₦airaland Forum

ositadima1:
Excel can do the magic for you ooo! Use the Yield function in excel.

"Excel's YIELD function calculates the yield to maturity (YTM) on a security that pays periodic interest, typically used for bonds. Here's a breakdown of the function's arguments:

* Settlement: (Required) The date you purchase the bond (settlement date).
* Maturity: (Required) The date the bond matures and you receive the principal repayment.
* Rate: (Required) The annual coupon rate of the bond.
* Pr: (Required) The price you pay per 100 face value of the bond.
* Redemption: (Required) The redemption value at maturity per 100 face value (usually 100).
* Frequency: (Required) The number of coupon payments per year (e.g., 1 for annual, 2 for semi-annual).
* Basis: (Optional) The type of day count basis used to calculate cash flows (defaults to 0 or 30/360).

Note: Dates in Excel are serial numbers, and the function truncates some inputs to integers. Ensure your dates are valid and entered correctly."

Thanks very much Mr Osita.
If I get it right, yield to maturity only works if I decided to be reinvesting my coupon rate but if I decided to be taking my interest every year, yield to maturity will not work rather bond yield is what am getting, right? Since am not compounding my interest into reinvestment

emmanuelewumi:
Because you are buying at a discount. Buying at N72. 20k and getting coupon of N12. 5, your yield will be about 18.5%

Okay. Thanks

emmanuelewumi:
That should be an error

How can the market price be N20 and the coupon is 12.5%. That will give a yield of about 60%.

Based on what I have below the current price is about N72. 20k

So it means that a bond with an initial face value of #100 is now #72.20k, correct?
Which means I only need to buy the bond at #72.20k per bond and still benefit from the yearly coupon of 12.5% till 2035 while I get paid the face value of #100 by 2035, right?

emmanuelewumi:
I just read that the trending news is false

Hello bro.
Please help me with this bond report.
The 12.50% FGN Mar 2035 bond.
It has face value os #1,000/ coupon of 12.5% but current price of #20.
Does it mean if I want to buy 1m worth now, I will buy it at #20?
And what will be my payout value by 2035?

What is YTM? I guess year to month.
Also, what is Term to Maturity?

advanceDNA:
They will even pretend and blame you for their hoe-ing.

Met a girl ...werey told me she had a boyfriend
But will still date me because the guy is doing one kind....she will now always ring it in my hear what great sacrifice she's doing hurting her boyfriend because of me....btw..she has another guy she i saw in her whatsapp she send nudes too..

I'm like ....werey!!!!!!!! U are a fvcking hoe....just own up to ur vice and lets be hoes together.. all this ur manipulation wont take u far

WrriterNg:
⚡Argentine President Javier Milei plans to fire 70,000 government workers — Bloomberg

Argentina has entered one chance with this idiot as president

emmanuelewumi:
There is a very highly liquid secondary market for fixed income assets where transactions running to hundreds of billions of naira are done daily. It is far more liquid than NGX.

Reason why I asked the question - provided I miss this FGN bond 22% yield, can I still get it at a reasonable price in the secondary market?

Freethinker87:
I don't even blame the Cardoso - His name sounds like a flavoured alcoholic beverage. Look at the man, he studied Business Admin at University due to his fear of mathematics. The day he finished his NYSC, he was appointed as the Vice President of the defunct Citi Bank through a family connection. That was how he got into banking.

I'm not making these things up, look at his resume.

Omoh....people get mouth for this forum ooo.
His name sounds like a flavoured alcoholic beverage...chaii

InvertedHammer:
/
He used the prescription for asthma in Europe to try to cure cancer in Zimbabwe. In other words, he is using the textbook implementation (increase rate to mop excess liquidity) used by Western developed economies to fix Nigeria's voodoo economy. Comparatively Japan (the 4th largest economy in the world) just increased their monetary policy rate from negative to 0 - 0.1% and that's the first rate hike in 17 years. China's prime rate remains unchanged at 3.95%.

