₦airaland Forum

collinsobinna: @oga Feelamong and elai,other reputable members of this useful forum.pls I would like to know how some of you have managed to rollover your interest.

My question is the rollover done immediately the interest is paid,or u hold the funds till next auction.

I would like to know so I can compound my interest.

I usually do not roll over my interest so don't know exactly how it works but I think you may only be able to roll over your capital + interest after the first auction. But please ask your bank to explain better to you.

phemmie06: I was there today but was told it only apply for current account

I use First bank savings account for my E-dividends. There are no charges whatsoever.

Shareholders okay unbundling of Access Bank’s shares in WAPIC

http://www.vanguardngr.com/2013/09/shareholders-okay-unbundling-of-access-banks-shares-in-wapic/

Status of Firms/Individuals Involved In Unauthorized Sale of Investors Shares -Jan'12 to Aug'13

Dealing Member Firms Suspended For Operating Without Compliance Officers as at 9th Sept 2013

Ralphlauren: yes, i do. thanks

what bank/discount house do you use or recommend?

I use FIrst bank and Keystone bank.

pappilo: Maybe you cant comprehend. You sure didnt ask me for his details but I was going to help by giving you his contacts if he didnt ask not to.

Perhaps Ralphlauren did not understand you but am sure he does now...

Tassembly: Elar1 and others who have bid before for 364days tbills, seems its profit paid is still based on 91days and rolled over always for times making 364days coz i did 364 days in last bid at 10.5percent rate with a bank but the profit they pay me was for 91days,i called them and they told me tbills for 364 days profit is still paid quarterly and rolled over four times and profit paid every quarter and not once.anyone with experience should share

It is obvious they actually offered you a 91-day T-bill with roll over option for 3 quarters. They will lie to you that it is 364 days bills whereas it is not. Interests for 364 days T-bills are usually paid at once just like the others. If it is First bank you are talking about, they only offer 91 days bills- this was what their Contactcentre told me. The roll over option is good as you won't have to wait to make new bids. You are also guaranteed a certain rate depending on the stop rate for the auction. The bad news is they MAY continue to roll over at the same 10.50% rate even if rates are higher for subsequent auctions but this is not usually the case. I am just telling you to be on the alert just incase they want to roll over at 10.50% regardless of the stop rate (if higher). Just ensure to check the stop rates for subsequent auctions so they don't underpay you.

dan_dollar: GTB is a very useless bank.imagine,had a TB that expired today, and wanted them to rebook it for this current auction.I was shocked when I was told it wasn't possible, that the funds have to be in my account savings account before I apply.zenith bank rolls over my investment every 91 days I don't have to wait for 2weeks after my investment matures to have it re-invested.I remember what I went through before they fixed the last one that expired today.after I applied at their branch in my location,I had to call and write their head office before my account was debited like a week after.at a point, a guy at the head office told me CBN had stopped treasury bills.I told him that he should note that he's not dealing with an illiterate.

Please does anyone know of any bank,apart from zenith bank where my investment will be rolled over,kind of,immediately it matures so that I don't have to wait for another 2weeks?

First Bank can roll over for you. The only problem is that you don't get the interest paid to your account the very day your T-bill is purchased.

anyanwu58: I bought 31601 units of UBA at 7.12 in 2011, out of fear i sold it at 2.9 in 2012. You can imagine the lost and that was all my savings as a Corper then. I almost lost hope but i learnt something, in December 2012 i bought 650,000 units of Transcorp at 91k and sold it at 1.83 in feb this year. If i had known what i know now, i would have bought more units of UBA at 2.9 because the bank was under value then and sell now.

Here is my advise, Hold on to ur stock and bid for more units at 0.50 to minimize your lost.
Never lose hope cos in this market, u learn most when u lose.

Thanks for sharing this. I have also thanked you the NL way.

jahjehova: pls who will take my hand to learn the ropes here? help a broda men.

