₦airaland Forum

NEM Share Price Gains 40% After AGM…What Could Be The Reason?
Nairametrics
NEM 5 YEARS PRICE CHART SOURCE: BLOOMBERG
NEM 5 YEARS PRICE CHART
SOURCE: BLOOMBERG

NEM Insurance Plc has in the last one week seen its share price rise by about 42 percent month to date. The share price has risen from 74 kobo as at June 2nd to about 1.15 as at the time of penning this article. In fact, the stock is currently on FULL BID of about 40.49 million units with zero shares on offer.

Investors are understandably bewildered about this unprecedented rise for a stock that released its results months ago and only offered dividends of 6 kobo per share or N361 million payout. At N1.15 kobo currently NEM is trading at its 5 year high which in today’s bear market is unprecedented. So what exactly is going on?



Whilst no official reason is out there to support the rise in the share price one can only infer that investors must be responding to an outcome of the recently concluded AGM held on the 8th of June 2016, for which we await a publication of the board resolutions passed by the company. The share price of NEM was 82 kobo on the day of the AGM and has risen 40% since then.

That’s about the most recent corporate action on NEM we can lay our hands on. The chairman of the company Adewale Teluwo by the way, was also expected to retire at the AGM having served for 10 years, indicative of a new Leadership for the company.

At Nairametrics, we are quite pleased with any suggestion of a new direction for NEM Insurance Plc. The company currently trades at a P/E ratio that is 8x its current earnings however we believe its intrinsic value could be somewhere in the region of N2.50 if the revenue potentials of the company are better harnessed. The company has also consistently paid dividends in the last three years with yields often in the double digits. With better quality risk assets and investments, proper rebranding, better financial transparency and improved dividend payouts, NEM Insurance could be poised to takeover a beleaguered Insurance industry that has been struggling to create value for shareholders.

Nairametrics will continue to track NEM for any corporate actions that can clearly explain the reason for this increase.

http://nairametrics.com/nem-share-price-gains-40-after-agm-what-could-be-the-reason/

NuttyChoky:
Bro!!! If you throw in good Q2 results 4 weeks out one may be sitting on 30 - 40% oh

I feel u bro! Didn't think abt that.

Godisfaithful:
The theme of stock market is to follow the MONEY

Yes. Those that bought at N4.31 today are sitting on a fabulous 6% gain already. This weeks bull will take it to 16%. Next week maybe another 10%.....then I JO

courage89:
Acquisition on the horizon perhaps...?

Acquistion bid is really on the horizon. Heard there was a proxy fight in the last AGM which ended up badly. Result sheets were torn etc.

Warring parties are out there buying. Who know where (the price) this will lead to. Another Ikeja hotel loading

fxuser:
NEM on full bid
Crosses N1 for the first time over 5 years probably

Why the sudden upsurge. I thought I made a mistake to buy at N0.85

sentoms:
Yes. I have . the online stock trade platform is nice . I see what's happen @ d stock MKT as Ib prices at every point in time . and the brokerage fee is low. They are running a promo currently for brokerage fee.
Also the research done by ARM is wao. armstocktrade.com with #50k . you are on.

How much is their brokerage fee?

courage89:
NEM...has been on a northward trajectory in the past couple of days. What is going on here? Acquisition news on the horizon? Does anybody have information on NEM?

This is one of the best performing stocks in the past one year.

Intendy:
Morgan capital

Thanks. Maybe we should all be more savvy in negotiating commissions. 0.25% is still way too high and way above what is charged elsewhere in the world.

Intendy:
Good morning.
lead capital offer something close to Morgan but not the same.
but like I always say,you can negotiation fees with your brokers.

Please who has the cheapest standard brokerage fees in market right now? Am looking at something in the neighbourhood of 0.1% or even lower.
Lower commissions are necessary of JIJO. Wise brokerages should even give you 0.05% as long as u are heavily trading

Intendy:
oga proshare wan pour sand for gari

https://www.proshareng.com/news/Investors-NewsBeat/FIDELITYBK-Downgraded-from-Neutral-to-Un/31210

Those that didnt get in are trying to force the market down

zendi:
Where were the market makers when the stock sank to this nadir in the first place?
I think it's bargain hunters showing interest in the over punished baby.

Not always market makers. I bought within that time frame, simply because it was just before then that my account with my broker was credited.

Dangcem, GTB NBL,Zenith (combined ~47 % of market cap) all lost today.......

Of the Top 11 stocks by market cap only Lafarge,Guinness and Unilever gained........

and the market index remained about flat.....

