₦airaland Forum

Your order on Meritrade did not get to the NGX.

I use Meritrade also and I notice sometimes that my orders don't get to NGX. I refresh my Morgan Capital order book for the particular stock to confirm orders on the NGX, after posting on Meritrade.

mank1234:
I'm a newbie I noticed access closed below 25. My order at 25 didn't execute on meritrade. Any explanation?

The pix you posted might indicate it has been sold, but sell value has not settled into your wallet for your withdrawal. Settles in T+2days; (T for the day transaction was executed + 2 work days after).
Did you get a trade alert? What is the name of your broker and what are they saying about the transaction? (Skip if revealing the name of firm is sensitive to you)

Indigbo:
No sale since. FidelityBK. I though some of you said selling is within seconds or minutes? But it's going to 48 hours now and still no sale ?

Total liabilities grew by N5.1bn, while total assets grew by N3.7bn (with a cash balance of N3bn) at YE2025.

What then was the "deposit from related parties" of N7bn used for? To execute the POffer?

KarlTom:
I laugh at the bolded...

Not completed ≠ Failed woefully

"Total Liabilities: Total liabilities increased by 189.5% to ₦7.83 billion (31 July 2024: ₦2.70 billion) primarily due to the recognition of ₦7.08 billion in related-party payables arising from subscription monies received in connection with the public offer that was not completed."

Actually, Retained Earnings is positive but Other Reserves is negative. (See Statement of Changes in Equity for Q32025).

Q4 Financials are not detailed enough; they lumped Retained Earnings and Other Reserves which is negative.

I think a good call.
Na their naija operations/results nor dey give joy.

nosa2:
I really no wan post analysis on this forum because of it can't be easily referenced in the future. But I will make an exception now.

ETI is cheap because of its negative retained earnings (hence no dividend). Now that negative retained earnings seems to be turning positive at least in its Naira result but is still negative in USD terms. I am waiting for the audited results to understand why that is.

Retained earning and Reserve -$148,264,000
Retained earning and Reserve +N2,552,212,916,000

You can check for yourself here
https://doclib.ngxgroup.com/Financial_NewsDocs/45990_ECOBANK_TRANSNATIONAL_INCORPORATED-_YEAR_END_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_FEBRUARY_2026.pdf

Now I have asked around and I was told its because of exchange rate translations, but the reason no too make sense.
Anyway thats the risk with this.

Now the good news is that irrespective of the figure now, the trend is positive and retained earnings is appreciating in both currencies.

Providus + Unity Bank
Providus Bank just concluded its private placement to raise capital to meet requirement for it's license category (N50bn for Regional banking license).

Will the merged bank become a regional operator? UnityBank ab initio had deficiency in capital (was already on life-support from CBN).

Caveat emptor

Mpeace:
This whole CGT on shares is actually for the bigger boys.
From the attachment by Ositadima, it is clear that you have to sell share in "a nigerian company" and the total sale in that company must be over N150million with the chargeable gain over N10 million in 12 months.
Most of us wey dey do this argument no even get portfolio of over 150million not to talk of 150million shares in one(a single) Nigerian company.

But for others, it's simple sell less than 150million Naira per year.
Or if you sell over 150million Naira worth of shares in one company, reinvest in some other companies and sell the next tax year.

Take note of the word AGGREGATE there. If you do an average monthly turnover (sales ) of over N12.5m in a year, your aggregate would be more than N150m.

So jijoists should monitor their aggregate turnover (sales) and/or net gain in any year should be less than N10m to know how far with CGT.

On CGT
CGT is simply tax payable on capital gains.
CapitalGain = SaleProceeds - CostofAcquisition,
(where sales proceeds > cost).

Ordinarily, when an asset/investment is bought at say N100, and later sold at say N250, a capital gain (CG) of N150 has been realized, not minding how long or short the asset was held. The key variables are COST (i.e. units multiplied by purchase price) and SALE PROCEED (i.e. units multiplied by selling price). A selling must occur to realize CG. The value of the asset (up or down) within the holding period is irrelevant to determine CG.

If X invested N10m to buy 1million Presco shares in 2010, and decides to sell all at N1500 per share price in 2026, a CG of N1.49b is realized upon which CGT is chargeable. Assuming Presco did a 1 for 1 bonus in say 2015, meaning X now has 2million units and goes ahead to sell the 2million units in 2026 at N1500 per share, a CG of N2.99billion is realized. Note that the bonus comes at zero cost to the investor so the COST of the investment remained at N10m.

