₦airaland Forum

If you are a trader,read this article very well.

http://nairametrics.com/two-sides-to-a-story-why-the-nine-banks-did-not-remit-tsa-funds/

megainvest:
Of all the possible sanctions CBN could have employed, they chose to put further pressure on the naira by stopping banks from accessing Forex! Sometimes you will begin to wonder if these guys think at all or if they are deliberately sabotaging the economy! Anyway, make I go change my dollar!

Emefeile might be sabotaging the economy on behalf of Jonathan/Ngozi because his ways of doing things in terms of policies is completely unprofessional.

manie:
That is not a share buy back, a share buy back MUST lead to the cancellation of the bought share. I can't see any reduction in the share capital of the company in the last 4 years.

I guess management tried to secure the financial future of her employees by buying shares of the company for them at ridiculously cheap prices.
I just believe top management did not cross or sell their own shares to the employees. A friend who worked was made to take a car loan and must buy from the company of one of the directors.

The scenarios described above is not a share option, shares are allocated based on certain conditions that are to be made and the company does not pay nor buy on the floor for such transactions and incentives.


There is a whole lot of difference between employees and top management buying their company's shares and share buy back.


Share buy back is done by the company on behalf of the company and the shareholders.

I have told you several times that this is not a standard share buy back but whatever you call it they are obviously buying their own shares for a reason but differ from the one stated in the result.My own point is that this is one of those fraud in Nigeria banking sector,those workers are just proxies and they won't get a dime from those shares.

manie:
That is great, can you please share the link to that transactions. A share buy back is never done in secrecy, SEC and NSE must also approve it.

The bank also reveals that it “sets aside an amount not exceeding five (5) per cent of the aggregate emoluments of the Bank’s employees in each financial year to purchase shares of the Bank from the floor of the Nigerian Stock Exchange for the purpose of the plan.”

The bank allocated an additional 318,927,997 to its shareholders during the year bringing the total allocation to about 517,753,801. The bank also disclosed that 42,599,105 have a vesting period that will expire in 2016, whilst 160,866,573 and 314,288,123 have vesting periods that will expire in 2017 and 2018 respectively.

According to this definition, Vesting periods are defined as the period of time before shares are owned unconditionally by an employee in an employee stock option plan. If his/her employment terminates before this period ends, the company can buy back the shares at their original price.

For example, for the vesting period expiring in 2016, it means employees who have been allocated the shares will earn in by the end of the year provided that they remain as employees of the bank. They can leave the bank after the vesting period and still retain ownership of the shares.

At the current share price of N5.6 the shares are worth about N2.8 billion. The bank recognizes the average price of the shares at N5.95 based on when it purchased it. About 209.5 shares was purchased at about N7.5 while another 318.9 was purchased at about N4.8, 10.7 million was purchased at N6.4 naira per share.

manie:
I stand to be corrected, this is not a share buy back, this will lead to dilution of the shares.

Every shareholder want his/her company to do share buy back.

They bought all those shares from the floor with different prices if you don't know.I got information about something like that from an insider last year and I shared it here.Even share buy back in Nigeria must be approved by the exchange and also publicized but this is more like a cover up for reduction of dividend payout.500 Million plus is too much to be bought in this circumstances except there is no rule stopping them.

manie:
Sir you need to read more on stock option as a means of compensation and share buy back.

I am not a stranger to standard stock option but this is proxy share buy back which is smarter on their part.But those staffs will never own the shares as stipulated in the article.They are playing smart but I just hope is good for market.

fxuser:
umm Emefiele curve ball !

barred banks on full offer
liquidity is key here

But UBA on bid.

OBAGADAFFI:
I remember how Oceanic and Intercontinental bank were forcing their staff to buy their shares.

I don't trust Access with these scheme.

This is different as the employees are not paying for it.I believe is a proxy way of un approved share buy back aimed at reducing dividend pay out tactically.

austinkenneth:
THESE GUYS ARE DILUTING THE COMPANY SHARES!!!! NA WA OO FOR THIS NAIJA BANKING SECTOR. IT IS EITHER ONE THING OR THE OTHER. THE SHAREHOLDERS AS A GROUP ALWAYS GET THE SHORT END OF THE STICK.

That's not dilution but more like share buy back.Read the article well but the main deal behind purchase of the shares might be for Access to corner most of the dividends.

UBA has paid last night.

http://www.thisdaylive.com/index.php/2016/08/24/tsa-nine-banks-barred-from-forex-market-ceos-appeal/

OBAGADAFFI:
My major interest in this news is First bank and UBA.

This two banks have been featuring in every bad news coming from the banking sector.

I am having a feel this two banks will be fantastically cheap in the future.

FBNH already hurt many but hope UBA will have a strong defense concerning this issue.

Intendy:
For now banking sector is a no go area,except you are a long termer,even with that lock in your profit and activate a repurchasing strategy.

