₦airaland Forum

emmanuelewumi:
I have seen companies that didn't make profit, whose equity increased at the end of the year

WIth naira depreciation, a company's physical assets will most likely appreciate. And revalued, the equity will increase even though no profit was made.

Agricultural assets can also be revalued upwards when plants grow and mature. Like happened with PRESCO and OKOMU.

onegentleguy:
Refer to the post/guide above if you use Morgancapital Securities.

I really do not know if other firms have that feature in their user interface. ...but there's also a possibility they have it. You just need to find out.

Regards

Okay thanks. Looks like it's an adhoc reporting and not something one can see on the NGX website. Let me search the NGX website and look out on broker sites.

ositadima1:
If a company made zero profit after tax and purchased property and equipment from its cash, would the equity remain same?

Should d reduction in cash account cancel out the increase in property and equipment account?

Off course assuming there is no depreciation in the property & equipment at the report date. Plus assuming there are no costs associated with the purchase that are significant and transient, like cost of transportation.

mendes911:
Do you still truly believe this off market trade details? Why would this BUYER pay N3.12 for units that were readily available at a discounted price on the floor? Does it add up? That's why I said it's never what it seems with these cowboys!

Where can one monitor this off market trade information ?

Possible the deal was real as that's a high volume. Many doing such high trades - that is the buyer and the seller - could have various motivations. Such deals are not impossible.

Streetinvestor2:
The corruption must go round. My believe is thr is a big masquerade standing behind Tony.You think it was just Tony that made otedola back out of transcorp. Ote went into transcorp because of the power business of transcorp. Power sector is the next big thing in naija and the wolves are taking position via any means necessary. E go shock you when Tony is nominated as the next cbn oga .Transcorp will still hit above #3.00 soon.I have taken my usual one bottle of hero stout, lol

Legend stout is my own favorite. I can feel you on this Transcorp stuff.

onegentleguy:
Yet another OFF MARKET deal in TRANSCORP.

A total of 131,897,297 units of TRANSNATIONAL CORPORATION PLC were done as OFF MARKET trade today May 2, 2023 at N3.12 in one deal.

The transaction was a negotiated deal with UNITED CAPITAL SECURITIES LIMITED as BUYER and APT SECURITIES & FUNDS LTD as SELLER.



It is well

Thanks for this information. I looked at todays stock market results and saw that Transcorp only traded 2,356,409 units. So these off market trades are not reflected in the days trading results. Please where can one find off market trading results ?

emmanuelewumi:
Shareholders holdings represented by Stanbic IBTC Nominees is the biggest on NGX, I can't understand why they can't get proxies from the shareholders they represent to challenge some of the anomalies in corporate Nigeria

Interesting discussions.

There is still money to be made in the NSE as is. The last time I looked at FPI holdings there was a marginal increase in UBA holdings last year.

Pray some challenges rise up and be successful in increasing shareholder value and that these fat cats will also on their own heed the voice of wisdom and create more shareholder value.

unite4real:
There are certain amount of money that move between investors that will be flagged if it does not conform to the corporate disclosures

Is this followed through in Nigeria. From the market price deal to negotiated price of x deal on Transcorp, looks like it's not followed through in Nigeria.

Agbalowomeri:
They all have where they are chopping the company dry. Declaring good profit or dividend is not their priority

So retail investors should focus more on 1. Understanding the business environment
2. Analysis of financial statements and company profits
3. Reliability and quality of management to deliver shareholder values (i.e. EPS growth, Dividend growth and SHF growth)

For these 3, I think Transcorp is ok for now. What we need to watch out for is undue greed of management. And I think the only analysis that can help spot that revolve around analysis of expenses.

This is not a buy recommendation but thoughts on DD.

True men of God don't run after mammon

emmanuelewumi:
Dangote sef still dey find more money, men of God still dey find more money. Those are what make us normal

A normal man's self actualization needs on the higher level goes beyond bread and butter. Bread and butter is at the lower hierarchy. Hope Tony has outgrown that lower hierarchy.

emmanuelewumi:
Tony indication of value is different from your own indication of value.


Do you have companies that get contract from Transcorp?

At that. It's still an indication of value. I guess a possibility (& risk for common shareholders) is excessive greed from Tony, that may make common shareholders not benefit on the long run. And another likelihood is Tony will manage the business well as his legacy (self actualization instincts) and benefit common shareholders on the long run.

emmanuelewumi:
Tony can afford to pay any price in order to have control of Transcorp. With control, you don't capital appreciation of stock, you may not need dividends, control brings a lot of money.

