₦airaland Forum

bigass:
Breaking News: NSE on a free fall. Investors advised to sell holdings. This will be worse than we thought.

Breaking News: NSE on SALES. Buy one get two free

myjoy08:
NSEMPAs' family of Nairaland are not smiling at all. I just don't want anyone to take panic decision and sell at a huge loss. Caution and disciplined trading is the call of the day. Remember, it takes a lot of time to achieve instant success. It is well

If you don't have the heart and time for this bear, abeg do index funds jeje. Watch your money grow gradually...

EDUECO:
Is letter of confirmation of account also included with the dividend mandate?

Depends on the Registrar

If i were you, I will contact the registrar to find out what are their requirements as i have noticed they all do not have the same requirements.

Things to note

1. If you bought through an IPO, the registrar will have your signature, if you bought through the floor, your stockbroker has to send them your signature specimen. You will need to visit them and sign some forms. Then your stockbroker will submit the form(s) to the respective registrars.

2. After 1 above is complete, you need to fill an E-dividend form (from the registrar), which will need to be signed by your bank at no cost to you. The bank will stamp your passport photograph and sign on the mandate. The process at this stage is complete for most registrars except for their own internal process which may include non-mandatory services like (Dividend alerts, a portal for monitoring your dividends at a resonable cost). I find most of the services a duplication of what I already get for free so I dont bother.

3. Some registrars in addition to a completely filled mandate might ask for a bank confirmation + dividend manadate in 2 above, this costs around 2k in FBN for each registrar. Also, in a case where the signature specimen you provided in 1 above and the divividend mandate in 2 above are not the same (irregular), most registrars will ask you for a bank confirmation.

So in reality, you may need one and two alone or all three depending on the situation and the registrar's disposition. The only way to know is to communicate with them.

I can confirm that they were given notices because my mum owns a shop in Okokomaiko.

EDUECO:
Please Brothers and Sisters,does signing of dividend mandate by banks free of charge? Please,attend to my question.

1. Signing of dividend mandate is free.
2. A letter of confirmation of account from the bank is at a cost...FBN does it for 2k each.

ernie4life:
lol

the item 7 depends on the weight of the company, I have being to a couple of AGM, trust me it was all worth it

hmmmmm

I should attend a few then, usually have something lined up whenever one occurs. Why pay for "eresi and siken" I did not chop?

mercylicious:
This one Niger ins put agm for sokoto, dem for put am for Bornu.



Meanwhile, did anyone notice nsempa is heading to page 1000? I will like to be the one to 'take the virginity, you are mine forever ' of that page.

hahahahah dem no make we come be dat. I wonder how companies arrive at the location of AGMs...

Can anyone share what happens in an AGM, I have not attended one before...I mean the side attractions like item 7? lol

Dividend Alert!

Company:Julius Berger
Registrar: GTL Registrars (formerly Union Registrars Ltd.)
Address: 2 Burma Road Apapa. Lagos
website:http://www.gtlregistrars.com

ernie4life:
OK tried to do some digging today but didn't find anything

Strange but okay as long as the money keeps coming. Maybe they are leveraging on something InvestmentOne does well

Dividend Alert!

Company:NASCON
Registrar: Meristem Registrars (213, Herbert Macaulay Way, Adekunle, Yaba

ernie4life:
.the wind of change is what is happening!!!
well by Monday I will have the right answers for that

Okay O!

I just noticed a change in FBNCap MMF, the account number has changed and it now bears the name "FBNCapital/InvestmentOne" or something close to that. What's brewing Ernie?

By the way FBN Heritage Fund paid dividends last week, yield @ around 10% of current price.

Learn Africa don pay o!

Registrar: First Registrars

Reddit:
SEC Approves Stocks Can Now Trade At One Kobo Per Share. Here Is What It Means

Do you remember what 1 kobo looked like?

The Security and Exchange Company has finally approved for the Nigerian Stock Exchange to move the 50 kobo floor a stock can trade at to as low as 1 kobo.

The Rule states that “notwithstanding its par value, the price of every share listed on The Exchange shall be determined by the market, save that no share shall trade below a price floor of one Kobo per unit (N0.01)”.

The NSE had announced plans for shifting the floor price and was merely awaiting SEC approval to begin. However, SEC did not disclose details of how NSE is expected to proceed. We will have to wait for NSE to provide details as to when it plans for the new floor price to become effective.

What it means?

Currently, the lowest Nigerian stocks can trade for is 50kobo. That is no matter how much a share price drops it can never drop below 50 kobo. It is unclear how 50 kobo was selected as a floor price but it perhaps explains why most quoted stocks have a nominal price of 50 kobo per share.

With the floor set to be moved to 1kobo (N 0.01) stocks can now drop to as low as One kobo per share if the markets deems the price to be so.

Why the change?

