Hi easimoni, frankiriri,wanaj0 et al

Excellent an tremendous jobs u all are doing, infact this is the richest thread on stock issues, Everyone here is really doing greatly. Bin following the thread since SEUN repented.

Thinking of changing brokers now. My former acc officer has moved to Marina sec an he is asking me to ctransfer my acct, but the problem he forsees is that his former Md might not sign the transfer forms. The guy is simply good, does my trades and excutes orders real fast. Simple question is how long does it take to effect a transfer of stocks, Got like 800k in my cscs acct. What does the house think>.

Allcorrect:

Hi easimoni, frankiriri,wanaj0 et al

Excellent an tremendous jobs u all are doing, infact this is the richest thread on stock issues, Everyone here is really doing greatly. Bin following the thread since SEUN repented.

Thinking of changing brokers now. My former acc officer has moved to Marina sec an he is asking me to ctransfer my acct, but the problem he forsees is that his former Md might not sign the transfer forms. The guy is simply good, does my trades and excutes orders real fast. Simple question is how long does it take to effect a transfer of stocks, Got like 800k in my cscs acct. What does the house think>.

Don't transfer your account. If you can, open another account with the new company!!!!!

Guys,
Are you guys now saying we shouldn't buy japaul oil anymore because we know they'll issue bonus shares to compensate shareholders for the discount given to new investors.?

What i can sense from people contributions is moving towards FCMB(April 2008 dividend) than Japaul and secondly we'll all been more sceptical about Crusader(expect frankriri) because of their merger.

Interesting turn around,

Temmie10, frankriri, wajana and co, pls correct my interpretation if i'm wrong

Where can i get fund prices(shelter fund etc)

This question goes out to the gurus well versed in financial analysis,

AUDITORS REPORT OF BANK PHB'S ACCOUNTS
The bank obtained the approval of shareholders at an extraordinary general meeting held on 8 December 2005 and the sanction of the court on 22 December 2005 to reduce share premium that arose from the allotment of PlatinumBank shares to Habib Bank shareholders by creating a special reserve to be used in writing off the goodwill that arose upon the merger of Platinum Bank and Habib Bank. Accordingly, the goodwill of N5.96 billion was set off against the special reserve account; rather than being amortised over a period of not more than five (5), years in accordance with Section 21(2) of Schedule 2 of the Companies and Allied Matters Act 1990. Had the bank amortised the goodwill over the maximum period of five (5) years, the profit before tax of N10.159 billion would have been reduced by N1.192 billion and goodwill and reserves balances would each have been increased by N4.174billion.

My question is this?
1. what does this mean
2. Does this have any +ve or -ve impact on the company as a whole, in the long or short term.
3 If it does have any impact how will it influence its share price in the long, medium and short term.
4. Finally, do the laws actually allow fo this? cuz i find it very hard to understand that simply restructuring your accounts can translate to so much profit.

please could someone send me a copy of Schedule 2 of CAMA , bn looking 4 it all over the web but cant find it.
usyolah@yahoo.com

slaykay07:

Guys,
Are you guys now saying we shouldn't buy japaul oil anymore because we know they'll issue bonus shares to compensate shareholders for the discount given to new investors.?

What i can sense from people contributions is moving towards FCMB(April 2008 dividend) than Japaul and secondly we'll all been more sceptical about Crusader(expect frankriri) because of their merger.

Interesting turn around,

Temmie10, frankriri, wajana and co, please correct my interpretation if i'm wrong

Regarding FCMB I think one can expect only dividends but no bonus because of the new shares that will be listed from this PO. So the fact that you will get something from the year end in April 2008 may not be such a big deal.

I don't have any facts to back this but this is my own analysis of the Japaul offer

- Rights issue of N3.50 compared to a market price of N6.02 means discount of over 40%. End of year is Dec 31st and new shares don't qualify for bonus or dividend. Very likely the stock will be diluted by bonus shares to existing shareholders. I thought of CCNN but then I recall that CCNN had only rights issue. In the case of Japaul there is also an offer for subscription at N3.95 which is over 33% discount.