We are one happy family. You're welcome to ask all types of questions on stock investment and you're sure to get at least a response but make sure you go through the thread from page one for better understanding. There are other stock market threads in this forum as well... Good luck!

T-john:
I Bought at 1naira, bailing out now means losing half of the money i invested. I lost huge money in International Energy
i'm really getting tired of Stock market

Don't lose hope when your stocks are not doing well especially when you start out. Everyone felt a sense of disappointment at a stage in stock investing, especially as a novice. I lost a lot of money too some years ago when I was still a newbie in the stock market. I was just following the advices of stockbrokers who only get paid when I buy or sell stocks. They don't mind advising you to buy 1 million units of one stock at once, so long as they get paid. When I discovered they were the reason behind my losses, I took up the challenge and started reading books and managing my investment portfolio myself. Try and follow this thread and some other investment threads in nairaland forum as well as SMN forum. Ask questions and don't get tired of reading books on investments (you can get most of them online and for free).

Good luck!

Conoil Whets Shareholders Appetite with 255% Half Year Profit
http://www.thisdaylive.com/articles/conoil-whets-shareholders-appetite-with-255-half-year-profit/157773


As Presco, PZ Wilmar, Okomu Battle to Dominate Vegetable Oil Market
http://www.thisdaylive.com/articles/as-presco-pz-wilmar-okomu-battle-to-dominate-vegetable-oil-market/157774

Meristem Advised Stop / Bid Rates for tomorrow's auction...

91-Day - NGN22.97bn - 10.55%
182-Day - NGN40.00bn - 11.70%
364-Day - NGN90.00bn - 12.23%

T-john:
I don't know what to do with my Unity Bank, the stock is bleeding seriously
I'm losing money daily, will i ever break even a 1naira?
How do i exit?

He that is down need fear no fall. Just hold a little longer as exiting now may not be a good idea...

UBA unveils consolidation strategy, appoints new top managers
http://beforewww.ngrguardiannews.com/business-news/131736-uba-unveils-consolidation-strategy-appoints-new-top-managers

Ecobank Crisis: SEC Steps in, Probes Bank's 2012 Result
http://www.thisdaylive.com/articles/ecobank-crisis-sec-steps-in-probes-banks-2012-result/157731/

Ecobank: Our 2012 Financial Accounts were Duly Audited
http://www.thisdaylive.com/articles/ecobank-our-2012-financial-accounts-were-duly-audited/158035/

jamace: I think it is high time somebody here give detail on how to contact the registrar of UBA. I'm yet to receive my dividend too.

I think that should be Africa Prudential Registrars (not 100% sure though).
Tel: 01-4612373
Tel: 01- 8401153
Tel: 09- 8701645

ihedioramma: HOW STRONG AND GOOD DO YOU SE IN ETERNA OIL THAT MAKE YOU TO BUY IT?, DO YOU BUY FOR LONG TERM OR SHORT TERM?

I don't see anything good about it. It will be a waste of my money to buy the stock for long term. Na to chop and clean mouth I dey for the stock. I have been trading on it for some time now and making good profits. Once I make a reasonable profit I sell off immediately. The stock is almost a disappointment to shareholders.

Born 2be Rich: Am happy for you..now u are learning the stock market ways

9free: Walahi, if to say na Banker I make up my mind to marry, Oga Hispy and KOD no go fit compete with me for your hand.....
Na Joke ooooohhhhh.....

Mercylicious na strong analyst o... I dey see her handwork for SMN...

mercylicious: @ Ella, I bought eterna at a very high price.I don't know if d crr is affecting it the most(high loan portfolio). Eterna taught me a very big lesson. Try and position b4 any bull rally or else others could be dumping the stock on u.After every strong rally, there is usually retracement so wait. Also observe cycles- year high, year low, support and resistance points.