Lion123:
Otedola sold his shares at N12 so I take it that is the true value of Tranacorp shares if not for Tony's wickedness.

That is my thought on fair price

OBAGADAFFI:
He sold @ 12

That's an assessment of a fair price for Transcorp if Tony paid that much. That means it may not be a bad thing to hold on and not sell if one currently has the shares.

jideflash:
i dey check my phone every 2 mins, i never see alert o.

yMcy56:
Otedola na confirmed cowboy!

Bought 6.3% @ $70 million and sold @$32.5Billion?

We wait for the next news.........another round may be loading......

The whole story looks one kind. Why will Tony buy off ote$ at a premium ? If true, it could mean Transcorp is much more valuable than what Mr Market is pricing it and Tony being an insider knows this and doesn't want a co driver make sand sand enter join.

You are right. UBA has no excuse for not increasing dividends based on CAR. It's First Bank that is building CAR by not paying too much dividends. Below is a nice picture for 2021 H1 from Stanbic IBTC. Cannot find the one they issued last year.

robobo:
The last full year result already put CAR above 25 which is comfortably above minimum regulatory of 15 , so it is not an excuse. UBA should increase the dividend payout. Na wetin shareholder eat (dividend) for them belle matter most to them

Lion123:
TOE doesn't really send anybody tbh. All that Foundation/Africapitalism ish is strictly to boost his ego. I like the guy sha.

I hear there is a way it can reduce tax liabilities. Achieve double result with one strike.

robobo:
.

No mind TOE. He dey do oversabi. How can he be paying 21% of EPS (1.1 paid out of 4.84) and be expecting proper valuation of UBA shares and without proper valuation be opening himsef up for a possible hostile takeover ( as currently going on in his Transcorp). Just because he don chop belleful before d result is declared, he is not mindful whether other people sef chop. No be wickedness be dat.

Because UBA deposit liabilities, has been growing as fast or faster that SHF, perhaps UBA is trying to improve its CAR organically. FBNH has similar challenge / strategy to boost CAR sufficiently above the minimum required by CBN. As a result of this it's not advisable to dispense too much dividend as doing so, reduces the rate at which SHF grows. Access raised a special instrument to boost its
Tier 1 capital a couple of years ago. This has boosted its CAR hence can dispense more dividends. Will need to look through the annual report presentations to pick out the CAR. Or last year Stanbic-IBTC analysis display of CAR if I can get it.

onegentleguy:
You are doing well.

CGPR- Cash Generating Power Ratio
CCC- Cash Conversion Circle
EFIR- External Financing Index Ratio
etc

I believe I've highlighted most of these acronyms and even more on many occasions in time past.

Regards

You left this out again. I think Google finally helped me out for the meaning.
VPD - Value Price Divergence (Not anything to do with Vapour Pressure. Though Google had more on Vapour Pressure Deficit on my initial searches. Perhaps it thought I was doing a Physics search )

VPD - Value Price Divergence
Looks like language of top (Technical and perhaps Fundamental) analysts. My layman understanding is it is helpful in quantifying how far off asset is over priced or under priced.

Amongst the load of info. This is enough for me for now.
Summary
Divergence compares the patterns between the price of an asset and a technical indicator. It is most apparent when the asset price is moving in the opposite direction of what the technical indicator states.
Positive divergence signals potential positive uptrend in price momentum, which can be bullish. Negative divergence signals potential slowdowns and an increase in downtrends in price momentum, which can be bearish.
As divergence is present in only some price reversals, it should not be the sole tool in making trading decisions – it is important to use a collection of tools to substantiate one’s decision.
https://corporatefinanceinstitute.com/resources/capital-markets/divergence/

onegentleguy:
Most folks are always in a hurry to make bold assertions from a coys SPL.
Again, look beyond the SPL and take a deep dive into the SCF and BS.

Only if you saw the massive/triple digit growth accross key VPD including but not limited to the coys NCP, FCFE, CCC, CGPR, FCF and JPBG
with the 1st 2 determinant printing a 107% and 297% positive line.
For a company operating in a broadly capital intensive sector, TRANSCORP managed to achieve all this with just 4% increase in NDP from lower EFIR (debt stance) despite the jump in capital allocation... yet even lower CBR.

Hear this bro;
TRANSCORP did well at delivering value!

The days of <N1 TRANSCORP may we'll be behind us!
Perhaps there's something Sir Tony and FO need to tell us.

