₦airaland Forum

I said it here three weeks ago that there is likely to be a merger of Dangote companies. Now it has happened

Dangotesugar + Nascon + Dangotesugar Rice

BerniceIma:
Time in the market is better than timing the market .

I intend to buy N100,000 worth of Zenith Bank shares every month for 10 years and I'm going to reinvest every single dividends for that 10 years.

I just want to see how time in the market is better than timing the market.

That is good considering the stocks fundamentals.
But I will advise you rebalance your position when the price is good to get more of it

FMDQ LAUNCHES FIRST ETD OF ITS KIND

I was there yesterday representing my firm. It was colorful. The platform is for DM and TM only. We have the following as the DM:

1 . Access Bank
2. Zenith Bank
3. Wema bank
4. Sterling Bank
5. Stanbic IBTC

Aside this, we have 17 firms of TM of which my firm is one. The derivatives are:

1. Federal Government Bond futures

2. Dollar-Naira FX non deliverables contracts.

The underlying
Asset for the first derivatives product are basket of FGN Bonds ranging between maturity of 2 years and 30 years

The second product has $/Naira as the underlying assets

We will get there

The asset class is just derivatives. Just like you make gaaari from cassava. Gaaari is derivatives while cassava is the underlying asset. Like I said earlier FMDQ now have two separate markets for trading Federal Govt Bond and currency. One is spot market where you can actually buy and sell govt bonds ranging from 2 years to 30 years. The second is FX market where you can buy and sell FX.

To hedge those risk attached to those instruments In cash market, then derivatives market was introduced

Not that that is only two instruments that can be traded on FMDQ spot market, we have several of them. Only that two derivatives were picked to start with.

To deal in those two instruments, you must be extremely good in forecasting interest rate and FX. It is a big market that can run into trillions in a day transaction in the future if they get it right.

Just like NGX, FMDQ is the exchange where those cash market and derivatives market instrument are traded

Just like CSCS, FMDQ called their own CCP and it is called FMDQ Clear

Just like CSCS that combined both clearing and depository together, FMDQ separate their own and have another segment called FMDQ Depository

Just like a stockbroking firm whose is a dealing/Brokerage firm is called in NGX, the trading participants in FMDQ is called trading member

Just like each stockbroking firm has a bank that settled trade, FMDQ called it’s own is called Dealing member and they settle futures trade.

But remember, the minimum amount to trade with is N50,000,000 of which your initial margin is 10% deposited in your margin account

Princkez:
please is it possible?

My brother, nothing is impossible

Mankindman:
@locodemy, take guess work out of investing and trading, the Sentimental analysis, TA, FA are not in favour of IB.
You will need to wait for at least 2 more years before you can taste the honey pot 🍲 of IB. Disinvest your holdings in IB and Reboard the hidden black gold deposits that would soon be struck in Transcorp.
IB is terribly behind, moving at the speed of 🐌 snail, highest level of corruption and selfishness by the executives and management team. Everywhere you go, IB products dominate, still no impact on share price, no dividend for a decade, no capital appreciation, every year cost of sales consume over 50% of sales.
For now IB has zero plan for rewarding investors. The share price might even go sub N5.
The best prayer for investors is that IB should be delisted, and that a Big 🐋🐳 should come on board and do the needful.
Nothing is going to change in the next 2 years.
From a contrarian self investor,point of view, You can Bank 🏧 on your believe.

I am 100% with you with this submission and your recommendation of Transcorp Plc. You hit it well.

Very obvious that IB needs urgent attention regarding restructuring their books and finances. To me, and just like this writer said would not come soon

Meanwhile, I saw an ongoing merger transaction documents between Beck Beer (international Breweries Plc) and Champion Breweries (Heneiken) with one on my guy working with one of these financial advisory in the country

emmanuelewumi:
Again, you did not understand his question.



He asked this question, " with the current increase in stock prices will the companies increase their dividends" ?


And I said there was no relationship between stock price increase and dividend increase.


Dividends are paid from earnings


It is earning growth that determines sustainable stock price appreciation.


Increasing the dividend due to earning will increase the stock price on the long run, ploughing back the earnings to reinvest in the company will compound earning growth .



Can you explain, dividends are not paid from earnings but from reserve.


Good companies, with good current financial performance pay dividends from their earnings

Thank you my brother
Dividend are usually from the reserves
I attached this document to buttress my point
Have a nice day

emmanuelewumi:
Not sure you understood the question and my reply.

Because stock prices went up, he expected dividend to also go up.

Earnings and earning growth is the koko, with earning growth, dividends will increase, will earning growth and increase in dividends, stocks will have sustainable capital appreciation.