Perhaps someone can explain how a poor country trying to spur economic growth will increase her MPR to 24.75% Shylock rate. Nigerian economy is in coma and Cardoso is feeding it Sniper to quicken her death.

/

Freethinker87:
Mr Economist.

While I understand the steps taken by the CBN to control inflation, I respectfully disagree with your perspective.

Increasing MPR to 25% means that banks will offer loans at over 32%. This new interest regime will be detrimental to businesses that rely heavily on loans for their operations.

With such high-interest rate, the cost of borrowing will go up, significantly reducing the overall liquidity available to businesses.

This will certainly lead to a slow-down in business operations, entrepreneurship, and consequently the economy like Chief Tinubu promised during the campaign. Nigeria does not have an excess liquidity problem, we're suffering from a FX scarcity.

It is highly unlikely that any legitimate business can survive, let alone thrive, under this condition. FGS businesses are struggling currently, with many multinationals shutting down operations in Nigeria. How much more SMEs?

Instead of mopping up money from the system, providing financial support and grants to businesses and entrepreneurs can stimulate the economy and eventually strengthen the Naira, but No! let's use our scarce FX to sponsor Hajj tourism to Mecca and import foreign SUVs for legislators while the illegitimate President and his wayward son travel in a 70-vehicle convoy.

emmanuelewumi:
FGN savings bond is different from FGN bond.

FGN savings bond is for 2 to 3 years

FGN bonds are for 5 years to 20 years

If I miss the FGN bond now, is it possible to acquire it at the secondary market at saw rate? And Yield?

emmanuelewumi:
It is a dollar investment, that is even on the high side in the country that owns dollar that is US

Hmmmmmm
Let's see how it goes.
I just want to try my hands in local league and gather the necessary experience before going to the champion's league aka NYSE/Nasdaq exchange since trading and earning dividend in dollars to spend in Nigeria will make good sense.

emmanuelewumi:
About 5%.


I won't advise you to buy dollar denominated fixed income fund now.


You will get dollar cheaper by June

Waoooo, 5% seems kind of ridiculous for a whole year.
Anyway, I will think over it.
At the bolded, actually I earn in dollars so it changes nothing

emmanuelewumi:
I have both of them, my average cost price is less than N5. 00


Sold 25% of my United Capital and 20% of my Nahco shares last week to buy fixed income investment at 20% guarantee return

Okay, Iay likely get inside and average down if it falls below my entry price.
About the fixed income, it is dicey considering Nigeria's regular devaluation.
I had interest in it before, but I am considering dollar denominated mutual funds.
Please what is the interest rate or yearly return on ucap dollar mutual fund? I checked their site/app but doesn't really get the rate.

emmanuelewumi:
2031 is at 20.3% yield but currently selling at N93. 40k but the investor will be paid N100 at maturity

2034 is at 20.5% yield but currently selling at N93. 67k but the investor will be paid N100 at maturity.

Compared to 2042 at a yield of 18.5% currently selling at N71. 47k but the investor will be paid N100 at maturity

Hello bro,
Given the fundamental ratios on ground and the current price of ucap and nahco, which one will you prefer to invest in? And why?
Is it possible for ucap to come down to 16/18? And nahco to 25? Will the current pull back?

ositadima1:
I asked Claude 3:

To calculate the EBIT (Earnings Before Interest and Taxes) correctly, we need to use the information provided about the market capitalization (market cap) and the price-to-earnings (P/E) ratio.

Given information:
- Air Macklon's stock price is $45 per share.
- Market capitalization is $13.5 billion.
- Price-to-earnings (P/E) ratio is 10.

Step 1: Calculate the earnings (net income) using the market cap and P/E ratio.
Earnings (Net Income) = Market Cap / P/E ratio
Earnings (Net Income) = $13.5 billion / 10
Earnings (Net Income) = $1.35 billion

Step 2: Calculate the EBIT (Earnings Before Interest and Taxes) from the net income.
EBIT = Net Income + Interest Expense + Tax Expense

Since we don't have information about the interest expense and tax expense, we cannot directly calculate the EBIT from the given information.