- Despite this perceived discount this stock is on net bid on the floor. It appears existing shareholders are not thinking of taking advantage of this "discount" by using the funds from here to subscribe to the rights issue. To qualify for rights issue you need to be on the books on 6 July so nothings stops these shareholders from selling but they are not. Maybe shareholders are expecting bonus shares and other goodies  . Maybe. Somehow this reminds me very much of First Bank. Despite the discount from the PO you could only buy  First Bank on the floor if you pay a "premium". Those that did and off loaded at the right time never regretted it  .

* I always make an assumption on the NSE. For every stock, there are individuals with large holdings that have privileged information due to their position and will not hesitate to use it for profit. I wonder why AP crossed my mind, 

To summarize, I believe if one chooses to buy Japaul, the discount should not be the main focus for one's analysis. Analysis should also be based on the potential of the company and the fundamentals and the conviction that one still gets good value even with dilution.

baba .y.:

This question goes out to the gurus well versed in financial analysis,

AUDITORS REPORT OF BANK PHB'S ACCOUNTS
The bank obtained the approval of shareholders at an extraordinary general meeting held on 8 December 2005 and the sanction of the court on 22 December 2005 to reduce share premium that arose from the allotment of PlatinumBank shares to Habib Bank shareholders by creating a special reserve to be used in writing off the goodwill that arose upon the merger of Platinum Bank and Habib Bank. Accordingly, the goodwill of N5.96 billion was set off against the special reserve account; rather than being amortised over a period of not more than five (5), years in accordance with Section 21(2) of Schedule 2 of the Companies and Allied Matters Act 1990. Had the bank amortised the goodwill over the maximum period of five (5) years, the profit before tax of N10.159 billion would have been reduced by N1.192 billion and goodwill and reserves balances would each have been increased by N4.174billion.

My question is this?
1. what does this mean
2. Does this have any +ve or -ve impact on the company as a whole, in the long or short term.
3 If it does have any impact how will it influence its share price in the long, medium and short term.
4. Finally, do the laws actually allow fo this? because i find it very hard to understand that simply restructuring your accounts can translate to so much profit.

I am no financial guru but I like to task what is left of my brain. I will have to proceed with layman language so bear with me,

1. It means the company used its reserves to write off the goodwill on it's books at once rather than write it off over at least 5 years with future earnings. This reserves would have been accumulated from earnings over the years.

2. If you look at it in a simple way the net effect of either using reserves or future earnings is the same on the whole for the company. If you go more complex (or u be accountant or banker), it is better on the books to write off the goodwill over time because money depreciates over time. So if they write off some of the goodwill in future, compared to today, the real value lost will be less. Remember this is all about the value of the company on the books. Nothing is paid out in cash or otherwise.

3. This is the real deal. The reason for taking this decision I believe is to protect the price of the shares and the perceived value of the company. If the bank makes deductions from profit, the bottom line will indicate they are not doing so well when they declare profits at the end of the year. Most people will not be looking to see that goodwill is eating into the profit. The more influential fundamentals of the company like basic PE ratio e.g., will be impacted negatively because there is no provision for loss due to goodwill (adjusted PE ratio should take care of this though) and this will drive down the share price. This is because unless you are an accountant it is likely the profit and loss account will always win against the balance sheet  . So with the way they have decided to go by using the reserves, the share price should not be impacted because the net effect of either action is the same and this is in a way transparent to the ordinary investor. However, if the other alternative of amortizing against profit was chosen this would have had a negative impact on price because the bank will be declaring less profit and investors will be looking elsewhere.