The new CGT effective 2026, has the threshold of N150m value and N10m profit and the reinvesting strategy which should be of note to the investor, not sentiments like how long he's held the investment, etc.

Strategies should be assessed on how to reduce or avoid (not evade o) the CGT burden going forward if the investor plans to sell his investments and take out proceeds for other uses. A free one here: from the Presco example above, sell the shares this year, buy back same investment sometime next year and your relevant COST going forward would be the cost of acquisition next year which would be a far cry from your initial N10m cost many years ago.

Care4:
Is there any rule tying publicly listed companies to the 50 kobo nominal value? When will the NGX moved to ₦1 or so considering the economy?

There is no rule tying publicly listed companies to 50 kobo nominal value. Most listed companies' share capital have 50kobo nominal values. However, some have N2.00 nominal value (AxaMansard) and 20kobo (or 2kobo?) for MTN and InterBrew.

See share capital nominal values as currency denominations used in an economy.

thebargainhunte:
Your wapco got all time high in June, 2014 @ a price of #136.73 .Using exchange rate of #170 per dollar, your wapco then worths $ 0.804 per share. For wapco to worth the same now, it has to trade at #1367 per share using exchange rate of #1700 per dollar. Even with your dividends, you still lost.

Then comes the knowledge of stock investing. The person that bought WAPCO at N136.73 did not average down when same WAPCO sold at N12.00 thereabouts? E.g. if he continued to reinvest his dividends, without adding more funds, his current weighted average cost would be well lower than initial cost. Imagine if he added more funds at the low prices.

People should learn more about investing. Many strategies. Many turns. It's not always a dash. It's a marathon with many twists and turns.

talk2me2:
Make no mistake, the result in page 15 is that of Consolidated Hallmark Insurance Limited. While the report in page 53 is that of Consolidated Hallmark Holding PLC.

You may like to read page 1 to understand the structure of the Holding Company (the group).

All the three pages attached are from the audited financial statement.

NB: This is not a recommendation

EPS stated in the report is 1.23kobo. Less than 2kobo.
Different from 123kobo which is same as N1.23
Notice the word "kobo" in bracket.

Sunrisepebble:
I did not mention that Cardinal Stone is the registrar. I have spoken to a broker in the market and he confirms that they were the ones propping up the stocks price

Not unique at all.
Too much detail in the public space that could affect investor confidence.

emmanuelewumi:
Kilode, loan at 30% and 42% Keh.

Even me, the highest interest on my loans is 27%.

Oando should be able to negotiate lowers rates na, abi na cowboys dey give the loans to the company ni

The higher risk of extending loans to Oando could be the reason for the high rates.

Buying of shares (possibly other instruments) in the secondary market is a zero-sum-game.
Someone sold cheap for you to buy cheap.
You sold high to someone who bought high.
Own your investing decisions.

[quote author=megawealth01 post=131537333][/quote]Response you got is wrong. You get div and bonus if bought today (cum-div/bonus).

Mankind2024:
This is essentially a stock split masquerading as a bonus issue. Bonus issues do not impact the stock price. The exchange should use a less confusing term to avoid misleading investors. There is a distinct difference between a stock split and a bonus issue. The recent action by UCAP, changing 1unit at N31 to 3 units at N11 each, is technically not a bonus but rather a stock split.

Not really.
In a stock split, the share capital of the company remains the same (nominal value per share changes, say from 50k per share to 25k per share) while in a bonus issue, the share capital increases by the value of the bonus issued (nominal value per share remains same).

ojesymsym:
Yes I saw it, but I non understand the mechanics of why it opened at that price. Is it a normal drop in price? Abeg help explain abeg for those of us that went to night class.

Closing price yesterday was N31.
Deduct 90k dividend = 30.10
Divide it by 3 = 10.03333. approx 10.05

The logic of dividing by 3 is you now have 3 shares (after the 2 for 1 bonus) with a total value of 30.10.

debeey87:
Sometimes ago, some shared how to calculate what price of a stock will become after markdown for bonus issue. Considering that UCAP is giving 2:1 and 0.90k dividend, what will be the share price on the next trading day post qualification.

