₦airaland Forum

OakPearl:
Cadbury’s 2024 annual earnings report is a terrible failure.
You can’t be making a 46% revenue increase and end up with a horrific 4,839% loss after tax. Their -N1,471 loss/share is so loud, it has not only completely eroded their previous N708 net assets per share, they have now amassed a net liabilities per share of N803!!! I am thinking this may not be unconnected with the $23m loan owed Cadbury Schweppes Overseas Ltd who has a majority 74.97% stake in Cadbury Nigeria.

This resulted in an unrealised exchange loss of N20.6 billion and a loss after tax of N10.2 billion for the period ended, 30 September 2023. To their credit, Cadbury Nigeria has actually paid $18.6m of the loan and has offered to swap the balance $7.7 million (N7.03 billion) debt owed to Cadbury Schweppes Overseas Limited for more equity.
That’s further dilution of the outstanding shares which doesn’t look healthy in my opinion.
This foreign exchange market unification has brutally dealt with manufacturers! Meanwhile, how Cadbury at N22.95/share is more expensive than Unilever at N20.95/share considering both reports is a mystery that only Mr Market can solve.

Great insight. In addition, no dividends should be expected from Cadbury for 2023 and maybe more years to come. I was wondering why the bullish stand on the stock when they announced the debt/share conversion. Same way no dividends should be expected from Nestle for 2023.

Fx policy fallouts.

Prolificlife:
Good Morning my oga's in the house.

Please if i want to do a cross deal between two of my accounts with different name but same surname to consolidate my holding. Can't i determine the price of the cross deal within the price range of the day?

Your contribution will be well appreciated


#Locotrader
#megawealth01
# emmanuelewumi
# yMcy56

The way I understand it, you can determine the price you want but that would mean the broker paying attention to do it when the price falls between the best bid and best offer prices.

You can only execute a cross deal through the brokers. It will be treated as a sale from one account, a purchase by the receiving account. The "selling" account has to give a specific instruction to cross to the receiving account. Hopefully, the accounts are not Direct Cash Settlement accounts, so that the firm will debit both accounts for the applicable charges only. Very important that the "seller" gives a mandate to the brokers on what he/she wants. Some firms could allow just one party bear all the charges, since there is no transfer of consideration.

folamee:
Pls what do you mean by a stock is on full bid, and how do you know that?

A stock is on full bid, at a particular time, when there are bids (buy entries/demand) at the highest price for the day but there aren't enough offers (supply) to filled the bids. You know this by observation of the particular stock during trading session between 10am-2.20pm.

IYGEAL:
But there was the qualification date announced last year.

That qualification date was relevant to receive the scheme documents and attend the court-ordered meeting.
As at today, GSK is on full suspension and technically delisting from NGX, following the notice from it last Thursday.
All shareholders to date will be paid off.

Streetinvestor2:
The highest anyone bought was 17.20 .The will not have loss as the company is paying 17.42

Maybe N15.67 (ex-WHT @ 10%)
We know in 10 working days.

IYGEAL:
Just wondering what the fate of those who continued to buy GSK would be. People still bought yesterday.

Anybody that had/bought GSK as at Friday will be paid.

GSK suspended.

Princkez:
Please when is GLAXOSMITH paying #17.42?

10 business days after trading in Glaxosmith on NGX is terminated (and subsequently delisted).

Streetinvestor2:
Pls I can't see whr WHT was mentioned on the resolution link shared

It is not mentioned in the document. Implied. My opinion.

WHT is payable on profits distributed, unless on profits earned during tax holidays (pioneer period).

GLAXOSMITHKLINE

Resolutions at Court-Ordered Meeting

N17.42 is subject to WHT being payable from distributable reserves (aka Retained Earnings). Tax holiday or pioneer status not applicable.

Capital return (Issued Share Capital + Share Premium) - circa 54kobo + any undistributed profit earned (likely very negligible) before 2023 Audit.

Final payment, if any, max 2025.

https://doclib.ngxgroup.com/Financial_NewsDocs/39946_GLAXO_SMITHKLINE_CONSUMER_NIG._PLC.-POST_COURT_ORDERED_MEETING_RESOLUTIONS_CORPORATE_ACTIONS_DECEMBER_2023.pdf

Streetinvestor2:
The total commission and charges by Morgan was the #826.19 from Morgan as per invoice sent.i want to know why cscs direct settlement still removed about #600 from my net balance

Since it's Morgan (0.5% commission), you are correct. About N600 extra was deducted. Could it be CSCS DCS has a template that applies the maximum 1.35% without regards to concessionary rates from some brokers?