It is well

See VPD coming in again. Let me go Google to find out wetin be this VPD

Lion123:
Transcorp unaudited Q1 is out

https://doclib.ngxgroup.com/Financial_NewsDocs/38240_TRANSNATIONAL_CORPORATION_PLC-_QUARTER_1_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_APRIL_2023.pdf

This bad Q1 result can slow the price climb . Topline Revenue dropped instead of the increase of prior quarters, while expenses increased. Leading to bottom line profit cut in half. Room for those acquiring major stakes to ramp up more shares cheaply or what. Let's see what Mr Market will do.

Zagee:

Are you by chance related to an OIIP industry?This your answer ehn..lol

Which one is OIIP again. Aah

onegentleguy:
I have highlighted many of these acronyms in time past.
These ones are even much more popular.

MoS- Margin of safety
RRM- Risk-reward margin
SPL- Statement of profit & loss
SCF- Statement of cash flow
BS- Balance sheet

Btw, I am also a learner like you... and quite possibly, an even lesser mortal.

Regards

What of VPD ? Vapor Pressure Density of some kind of energy or money ?

yMcy56:
Not true.
UBA Nominees is still the single largest shareholder with 9.25% shareholding while Femi Otedola is the 2nd (with 5.52%) as at today......
Unless he increases his shareholding.....
See the attached....

With all the deliberations here not clear what the actual status is. As Owen the President of Transcorp said, which I agree with her. It's a good thing seeing investors showing interest in Transcorp.

If FPI never begin come, an LPI has come as him dey see the goldmine here.

debeey87:
Good result but could have been better if other expenses were kept in check. The other expenses part off me Sha. In a quarter where there was no cash, they still spent more on securing and handling of cash. I

If quarterly cash transactions is looked at closely, the currency change taking place in January, naturally meant a lot of old money was returned and the given new ones by CBN dispatched to customers. This need to be handled. And would have resulted in a spike in activities in 2023Q1 with respect to cash handling than other quarters like 2022 Q1 to Q3.

Banks had to work extra at weekends in 2023Q1 to handle this cash movements.

perfectgen:
I am smiling at this Transcorp jackpot for some of you but we the long timers that came in during IPO around Ndi Okereke's time still have our haircut yet to grow back.
I just hope that it will keep picking up; maybe we can make our investment capitals back

Subscribed to the high priced IPO also. It was painful seeing the price drop subsequently. Despite some hype floating around that time.

Have averaged down at various times. And took profit a little, at a time when some I bought at a lower price went up. Still bought some last quarter.

OBAGADAFFI:
Tony Owns more shares in Transcorp through Heirs Holdings

Thanks I thought as much, that Tony should have more Transcorp than Femi.

I picked from newswirengr that info of Femi owning more shares in Transcorp.
https://newswirengr.com/2023/04/12/femi-otedola-overtakes-tony-elumelu-to-become-transcorps-largest-shareholder/

yMcy56:
Femi Otedola becomes the 2nd largest shareholder in Transcorp Plc.

https://nairametrics.com/2023/04/12/breaking-femi-otedola-acquires-5-52-of-transcorp-plc/

** 5.52% translates to around 2.24B units.......the remaining OS/Free float is still on the high side sha.....will just keep eye on it**

What are these two men Otedola-Elumelu up to with Femi reportedly currently owning more Transcorp shares than Tony ?

Olaide1295:
I’ve been adding on more commercial papers than stocks to my portfolio recently.
Im wondering, has anyone ever done a bond vs stock result comparison for their portfolio over a period of say 10-15 years of the NSE.
Which performed better?
Equities like Zenith, Ucap etc yields are about 12-13% now. Bonds & Commercial papers are between 13 - 16%.
Which is better?

Some stocks return more than bonds, while some don't. And some stocks even dissappear completely. Not a straight answer that one will be better than the other.

Justcul:
Leave Agba. he was waiting for GTBank at 12 when I was shouting buy last October

I bought GTbank N16.95, I think some heavy weight was offloading at the time..

That GTCO price was a bargain. It's a stock loved by investors. It was most likely an FPI pulling out with no FPI ready to pick it, but local bargain hunters

ositadima1:
Some stocks I checked and my estimated fair values:
Sterlnbank - #2.6
Fidelitybk - #6.5 **slightly overvalued
FCMB - #6.3
Zenithbank - #28.5 **slightly overvalued
Vitafoam - #36
Ucap - #16
Nahco - #16.5
Wapco - #33
Dangsugar- #45

With d exception of a few most of these stocks distributed less than half thier EPS as dividends, keeping yield low.

On this list. It's only WAPCO that's on my radar.