₦airaland Forum

Shalom428:
Nigeria stocks are ridiculously cheap. Long term investors who has holding power and are patient will be massively rewarded when the Nigeria economy finds its balance.

All I see is opportunities.

Shalom

Looking at how MTN is dragging with NCC on being limited to repatriate only about a 3rd of profits only after approval. Going forward all future major FDI's must be made to have substantial Nigerian Equity Participation of even more than 50%. So that there can be enough sustainable pool for pension income streams of pension funds and for individual pension income investors to invest in. So all this upcoming $16b investment coming from India should be partly funded by Nigerian Banks, Pension Funds and Individual Investors. I hope this message gets passed to those that can make it happen.

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Princkez:
UBA......,50k dividend

Access now has no option but to pay 50k to level up

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emmanuelewumi:
Yield on long term bonds should get to 18% by December

If this happens, it will mute a Q4 stock rally. And may drag share prices down gradually for the rest of the year.

Sep Bond Auction:
29s 14.50%
33s 15.45%
38s 15.55%
53s 16.25%

I hope this trend up in rates in the bond auction today is not the cause of NSE dip today. As fund managers attempt to lock in long term high yields by selling some shares to buy long dated bonds.

https://doclib.ngxgroup.com/Financial_NewsDocs/Northern_Nigeria_Flour_Mills_Q1_June_2023.pdf

This is good result from NNFM. Let me put it in my radar.

Their business size looks small. Their profit will just be +/- N1b
Do they have prospect for growth ?

Mpeace:
So Gtb has overtaken Zenith eps

That's what the half year per share says in their reports.

But in terms of Bank size, Zenith is about double the size of GTCO based on Financials.

Streetinvestor2:
make sure you use price limit then add thrr commission. They should be sending you contract note which shows the break down to your mail.You can demand that if they are not doing it

That's true. If price limit is not used. The broker can use his discretion to even buy at the highest price for the day.

Labdi69:
I noticed that whenever i buy shares on the Meritrade platform, the price paid is always higher than the last quoted price i saw, leading to automatic initial loss. Is this normal?

Rounded up to a whole percent 2% is charged. Hence if stock price is N100. You will be charged N102 rounded off to the largest whole number. The real charge is actually less that 2% just trying to make it simple to understand. That's why I rounded it to the higher whole number.

emmasoft:
GTCO and Zenith will always try to match themselves when it comes to dividends generally.

Both are really competing seriously in the game of returns per share. From the mid year reports the following EPS were recorded
GTCO = N 9.94
Zenith = N 9.29

Mfunkynation:
my pillow says N0.35k

That will be fair in view of how GTCO & Fidelity have raised the bar.

Will the market react to the Tribunal Victory of PBAT or the victory is already priced into stock prices. ?
Think more like the victory is already priced in and the gradual journey up will continue.

How will the touted upcoming investments lining up from India affect the market. ?
I think it will support the economy and the gradual recovery of the Stock market. I see Naira bonds going down gradually in the coming months in yields as the government borrow less especially at unsustainable high interest rates. A dilemma between allocating funds to lock-in high bond income levels right now and the opportunity cost of missing on the gradual rise of the stock market

currentprice:
similar thing is going on in banking stock right now.. valuation of bank like Access/uba is above N50 how and when will it get there is the issues

can the valuation be consistent? what will move it there i dont know all i know is the bank is undervalued at cp

Many banks over the last ten years have grown faster in book value per share than share price. And players in the market seem locked to prior low market prices and ignoring the increased earning capacity of the banks that currently exist. A N50 valuation for Access/UBA is not an overstatement if the economy becomes more buoyant. However Banks can also lose money and get their shareholder funds seriously eroded. And that fear seem to be more in the market at the moment.

phoinix:
To me, it was a smart move by the parent company. The depressed exchange rate has made many businesses denominated in naira very cheap. Many people don't understand the full impact that the exchange rate and subsequent crazy inflation have had on the naira. It's like buying a business for one-third its original price. A good deal for the buyer, and a bad deal for the seller who gets a bunch of naira bills that are now worth far less. LOL.

Thought of that. How companies tend to be underpriced in real terms on the NGX due to naira devaluation.

Also thinking further - If a business needs to inject cash to take up new opportunities. With the way shares are currently undervalued it suggests current shareholders will not be able to bring the funds to take up such opportunities. And raising money afresh will be a huge dilution to current shareholders. But if the opportunity is strong majority shareholders with deep pockets can always fund it.

unite4real:
If you haven't been selling, it's not yet an income. Still on paper.

In the stock market, you don't really loose or gain until you sell.