I understand you well my brother but I still disagree with you. Earnings and earning growth does not mean company would pay good dividend or increase their dividend. Dividend payment is a policy of a company. A company may experienced good EPS and EPS growth, but pays little or even no dividend. We have a lot of them here as an example. So dividend payment and earning growth are two different concepts. After all, dividend is not paid from the earning but reserve.
Have a nice day

emmanuelewumi:
Dividends have nothing to do with stock prices, but with the earnings of the business.


Dividend yield of 10% and above which we enjoyed in the past was an aberration, we should get used to dividend yield of 5% to 8%.

That is not correct my brother. Where is the place of Dividend Relevance theory from Professor John Litner?

ositadima1:
ELLAHLAKES has been listed on the NGX for 3 or 4 years without generating any revenue. I didn't even know it was possible to list a company that is not generating revenue. They are involved in cassava and palm oil, and this penny stock looks like it could 5x in value once they start generating profits. But until then...

EllahLakes has even been there before Okomuoil and Presco. They were formally in fishing business before this new investor called CBO took over them

Very soon, they will be coming out with a right issue of 1,000,000,000 units @ N2.90

I spoke with the financial adviser and the company MD and they both confirmed this.

veecovee:
I knew that UNITYBNK must appreciate, but I never expected 10-10% daily like this for more than a week.

Pls is anyone with any info or hearsay, maybe about recapitalization, merger, acquisition or new investor ...

God bless you

Yeah. There is a rumor of Acqusition by Providus Bank Plc

There is nothing this man can do to deliver his state to PDP come 2024. He has a lot of big personalities to battle with, from the president to Oshiomole. Is Edo Lagos state? Outcome of the election will determine that

Hello Folks,

What is pushing Unity Bank Share price up?

Don’t be surprised to hear that Unity Bank Plc acquires or merges with Providus Bank Plc. One listed on NGX and the other NASD OTC market

robobo:
Playing devils advocate.

the circumstances differ

in the case BCC; Alhaji was buying into it (meaning he was not holding a controlling interest and he needed to buy out the other/ minority shareholders to hold a control interest which would later allow BCC to be merged with) so there was a clear need from Alhaji which could have necessitated the juicy price you mentioned above


However, for Dang Sugar and Nascon, Alhaji already is the majority holder in both and there might not be a NEED that would necessitate the juicy price.

My brother. No problem. Follow your mind

robobo:
Playing devils advocate.

the circumstances differ

in the case BCC; Alhaji was buying into it (meaning he was not holding a controlling interest and he needed to buy out the other/ minority shareholders to hold a control interest which would later allow BCC to be merged with) so there was a clear need from Alhaji which could have necessitated the juicy price you mentioned above


However, for Dang Sugar and Nascon, Alhaji already is the majority holder in both and there might not be a NEED that would necessitate the juicy price.

Ok no problem. Follow your mind

Streetinvestor2:
I don't see that happening. Alhaj is so attached to that his sugar. He will prefer it growing into fat cash cow like the cement after his backwards integration strategy .Which I see happening in few yrs to come

Well. I don’t say what I don’t know here. And you don’t know my source of information

But if you say it is not possible. No wahala and that is why we are human being.

robobo:
let assume its true

would the merger bring any positive to the shares?

Absolutely.

It will definitely happened and many shareholders will go to bank smiling

Ask shareholders of Benue Cement Company Plc that metamorphised to Dangote Cement Plc, They will tell you a joyful story on how this exercise turned their fortune to good

Hello Folks

I don’t know if you see what I saw

Dangotesugar Sugar Plc + Nascon Plc = Dangote Foods Plc

Time will proof me right

Here is the list of stocks with strongest performance since new govt took over

I am very very happy for this judgement. God bless the Judge. I love the judgement. I have not seen this kind of judgement since almost 30 years. WhT make it extra ordinary are:

1. The children education and upkeep was given important attention;

2. The hotel should be forfeited to government

3. The man should die for his murder sin

God bless the judge again

FunkyAlhaji2015:
This one don enter one chance for police hand. By the time dem finish with am, even if policeman slap am him go salute.

He behavior was reckless and appalling, like a motor park tout. I'm disappointed to hear he has a master's degree.

I continue to ask myself what the wife would be going through under small provocation if he can slapped and humiliated policeman without any harm and any provocation

Kobicove:
Once a tout always a tout

The police will return his brain to factory settings by the time they're done with him

Yes oooo my brother. The way they reset Portable sense. The guy is very very calm now

oshozondii:
https://saharareporters.com/2023/05/18/breaking-seun-kuti-rushed-back-court-nigerian-police-secret-hearing-magistrate-hold

He was very lucky to have tried that with police. If it had been military, Seun would have been now either disabled or dead.

