₦airaland Forum

Well. I continue to pray for the country.

Lets see where it goes.

dipoolowoo:
GSK Declares N917m Profit in 2019, Proposes 55 Kobo Dividend
https://businesspost.ng/economy/gsk-declares-n917m-profit-in-2019-proposes-55-kobo-dividend/

CSCS Distributes N4.3bn to Shareholders as Reward
https://businesspost.ng/economy/cscs-distributes-n4-3bn-to-shareholders-as-reward/

Nigerian Stock Exchange Closes for 2 Days
https://businesspost.ng/economy/nigerian-stock-exchange-closes-for-two-days/

N268.7bn Treasury Bills for Sale Wednesday, Rates to Move up
https://businesspost.ng/economy/n268-7bn-treasury-bills-for-sale-wednesday-rates-to-move-up/

for CSCS, bumper profits and dividends are now being announced. The day the general public will become shareholders, you'll start hearing stories of meagre profits and losses in some years. That's when stories about how Nigeria is a difficult place to do business will start arising.

Dupeodus:
Like I said once, if you chose to invest in Nigeria's stock market, you chose your poison. The management of almost all the companies are corrupt and do outrageous things sometimes to the knowledge of the regulators. Nothing came out of all the email I wrote to the SEC and NAICOM on AIICO and you see their shenanigans everytime they publish their financials. The thing is that they are sitting on a gold mine and they know. As an investor, even though you see that they are doing everything to ascribe a good portion of that gold mine to themselves, as long as you can get a portion of it, you participate as much as you can.

Oga, my fear is that they shouldn't release another stinker of a result in Q2. That would erode my gains on the few coins I have put in here.

Heishere:
But their quarter 1 result is not good, so what is driving it?

Exactly the reason I didn't buy more. But there is a 1 for 5 bonus coming.

This AIICO is on steroids. I wish I had bought more at sub 70 kobo. N1.2 seems like a reality afterall

Mcy56:
The result is not bad.
FIDSON is currently trading at 3+ and they declared 15k, so also M&B @ 3+, 20k.

Though I knew they belong to different sector, yet Caverton is still cheap at that price by my own understanding.
The stock is just surrounded by negative sentiments, that's what I see there.
Also, there are times some stocks get bashed once dividend is declared but will start picking gradually again.

Wait o, are there no Caverton faithfuls here except OGG? Jideflash come and say something here.

20 kobo still falls below expectations. These guys paid 25 kobo last year. The holders were expecting 25 or 30 kobo. This is a disappointment.

Mcy56:
FULL BID

It seems to be heading for that N1.20 price that Leapfrog bought at via the special rights issue.

I think the next Insurance company that may rise ( if good results are released) would be Mutual Benefits. I've been watching it sha but to buy I'll have to sell something else.

maishai:
if u keep using that app one day You will buy Aboselhyde thinking u bought Access..... I no do mobile apps again for trading

PharmAlfred:
Chai! Where is that person that was projecting 20 to 25k dividend? AIICO has done what they are good at and that's pay no dividend.

Is a 1 for 5 bonus not better?

At a second look, this AIICO management is very stingy. They are on e of the few companies who have comfortably;ly met NAICOM'S recapitalization deadline....YET NO DIVIDEND. Bonus or no Bonus, There should be dividend.

In this phase of endless shares engineering by the management. The dividend is a very good bird in hand.

Dupeodus:
Now that we know the investors in the Private Placements, my view of AIICO has changed somewhat in favor of the company. I do believe that the current major owners, the Fajemirokuns have interests in Leapfrog but will not be the sole interest. That puts them in a conflict of interest situation in that any dilution of the interest of the existing shareholders of AIICO will benefit their own holdings in Leapfrog but will dilute their own existing share holdings in AIICO. They therefore have to execute a balancing act to optimize their own situation. Given that over the years, AIICO has deliberately understated it's profit to suppress it's share price and some of those profits are currently being reflected, the new shareholders should not be getting the proportion of the company indicated by the number of shares they currently hold. To explain this simply, the investment of the new shareholders that brought in their money in late December 2019 did not contribute to the profit of 2019 which is significant. As a matter of fact, the N3 billion from fair value on Treasury Certificates treated as other comprehensive income should be part of the pat because the related increase in insurance contract liabilities coming from the same lowering of interest rates have been deducted from the pat. Other insurance companies treat it this way. To this extent and to be fair to existing shareholders, the new investors should not only not participate in the dividends on the 2019 operations, the company should declare bonus issue consuming most of the 2019 comprehensive total profits to the old shareholders. I am encouraged by the fact that the old major shareholder is not the only new investor, so, they would want to protect their portion of the old interest which protects the old minority shareholders to some extent. However, I expect them to do some balancing act to enhance the value of their new investments which is still at a cost to the old minority shareholders.

Please have you had a look at recent results of Mutual Benefits? There seems to be some action there recently.