However, we can use the enterprise value (EV) and the provided EBIT value to work backward and find the correct EBIT.

Given information:
- Enterprise value (EV) is $43.5 billion.
- EBIT is mentioned as $3.4 billion.

If the EBIT is $3.4 billion, and the EV is $43.5 billion, then the EV/EBIT multiple is:
EV/EBIT = $43.5 billion / $3.4 billion ≈ 12.8

This matches the information provided in the example, which states that "Macklon's EV was $43.5 billion, or nearly 13 times its $3.4 billion in EBIT."

Therefore, the correct EBIT for Air Macklon is $3.4 billion, and not $1.35 billion, which represents the net income calculated from the market cap and P/E ratio.

In summary, the EBIT of $3.4 billion is the correct value based on the given information about the enterprise value and the EV/EBIT multiple."

Thanks very much.
I thought so too
Really appreciate your effort.
This Claudie wey you ey use sef, how do I get to use this AI? So that I no go dey disturb you for yeye yeye things again

ositadima1:
Good or Bad?

Hello bro, please how do I correctly calculate the EBIT in this example below?

Air Macklon at $45 per share, has a market cap of $13.5 billion and a price-to-earnings (P/E) ratio of 10.
But its balance sheet was burdened with nearly $30 billion in net debt.
So Macklon's EV was $43.5 billion, or nearly 13 times its $3.4 billion in EBIT.

How did they get $3.4b as EBIT?
From my calculation, my EBIT is $1.35b which represents 10% of the market cap since that is 10% of EPS

KarlTom:
Let me put it in layman's terms. On the 5th of July, they will mark attendance. If you are a shareholder at close of business, you will be marked present and paid dividend.
I believe your dividend will be credited to your account (provided you have completed the e-dividend registration). Send a mail to your brokers to confirm...

Okay, thanks very much for the details

pansophist:
It's official.

It is no longer a ''special military operation''. The Russian Ministry of Defence has announced that it is now in a ''state of war'' due to nato involvement, and all gloves are off.

Hmmmmmmm

May God help us.
I pray and hope this doesn't spiral beyond this

KarlTom:
TIP proposed 6k p.s.
Register closes 5th July

https://doclib.ngxgroup.com/Financial_NewsDocs/40593_THE_INITIATES_PLC-DIVIDEND_INFORMATION_CORPORATE_ACTIONS_MARCH_2024.pdf

I have shares with them.
What does it mean register closes by 5th July bro?
And will my dividends be credited to my account directly through my investment one account? Or there is a process of clearing it

Penboy:
Ps.
You can also add good podcasts in addition to those books. You can download Google podcast or Spotify.

Search for "HALF TIME REPORT CNBC"
"FAST MONEY" CNBC

You'll keep abreast with recent happenings and analysis in Wallstreet.

Ohhhh, thanks very much Penboy.
I really appreciate.
I will do that toi

Capitas7:
It is a pleasure boss, and I am glad you found it relevant.
1. Ordinary people, extraordinary wealth - Ric Edelman
2. The little book about value investing - Christopher Browne
3. The five rules of successful stock investing - Pat Dorsey

1 and 3 were recommended by DrAwo on the NGX thread, and I learnt a lot from both.

I like the connection between Graham's ideas and those of his "followers" and I think this connection forms the basis of why Warren Buffett and most of the authors of value investing books tend to have very similar approaches. Christopher Browne shared the details of how his father's co-owned firm was on the same block as Graham's on Wall street. He mentioned in some of his statements that he bought (as a broker) stocks for many of Graham's past students, and he observed their consistent pattern of buying undervalued stocks. He also mentioned about how he bought (again as a broker) Berkshire Herthaway shares for Warren Buffett in the late 60's.