Has something changed in the way this index is calculated? Something is not right here. The All share index should decline by more than -0.04%. Pls correct me if I'm wrong.

With the proposed rule change about block divestment of equities, there is going to be panic and a mad rush for the exit by the big guys. They'll try to exit before the rule starts applying. It has happened several times over is several countries. Remember China recently. Remember sometime in 2008/09 when they out in place a 1% circuit breaker on stocks.

That is a very dumb proposal from SEC.

Manonamission:
Oil at $50 per barrel is not ideal but if it's stable at this price, then the volatility and unpredictability of markets should abate. I dare say, there won't be any trouble at that price. A lot of producers will produce profitably at that price, sweet relief for countries with budget deficits already. The volatility of crude price and exchange rate(especially in Nigeria) is the major problem.

Just make sure you don't liquidate yourself too

Even $50 is now what we are praying for
The era of high oil prices is over. At $50 a fracklog of over 4000 wells drilled but not yet completed will kick in.
We are talking about Iran, lets not forget libya which will come in when they resolve their crisis.

I've thought hard about it. Something really has to give and I think what'll give is the economy of the oil producers.

If the economy is giving, you'll see it give first on the banks.

The bottom should be about 19000 in NSE All share index and/or NSE banking index of <180

THESE ARE WHAT I NEED TO COMPENSATE ME FOR THE RISK

megainvest:
Oil is now $35.3. If you are afraid, sell all your stocks and leave the market for us who are not afraid.

Whatever, it can't go above $50. And as long as it remains below $50 for an extended period, there is bound to be trouble. There is just no way there won't be trouble.

I'm even looking for a way to liquidate my real estate.

PETERiCHY:
http://nigerianow.news/nigeria-four-oil-exporters-hit-by-falling-currency-value-says-opec/

Africa’s largest economy was hard hit by the falling oil prices. The national currency, the naira, dropped against the dollar by more than 50 per cent over the past year.

On January 20, the Federal Government requested $3.5 billion loan from the International Monet6ary Fund(IMF) and the African development Bank to plug its $15billion budget gap.

The country’s oil revenues are expected to fall by 70 percent in 2016, while the hard currency reserves almost halved from $50billion to $28billion and the state’s emergncy fund went from $2 billion in 2009 to $2.3billion currently.

Better sell all the shares you have now. This is not going to get any better. if foreign stocks do go down with oil, I wonder what people will expect Nigerian stocks to do with oil. It'll just sink with it..... It is just a matter of time.

Foreign investors a bailing out only slowly so as not to allow their own exit to sink prices because anyway they'll be restricted by the limited forex window

Intendy:
of cause when they were buying @ 16 it was trading @ around 20 same with zenith d investors bought @ 11 when it was @ #13+
they may have more money than an individual investor but not always the intelligence.

Means institutional investors may be currently buying at N9

Intendy:
many factors are presently not favourable and its reflecting since last week but for dangote cement and could still repeat the trick before closing

DANGCEM was loosing 2.9% 2 minutes before close and end up closing higher

megainvest:
10 Reasons why I bought Access bank shares last week.

Reason No. 2: Early Bull. According to info on Access Bank website, the FY 2015 results are expected on 19th February. That is Friday this week.

https://www.accessbankplc.com/events-and-presentation

The results could be bad. Zenith lost ~5% due to feelers about the upcoming result. My advice is to careful. The full effect of the oil price crash is not yet being felt in by the economy and the banks. Oil price started high last year and ended low. 2016 is different. It started low and will likely end low.
Share prices will adjust further downwards to reflect this.

IHelp:
Without rules do you think the market can stand?
Do you remember when the said stock was on free fall, but could not fall more than a particular price in a day.
When a rule favours people, they hardly complain but when it is against them .....
Bros if you wan become the market maker come and have it

U guys shd allow it fall when it wants and rise when it wants .... That's free market

Ewoooooo.................. This market has turned around while I was eating

Justcash:
Buhari's supporters have often described him as being incorruptible, stringent, pro-developmental and forthright. However, historical antecedents and current political dynamics negates those attributes. Based on these observations, there are several issues that Buhari can never solve as the president of Nigeria. Five of them are listed and briefly explained below.

1: CORRUPTION: "Show me your friends and I'll tell you who you are". With people like Amaechi, Atiku, Obasanjo, Timipre Sylva, Tinubu etc surrounding Buhari as political henchmen, one cannot help but wonder how corruption can be eliminated without these men being incarcerated. Already, Buhari has grown fond of saying, "My Party will Decide", which implies that decision making in his tenure will be based on the decision of his party, which is led by Tinubu and Atiku (as possible BOT chairman). If you are dreaming of Buhari eliminating corruption as the president, PLEASE WAKE UP FROM YOUR DEEP SLUMBER.

