₦airaland Forum

Mr Idris Ayinde (Accounting consultant & Manager, Ernst and Young, UK) is our guest on the podcast this week.

We discuss tips in analysing financial statements, spotting phony earnings and less known but key parts of the financial statements.

Our chat is indeed enlightening.

Thanks for listening.

https://anchor.fm/value-nigeria/episodes/56--Thoughts-on-Financial-Statement-Analysis-A-chat-with-Mr-Idris-Ayinde-e1gk8cc

emmanuelewumi:
My honourable value Investor, you are doing well

Oga mi...
Your boy is loyal oh...

Dollarwoman:
With due respect sir, it seems you have much information about UPDC REIT, do you still think that there is future in the company? I'm heavy in it and not equally happy with the dividend payout.

Lol...
With due respect ma (I'm assuming you're a "ma" from your moniker), I am not an insider oh. I'm just an investor that did his due diligence...

If you look at updc reit results over the last 5 years, you'll see that this isn't the first time they are having a loss or disappointing with their dividend so the risk of this happening again (like it has done) should have been foreseen...

The most important thing is to look at their numbers very closely to figure out why they declared a loss. Is the loss due to a failing business? Or is it an accounting loss? Are there prospects for the future? What are the fund managers saying about their future plans?

Answers to all the above questions will help you decide if the ship is worth sticking with or bailing out... I am also heavy here but rather than feeling disappointed, I'm excited at the prospects of increasing my holdings on the cheap...

Look at the book value per share of the company and then look at the share price... Even if some of their asset value is inflated, you can discount the book value per share by 50% (which is outrageous) and still be buying the company at a discount at present price not to talk about the giveaway prices that it is heading to...

Let the bleeding continue for it is not unto death... Some short term pain is worth enduring for long term gain...

This is not investing advice... I just said a few things the way I see them besides the level of my patience is different from yours so everyone should see things in the light of their own circumstances...

#Selah...

Wapgod:
UPDCREIT is paying 1 kobo final dividends.
I regret buying it.

I hate to say this but if you feel this way, you didn't do enough due diligence before buying it...

Almost nothing (except something very extraordinary) should surprise an investor this much if one does all that one should do before any company purchase...

#Selah

emmanuelewumi:
UPDC REIT will pay before the end of June.

SFS REIT will pay before the end of April

This is even better...
Thanks sir

Wapgod:
When is updcreit and sfsreit declaring and distributing dividends for 2021?

They shold both be releasing their audited results before the end of the month (31st March at the most)...

SFSREIT should pay before April ends while updc reit should pay by September or October...

That's the usual modus operandi...

On the podcast this week, we chat with Mr Damilare Ojo (Senior Analyst, Meristem Securities) about why investment research is so important, improving your investing practice and various buy criteria.

Thanks for listening.

https://anchor.fm/value-nigeria/episodes/55--The-essence-of-investment-research-A-chat-with-Mr-Damilare-Ojo-e1gaan0

Thanks everyone for the suggestions...

We are already working on bringing a few big names here to the podcast... We need to learn from their experience and knowledge base...

By Gods grace, very soon...

I appreciate the suggestions though... Let's keep them coming!

Thanks...

ositadima1:
Very nice, I would also like to learn about these strategies: CPPI and TIPP portfolio insurance strategies.

Oga mi,
This level wey you enter so, e pass my power oh...

I love your data driven approach to investing though... Ride on...

This week on the podcast, we chat with Mr Olumide Adesina (Analyst/ writer, Nairametrics) about how Psychology impacts your investing returns, local vs foreign investing, his buy criteria and how to play the coming hike in interest rates.

Apologies for the poor audio quality. We'll do better subsequently.

https://anchor.fm/value-nigeria/episodes/54--Impact-of-psychology-on-investing-A-chat-with-Mr-Olumide-Adesina-e1fvvl6

How will the hike in interest rates affect various asset classes? How can I construct my portfolio to profit from it?

These and more are answered in our chat with Mr Ayodeji Ebo (Head, Retail investment, Chapel Hill Denham).