If price closed at say N40 on date of qualification:
Price on next trading day would be (N40 minus 90k) divided by 3 = 13.03 (actually N13.00 given the 5kobo price range for UCAP).

Meerahbel:
Wait! From ten naira to 50 kobo is that not retrogression

Not retrogression. Book value of the company remains the same. For each share you had with N10 nominal value, you will thereafter have 20 shares with 50k nominal value.

Direct advantage is that the price of the share becomes "more affordable" from about N4,500 per share to about N225 per share. It improves liquidity for the shares too; other factors remaining constant.

zendi:
Mr Slips will Oliver twist for more slips.

And he will get it, because of the dilutive effect on existing shares, of recapitalising the mega Banks to N500b minimum capital base.

Imagine all the new shares that will be created to raise money.
Outstanding Shares will balloon out, crushing eps, and Market will down-price accordingly.

I could be missing something.

More shares, more capital and most probably increased income for efficient managers (in the short-medium term).
Income would most probably grow faster than the increase in shares outstanding, given the prevailing high costs of borrowing.

Just thinking aloud sha.

customstreet:
Welcome OKITIPUPA OIL PALM PLC to NASD prior to final migration to NGX🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏

I thought Okitipupa Oil was listed on NSE that time?

Mankind2024:
https://doclib.ngxgroup.com/Financial_NewsDocs/41375_HONEYWELL_FLOUR_MILL_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2024_FINANCIAL_STATEMENTS_MAY_2024.pdf

The key takeaway from Honeywell's 105-page bloody financial statements is that the company is now a going concern.

"Save the worst for the last"

Notably, the company has a negative shareholders' balance, and its liabilities exceed its current assets.
The company reported a loss of N10.1 billion for the year ended March 31, 2024, compared to a profit of N256 million in 2023. As of March 31, 2024, the company's current liabilities exceeded its current assets by N21.6 billion, compared to N11.1 billion in 2023.
A significant portion of the payables is due to related parties.
However, the parent company, FMN, has issued a letter of support, committing to support the company in meeting its obligations as and when due.
"GOING CONCERN ADDRESSED"

Shareholder's balance is positive N22.86b. (Total equity)

KarlTom:
At listing, the money goes to the account of the company.
Subsequent trading activities is simply an exchange of funds and equity between a seller and a buyer...

At listing, the money does not go to the company but to the initial shareholders. The listed shares already belonged to the initial shareholders. Most times, the company does not hold shares of itself.

Money goes to the company when new shares are sold to investors (primary issues) through rights issues, public offers or private placements.

Subsequently, as you stated, trades on the shares at the exchange is simply exchange of funds for equity between buyer and seller.

jadyclem:
Thanks.
But some responses are getting me confused - they're saying I should go to my bank to ask for it.

It's ok. What they are describing is bankers confirmation of signature (issued by your banker). This is usually requested by Registrars to confirm you and your signature.

Stockbroking firms don't require that to open account for their clients. What they require is a sample/specimen of your signature and you can submit that by snapping and uploading. Your government-issued ID surfices to identify you. Unless there's a change of processes in the last few weeks.

Streetinvestor2:
I will give it a shot and maybe someone may be interested. The problem is now that the right price and the floor price are the same.

True. There's no incentive/advantage to buy the rights.

From the look of things, this rights issue was packaged, primarily, to convert to ordinary shares, loans/payables due the parent company

jadyclem:
Please chairmen in the house, I'm trying to switch from trove app to a real stock broker (Morgan capital), but they're asking for one document I don't understand...

Please, which document is called signature document?

Am I suppose to sign my signature on a piece of paper, snap and upload?

Please, can someone that has successfully registered with Morgan capital let me know the type of document that's signature document?

Thanks in anticipation of your response

Sign on a white paper, snap and upload. No document as 'signature document'.

Good luck.

Streetinvestor2:
IB closing price and RI is the same.The management will know that shareholders are not fools.They should use thr money to buy all the RI.A company I have never benefited a kobo since I bought it want me to take up RI of over 40M.When village people no dey my case

If anyone is interested let me know.i am not taking mine

Contact your Stockbroker so you can trade your rights. It's better than just not doing anything. Some parties might be interested in buying your rights.

ositadima1:
"You may want to reinvest in UBA or some other FUGAZ stocks. Remember that they may start offering rights issues, so keep some of your money available for that, as it may be cheaper to purchase shares through the rights issue.