It is noted Ma, eterna also taught me a very big lesson some years ago. I am just trying to deliver my return match to the stock. I am only dealing on this stock because of capital appreciation and nothing else. The stock no get any better thing wey e fit offer me for now- not a good dividend/bonus stock but may be good for taking profit and dumping later on.

datovid :
Livestock on the move again

Confirmed..

adetunrayo: Hi house, Is IBTC bank ok to deal with? I understand their FD for 1m is 9.5,though am planning 2 bid for TB readin all did posts

The bank is okay. But you can get a better interest rate on T-bill which has a zero % risk.

Tosinng: Is there any use/relevance of this certificate?

Yes, for example, if you want to apply for a loan using your treasury bill as collateral the bank may request for it. Some people also include it in their Visa application documents in order for the embassy to ascertain their financial worth especially in the case where their savings accounts are almost empty because they have invested the money in treasury bills. Besides, some certificates contain your treasury bill investment details like your bank account number, invested amount, tenor, interest rate, future value of the investment, effective and maturity date which I think the embassy should be interested in.

So-brit:
Oga Elai, these men make sense shaa except the area mr akpapu said the initial invesment has no value..... .I think the value of the investment at any time T is the value or worth of that business into which the investment is made. Except i missed a thing there.
On the lighter note, when i saw the topic, i said this must be developmental investment lecture 101. Anyway, wasn't far though

I think Mr Agbapu was not clear enough on what he meant by that statement. However, he did not say the initial value of investment has no value. He said "the initial value of an investment does not always have a clearly defined monetary value" and that "the final value of an investment also does not always have a clearly defined monetary value". But from what I know, the monetary value of an item is the amount of money that item will bring if it were sold for cash. Mr Agbapu continued by saying “But for purposes of measuring ROI, the initial value must be clearly stated along with the rationale for this initial value". This is where I got confused. Initial value is initial value and there should be no rationale for it. If you don't know the initial value of an investment, you cannot calculate the future value. You need to know the initial value of the investment, the time period T, as stated in your post, and the interest rate or rate of return in order to know the future or forecasted value.

So I think what Mr Agbapu should have said was that for the purpose of measuring ROI, the forecasted or projected initial value must be clearly stated along with the rationale for this initial value. This is what makes sense to me except I am also missing something here. Because it is possible that during calculation, if a value is not known, an estimated value can be used for the purpose of that calculation in order to get a projected value.

mercylicious: Ubcap is 1.40. Plz tech analyst in the house should alert me wen it gets to oversold region as it is bound to fall at an unknown price b4 continuing on the journey.

It is already in the region but I don't think it is ready to fall so soon. The stock don vex no be small... I will wait for it to retrace back so that I can enter. But I don't know if the stock is now ready to trade as a normal stock by moving away from its previous stagnant price range. Following Stockbull's prediction, I think I will wait for the second rally before deciding whether to enter or not.

jp130: elai, shea d units bots during rite issue go b listed 2geda wit d previous 1 person hold? Again whats d effect of dis additional shares listed

If I understood you correctly, yes if you exercised your rights it should be added to the number of units previously held by you and the number of shares in issue of the company should increase by the number of newly issued shares.

ihedioramma: the red is ten much today why? are you buying 9free or elai147&148?

I only bought Eterna Oil but na siddon look I dey for banking sector.

Eromosele Abiodun highlights the misconceptions about return on investment and examined other factors such as return on asset, return on equity annual or annualised rate of return. The first thing that comes to the mind of an average investor is the possibility of reutilising a 100 per cent return on his investment. How this could be achieved is not his immediate worry.

This, analysts said, is as a result of the low level of investor education in our clime.
While some investors know that getting adequate return requires time and hard work on the part of the company they have invested in, others believe investment in the capital market is all about capital gain. Rate of return or return on investment (ROI) can be achieved in three different ways. They include: dividend payout, bonus issue and capital appreciation.

Conversely, bank accounts offer contractually guaranteed returns, which make it impossible for investors to lose their capital. Depositors lend money to the bank, and the bank is obligated to give them back their capital plus all earned interest. Meanwhile, THISDAY findings revealed that 65 per cent of investors in the Nigerian capital market invest with the hope that the price of their stock appreciate by a 100 per cent or more in one week. Only a few investors actually invest for bonus and dividend.