4. Based on the Accounting standards used in Nigeria at least, I understand this is allowed. I'm thinking Access did something similar. This restructuring of accounts did not generate any profit. The bank just decided not to write off goodwill accumulated in the past from the profit it had generated legitimately today. I do feel for the banks or companies a little. The Goodwill of these banks was accumulated over previous trading years and investors at that time benefited. Why should future earnings of the companies be used to pay it off? Why not the previous earnings from previous business activity that generated this goodwill?

@ all

Kindly enlighten me about the difference between EPS (basic) and
EPS (adjusted) as seen on profit and loss accounts of some
companies.

Which is the correct to use for fundamentals analysis? Adjusted?

X-2-X:

@ all

Kindly enlighten me about the difference between EPS (basic) and
EPS (adjusted) as seen on profit and loss accounts of some
companies.

Which is the correct to use for fundamentals analysis? Adjusted?

Sometimes companies have to use part of profit for exceptional items or one-off payment that will not normally occur in the normal course of business in a fiscal year.This will reduce the declared profit and will not reflect the actual performance of the company. The adjusted ratio is used to present a better picture of how the company is doing.

Adjustments can also be made for shares. For instance shares that are due to be listed in future.

The adjusted figures should be used for trend analysis as it is more indicative of what to expect in normal operating conditions and the potential growth of the company.

However, if you are only interested in the current value of the company, then the basic figures make more sense.

hi pumping777,

Thanks alot for the input.

@ All GURU's

pls does anyone know any information about ACEN INSURANCE? cos i think they are on technical suspension and its been a long time i ve been mornitoring it at that #0.95k since 8 months ago,
does that mean they are on T.S or they planning to fold-up, pls some one should enligthen me or give me a link to their webpage.

and the one of Universal Trust Bank (U.T.B) wats up wiv this guyz too? REPLY URGENTLY


To al GURU's in the ROOM!!!

To all the Gurus in the House,

Does anyone have an idea of when SPRING BANK PLC will be back on the floor of NSE.

They have been on technical suspension for quite sometime now and their board of directors and management have been reconstituted.

What is going on?.

tonyjon.

HI PUMPIMG 777,

I have a question for you.
If you have some money to spend on stocks, will you buy shares from the following banks

FIDELITY BANK PLC
FCMB PLC
BANK PHB
AFRIBANK PLC
SKYE BANK PLC
FIRST INLAND BANK PLC
WEMA BANK PLC
IBTC PLC.

tonyjon.

ATTENSION!

Japaul plc site is not opening , according to a message on the site, >>>>>>>>>> This domain name expired on 10/15/07 and is pending renewal or deletion<<<<<<<<<<


This simply signify that japaul management are either irresponsible or stingy, I'm on the verge of investing in their ongoing IPO But this development is baffling me,

@ Pumping777
I just say make I holla u. Thanks for holding it down here!!!

@PUMPIMG 777

you doing a great job brother.
whatcha think 'bout acen insurance? that company bothers me both medium trm and long term wise

felo12:

ATTENSION!

Japaul plc site is not opening , according to a message on the site, >>>>>>>>>> This domain name expired on 10/15/07 and is pending renewal or deletion<<<<<<<<<<


This simply signify that japaul management are either irresponsible or stingy, I'm on the verge of investing in their ongoing IPO But this development is baffling me,

Checked that now and its still showing the same info. However never mind this can happen. Get alarmed if it does not come back by say Tuesday.

X-2-X:

@ all

Kindly enlighten me about the difference between EPS (basic) and
EPS (adjusted) as seen on profit and loss accounts of some
companies.

Which is the correct to use for fundamentals analysis? Adjusted?

EPS (basic) is the EPS for that year based on the outstanding shares for that particular year

EPS (adjusted) is the EPS adjusted for increased in outstanding shares over the years. This is just to show that even though the EPS bsic of a company may have decreased year on year, when you look at the adjusted EPS (if the company has declared a bonus or make an offer) it may actually have increased year on year.