There are several reasons why it makes sense to move the floor from 50 kobo to 1 kobo however one stands out to us. A share price of 50 kobo per share can be artificial and thus means some stocks are expensive. Imagine you hold a stock that trades at 50 kobo per share and no one is willing to buy at that price. The market probably feels it is worth lower. With the stock trading at 50 kobo per share no one is interested in buying even if the seller is willing to sell for much lower. Now that the floor is reduced by 98% to 1 kobo per share, there is room for buyers and sellers to bargain more thus creating more liquidity for the market.

What are the implications?

The implications are far-reaching and in fact could trigger a massive sell-off in the early days and weeks of its implementation. Lets explore what could happen

Penny Stocks – Investors with a lot of penny stocks in their portfolio could be among the first to be hit by a sell off. Stocks between 50 kobo per share and N1 per share could be in the firing line as investors reassess their values.

Illiquid stocks – Stocks that have remained stuck at 50 kobo per share could also begin to see some movement as investors who have held these stocks for months or even years may have their stockbrokers place a sell mandate. Some mandate could even be at any price further depressing value.

Nominal Values – It is very likely that some company could decide to reduce the nominal value of their shares to 1 kobo per share via a scheme of share reconstruction. That way they could escape the wrath of a massive value accretion. Whether that will be possible will depend on the regulation that SEC proposes around this.

Fund raising activities – Fund raising activities could also be significantly affected by this move. For example companies looking to embark on IPOs or Public Offers may have to list at a much lower price per share meaning that they will have to increase their shares outstanding to accommodate the value that they seek. This leads to the next point

Registrars – these guys may also need to re price the fees they charge for their registrar business. For example, if a company needs to raise N10 billion at 50 kobo per share, it will need to sell 20 billion units. At 1 kobo per share it will be 1 trillion shares. That is astronomical and could create a reconciliation headache for most registrars.

Your Portfolio – Those who have portfolios dominated by penny stocks may have to reconsider their portfolio mix as they might be the first to be hit. If penny stocks get pummeled like we suggest, then portfolios that have a large constituents of penny stocks will decline massively in returns.

Source

hmmmmm Oga o!

This one get as e bi but no shaking. I would rather have the news even if it bad than for it to be sugar coated and end up disappointed. I do penny stocks but they will balance themselves out eventually then I can hit the reset button.

Aloaye:
I've not used Mytradebook but from observations on comments here

Meritrade(I use this)
pros: Good customer service, Accounts gets credited as soon as you contact them and they have a mobile app, good reputation in the stock exchange too,easy to open and complete opening form online.

cons: The online data update is not instant and you dont get to see trade as they happen. You can balance this up with the nse website but it's not too good especially when your major strategy is JIJO(Jump In, Jump out)

Morgan:
pros: Low brokerage fee(0.25%) as compared to meritrade(1.35%), real online data and you get to see trades as they happen, good for JIJO

cons:not too good customer care(tho you may not need their 'care' much), you have to fill the opening form sent by mail and scan to send.

I'm not too sure of other cons of morgan because I have not used it but you can open an account with both and manage your account combining the pro's of both platforms.

Cheers

Good analysis and I think the above sums it up.

I will hope not to need Customer Service and stick to low fees but in our environment there will always be issues, so customer service is my number two priority, the product you offer is number one priority. In a case where a company offers services like a stockbroking firm or a bank, I see customer service as number one. If you cannot score above average, you will not have my business even if you are doing it for free.

I will like to think I am a fair person and I do not mind paying for services rendered even if it takes more out of my pocket. In the end we all have things we think are more important than others and that determines our choices.

Princkez:
pls house, has anyone received WAPCO nd dangote sugar dividends.

I received Dangote Sugar today 5:44pm

angelo82:
If you have fresh 15Million Naira to inject into your portfolio,what stock in the manufacturing sector do you think can deliver at least 12-15% monthly?.........

12-15% monthly? I don't know if there has been any stock that has averaged that amount of yield in a year for 2 years consecutively.

I will suggest if you need it to earn above 10% yield a year to put it in an index fund. There are several to pick from based on your risk apetite and you can virtually go to bed.

It is dividends season and I came across this.

http://groupssa.com/understandingdividenddates.html

Cheers

I think the issue should be re-visited. However, if the banks were mismanaged as supposed...investors get nothing, and the people that mismanaged or stole money will go to jail. That is the risk we all take when we invest in a business...nobody pays you back for making a bad investment choice.

jauntty:
Congratulations !!

Who's their Registrar?

First Registrars

Like play, like play...CHAMS don pay dividends O!

Make una congratulate me, change has come. I don get some of my money back

On another note, this E-Dividend thing make sense die.

vanunu:
Can u give an example of just one country that produces electricity in bits?

USA

In several countries of the world, people produce their own electricity, consume some and sell the rest to the national or local grid.