Islie:
https://tribuneonlineng.com/tinubu-begins-constitution-of-cabinet-economic-management-team/

Mofe Boyo that grounded Oando Plc with Wale Tinubu for minister for petroleum. Go and ask Oando shareholders, they will tell you their investment sorrow in Oando from the hands of these two hawks.

Well I wish the president elect safe journey

joeargy:
Hi everyone, I will appreciate ur advice...

My son is 2yrs old , when he was born I and my wife named him Charles but my wife's mother and father can't stop calling him Daniel, when ever my son is at their place for holidays or visits, they call him Daniel and all their neighbors and friends now call my son Daniel.

I remembered I told my wife about it and her mother heard and felt bad, he is my son and not theirs, I understand grandparents give their grand children names too, I have a name from my grandparents but they call me by the one my parents gave me...

What do I do house?

To be double sure of what is going on before it is too late, please go for paternity test to have rest of Mind in the long run

Princkez:
Has anyone gotten the information behind ARDOVA movement?....Still closed on bid@#24.20

My brother. With all sincerity, there is nothing happening in Ardova other than squabbling to effectively position for Board room activities post delisting. This I can say with confidence

yMcy56:
Reminder....Oct 20, 2022 post..

ARDOVA planning to delist and pay off minority shareholders (@17.38 exit price) to the neglect of Femi's won case against the Coy.....
* Investors jostling for the shares at price above exit price.....
* Closed @22 today....
** There seems to be more to what's happening behind curtains here.......



** Caveat: Not any form of advice, drama continues and may take any dimension. @ owner's risk**

My brother. You are very correct with your last comment. My mind is telling me that Otedola will use Alhaji Dangote model on Dangoteflour Plc for Ardova and in fact is going the same way I was thinking.

Remember, Alhaji Dangote sold Dangoteflour to some investors and the name changed to TigerBrand thereafter. After, the company struggled to survive in the market to the extent that the price came as low as less than 100k. Alhaji then proceeded to acquire this company back from the initial investors, changed it name back to initial name and move the price up and eventually sold to another investor at close to N23 per share to cash out.

This is the same template I feel this man is copying. Let us watch as events unfold

essentialone:
Beware of those who after making a stock Recommendation, then tells you to do your Due Diligence also. In this market where people stake in their livelihood, one should make no recommendations if not certain of the fundamentals of the stock.

My brother, it is a convention in investment research analysis and recommendation all over the world.

ACTIVISM INVESTING- A case study of Mr. Femi OTEDOLA.

Here are key takes away about this style of investors:

1. Activist investors buy minority stakes in public companies to change how they are run.

2. If they fail to persuade company managers, they may wage a proxy fight for board seats.

3. Some hedge funds or individuals specialize in activist investing while institutional investors may engage in it from time to time.

4. Investor activism may focus on maximizing shareholder value or on the company's social responsibilities.

5. The SEC has proposed tougher disclosure rules for activist investors that critics contend may make activism unprofitable

Here are list of companies he had used this style for:

1. First Bank Plc
2. Transcorp Plc

Which company is next?

emmanuelbrown26:
Muslim kantries are too blood tasty. I hv never seen a Muslim kantri in peace before.

I totally disagree with you. Jordan. Saudi Arabia UAE, Morocco, Tunisia, Egypt and host of other Muslim countries are not at peace?

Please check your fact well

Let me join discussion on Transcorp of Tony Elumelu and OTEDOLA. It is my believe that OTEDOLA would not have entered Transcorp without the knowledge of Elumelu. There are many illegal ways of legally manipulating stock price. Alas! This is one of them.

We should not be deceived by these two capitalists, they actually knows what they are doing. I want to believe that it was common agreement to move the stock price that will not attract attention by one individual from regulator and with that OTEDOLA was drafted in. The question we need to ask ourself is that does Transcorp performance justify the current price or whatever price they are taking it to?

I am just happy for the free riders who have waited for so long holding this stock from N7+ down to less than N1. Just take a look at the following manipulation between

1. Forte Oil~ OTEDOLA v Dangote- illegal manipulation

2. Transcorp~ Otedola v Elumelu- illegal ‘legal’ manipulation

I pray that this new trick of raising stock price will bring out the real value in Transcorp in the near term

My opinion though

INVESTMENT ADVICE

DANGSUGAR

1. Current P|E Ratio = 4.29
2. Audited EPS = 451k
3. Current price range = 1935k
4. Proposed Dividend = 150k
5. Current Dividend yield = 7.7%
6. Holding period = 1 year
7. Cash Balance position = 175billion
7. Target price = N25-N30

Recommendation: BUY

Due Diligence Required

chunkuli:
my brother please l sent you a message, please reply. Thank you

chunkuli:
my brother please l sent you a message, please reply. Thank you

chunkuli:
my brother please l sent you a message, please reply. Thank you

Sorry my brother. What was the question jaaare?