Market watchers said this situation was largely responsible for the unstable trend in the Nigerian capital market. Expectedly, during the government-induced recapitalisation and consolidation in the financial service sector, in 2005, smart managers of quoted companies took advantage of this weakness to woo investors into buying their shares. The fall back is the loss of confidence in the market and by extension the bear market witnessed in recent years.

ROI
In finance, ROI is the ratio of money gained or lost (realised or unrealised) on an investment relative to the amount of money invested. The amount of money gained or lost may be referred to as interest, profit/loss, gain/loss, or net income/loss. The money invested may be referred to as the asset, capital, principal, or the cost basis of the investment. It is usually expressed as a percentage rather than a fraction. Experts believe ROI does not indicate how long an investment is held. However, ROI is usually stated as an annual or annualised rate of return, and it is most often stated for a calendar or fiscal year.

ROI is used to compare returns on investments where the money gained or lost or the money invested is not easily compared using monetary values. For instance, a N1000 investment that earns N50 in interest generates more cash than a N100 investment that earns N20 in interest, but N20 realised on N100 investment is a higher return on investment than N50 realised on N1000 investment (that is, N50/N1,000 = 5 per cent ROI and N20/N100 = 20 per cent ROI). When considering a continuous process of gaining or losing money with a constant rate of return, the annual rate of return is any value above zero.

Profitability Ratios
Profitability ratios typically used by financial analysts to compare a company’s profitability over time or compare profitability between companies include: gross profit margin, operating profit margin, ROI ratio, dividend yield, net profit margin, return on equity, and return on assets.

During capital budgeting, companies compare the rates of return of different projects to select which projects to pursue in order to generate maximum return or wealth for the company's stockholders. Companies do so by considering the average rate of return, payback period, net present value, profitability index, and internal rate of return for various projects. A return may be adjusted for taxes to give the after-tax rate of return. This is done in geographical areas or historical times in which taxes consume a significant portion of profits or income.

The after-tax rate of return is calculated by multiplying the rate of return by the tax rate, then subtracting that percentage from the rate of return. For example, a return of 5 per cent taxed at 15 per cent gives an after-tax return of 4.25 per cent (that is, 0.05 x 0.15 = 0.0075; 0.05 - 0.0075 = 0.0425 or 4.25 per cent). A return of 10 per cent taxed at 25 per cent gives an after-tax return of 7.5 per cent (that is, 0.10 x 0.25 = 0.025 and 0.10 - 0.025 = 0.075 = 7.5 per cent).

Computing ROI
Analysts’ opinions are divided on how a definite solution could be reached in an attempt to calculate ROI. But a frontline stockbroker and Managing Director and Chief Executive Officer, Emerging Capital Limited, Mr. Chidi Agbapu, believe the first point to note is that the initial value of an investment does not always have a clearly defined monetary value.

“But for purposes of measuring ROI, the initial value must be clearly stated along with the rationale for this initial value. The final value of an investment also does not always have a clearly defined monetary value, but for purposes of measuring ROI, the final value must be clearly stated along with the rationale for this final value. The rate of return can be calculated over a single period, or expressed as an average over multiple periods, ” he said. Comparing rates of return, he noted the arithmetic and logarithmic returns were not equal, but were approximately equal for small returns.

“The difference between them is large only when percentage changes are high. For example, an arithmetic return of +50 per cent is equivalent to a logarithmic return of 40.55 per cent, while an arithmetic return of -50 per cent is equivalent to a logarithmic return of -69.31 per cent.
“Logarithmic returns are often used by academics in their research. The main advantage is that the continuously compounded return is symmetric, while the arithmetic return is not: positive and negative percent arithmetic returns are not equal,” he explained.

