can understand some other/statutory reserves, but not retained earnings. Retained earnings form part of the interest of shareholders, which has been left to help grow the banks faster. This policy would require total fresh injection of over N4trillion as capital (long-term) for the existing banks to retain their licences/status as at date. Does this recapitalisation drive guarantee attainment of the utopia of a US$1trillion-economy?

Some banks already have negative shareholders' fund. This policy does not take into cognisance such precarious position, but just wants the bank to add funds to its share capital/premium to achieve the new target, which might still leave the banks retain licence with negative s/holders fund. Some magic! I think CBN should do more on the supervisory and regulatory front. A lot of benchmarks exist, so the banks that want to play bigger, within the regulatory frameworks, should plan and implement strategies to meet higher capital demands, not this blanket approach to forcing every bank to be big.

As it stands, the least capital injection required by a member of the FUGAZ group is about N230billion (Zenith Bank). Unity Bank with a negative s/holders' fund of N190billion, requires just about N184billion new capital injection to retain its licence (will still have negative N6billion) based on this recapitalisation policy. The new policy needs rethinking through. Does not look well formulated. Retained earnings, at least, needs recognition as existing capital for the banks.

My opinion sha.

Frangel:
Sometimes, our policy makers come up with positions that look somehow. Why will the CBN discount retained earnings of banks as part of their capital? I can understand some other/statutory reserves, but not retained earnings. Retained earnings form part of the interest of shareholders, which has been left to help grow the banks faster. This policy would require total fresh injection of over N4trillion as capital (long-term) for the existing banks to retain their licences/status as at date. Does this recapitalisation drive guarantee attainment of the utopia of a US$1trillion-economy?

Some banks already have negative shareholders' fund. This policy does not take into cognisance such precarious position, but just wants the bank to add funds to its share capital/premium to achieve the new target, which might still leave the banks retain licence with negative s/holders fund. Some magic! I think CBN should do more on the supervisory and regulatory front. A lot of benchmarks exist, so the banks that want to play bigger, within the regulatory frameworks, should plan and implement strategies to meet higher capital demands, not this blanket approach to forcing every bank to be big.

As it stands, the least capital injection required by a member of the FUGAZ group is about N230billion (Zenith Bank). Unity Bank with a negative s/holders' fund of N190billion, requires just about N184billion new capital injection to retain its licence (will still have negative N6billion) based on this recapitalisation policy. The new policy needs rethinking through. Does not look well formulated. Retained earnings, at least, needs recognition as existing capital for the banks.

My opinion sha.

It's simple, they actually are trying to mop up excess money in circulation, and also trying to attract fresh inflow of USD into the economy.

ttmax09:
It's simple, they actually are trying to mop up excess money in circulation, and also trying to attract fresh inflow of USD into the economy.

That's the conclusion I came to as well. A Scheme by the CBN to ensure the banks mop up and lock-up some of the excess liquidity floating around in a way that all banks share the burden. The hope i guess is these excess funds would be injected into productive ventures that will lead to the $1T economy. On the fiscal and macro-side a lot of work is still needed to create & support thriving businesses/investments for banks to inject mopped up funds into for the growth of the GDP.

ttmax09:
It's simple, they actually are trying to mop up excess money in circulation, and also trying to attract fresh inflow of USD into the economy.

So there's excess liquidity in Nigeria
Guess you mean they are still on their drive for cashless society