2: TRIBALISM: Buhari has never hidden his bias against other ethnic group until his recent campaign for the presidency in 2015. As a matter that fact, one of the reasons why his puppets like Amaechi shielded him from open interviews and debates was because this intricate feature of the man could be revealed. He is tribalistic and he does not hide it. This is already being played out. Under previous Nigerian democratic governments, elected presidents tried to influence the reflection of federal character in top political positions in Nigeria. The several regions between the north and south were represented in the presidency, senate and house of reps. Buhari has just been elected the president, and under his watch the North is about to occupy all the pole positions in Nigeria. For the first time in many years, the North is about to occupy the national presidency, Senate Presidency and President of House of Reps. The South West, being allies, are being compensated with vice presidency and vice senate presidency. People like Amaechi were compensated with a south south slot in the vice presidency of the house of reps. Knowing the antecedents of Buhari, this is child's play compared to what is to come in the next four years.

3: PEACE: I find it funny when people tell me that Buhari's leadership will be peaceful. Considering the brutish and no-nonsense attitude of the man, he will step on many toes, especially in the South-South, and the outcome will be a massive disruption of economic activities in Nigeria. Pipelines will possibly go up in flames, except the war general agrees to listen to the ragtag NigerDelta warlords (laughable). MASSOB will step up their activities for secession, especially now that the SOUTH EAST has been effectively taken out of political relevance. I really do hope that Buhari is in control of BOKO HARAM because a combination of the three will completely disable his government. He may need to be more compromising than confrontational, which is very unlikely. If you are praying for peace, pray harder.

4: CONSTANT POWER SUPPLY: Yeah, agreed that it is not easy to change the power situation in Nigeria, why then was Jonathan expected to perform such a magic in 4-6 years? A combination of corruption, sabotage and ineptitude will make the attainment of constant power supply elusive under Buhari. He will spend more time probing the way that past governments spent billions in the sector than make any feasible change. Just like in his days as the head of PTF, massive corruption will be perpetrated under his watch and he will have no idea about them. Then, of course, sabotage will be the order of the day, as political opposition and industrial antagonists will strive to make CONTANT power supply impossible.

5: ECONOMIC GROWTH: Nigeria's economy is monotonous (dependent on oil) and the current dynamics and volatility in the global petroleum industry shows that the glorious days of outrageously high oil prices is over. This presents a great challenge for Buhari, as his economic promises are simply too extreme to be achieved under the current economic realities. He can decide to diversify Nigeria's economy, but that will take more than 4 years of belt-tightening policies and sustained economic investments, which Nigerians are not to patient to endure. There is nothing that Buhari can do to change Nigeria's economy overnight. For him to realize his economic promises, he will need to borrow, borrow and borrow, which I don't think that he will want to do. If the OPPOSITION, PDP, decides to play dirty like APC did by scoring cheap political points with unpopular economic policies, Buhari's government will be in for a very tough four years.

Please do not talk about MASSOB stepping up their activities here. They can do nothing. If we in SE want Biafra we know how to go about it and not through the riff raffs called MASSOB. The populace is against them and will not allow cause violence where there is peace. the best bet for them will be to do what what they are doing as free nigerians without violence.

When it comes to violence they are on their own and the people will rise against them.

PassingShot:
Another good news for Rochas and APC.

With a lead of about 80,000 votes, there is no miracle that can make PDP win this one.

Mathematically, Okorocha needs just about 20,000 votes to have an unassailable lead over Ihedioha.

And the fact that there can never be a 100% voters turnout makes Okorocha to need less than 20,000 votes to clinch it.

So, it's checkmate for Ihedioha and PDP in Imo already.

Okorocha has a good future in Nigeria's political terrain.

Modified*
I understand the 108k is the number of registered voters and the number of voters with PVC is actually about 82k. So, why waste resources to conduct this election?

It is by far easier for Arsenal to win the EPL this than it is for PDP to win this election!

AmadiAba:
As the Independent National Electoral Commission (INEC) prepares to hold the April 25 Abia State governorship election run off, a concerned group under the auspices of Abia Rebirth has called on the electorate not to vote for All Progressive Grand Alliance candidate, Chief Alex Otti for denying and abandoning his birth place, Arochukwu in the name of politics.

It will be recalled that elders and youths in the state had under the Abia Charter, directed that the next governor of the state should be an indigene of Abia South as Abia North and Abia central had ruled the state for the past 16 years. Based on the joint decision, Otti had denounced his Arochukwu origin to claim Ngwa, a part of Abia central so as to qualify for the governorship under the charter.