I have an account on DCS, no extra charge applies. Sometimes, I get credited with amount (<N100) above or less than value on the contract note. The broker's commission is 1.35%.

Streetinvestor2:
You don't get me.The total sales was actually #65,100 after deduction of #826.19 for commission. My net proceeds was #64,273.81.Then cscs direct settlement still took about #600 from the money to pay me #63,679.7.
And I am asking is that how the direct settlement thing works.is this charge fixed or by percentage. Abi na another tax on the money

I don't think there's any extra charge for direct settlement.

Total cost of transaction in this case is about 2.3%. Commission by your broker is 1.35%. Other charges are the same, irrespective of broker.

[quote author=IamR post=126944060][/quote]For further insights, please do you mind sharing the Scheme document or a link if available online.

From the attached, it looks like they would treat the N17.42 and payout from retained earnings as dividend distribution; 10% WHT applies.

My take.

As advised by them, exercise caution in dealing with GSK shares going forward.

essentialone:
I have a feeling which is sentimental anyway . I believe many of the Banks might not want to pay the huge Company Tax of 30% from the humongous profit that will run around half a trillion by year end 2023. In my personal thinking they will buy more of their shares , then declare a huge dividend to escape the huge tax liability of 30% . The money will come back to them via dividend payment. The tax liability would have been reduced from company income tax of 30% to 10% of withholding tax .

My personal thinking anyway , so we are likely to see more purchases from them.

I think buying back their shares would not affect their assessable profits, to which the 30% tax rate applies. Unless they buy and sell at a loss, thereby erroding profits. Usually, buybacks directly affect their share capital and cash positions.

They can reduce potential tax liabilities by incurring more allowable expenses/donations. Flex more 😁

Yes, if they execute share buybacks, they can declare higher dividends. Shareholders enjoy.

They can benefit from the 10% WHT rate if they have invested and received dividends/interests.

Olaide1295:
In my case, I get dividends for the stock I have on trove within few days of payment. Licensed apps like Meristem (Meritrade) never pay my dividends unless I write long emails and fill forms.
Actually, my Zenith dividends for last year is still with Meritrade. Some hundreds of thousands which they haven't paid me. I filled forms for UCAP but I hate that I have to fill it for each stock I own.

Meristem (Meritrade) does not have your dividend; registrars handle dividend payout. For Zenith, send a mail to Veritas Registrars requesting for it. They can be slow. For UCAP, go to African Prudential Registrar website and fill out the e-dividend form.

In both cases, check other companies they maintain their registers and tick, so you don't have to process separately for each company.

Try get your CHN from Meristem and quote in your correspondences, for ease of reference. Follow up with the registrar via email, if delayed.

DrAkpamudehe:
If he bought from trove or other 3rd parties, he won't be given a cscs no

Ok. Thanks.
That means he will wait for Trove (and likes) to receive from registrar and then redistribute to them.

I'm wondering, why go through third parties when many licenced firms have apps and provide online, real time platforms?

Harshreality:
Is there a minimum amount of stocks you must hold before you get dividends? I bought on the 13th of September on Trove but I didn't get any dividend

There's no minimum number of shares held to qualify for dividends. If you bought on 13 September, you should receive dividend.

However, it depends on how Trove and other fintechs operate (they are third parties). If the registrar has your name and details on it's register (directly), you should have been paid directly to your bank account.

Do you have a Clearing House Number (CHN)? It's alphanumeric - starts with C, ends with two alphabets. E.g. if surname is Biden, it would be CxxxxxxxBE (x being numbers).
Do you have a CSCS account number you buy/sell shares on NGX with?

bennyflipy:
Till now this people are yet to credit my bank account since on Tuesday that I requested for withdrawal.

This now depends on their internal processes. Some are more efficient than others.
It's advisable to make withdrawal request early morning so it can be processed with the early batches.

Iamblessed85:
I’m sorry for speaking out against you when you challenged those promoting Oando

Thank you sir/madam. You're truly blessed to deem it fit to apologize, even though it's a faceless forum. Just be more careful in the stock market and possibly avoid any stock that seems controversial.