Thanks for listening!

https://anchor.fm/value-nigeria/episodes/53--The-anticipated-hike-in-interest-rates-and-your-portfolio-A-conversation-with-Mr-Ayodeji-Ebo-e1fl13n

ositadima1:
Dividend released so far:
*Yield as dividend over last closing price

*Growth computed from March, 2020 (as far as my data goes)

*Regarding Seplat, used $1 to #420

*UPDC = UPDC REIT ? If so, UPDC has the highest Yield with weakest Growth.


***updates as I acquire more data***

Updc is very different from UPDCREIT...

In this landmark episode of the podcast, we chat with Mr Solomon Ogene (Multi asset portfolio manager with Paragon Partners) about portfolio construction and the pros/ cons of investing locally vs internationally.

Thanks for listening.

https://anchor.fm/value-nigeria/episodes/52--Pros--Cons-of-investing-Locally-Vs-Internationally-Conversation-with-Mr-Solomon-Ogene-e1faj4n

This is the second part of a series of articles I am writing...
I posted the first part here as well...
I hope it helps and improves our investing practice...

https://stocksng.com/how-i-pick-stocks-part-2/amp/

This week on the podcast, we chat with Mr Mohammed Musa, an Equity research analyst, about the peculiarities of investing in Nigeria and talk through how to determine the intrinsic value of an asset.

Thanks for listening.

https://anchor.fm/value-nigeria/episodes/51--Determining-Intrinsic-Value-of-companies-A-conversation-with-Mr-Mohammed-Musa-e1evsmi

How can we go from striving to thriving? From being rich to being wealthy? What is the difference between being rich and being wealthy? How can I live a better life using principle from investing.

These questions and much more are answered on this weeks episode of the podcast as we chat with Mr Etinosa Omoregie, Founder of Money Culture Investments and Bole King about The conscious accumulation of wealth. 

Thanks for listening.

https://anchor.fm/value-nigeria/episodes/50--The-conscious-accumulation-of-wealth-A-chat-with-Mr-Etinosa-Omoregie-e1ekco1

If I get a dollar for each time I hear the question "which company should I buy?", I will be retired by now...

In this article, I explain, in a step by step manner, my thought process in picking stocks...

I hope you find it enlightening...

https://stocksng.com/how-i-pick-stocks-part-1/amp/

On the podcast this week, we chat with Mr Oluyomi Faneye, Team lead, Wealth creation, Kedari Capital about managing one's emotions in investing, investment education for our kids and his strategy for investing.

Enjoy our conversation!

https://anchor.fm/value-nigeria/episodes/49--Managing-the-emotions-of-fear-and-greed-in-investing-A-chat-with-Mr-Oluyomi-Faneye--Team-Lead--Wealth-Creation--Kedari-Capital-Nigeria-e1eac8u

RabbiDoracle:
Hello DrAwo and many others,

I got 3 messages from you. Sorry I stopped replying any private message from NL.

Thanks.

Good day sir...

Apologies if it seemed i was hounding you... I was hoping to have a chat with you...

I won't mind having that chat with you if you don't mind as well... I'll really appreciate it if you could kindly reach out to me please...

Valuenigeriawithajibola@yahoo.com

Many thanks sire...

With dividend season fast approaching, we take an indepth look at the four dates every investor must understand to qualify for/ earn their dividends...

Thanks for listening...

https://anchor.fm/value-nigeria/episodes/48--Four-important-dates-for-dividends-e1e16lr

On the podcast this week, we chat with an astute and experienced individual investor, Mr. Peter Iyen (Nosa2), about investing in commodities, assessing company management and why having a reading culture is very important...

Thanks for listening...

https://anchor.fm/value-nigeria/episodes/47--Investing-in-commodities-A-chat-with-Mr-Peter-Iyen-Nosa2-e1dlsgo

ositadima1:
Book value means Capitalization over Total share, right?

Can we realy determine d cheaper stock this way? They don't even have same number of shares.