Although buying more shares now will also increase the number of rights available to you, it's still advisable to keep funds reserved. UBA's rights issue is likely coming soon."

https://nairametrics.com/2024/05/24/i-will-reinvest-100-of-my-dividends-in-right-issues-elumelu-tells-uba-shareholders/

Smart move.
Since CBN doesn't want to recognize retained earnings in new recapitalization policy, banks pay them out as dividends while encouraging shareholders to use it to buy more shares through rights issues. A reasonable percentage would come back as 'new capital'.

modupeshow:
Please can someone explain this right issue concept properly? And what investors stand to gain from it?
Also, how one can take advantage of the market during the period.

The concept behind rights issue is the ability to raise fresh capital from existing shareholders such that their current holdings in percentage remains same, post-rights issue. Example, 1 for 4 rights means you are entitled (have rights) to buy 1 more share for every 4 existing shares held.

Theoretically, the shareholder retains his % shareholding in the company and be able to buy new share at a "discounted price". He can also make money by trading off his rights on the stock exchange, if he doesn't want to exercise the rights.

You can take advantage of the market when rights is on by selling your current holdings at a higher price and pay for the units entitled to, since you are sure of the allotment. Example, if mkt price is N6 while rights is at N4.5. This would be true if you just want to maintain a given units of shares in the company. You can also trade-off your rights on the exchange. Occasionally, the price in the market is lower than the rights price, so an investor that wants to increase holdings would rather buy from the market and ignore the rights issue.

vacanci:
it doesn't matter.

If you have UBA at N1 and you bought with N1 million. So u have 1M units.

Now if u sold at all 1M units @ N27 and all things being equal you now have say N27 Million

Use all N27 Million to buy @ N21, your total holding have moved from 1M units to 1.285M units.

The extra 285,714 units when sold even @ N21, gives you about N6 Million compared to the dividend of N2.3 Million (from the 1M units originally).

If you decide not to sell and want dividend next year, it will be on 1.285M units as against 1M units (original)

It's all about playing with number and LUCK.

NB,
If u no sabi set trap for rabbit, no try am o

I admire your excitement. Also good you recognize luck in the mix.

This is good if one understands it well and comfortable with numbers. It can be used even when dividend is not involved. Sell high, buy back more units at lower price, sometimes intra-day. Repeat.

Whilst I agree it's a winning strategy, it doesn't always work. Those that sold GT, Zee, etc in 2022 at less than N30 probably could not get back in for more units. Those that sold Zenith this year, cum-div, might have to wait some time too, if they can get that advantage.

Important to know your strategy, work with it but also recognize it's not fail-proof.

I like what BBMarket writes, Plan your trade, trade your plan (something like that).

KarlTom:
I'm just hearing this theory (the bolded) for the first time.
Kindly shed more light on it. Who is responsible for the 'drop' in price?

Has always been the practice. NGX adjusts the price before market opens by 9.30am. Marked-down price.

ositadima1:
Okay, so I want to understand this correctly. If I don't have my shares registered with the stock registrar by the qualification date, I won't receive a dividend? And even if I am registered, but I sell my shares before the ex-dividend date, I also won't get the dividend?

Double wahala for who no dey read agreement o.

Abi you wan eat your akara and have it.

The important date for you is the date you bought or sold. Being on the register should be left for the registrars to figure out (normally it's T+3days after transaction). That is why you normally see them announce period register is closed so they update it for purposes of dividend, bonus or any other corporate actions.

With UBA, if you buy tomorrow 10th May, and/or hold your shares till end of tomorrow, you will get dividend. If you sell by 13th, you will still get your dividend. But if you buy on 13th, nothing for you.

modupeshow:
Does this mean that if I sell my UBA shares for example on 10th of May, I'll be qualified to receive dividend or i have to wait till 13th before i can sell to qualify for dividend payment?

If you sell your UBA on or before 10th of May, you will not qualify to receive dividend. If you sell on 13th or thereafter, you will receive your dividend.

The key date is the Qualification Date (10th May in this instance). You would notice that on 13th, the opening price would be the closing price on 10th less N2.30 (dividend).

The closing price on 10th would be cum-dividend (cum-div) i.e. inclusive of the declared dividend. While the opening price on 13th is ex-dividend (ex-div) i.e. after dividend has been deducted (marked down for dividend).