About 16 years ago, a friend and colleague called during trading session and gave me a hot tip to take position in a certain insurance stock. It was unsolicited so I believed him. He said it was surely closing max price (5% then). I took the biggest position I had taken in a stock. Greed😁. By close of trading, the price was 5% down and for the next 3 days when I had to book my loss. Lol. I survived and learnt a lesson to always be fully and personally convinced of any hot tips before taking positions, if at all.

There are sharks and the benevolent in the capital market (and here too).

You will be fine. Calm down, learn and make the necessary adjustments. I'm still learning too.

essentialone:
Stocks that presently have Delisting topic are:

Union Bank
GSK
PZ
Oando
Capital Hotel
Courteville

Many more to be added soon... Avoid them. Avoid them. Avoid them.

The situation is different for Capital Hotel.

CapHotel will continue in business and the shareholder who did not elect to opt out (as at date stated in August) will continue with them as a shareholder when they delist. Thereafter, the pros and cons of a minority shareholder becomes real.

I saw bids for the shares today. Hope it's realized new buyer's don't qualify for the N5 offer.

aj8:
My take.

The key thing is never buy chicken without checking the weight. That’s simply valuation. Don’t buy any stock with price above the ideal for its weight/value. And , even after buying, sell once it’s start losing weight or likely to lose weight. Monitor your investment. Check reports, follow the news. Profit is profit whether 10% or 100%. Determine what appeals to you, hit it and leave the queue unless you only care for dividends. And even with that, be ready to jump ship when the future prospects become not so certain.

Very apt!

bennyflipy:
Not really, when I sold the money landed in cash position. But where it'll land between cashing out to my bank account is nil. My question is, if it lands can I withdraw to my bank account or I'll have to wait for T +1 days after initiating withdrawal?

I modified my post.
By tomorrow morning T+3, your money has 'settled' with your broker (I assume normal NGX-registered brokers. I don't know how fintechs operate).
Apply to withdraw and they should be able to credit your bank account tomorrow (now it's dependent on their internal processes).
T+1(if applicable) is now your broker's internal design.

bennyflipy:
But will I be able to cashout to my bank account tomorrow as Wednesday is public holiday??

Your account will be credited and you get a normal credit alert from your bank tomorrow (usually in the morning, depending on your bank). Na u know wen to 'cashout' 😁

From your narration, it's Direct Cash Settlement.

PS: If not DCS, you have to apply for withdrawal from your stockbroker early morning so they can process and credit your bank account (now depends on their internal processes).

kamtrix:
Good afternoon everyone. Please I want to ask you a question. Is it actually possible to sell a stock on the NSE at a higher price than the market price if the stock is a stock that people hardly find to buy? For example, a stock like Nestle that is hard to get. Please I would love every education on this. Thanks

Most times, you can get Nestle in the market, if you are not price-sensitive.

For any particular day, you can sell your stock on the NGX (NSE) within the price range of plus or minus 10% of the previous day's closing price IF there are willing buyer's at your offer price. (Reverse applies if buying).

On special off-market deals, you could sell at higher prices (than market price) to a buyer, but deal has to be finalized at the going price(s) on the NGX (for computing fees, etc).

bennyflipy:
I sold my stock since on Thursday, money yet to drop for cash out.

Today is T+3 working day

If sold on Thursday, will drop tomorrow.

T+3 = Transaction day + 3 working days.

essentialone:
This queue of Oando people that I see willing to jump out through the window, seem desperate to collect any amount even if it is N2.00

As one person informed me, they so distrust Oando's Tinubu that they are not even sure if he will later pay them the proposed N7.07

They would most likely pay, if they delist, at least to maintain/improve corporate brand. Besides, good money might have been made from circa N5 to N16, so N7.07 (or thereabout) should not be much challenge.
Me think.

BabsO2:
Yes they have borrowed forex to use for expansion. I noted that earlier in this thread (several pages back). The load of the fx additional tier 1 capital will surely reduce fortunes of common Naira shareholders, especially if the growth they deployed the fx to is currently not yielding fx income. The tier 1 fx instrument holders will always get their returns first in fx before the common shareholders get the left over. And this will tend to reduce the earnings per share to shareholders till their fx assets start bearing fruit. However should their expansions bear good fruit in months and years ahead, common naira shareholders on NGX will reap bountifully. This reward may be round the corner or may be far off who knows? Since management have been acquiring shares perhaps it may not be far off.

I totally agree with you. Herbert has significantly increased his indirect holdings in H1 through his offshore interest.