Book value is equity over total outstanding shares...
It is a good (but not perfect) measure of the value of most companies irrespective of number of shares outstanding

Mcy56:
Q4 Results have started coming in......

://doclib.ngxgroup.com/Financial_NewsDocs/34873_CADBURY_NIGERIA_PLC%20_QUARTER_4_FINANCIAL_STATEMENT_FO.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/34875_NPF_MICROFINANCE_BANK_PLC%20_QUARTER_4_FINANCIAL_STATEME.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/34872_MULTIVERSE_MINING_AND_EXPLORATION_PLC%20_QUARTER_4_FINAN.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/34868_SECURE_ELECTRONIC_TECHNOLOGY_PLC%20_QUARTER_4_FINANCIAL_.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/34863_LIVINGTRUST_MORTGAGE_BANK_PLC%20_QUARTER_4_FINANCIAL_STA.pdf

UCAP, why the delay this time around?
Oya show face quick o.

All these are unaudited results...

UCAP will be releasing audited results so they have a different timescale... Besides, their board meeting is on February 17th so there's still quite a wait ahead....

This week, we have an extensive discussion with Mr Okwudili Egwu, Senior Vice President, Cowry Asset Management Limited about impact of mentorship in wealth building, how to identify good companies, mistakes retail investors make and fixed income investing.

Trust me, you'll love this conversation.

https://anchor.fm/value-nigeria/episodes/46--How-to-identify-good-companies-Fixed-income-investing-A-conversation-with-Mr-Okwudili-Egwu-e1dc03k

onegentleguy:
For clarity, the part of my post that reads; "even if its just 0.00001% of that fund that the Nigerian business entity gets...", is not indicative of what GSK Intl could pay it's Nig business entity from the £50B figure, but to serve as a yardstick/benchmark to how much fund the Nig arm might get given a similar deal.

In retrospect, if GSK Intl could get as much as £50B for its consumer health care business segment alone, why can't the Nig arm get even if it's 0.0000001% of that figure (I added 3 more zeros this time)

To illustrate; GSK Intl sold their Lucozade/Ribena drink subset to Suntry for £1.3B (<N700B using the Fx rate at the time) and the Nig subset was later sold for N20B... which is approx 0.0285% of the funds gotten from the Intl sale. (i.e 20/700 x 100)

Now assuming we use a similar extrapolation for the proposed consumer health care sale, is it possible that GSK Nig can get, NOT that 0.0285% this time, but maybe a much smaller proportion of 0.0000285% or even a much more minot figure... 0.000001% of that £50B for its Nig consumer health care arm?
And by the way, GSK Intl already turned down the £50B, and are asking for more. ...which means that the plenty of zeros I kept adding to extrapolate/attache an amount for the Nig arm might even be a bit much.

Again, remember that those who would be at the center of the sale of the Nig entity if and when it is sold will still be GSK Intl who hold a majority stake in GSK Nig.
So by implication, the sale of the Nig arm should it materialize, will also not come cheap.
...Just thinking out loud

Thanks for clarifying your point... Its is well taken and acknowledged sir...

onegentleguy:
As I said before, even if its just 0.00001% of that fund that the Nigerian business entity gets... now that's huge!

Last I checked, the company was quite generous to it's Nigerian shareholders when it disposed off of it's lucozade/Ribena drink subset to Asian firm, suntry. ...paying a special dividend of above N7... which was over 40% the mkt price at the time. (just dividend cashflow oo).
That transaction though would be very small when compared to anything that might play out in future. Again, I know nothing about any play.

Pls stop making me talk about GSK. ...enough already.

Sorry but I'm going to make you talk one more time about GSK... I think we might be getting something wrong here. Maybe I'm the one getting things wrong...

You seem to have concluded that the possible sale of the consumer unit by GSK UK will lead to some of the proceeds trickling down to GSK Nigeria. I don't seem to agree that will happen. I am open to learning though.