Geometric Average Rates of Return
Agbapu further said that both arithmetic and geometric average rates of returns are averages of periodic percentage returns.
“Neither will accurately translate to the actual naira amounts gained or lost if percentage gains are averaged with percentage losses. A 10 per cent loss on a N100 investment is a N10 loss, and a 10 per cent gain on a N100 investment is a N10 gain. When percentage returns on investments are calculated, they are calculated for a period of time not based on original investment, but based on the amount in the investment at the beginning and end of the period.

“So if an investment of N100 loses 10 per cent in the first period, the investment amount is then N90. If the investment then gains 10 per cent in the next period, the investment amount is N99.00. A 10 per cent gain followed by a 10 per cent loss is a 1 per cent loss.
The order in which the loss and gain occurs does not affect the result.

“A 50 per cent gain and a 50 per cent loss is a 25 per cent loss. An 80 per cent gain plus an 80 per cent loss is a 64 per cent loss. To recover from a 50 per cent loss, a 100 per cent gain is required. The mathematics of this are beyond the scope of what I can tell you now, but since investment returns are often published as "average returns", it is important to note that average returns do not always translate into naira returns,” he stated.

Annual and Annualised Returns
On his part, Managing Director and Chief Executive Officer, Vintage Capital Limited, Mr. Idowu Ogedengbe, warned that care must be taken not to confuse annual for annualised rates of return.

According to him, “An annual rate of return is a single-period return, while an annualised rate of return is a multi-period, geometric average return. An annual rate of return is the return on an investment over a one-year period, such as January 1 through December 31, or June 3rd 2012 through June 2, 2013. Each ROI in the cash flow is an annual rate of return.

“An annualised rate of return is the return on an investment over a period other than one year (such as a month, or two years) multiplied or divided to give a comparable one-year return. For example, a one-month ROI of 1 per cent could be stated as an annualised rate of return of 12 per cent. Or a two-year ROI of 10 per cent could be stated as an annualised rate of return of 5 per cent.”

Potential Cash Returns
Ogedengbe agreed that investments generate cash flow to the investor to compensate the investor for the time value of money.
He added that except for rare periods of deflation where the opposite is true, a naira in cash is worth less today than it was yesterday, and worth more today than it will be worth tomorrow.

“The main factors that are used by investors to determine the rate of return at which they are willing to invest money include: estimates of future inflation rates, estimates regarding the risk of the investment (e.g. how likely it is that investors will receive regular interest/dividend payments and the return of their full capital) and whether or not the investors want the money available ‘liquid’ for other uses.

“The time value of money is reflected in the interest rates that banks offer for deposits, and also in the interest rates that banks charge for loans. The ‘risk-free’ rate is the rate on Treasury Bills, because this is the highest rate available without risking capital, ” he said.
He added: “The rate of return which an investor expects from an investment is called the discount rate. Each investment has a different discount rate, based on the cash flow expected in future from the investment. The higher the risk, the higher the discount rate (rate of return) the investor will demand from the investment.

“Compound interest or other reinvestment of cash returns (such as interest and dividends) does not affect the discount rate of an investment, but it does affect the annual percentage yield (APY), because compounding/reinvestment increases the capital invested. For example, if an investor put N1000 in a 1-year Certificate of Deposit (CD) that paid an annual interest rate of 4 per cent, compounded quarterly, the CD would earn 1 per cent interest per quarter on the account balance.”

Source: http://www.thisdaylive.com/articles/anatomy-of-return-on-investment/157441/

NSE lists Transcorp’s Rights Issue
http://www.proshareng.com/news/20825/NSE-lists-Transcorps-Rights-Issue

Desanta: First bank has never given me any certificate. Please how do I get it from them.Any one with practical experience with them will be highly appreciated. Thanks in advance.

I use First bank. You must ask for it otherwise they won't give you. Them dey save their papers and printing ink...

presiade: What is driving this UBACAP?
Anyways, I dey dance ooo

E be like say this stock don vex o...