Why?,at least let the dividend play out first before fear mongering.

feelamong:
http://www.bloomberg.com/news/articles/2016-08-23/world-s-worst-currency-slump-starts-to-glean-rewards-for-nigeria

In the past two weeks, Exotix Partners LLP and Standard Bank Group Ltd. have told clients, most of whom fled after the country started imposing capital controls from late 2014, that they should start buying naira assets again. The worst-performing currency this year among more than 150 globally has depreciated 38 percent against the dollar since the central bank abandoned its peg on June 20, while bond yields have jumped to more than 20 percent. The naira strengthened 3.6 percent to 318 per dollar on Tuesday after falling to a record 350.25 on Aug. 19.

“The cheap naira is attracting foreign investors,” said Lutz Roehmeyer, a money manager at Landesbank Berlin Investment, which oversees about $12 billion of assets. “At 325 per dollar, the naira is too weak” and Landesbank anticipates a rebound, he said


ARE THEY BACK

@ fxuser......please help confirm from your big contacts

From offshore purchase of stocks it shows they are coming back slowly and bigger but without much attention.

zendi:
If they're raising money for strong footing and expansion, they're needing money.
But your last sentence is well noted, which means their oustanding shares will not balloon out of control.

Yes.The last time they raised equity,it wasn't a complete success and thats why they opt for a special local instrument if I can recall from one of their previous press conference.So Access heading north is in the interest of their capital raising and with good result,I believe they can achieve it.

zendi:
But I thought Access had capital raising plan pending -
Nigerian banks are in perpetual capital raising, occasioning equity dilution -
why then is it paying interim dividend ?
How can they be needing money and dishing out money at the same time.
Is the logic wrong to conclude that banks keep raising money to pay dividends,
which means they're not really making money.

Raising money for Access is to have a strong financial footing and to expand but not because they lack capital.Also they are not raising capital via equity holdings but through debt instrument.

OptimistGenius:
Bros the small problem is NSE doesn't really care about intrinsic value. If it did Access, UBA, Transcorp, etc will be much higher than their current prices. I remember when I started. I finished reading countless write ups of Warren Buffet and his value investing mantra and put most of my money in stocks that were selling at far below their intrinsic value thinking I was going to "make money this year".

Most of those stocks have lost over 50% of their value. I thank God I was able to average down on some and with others I just cut my losses and moved on to fight another day. A lot of stocks I thought I was buying madly cheap in 2014 are half their price today and even considered expensive at that half-price level.

Today you find some worthless stocks selling high and some valuable stocks selling low. And if you're unlucky you get burnt very easily. Everything is just madness.

Morale of the story is: Investopedia fit teach u stock, but nobody fit teach u NSE. If you're investing, make sure you're ready to stand by your decisions even on the long term.

The problem with NSE is the small dividends they pay shareholders,if they can pay more then the intrinsic value of stocks will reflect in the share price of most stocks.Imagine Glaxosmith hiding the 0.60k dividend which they will pay first week of september so that their people can mop cheap and take most of the dividend.But still its good to know intrinsic value of a fundamentally sound stock like Access as the fundamentals of the stock is still intact.

From Access result,the intrinsic value of the stock is 8.99 which perfectly makes sense.Do your own calculation!

The main key is to know how to calculate the intrinsic value of a stock,it will aid your medium term trade.

fxuser:
this Access sef , they posted interim before results !
#cowboy

Contrary to your analysis,I believe Access will move upward by at least 20%.

Intendy:
GUARANTY TRUST BANK PLC

Closure of Register Half-Year Ended 30 June 2016

Proposed Dividend 25 Kobo per share (Interim)

Proposed Bonus Nil Closure Date 1st September 2016

AGM Date N/A

Payment Date 9th September 2016

AGM Venue N/A

It wasn't opening,where did you get the above info from?

http://www.nse.com.ng/Financial_NewsDocs/UNION%20BANK%20NIG.PLC%20HALF%20YEAR%20JUNE%202016.pdf

BMZK:
LOL on the above bold.
Pullback to where ? Skye bank shares have been nose diving for the past few weeks. Unless you want to send them under 6 feet.

Appointment of that Osibodu to their legal unit is a bad sign for take-over or abnormal reconstruction.

GSK Nigeria Plc (Special) 28/7/2016 60 Kobo Nil 1st September 2016 N/A 7th September 2016

zendi:
I recall a forumite once cursed that fbnh would be available at under 3 or something.
That time he narrowly escaped e-lynching, but right now, very sadly, his vindication is around the corner.
Which brings pythondjango to mind.
Some of his grave robber's prices are manifesting.
I hope its well with him.

That prediction is already late because is more than a year now and even if FBNH get to 2Naira is just a matter of fate.

We might see one of the delayed result today.

lancee:
Sir D 'Angelo been a while , what wld u perfer Z...on 0.25k divi , assuming Access declared 0.25k as well

I Have bt , thinkin of adding more on Acc

[Aim and obj] ..capital appreciation

Judging from current market trend and price of both stocks,I think is wise to go for Access.Its cheaper and the dividend yield is more higher than Zenith when you compare price difference.Capital appreciation in the short to medium term is also guaranteed.

Everyone selling other financial stocks to move into Zenith.

Zenith 0.25k interim dividend.

kentoto:
People,

The market is so dull, you guys noticed UBA,Zenith, Access and GT bank are all trading sideways within a tight band.
I think we might start to see activity from third or fourth week in next month.

K

Thats how is going to be until results are out.