I will want to buy more if investors are generally dissatisfied with the low interim div and the price falls significantly lower.

customstreet:
1. Closure date was even backdated to 27th July ,2023

2. Shenanigans have started by excluding their unrealized FX gain

3. Access Bank need to be monitored and examined well

4. What is the IFRS treatment of FX realized and unrealized gain or loss?

5. Access likes doing their own different from others

6. No payment date

This is how Oando started few years ago with this type of shenenigans

It is well

Access. Cowboys (remember?). Lol
The closure date must have been proposed when the report was signed. Let's wait for the corporate action announcement. (Last Sterling div was backdated sha).

Fx gains was included to arrive at PAT (Notes 11+12).

My fear is they are expanding too fast (mostly inorganic). Could be catastrophic if not well managed. Anyway, the higher the risk the higher the gains, all things going well. Reason why I have some for the great future potentials.

mikeapollo:
The Court cannot give any definite order or judgement on the delisting without the minority shareholders voting to decide on the buyout. It can never happen. There are other minority shareholders who must be given the opportunity to decide, otherwise they will also go to court and scuttle the whole process once again. The 14 shareholders cannot represent all millions of minority shareholders and you expect the millions not to express their opinion on the matter through voting.

Oga abeg rest joor. You don mention me two times dis early mormor for sontin wen dem write for paper. See the word ORDER for dat doc wen I post. Read!

Nex tin you go say I dey lie or spread rumours or even ask weda I don hear corporate restructuring before.
You be lawyer?
😁

austinkenneth:
This document is confusing in my opinion.

First it states in section (IV) that:
An order directing that, if at the Court Ordered Meeting of the First Respondent, the Scheme
is approved by a majority representing not less than three-quarters (3/4) in value of the
shares held by the members being present and voting either in person or by proxy, the
reports of the Court-Ordered meetings be presented to the Court within 30 days, for an Order
of this Honourable Court to sanction the Scheme.

This can be interpreted to mean that:
(a) OODP holding 57.4% of the votes will vote yes or no at the EGM meaning delisting is a done deal because they'll vote yes or
(b) OODP holding 57.4% of the votes will not vote yes or no for delisting at the EGM. In this case, the three 'minority' shareholders who hold 74%-57% = 17% will have at least a 40% (17%/42.6% = 40%) of the vote given that all other minority shareholders will not be present. This still represents a high odds for delisting at N7.07.


Secondly, in the last paragraph we have the statement:
Today, OODP has a shareholding of 57.37% in Oando PLC and the above-mentioned minority
shareholders 42.63% shareholding. This action precipitated by the petition from certain Oando
minority shareholders, if approved by all the minority shareholders at the court-ordered meeting
will result in a voluntary delisting of the Company’s shareholding on the NGX in accordance with
its guidelines for delisting of securities

This means ALL! the minority shareholders present must approve the delisting for it to happen. I think someone would come back to tell us that this is not the intention or the spirit of the writers of this doc or the court ( this is now looking like the 25% of Abuja brouhaha )

I saw that last paragraph. It's a text by the author of the notice.

Notice that the order of the court stopped at (v) which determines how the voting approval is got.

mikeapollo:
The cross petition filed by Oando and the Court's order for a Scheme of Arrangement do not take away the right of the minority shareholders to vote and decide whether to accept or reject the action of the 14 shareholders.
The minority shareholders will still vote at the EGM to decide the fate of the 14 litigant shareholders before anything else can happen.

The court order/transaction is no longer on the 14 litigant shareholders (who started it) but on the cross petition by OODP.

mikeapollo:
This is clearly stated in the last paragraph:

Today, OODP has a shareholding of 57.37% in Oando PLC and the above-mentioned minority
shareholders 42.63% shareholding. This action precipitated by the petition from certain Oando
minority shareholders, if approved by all the minority shareholders at the court-ordered meeting
will result in a voluntary delisting of the Company’s shareholding on the NGX in accordance with
its guidelines for delisting of securities .

From the last report, 4 shareholders control about 74%. OODP controls 57.37%. Do you know who the other three are and who they represent?

How this is done in the real world is if they are determined to push through, they would have long accumulated substantial shares through proxies and/or in nominee accounts such that they can see the deal through. Other strategies dey wen I nor wan talk.

I'm not privy to the transaction but putting out my opinion based on experience and what I see play out. I could be wrong.