There is a precedence so let's look at that. In 2013, GSK UK sold its lucozade and ribenna brand, production factory and inventory to Suntory company for 1.3billion pounds. See link below.

https://www.gsk.com/en-gb/media/press-releases/gsk-reaches-agreement-to-divest-lucozade-and-ribena-for-135-billion/

None of that fund came to GSK Nigeria directly. GSK Nigeria sold its Ribenna and lucozade production factory to Suntory Nigeria (Nigerian arm of the parent company that bought the same from GSK UK) in 2016 for about N20 billion. It was from this fund that the special dividends of 60k in 2016 and N7.1 in 2017 was paid. See links and screen shots from the 2016 annual report of GSK Nigeria below.

https://nairametrics.com/2016/10/05/gsk-nigeria-completes-divestment-of-drinks-bottling-business-to-suntory-bfn-ltd/

https://www.google.com/amp/s/nairametrics.com/2018/03/26/gsks-special-dividend-explained/%3famp=1

GSK UK is a major shareholder of GSK Nigeria and not the other way round. Money made by GSK UK does not trickle down to Nigeria but some money made by gsk Nigeria will go to gsk UK as they are shareholders in the Nigerian unit.

GSK Nigeria pays gsk UK to locally produce and sell their branded goods so if GSK UK sells their consumer goods section/ brands, gsk Nigeria will start paying for the right to use that franchise to whoever buys the brand.

Expecting gsk UK to give gsk Nigeria part of the proceeds of the sale of their brand is like a tenant expecting the landlord to give him some of the proceeds of the sale of the building if the landlord decides to sell it.

The only way gsk Nigeria will profit from the sale by the gsk UK unit is if whoever buys the brands and gsk consumer unit decides to buy GSK Nigerias factories where those consumer products are produced so they can produce it themselves....

A slave cannot expect to be paid just because his master sold him to another slave owner.

I am open to learning and seeing things from your point of view though.

This week on Value Nigeria Podcast, we talk to Dr. Manasseh Egedegbe (@knightofdelta), Chief Investment Officer of a fledging hedge fund, about investing in yourself, cryptocurrencies and everything in-between...

Enjoy the conversation...

https://anchor.fm/value-nigeria/episodes/45--Investing-in-yourself-Conversation-with-Dr-Manasseh-Egedegbe-Knight-of-Delta-e1d0vg6

Dollarwoman:
Sold intbrew then it started moving today.....na wa o.

Same with me, I sold and it started moving.

Anyday I sell Sterling and Caverton that I have held for months, that's when they will start flying.

Maybe the universe is telling you to think long term...
#Selah...

Michaelin007:
Hi everyone,
I'm new to stock. Don't have much experience.
I bought Airtel and Union Bank Share with Trove. I want to buy more, what other low risk share can I buy?
And what should I look for when buying shares ?
Thanks a lot.

Hello...

You come across like someone willing to do the hard work of learning... Believe me, only a few people are willing to learn... Unfortunately, there are no quick answers or short cuts... Only acquiring knowledge does the trick...

My advice:

1. Get either of these books and immerse yourself in them. Get both of them for good measure if you can.
- Rule #1 by Phil Town
- The five rules for successful stock investing by Pat Dorsey

2. Read all the post by a few people on this platform. When I started out, I read everything Emmanuelewumi had ever posted on Nairaland and it was a huge but free education for me.

3. Listen to my podcast. It's my little way of sharing the little I know. It's not absolute but it should stimulate your interest in knowing more.

https://anchor.fm/value-nigeria

I wish you all the best...

This week on the podcast, we have a wide reaching chat with Mr Kalu Aja, a personal finance/ professional investment educator...

Enjoy the conversation!

https://anchor.fm/value-nigeria/episodes/44--Conventional-Emerging-trends-in-Investing-A-conversation-with-Mr-Kalu-Aja-e1cn7u7

On the first episode of the podcast for the year, we review the top 10 performers of 2021 and discuss strategies for investing profitably in 2022...

Thanks for listening...

https://anchor.fm/value-nigeria/episodes/43--How-to-invest-profitably-in-2022-e1ceug6

mickky22:
When is the best time to buy dividend shares.

The best time to plant an oak tree was 20 years ago...
The next best time is now...
#Selah...