Thanks very much bro.
I will go through those books and read them thoroughly.
Thanks

ositadima1:


[color=#000099]He gave this example:

1. Earnings growth - A minimum increase of at least one-third in per-share earnings in the past ten years using three-year averages at the beginning and end:

Let's assume a company called ABC Ltd. had the following earnings per share (EPS) figures in Naira:

2013-2015 average EPS: ₦2.50
2020-2022 average EPS: ₦4.00

In this example, the EPS grew from ₦2.50 to ₦4.00 over the 10-year period, which is an increase of 60% using the 3-year averages at the beginning and end. This meets Graham's minimum threshold of a one-third (33%) increase in EPS.

2. Moderate price-to-earnings ratio - No more than 15 times average earnings of the past 3 years:

Continuing with the example of ABC Ltd., let's assume the company's current share price is ₦75, and its average EPS for the past 3 years (2020-2022) is ₦4.00.

The price-to-earnings (P/E) ratio would be calculated as:
P/E ratio = Current share price / Average EPS for the past 3 years
P/E ratio = ₦75 / ₦4.00 = 18.75

In this case, the P/E ratio of 18.75 would exceed Graham's recommended maximum of 15 times the average earnings of the past 3 years. Therefore, ABC Ltd. would not meet this specific criterion for a "Defensive Investor" stock pick based on Graham's guidelines.

It's important to note that these are hypothetical examples, and actual Nigerian companies would need to be evaluated based on their reported financial statements and stock prices.

Additionally, Graham's criteria should be used in conjunction with other fundamental analysis techniques and adjusted for current market conditions and inflation levels in Nigeria.

Ohhhhh........Abasi Mbok.

Oga Osita, you really finish work for this my question.
You break it down for me to the extent that even a lay man will understand.
I owe you 10k for trophy beer abeg.
I really really appreciate your effort.
Thanks alot

Please house, can the gurus explain with a calculation how i can go about this?
Read it on @the intelligent investor@ and just want more light on it.

1. Earnings growth - A minimum increase of at least one-third in per-share earnings in the past ten years using three-year
averages at the beginning and end

2. Moderate price to earnings ratio - No more than 15 times average earnings of the past 3 years

emmanuelewumi:
Since you have equities with them you can get loan of a minimum of N5 million to buy shares only. Provided the stocks in your portfolio are liquid and are acceptable as collateral.The loan will be credited into your stockbroking account.


But with mutual fund investment you can get loan that will be paid into your bank account which you can use as you want.

Ohhh good.

Thanks very much.
CA you help me with the ucap limited number?

Capitas7:
I agree with you on the likely reason for low turnout on this forum. Paid subscription tends to be a fair way if making money if it is not forced, or advertisements not made to sound like "you can never do well at this unless you pay us to teach you or do it for you".
I think you will do very fine trading foreign stocks. Your experience with the local stocks market and your kind of questions are the important ingredients.

Thanks very much for the compliment.
I am trying and will keep trying my best.

Capitas7:
First, I must say that I'm learning, so nothing unique about my strategy that might be new to you.

1. My strategy
I wish I could give a short and direct answer. I am more of an investor than a trader, so I go for value and growth stocks.
The pensions and life savings of hardworking Americans are in most of the ETFs, and if you check their charts, many of them have maintained higher highs perpetually breaking the ceiling regardless of the many cycles of bull or bear that the market has experienced. So these fund managers are doing something right, and one thing I found that they do right is objective fundamental analysis.
So basically, I check every metric that I know. I start with free cash flow, earnings growth, retained earnings, projected growth, among others.

2. Entry price
I used to estimate the intrinsic value and compare it to current price to see how much room the stock has to grow in price, but I have since stopped using that because there is usually a lot of divergence between intrinsic value add price that may never close up. The intrinsic value of growth stocks is difficultand subjective to calculate. The DCF approach also requires using future cash flows predicted by the sharks of Wall Street who have their own motives.
Once the basic and derived metrics check out for a company, I wait for cyclical lows for entry opportunities. A friend enters APPLE every year with huge capital, and makes roughly nothing less than 30% by just flowing with the cycle.