Ben0524:

@ All GURU's

please does anyone know any information about ACEN INSURANCE? because i think they are on technical suspension and its been a long time i ve been mornitoring it at that #0.95k since 8 months ago,
does that mean they are on T.S or they planning to fold-up, please some one should enligthen me or give me a link to their webpage.

and the one of Universal Trust Bank (You.T.B) wats up with this guys too? REPLY URGENTLY


To al GURU's in the ROOM!!!

There was a shaking (recapitalization) in the Insurance industry.  Acen must have been affected.  My suggestion is that you just relax and wait for news as I cant find much news about them online too.  However if you try this link http://www.tribune.com.ng/12012007/insurance1.html
this i think is the latest news i can find about  ACEN. Find Intercontinental securities and enquire too.
Cheers

wanaj0:

EPS (basic) is the EPS for that year based on the outstanding shares for that particular year

EPS (adjusted) is the EPS adjusted for increased in outstanding shares over the years. This is just to show that even though the EPS bsic of a company may have decreased year on year, when you look at the adjusted EPS (if the company has declared a bonus or make an offer) it may actually have increased year on year.

Wanaj0,
Keep pumping thanks for the valuable info, It has helped me too even though I didnt ask. Also that insight into Presco, Was wondering why Atedo Peterside was doing on the coy. Who knows his managerial prowess will give the coy a boost.
Cheers

tonyjon:

HI PUMPIMG 777,

I have a question for you.
If you have some money to spend on stocks, will you buy shares from the following banks

FIDELITY BANK PLC
FCMB PLC
BANK PHB
AFRIBANK PLC
SKYE BANK PLC
FIRST INLAND BANK PLC
WEMA BANK PLC
IBTC PLC.

tonyjon.

This is my answer based on current prices and other opportunites I think exists in the market today bearing in mind that ultimately my funds are limited. I have stocks from some companies below I say I won't buy today but I bought them cheaper than todays prices.

FIDELITY BANK PLC - No
FCMB PLC  Yes, PO             
BANK PHB   No, Maybe PO after seeing the prospectus
AFRIBANK PLC - No, Maybe PO after seeing the prospectus
SKYE BANK PLC -  No
FIRST INLAND BANK PLC - No
WEMA BANK PLC - Yes, it is my gamble stock. It could be another AP
IBTC PLC. - No

bibiking1:

@PUMPIMG 777

you doing a great job brother.
whatcha think 'bout acen insurance? that company bothers me both medium trm and long term wise

I've not heard anything about Acen since their PO this year so I don't know what's up with this company. I have no projection for them. I'd also be worried if I had the stock,

pumping777, i can see the nice work youve been doing here. keep it up.
however, i must correct u om bank phb, the po will be a DFEINITE YES. itsgonna be offered at 17 naira which is a trailing pe of 17.7, thats the lowest pe you can get now in this sector. its projected PAT is gonna be above 15 billion. this offer should be more fundamentally sound than the fcmb offer, but i want to seewhat thier plans for the money raised will be. yet again, nice one

to GEEES

My guy thank you very much i think it help me a little, thanks a lot but i want to keep me updated as soon as u ve any info about ACEN INSURANCE, thanks again oooo!!!

i love this thread its very benjaminstropicating thanks to all GURU's in the house.

I STAND TO BE CORRECTED FOR MY GRAMMER!!

To ALL

Is there any possibility that Japaul oil will still be available at the end of the P.O in the Secondary market?
cos i heard som1 saying he couldn't log on to thier webpage.



To All GURU's

shigidi:

pumping777, i can see the nice work youve been doing here. keep it up.
however, i must correct u om bank phb, the po will be a DFEINITE YES. itsgonna be offered at 17 naira which is a trailing pe of 17.7, thats the lowest pe you can get now in this sector. its projected PAT is going to be above 15 billion. this offer should be more fundamentally sound than the fcmb offer, but i want to seewhat their plans for the money raised will be. yet again, nice one

Thanks for sharing your analysis. Makes a lot of sense. I like to leave the PO analysis until the prospectus is out but you have stimulated my interest, .