Dupeodus:
Now that we know the investors in the Private Placements, my view of AIICO has changed somewhat in favor of the company. I do believe that the current major owners, the Fajemirokuns have interests in Leapfrog but will not be the sole interest. That puts them in a conflict of interest situation in that any dilution of the interest of the existing shareholders of AIICO will benefit their own holdings in Leapfrog but will dilute their own existing share holdings in AIICO. They therefore have to execute a balancing act to optimize their own situation. Given that over the years, AIICO has deliberately understated it's profit to suppress it's share price and some of those profits are currently being reflected, the new shareholders should not be getting the proportion of the company indicated by the number of shares they currently hold. To explain this simply, the investment of the new shareholders that brought in their money in late December 2019 did not contribute to the profit of 2019 which is significant. As a matter of fact, the N3 billion from fair value on Treasury Certificates treated as other comprehensive income should be part of the pat because the related increase in insurance contract liabilities coming from the same lowering of interest rates have been deducted from the pat. Other insurance companies treat it this way. To this extent and to be fair to existing shareholders, the new investors should not only not participate in the dividends on the 2019 operations, the company should declare bonus issue consuming most of the 2019 comprehensive total profits to the old shareholders. I am encouraged by the fact that the old major shareholder is not the only new investor, so, they would want to protect their portion of the old interest which protects the old minority shareholders to some extent. However, I expect them to do some balancing act to enhance the value of their new investments which is still at a cost to the old minority shareholders.

Good points here. The company should be declaring a fat bonus to the old shareholders to balance this hug dilutive effect they've inflicted upon them.

PETERiCHY:
Over 28m on commission alone for April the month of lockdown

Baba don't you think it's high time you float one Stockbroking firm and create more jobs for your boys.

Chei see money. What does it take to float a stockbroking house?

Dupeodus:
No, it is not too much. I don't know if the new investors will participate in the dividend. Even if they do, the total will still be less than N2 billion. This company has over N10 billion cash on hand talk less of the excess of government securities over insurance contracts liabilities. The company has also gotten approval for a rights issue. What is the company going to do with all that cash? The shareholders also need to come up with the cash for the rights issue. The company already meets the capital requirements of NAICOM.

Please can you let the house know what your updated view on the company is?

I think SEC and NSE should really stand up to this guys and their intent on appropriating the wealth of the minority shareholders to themselves.

If this cheating is allowed to pass, then SEC is just an audio regulator.

PharmAlfred:
Did you say dividend of 20 to 25kobo. Ahh! That's too much na.

haaa. 25 kobo no too much ooo. If they don't pay at least 15 kobo, then the profits may as well be audio profits.

Some big holders are still dumping. I can see their hand.

PharmAlfred:
Shake out on-going at the moment. Choose your side carefully.

Vous-etes sur?

PharmAlfred:
A quick reminder that Caverton 2019 FY and Q1 2020 results are still not out.

Something swallow the result?

I no know oooo. Where is OGG, the Caverton expert? Abeg come help us.

A lot of people who love to dump on any rally are still in this market. Just that they are more sly this time.

locodemy:
I think a mandated acct is a mandated acct whether you sell or not.
My fcmb e-dividend was mandated to my acct in 2016 and I received the dividend for it in 2017.
All these while I have been trading on jijo except this year i decided to chop the dividend on the already mandated acct.
And I got mine without filling another mandate.

Good information. Now we can confirm your preferred exit point.

Bomboclad:
Brent now $26, gained 14%+ today. Hope you still watching it!

The charts are wise

Are you aware that our own Nigerian crude (Bonny Light) is at $17, even below the WTI price?

Biafran4life:
Sometimes I wonder how they still make money.They are the worst registrar.They are still owing my balance of ubcapital dividend for 2013 after under paying me.I have visited thr office twice in abj.They keep saying I should write.which I have done and they replied that they have paid.When I was in their office we did reconciliation which they accepted they under paid

Please can you give more details of the underpayment if you don't mind? So others can learn how to track theirs

I've been taking whatever they pay as OK. I need to start checking.

rebekah2011:
http://www.nse.com.ng/Financial_NewsDocs/29792_OKOMU_OIL_PALM_PLC._FINANCIAL_STATEMENTS_APRIL_2020.pdf
No dividend because the interim dividend of N2 has already been paid.

thebargainhunte:
Brent might go down below $20 today.

WTI will go negative again next month the inventory buildup is just too much and unprecedented and you can't yet see demand.

By 29th April, We'll see the report of inventory buildup in Cushing.

As for the Brent, I'm projecting $5 by May 19 (the settling date for June contracts).