Congratulations though

In the stock market dividends are gains you see without selling. My dividends from PRESCO are extremely high when compared to my cost price.

https://doclib.ngxgroup.com/Financial_NewsDocs/39357_PRESCO_PLC-_NOTICES_OF_ANNUAL_GENERAL_MEETING_(AGM)_-__ANNUAL_GENERAL_MEETING_(AGM)_AUGUST_2023.pdf

Presco proposing a dividend of N6.8 to be paid 03-Oct-2023

Looking back at the 2006 PO of Dangote Sugar. The book value per share was roughly N2 and the PO was N18.

If one projects with this x9 price book value. DSR should be + N120 now.

Not a buy or sell recommendation.
Just a recall of the kind of premium Dangote Sugar fetched back in 2006 based on Book Value benchmark.

BabsO2:
Assuming a rights price of N16.7
Market mark up of N+3 in view
Let's see if Ote$ will deliver N+6 mark level.

Not a buy or sell recommendation. Just watching the market.

Ah, some last minute sellers eroded the N+3 opportunity today.

locodemy:
No need to put much attention.
The stock is not for minority.
They are even regreting the move that took it to #4 self.
I am beginning to avoid stocks that has something with Tony.
I expected the market to react positive to yesterday's news but it was a sluggish move.
The bears will soon descend on the stock and I am expecting the 4% MTO from them at sub #3.

Mr Market raised Transcorp up 4% today.

yMcy56:
FBNH
Otedola's tenure will favour me and my family.....
N4.6B spent so far.....

Assuming a rights price of N16.7
Market mark up of N+3 in view
Let's see if Ote$ will deliver N+6 mark level.

Not a buy or sell recommendation. Just watching the market.

Looks like August will not witness major declines like some other years. However the bull seem to be taking an August break. Waiting for the next stimuli to act. The market acted unconcerned with the declaration of Ministers and announcement of their portfolios. The bulls and bears are now waiting for mid year audited results of the banks that will pay interim dividend and other major political developments.

emmanuelewumi:
Get in touch with your Stockbroker when the offer is out, you might get a premium of N3 on per share basis.

The offer might not exceed a week.


My opinion though

Another option is to monitor closely if the market price is high enough than the rights +N3 to +N6 to sell some shares (up to a fifth of ones holdings) and use the sales proceeds to buy the rights. A word of caution - this should only be done when everything about the rights is firm. Otherwise one may sell and find out the rights is cut short from going ahead.

Streetinvestor2:
That I know.And this criminals have the capacity to pay but have refused to pay back.They equally the ones buying the bank shares to earn position in the bank for another round of loans.Nsija which way forward. Why is fbn not going hard on this debtors like access bank

The amount lost due to bad loans in the last 10 years is more than five times the N150b the rights is intended to raise. How much has the likes of Otudeko made along with the former directors in the bad loans mess.

Zenith and GT have routinely made pat's bigger than this FBN rights in the last couple of years sef.

Streetinvestor2:
Pls clarify on the part of bad loan. Is it that the debtors paid up or the bank wrote them off via shareholders money in yearly statement.

The bank wrote off majority of bad loans through profits that would have accrued to shareholders if not for the bad loans. The write-offs are recorded under Impairments in the income statement.

A few recoveries were made. Also recorded under Impairments as a credit instead of a debit. Or simply stated as a write back in the accounts

chimex38:
When do one participate in right issue.. And how do you know your broker will buy at that price..
E. G Fidelity just dropped disclosure yesterday On right issue(no price indicated)
First bank is on its way..
For an existing shareholder
So how does he/she key in at the right issue price.?.
Anyone knowledgeable please..

Didn't see any Fidelity disclosure on rights issue this week. Rather they listed the shares sold through private placement.

When the rights issue is ready for execution (FBNH OR FIDELITY), the timeline for subscription and forms are mailed out to existing shareholders to complete and submit with their cash injection.

Streetinvestor2:
I thought I saw somewhere it will be #16.Yes the guardian link quoted #16

That means the rights is worth taking. And the fat cats will grab any not taken.

pluto09:
FBN needs that capital.
Check out their CAR, it is on the edge and the lowest among tier 1 banks.

Correct their CAR is on border line. As First Bank customer deposits has been rising faster than SHF growth even after the years most of the bad loans were cleared. FBN needs SHF cash injection to raise its CAR. Hopefully the Rights documents should reveal more information.

Streetinvestor2:
With what is happening. I am having a rethink to pick up my right issue when the time comes. What are your thoughts

It depends on the price of the rights issue. With book value currently at N38. And assuming EPS will stay above N4.5. If rights issue is not more than N20 I will take the rights with the hope that the price will still rise towards N30 and beyond post rights issue.

emmasoft:
There is nothing like that. CSCS account doesn't expire. Send a mail to customer care to ask for your statement. It's a free service.

Individual access expires. It has to be renewed yearly.

Not everyone goes through broker to get a copy of CSCS statement when one can have an individual access.

Why did FBNH rally post results last only two to three days. I thought by now it should be N25.

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