Also I wonder if new subscribers will partake of the booty for year end 2007/2008 in case of bonus issues. I have a phobia for dilution. I know any potential bonus issue is 1 year away but who knows what the prospectus will say?

This brings me to a question on a possible anomaly.

Is it possible to have newly listed shares on the floor not entitled to future bonus and dividends while others stocks from the same company also on the floor are entitled, ? To be clear, is it possible for new shares from a PO not entitled to dividend or bonus to be listed on the floor before the register has been closed for bonus or dividends declaration for shares bought outside the PO?

Maybe I'm missing something,

I WONDER WHY NAZZYON IS ALL AFTER MUTUAL FUNDS, LOOK LIKE U AVERSE RISK SO MUCH.PERSONALLY I THINK YOU SHOULD PLAY THE REAL GAME WITH PART OF THE MONEY.NOT GIVING ALL YOUR MONEY TO SOME LOUSY FUND MANAGER.MAY BE U ARE SATISFY WITH DRE 22%,45% ETC ANNULIZED RETURN IN A MARKET TAT CAN GIVE YOU 100%200%.SHINE UR EYES

I am of the opinion that FCMB's offer is to improve their cashflow. They appear to be finding it difficult to maintain increase in shareholders fund as at August 2007. What do the gurus think?

This is my answer based on current prices and other opportunities I think exists in the market today bearing in mind that ultimately my funds are limited. I have stocks from some companies below I say I won't buy today but I bought them cheaper than todays prices.

FIDELITY BANK PLC - No
FCMB PLC Yes, PO
BANK PHB No, Maybe PO after seeing the prospectus
AFRIBANK PLC - No, Maybe PO after seeing the prospectus
SKYE BANK PLC - No
FIRST INLAND BANK PLC - No
WEMA BANK PLC - Yes, it is my gamble stock. It could be another AP
IBTC PLC. - No




So, Pumping 777, for all the ones you said you cannot buy, can you buy them for long term investment if you have money?.

tonyjon.

TO ALL GURUS IN THE HOUSE,

A friend of mine bought some shares (PO) some years back before he travelled out of the country. Since  everybody is now talking about capital market, he now remembered that he has some certificates in his Bank safe deposit in Niger.

The problem with the certificates are so many that he is about losing hope as per scaling through with verification anytime he goes back to Niger.

These are the issues:

1. His surname has changed
2. His postal address has changed
3. He has new next of kin
4. His signature has changed although he can still sign his old signature
5. He has no broker and not willing to hire one

He intend to travel to Nigeria next month and go straight to the offices of all the registrars of the companies where he bought the shares to explain to them and to do his verification without a broker.

GURUS in the house, is this possible?. If the answer is yes, what are things he will need in terms of documents before going to see the registrars?.

tonyjon:

TO ALL GURUS IN THE HOUSE,

A friend of mine bought some shares (PO) some years back before he travelled out of the country. Since everybody is now talking about capital market, he now remembered that he has some certificates in his Bank safe deposit in Niger.

The problem with the certificates are so many that he is about losing hope as per scaling through with verification anytime he goes back to Niger.

These are the issues:

1. His surname has changed
2. His postal address has changed
3. He has new next of kin
4. His signature has changed although he can still sign his old signature
5. He has no broker and not willing to hire one

He intend to travel to Nigeria next month and go straight to the offices of all the registrars of the companies where he bought the shares to explain to them and to do his verification without a broker.

GURUS in the house, is this possible?. If the answer is yes, what are things he will need in terms of documents before going to see the registrars?.

Two things that he has to do

1) Get a sworn affidavit as per the change of name with the newspaper advert.
2) Get bank confirmation for his signatures
3) Get a broker FAST.
4) Submit change of address forms with the registrars (preferably through a broker)