Chibuking81:
How can someone use over 3m to buy 1m unit of share, only to make 60k as dividend. Very poor.

Very poor indeed

ednut1:
yields are net of mgt fees. lets say my N1m naira in Stanbic ibtc money market fund of 35b. the yeild is 13.20% avaerage for a year. assuming they had nt taken d mgt fee of 1.5% charged on d total portfolio. d yeild wud be like 13.21 or 13.22%. also the interest rates are compounded. so 12% return for a year may acttually be 12.75%

Exactly

yak:
I hate to draw u guys back. I av 100k n want to get into Mutual funds investment. Am thinking of fbn just because of d name. How do I start? Some1 shld help

Yak,
Read from page one to this page. Might seem a difficult task but you would be better for it to choose which fund manager you will like to get in bed with. For all I see, they are all selling the same wares at almost the same price but with a few differences. I may be choosing FBNCap for the same reason someone is choosing InvestmentOne or ARM or StanBic or whatever else is out there.

I will advice the Money Market Fund if you think you might need your Money in the next one month, if not you can choose any of the other ones. Please note also that just because the other funds (e.g. Fixed Income Fund, Heritage Fund...) may have a much higher "Holding Period", it doesn't mean you cannot collect your money in less than 90days or whatever their holding period is...it just means you lose some part of the profit made, your capital will be intact. More like paying a fine for cashing out earlier than agreed.

Please let us know when you join today, do not over think it!

Lastly, visit their websites...loads of information to read.

Enjoy

NairaQuest:
I think Fbn yield is highest at 13.7 as at 5/7/15 while arm is 13.3

Note that yield is just one of the things to look at, you need to also compare management fees, etc

Management fees are not so important to the best of my knowledge when comparing the rates (Yields value already has managment fee deducted)...I may be wrong but this is the way i look at it.

If say ARM makes 13.5% and their management fee is 1% that means i get a yield of say 12.5%. However, if StanbicIBTC makes 14% and have a management fee of 1.2% you will get a yield of about 12.8%. What I am trying to say in essense is the yield publicised already has the management fee deducted from it so why bother my head with what that fee is...what i just want to know is what gets to me. So a higher management fee which may deter you from picking a fund might actually be what the fund manager deserves for managing the fund properly (what is fair is fair...right?).

If there is a company out there that yields 15% but has a management fee of 5% (makes 20%)...will i pick it over the ARMs, Stanbics, FBNCaps ...yes I would

I found this interesting and since he talked about index funds, it even became more interesting.

http://www.thesimpledollar.com/how-were-investing-for-financial-independence/

ernie4life:
thanks @carpenter

the issue of hard copy dividend has been settled long ago, we have an option where clients fill an e-dividend form instructing us to pay all dividendinto their account. we are even looking at scrapping out certificates to make the fund more flexible for liquidation.

Great!

I really don't see the need of hard copy certificates and dividends also, not in this age.

UPDC REITs closed their books for dividends on the 22nd of April, I got mine in my account on the 28th of April (E-Dividend)....6 days, that it what we want not some long thing before certificates and dividends are delivered or lost in between. FBNCapital i think still does certificates for some of their products but i just informed my contact person that i am trying to dematerialise certificates ...i don't need to add more, they found a way around it and I dont have paper certificates.

In the end, the managers want our money but before we give them just like they have conditions, we should give them some conditions also. Of course we should also try to be reasonable in our demands sha. Once you are in, it may a little difficult ...

ernie4life:
I have been trying to convince a friend who works with ARM to join this forum so we could discuss about their funds but he seems reluctant, I will keep trying, am also looking at getting someone from FBN capital so we could also discuss about there funds, even Stanbic!!!!!!!

It is difficult sometimes Ernie since they are not authorised to speak on behalf of the company and some people might take their words out of context. Not everyone can take the challenge as you have.

drdams:
I am thinkibg of liquidating my Kgif with invest1. u beg them for everything even my statement. their rates are not expressly stated. All I smell from calc is dat its never gone past 13%.

Bureacacy of liquidation sef is another ish. I was told I must submit hard copy of my e-dividend. I barely av that time.


I am eyeing ARM mmf come August

Oga 13% is good o! Do you have an idea what some people have suffered in the stock market? -25% to -50% is not too strange...if you can avearge 8% profit on the stock market, you are seen as a mini god. I hate to think I am investing my money with a company that is not customer centric though...so maybe they might have some work to do there.

Back to you, you have a lot of work to do also...you have invested money...now you need to know what your money is doing and from your statement above, you are doing badly at that. Ernie rings that in regualary here...infact i think another name for KGIF is MPR

Going forward, send them a nice email about the challenges you have with their requirements, they might be able to offer you a way out of the wahala. Hard copies of E-dividends seems too old skool though.