Our source gathered Otti has promised his supporters and financiers who are mainly non Abians based in Lagos and Nnewi massive government patronage if elected .

Speaking under condition of anonymity, a leader in Arochukwu said, " how do you expect us to entrust the state resources in the hands of an inconsistent personality. Alex Otti denied his birth place and origin because of politics. He has not done anything tangible for Abians and now he is busy buying people with money. We believe in people who had been contributing to the community all along without bias. My advice to Abians is that they should not vote Otti as he is going to bring all his political appointees and contractors from Lagos and Anambra thereby, abandoning our local economy".

Efforts to reach the Campaign Director General for Alex Otti proved abortive as his phones were switched off.

Sauce/picture or Adonbilivit

caselessogbuagu:
You can't just trust them! You call a fellow igbo man stranger, but you want to monopolize lagos and go as far as tagging it a 'no man's land'.
haba, lagooners!

So what makes you think this is view is shared by all Abians and not just afew people as mentioned above. Why are you so quick to generalise and castigate. Myopic reasoning. What about those Abians a that are supporting him?

You should know by now what lies PDP propaganda can come up with.

What I saw in a blog. Sucker punch for those who think the SS/SE are naive:

Unless there is a constitutional provision that the two major parties should field their candidate from one section of the country, i see the ran-ka-de-de boyz continue for a long time. This is my theory:

(1) When APC wanted power, they fielded a Northerner in order to leverage the votes from there and they won.

(2) In 2019, if PDP does not implode, they will field a Northerner to challenge GMB and if GMB wins a second term, the battle shifts to 2023.

(3) In 2023, APC shifts power to the South with South West is well positioned to take a shot while PDP will continue with a Northerner and possibly a SE/SS VP.

(4) The Northerners will vote for their person and combine the votes from the South East and South South to win.

(5) APC starts all over again and after 8 years of failed attempts using a candidate from the South, they will be desperate to win back the Presidency and they then shift to a Northerner candidate while PDP rotates candidate to the South this time around SW/SE/SS and the Northerners then do a block vote for their person in APC

(6) the cycle continues. Return to Step 1

back to my kukuruku hills secured abode to continue work on this permutation and theory.

Sibrah:
At least we know his stance regarding the fuel subsidy removal.

Meaning we should prepare to pay more for fuel by next year.

The part I dont agree with is making a promise that you know you obviously cannot fullfill just to win elections

Why I refused to devalue naira, remove fuel subsidy - Buhari


Category: News Published on Wednesday, 18 March 2015 18:29 Written by Nuruddeen M. Abdallah Hits: 3664



The All Progressive Congress (APC) presidential candidate Muhammadu Buhari said he refused to remove subsidies on petrol and devalue the naira when he was head of state because it would destroy the economy.

Buhari, who spoke during a town hall meeting in Abuja on Wednesday, said he refused the bidding of the world super powers to save the country.

He said the nation has lost greatly from the devaluation of the currency in terms of growing the economy and creating employment for the youth as employers who had to take bank loans to import raw materials and machines are running their industries at a loss.

‎"When we came into power in December 1983, we were approached by the world power at some stage to devalue the naira, remove petroleum subsidy and remove subsidy on flour, but we refused," he said.

He explained that "the issue was that if we get plenty of naira, what are we going to do with it? We even stopped farming and the only thing we get money from them was oil and that was being paid in dollars."

He said "if you have excess of groundnut, cocoa, cotton or palm oil, you sell it in foreign exchange. If you devalue the currency, the naira will be affected and Nigerians will not get value for their goods and services."

The APC flag bearer said "I was told to remove subsidy on petroleum and because I had the honour of being in charge of petroleum for three and half years, I don't know in terms of Nigeria, who is subsidising who."

"To the best of my knowledge then, the Nigerian petrol and Nigerian capital was used to develop the refineries up to the time I was there. We built the refineries from one of 50,000 bpd to four of 450,000 bpd, laid pipelines of over 3000 kilometres, built more than 20 depots with all Nigerian money," he said.

He added that no money was borrowed to develop the infrastructure in the oil sector.

I believe the fuel subsidy should be removed BUT on the conditioned that the savings therein be utilised judiciously. That has always been my position.


But why will our politicans keep changing mouth. Why say what you don't truly belive in just to win the masses over. That is why we must scrutinise every of their promises next time.

This applies at all levels -Presidential, Governorship, Senatorial, House of reps etc. It's even worse at the lower echelons.