Let's tighten our belts

stcool:
https://www.bloomberg.com/amp/news/articles/2020-04-24/oil-s-meltdown-crushes-independent-crude-pruducers-in-nigeria?__twitter_impression=true

Nigerian lenders also threatened due to $8 billion exposure
Prolonged low crude prices risk sparking a banking crisis


The rout has been bad for all the country’s producers but the pain has been particularly acute for the independents who mostly acquired assets about six years ago. Unlike oil majors operating in the country, whose average cost of producing is about $22 a barrel, these companies need between $35 to $40 a barrel if they are to stay in business.

Big Debts

Nigeria’s independents pump roughly 400,000 barrels a day out of the nation’s average daily output of about 2 million. However, they account for almost 90% of the 3 trillion naira, or $8 billion, of all debts owed by companies producing oil in Nigeria, mostly of it to local banks. While a portion of the loans are hedged at as much as $50 a barrels, the bulk aren’t, raising the risk of a default that’s been exacerbated by the threat of production halts because of the dire state of the market.

The oil price crash has also had an impact on the Nigerian banking industry, where at least a third of all loans were made to the nation’s oil drillers, according to central bank data. Many say their customers are hedged, even if the full extent of that protection is unclear.

Nigerian lenders are carefully reviewing the situation. A prolonged low-price regime may even trigger a full blown banking crisis, said Aderonke Akinsola, banking analyst at Lagos-based Chapel Hill Denham.

“We expect banks to proactively restructure vulnerable oil and gas facilities and we believe they will also take advantage of the regulatory forbearance given by the central bank to cushion the impact of weaker assets,” she said. If prices stay below $30 for as long as six months, then “we cannot rule out the possibility that some banks may not survive that.”

I'm normally optimistic. But this is actually scary news.

PharmAlfred:
http://www.nse.com.ng/Financial_NewsDocs/29738_ACCESS_BANK_PLC._FINANCIAL_STATEMENTS_APRIL_2020.pdf

Access Bank don land!!

Good result! except that N54bn was lost due to foreign exchange.
This means that the otherwise wonderful performance of this bank in Q1 over last year was overshadowed by FOREX losses leading more or less to a flat result.

This may be a recurrent theme in the other banks and is definitely going to be worse in Q2.

Na God hand we dey oo for this COVID. May HE remove this plague from our midst.

PETERiCHY:
Union Diagnostic and Clinical Services Plc has informed the Nigerian Stock Exchange (NSE) and the investing public that the Company received a binding offer from Cedar Advisory Partners Limited (Cedar) to acquire a total of 1,407,855,051 ordinary shares of 50 kobo each held by all minority shareholders.

The offer price of 35kobo per share represents a premium of 75percent of the Company’s last closing price on March 16, 2020 and 70.1percent of 90-day volume weighted average share price.

https://www.google.com/amp/s/businessday.ng/companies/article/cedar-to-acquire-additional-39-62-equity-stake-in-union-diagnostic/amp/

This is bullshit. The shareholders should at least insist of 50 kobo. This is pen robbery! I won't tender mine to anybody for 35 kobo.

Investors should please beware of the big holders who set up 'Shock and Awe' trades to strike massive irrational and obsessive fear in you to make you give up your holdings to them after which they will set up the same trade in the opposite direction to create a fear of missing out in you so you'll rush in to buy.

Zenith Bank 'Shock and Awe' happened in the first hour of trading yesterday and the effects reverberated throughout the market yesterday.

Some people I know have given up their holdings at <14 today in this Zenith due to fear. Holdings they bought just two days ago at 15.90!!!

They'll soon release their Q1 2020 results and we will all see.

Be careful, and I'm talking from experience, lest you find out after some months that you have been doing the exact opposite of what you set up to do: BUY HIGH , SELL LOW instead of BUY LOW SELL HIGH.

DeRuggedProf:
I am waiting for Jijorichy's screenshot of leaving WAPCO today.
I promise ALL, the rock wont stay in this bus till end of trading today......
A 10% jijoist, who never counts money sitting at the table, will see storm gathering after making over 20% and hang there? NEVER....

I bet he is out by now. When a 10 per center sees 40% what will be waiting for?

emmanuelewumi:
The core Investor is not a father Christmas.

When Newrest ASL delisted, I did not sell my shares to the core investors. But I was surprised that the dividend paid in a year when the company was delisted was about 5 times what the company paid as a listed company.

I can't explain the miracle and turnaround which took place in the company after it was delisted.


I hope the core Investors of 11 plc can offer up to N300 per share

Please Pa Ewumi, explain further this experience on Newrest ASL. So those who stayed were better than those who were paid off? Na wa oo.

For Union Diagnostics. Some people are offering 35 kobo for shares of 50 kobo to minority shareholders.

Can you just imagine? If they are serious, at least they should offer 50 kobo.

Minority shareholders don suffer. Immediately there is something to be gained in the horizon there will be offers to buy them over.

Some heavy handed, high volume wicked sellers are still on Zenith's case. When shall this predicament end?

I'm sitting on losses in Zenith.