3. Exit strategy
I am poor at this. My kinds of stocks also make me not to worry too much about exit price. Intel was giving decent dividends when I exit it over a year ago partially bevause of the resons in my nect post. Warren Buffett has been keeping and increasing his position in APPLE, AMEX, BAC for decades, and has never lost his title.

Summary: I am learning just like most, but I have developed an approach to the market that insures the return of my money and still gives me comfortable return on my money.

The resources I value are: financial statement, earnings guidance, macroeconomic news, consumer sentiments and behavior, market appeal of the company of interest, etc. Great books discuss these in details.

Thanks very very much for taking your time to explain this to me.
Really appreciate.
About the books, can you list some for me to go through?
Thanks

emmanuelewumi:
Do you have an Investment account with United Capital Asset management?
Existing loans will continue with the old rates until when the customer rollovers the loan for another 6 months

Do you have an Investment account with United Capital Asset management?
Yes, I do have it. Both for trading and mutual fund

Which of the investment account products did you invest in?
I am on using them as my broker for stocks presently. I want to be sure I can get a loan before investing in their mutual fund.

Who is your account officer? What is the purpose of the loan?
A lady called Eyo. I enquired about the loan thing from her. She said yes but can't really provide any number for me since then


Interest rate for new loans is now reviewed to 25%. - I can work my numbers around this

[quote author=yMcy56 post=128979721][/quote]Thanks very much Madam Mercy

emmanuelewumi:
You can access 85% of the official exchange rate equivalent as a Naira loan at 20% per annum from UC Plus Advance Ltd a subsidiary of United Capital

Hello bro.
Please can you help me with the contact of this people?
Thanks

Locotrader:
Deadly truth & other investors of IEI,

I am still waiting for the answer of the question I asked yesterday.

IEI will be trading at a bargain junction today.The stock is likely to touch #1.21 today.

If they still have their minority shareholders in mind, buying at the lowest price of #1.21 today shouldn't be neglected.

My worries
I learned the core investor bought the company 100% at 1.60 per share.Based on their latest report, the core investor has 50.6% of the total shares.From my findings, the core investor has applied for a mandatory takeover bid of the remaining 49.4% which belongs to the minority shareholders but at what price?

Whichever way, the stock at #1.21 down to #1.00 is a win win and I will be entering the stock at it's 10% loss today.

Still expecting your views/opinions on this matter.

Which one is IEI bro? Couldn't find it on investing.com app
Have been following your contributions on the thread and I will say kudos to you.
Have bought some champions and tip stocks after checking their fundamentals which kind of suite me aside champions free cash flow report.

Capitas7:
I mentioned in a post that discussions rarely happen here. I said so because we stand to gain a lot from one another when we share thoughts, constructively criticize stock picks, analyze data (financial statements, valuation metrics and charts), and even discuss sentiments.

A fellow shared their thoughts on Lucid and two of us replied with an opposing opinion (politely and constructively too). I have been checking that stock not for the purpose of coming back to say "I told you so", or to check how the said person is killing it, but to evaluate their prediction alongside my divergent opinion and make myself better.

Many made a kill in the 2020 bull run, and another one is on us; we can make a kill too.
When I mentioned (in Nov, Dec, Jan) the upcoming bubble in the AI space and the growth visiting the mag 7, it was already happening and that is why many of such stocks are overvalued (bubbly) today waiting to be bought by latecomers before correction (burst). The kill is in buying the rumor and selling the news like smart monies do - me sef advise babe to buy NVIDIA at less than $140, and the rest na story.

Together we can identify the next rewarding sector/idea, but it starts with discussions, not only 4 or 5 persons sharing their picks or transactions without receiving opinions or criticism or supporting ideas in return.

We are here to learn and build wealth!

Agreed but it seems some here won't interact with you unless you subscribe to their paid subscription. I guess that is the reason for the low turn out here.
Also, most Nigerians are into local stocks and not foreign ones.
I am just also about diversifying into foreign stocks due to devaluation, so am very careful in treading this part