₦airaland Forum

Saviourplease:
I am back here again to say thank you to every member of this group. This has been my best investment so far and I can't thank you guys enough for the tutelage and guidance.

less than 600k has grown to 1.4M in three years!

Congratulations. You have done well.
Would grow/have grown faster if you reinvest the dividends received.

thebargainhunte:
The kind of manipulation going on in eterna oil is legendary. Those that put their offers first were ignored.

What you see is not manipulation.
Given the situation Eterna is in now, the stockbrokers will satisfy their internal selling/buying clients first through cross deals, before offering to/buying from the market.

Same applies when a stock is on full bid.

locodemy:
I was thinking all these delayed result will be very poor but some are good.Jaiz tried.

Fidson will be retracing back to 7 with this result.We expected a better result than this.

https://doclib.ngxgroup.com/Financial_NewsDocs/39181_FIDSON_HEALTHCARE_PLC-_QUARTER_2_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_JULY_2023.pdf

Not bad, in my opinion. They absorbed exchange loss of about N800m.
EPS is lower because of the bonus shares issued recently (1 for 10).

N7 na long journey, but not impossible. I pray it comes sha; e get why.

Mankindman:
I paid nothing in 2019 and 2020 transfers from 2 leading brokers to my index brokers
My pen is not nice to read when it comes to my pen.
The 2 brokers would tell you the speed at which they surrender my portfolio to the index.
You dare not mess with my money. I protect my sweat and blood with my pen.
I don't want to mention names of the financial institutions I had won dispute against at the cbn, FCCPC, sec.
I would never pay such money I repeat.(10×)
I trust what my pen can do.

Knowledge of the rules that guide operations of Capital Market Operators is key. A stockbroker is just an agent who is paid commission (pegged @1.35%). Any other services rendered outside the capital market operations can be charged as prior agreed. After collecting his commission, he has no hold over your shares, unless there's a lien in place. Besides, the shares are actually domiciled at CSCS.

Some time ago, some firms charged to open CSCS account for clients; some even peg their commission at minimum of N500 or 1.35% per transaction (whichever is higher) such that if you sell shares worth N800, they take N500 as commission. These are infractions that the client wins if escalated to the regulators.

I have transferred from a firm sometime ago without paying a dime. They were foot dragging until I petitioned NSE who queried them and they effected the transfer immediately. Ordinarily, a firm would not want to loose a client, but have no right to hold down any that wants to leave, if they are not owed.

emmanuelewumi:
Excluding the N4.9 million CBN will pay him when the Investment matures in 20 years time


Not bad for an initial investment of 500k made about 4 years ago, which was sold and the proceed was invested in FGN bond.


The total coupon that would be earned in 20 years will be N14.6 million.


If the coupons were invested for the long term in well selected stocks, the investor would have a wonderful result

So much to learn from this.
Delayed gratification. Investing right and holding. Power of compounding. Many possibilities with good knowledge about investing.

yeddy99:
How do you reconcile figure of almost X4 when naira only did approx X2?

The value of the reserve would fluctuate with the amount invested in $ assets and the exchange rate.

Within the reporting period H1, FBNH must have acquired more $ assets as it shows in the StmtCshFlows. So the translation would not be just on the assets held as at Jan 1, 2023, hence almost x4.

Coolcash1:
FBN HOLDINGS PLC H1 JUNE 2023 RESULTS (UNAUDITED)
NGN 2023 vs 2022

Gross earnings: N656.552b vs N359.151b : +82.81%
Profit/(Loss) before tax: N206.261b vs N65.723b : +213.83%
Profit/(Loss) for the year: N187.237b vs N56.602b : +230.80%
Total comprehensive income/(Loss): N382.575b vs N19.45b : +1,866.97%
Net Assets (vs 31 Dec): N1378.316b vs N995.741b : +38.42%

Another round of bull expected tomorrow with this great result by FBNH...

Fantastic result, on the surface.
A closer look, however, shows bulk of the profit was from 'Fair Value' of financial assets; huge in Q2 (N236b) but marginally negative in Q1. They bought heavily into derivative assets in Q2. Notes 9 and 18 and the Statement of Cash Flows revealed.

What would be the fair value of those assets by YE? Up or down? The Audited accounts would reveal. So caution be applied.

Market might not send sha, so price could skyrocket from tomorrow. EPS of N5+ is no joke. We know price movement is not very dependent on the fine prints.

vacanci:
From 770 to 860 is 12%.

meaning if you brought in $1000 and you want to take it back as it is, you have lost 12%.

Now the question is, what was your profit in the NGX? Your statement is only valid if you have neither lost nor gained in the NGX.

If you have lost in the NGX, then your overall loss is more than 12%
If you have gained in the NGX, then your 12% loss claimed is not valid.

example, let's convert the $1000 at 770, that will give us N770,000
N770,000 invested in the NGX must have been during this bull run going by the rate. so lets assume you had 20% (excluding charges). This gives N924,000.
N924,000 converted back to $ @860 gives $1,074

So your asertion is not right pls

Thank you. Your illustration came to my mind when I read that comment. 12% or more could even be made in a day sometimes.

locodemy:
While the decline slows down from next week in some stocks, there is one stock that is carrying plenty shareholders at back.I just picked one catalyst which will drive this stock above imaginations during my review of stocks last night.
I will make the stock known here by next week.

Have a fruitful weekend

Transcorp 😁

Mpeace:
The man they are fighting is not even saying any thing. He knows he can easily pay off the said bad loan and still increase his stake in fbnh especially now that the directors and other stakeholders are observing the closed period. But he also knows that he is no longer liable for honeywell debts and If I were him, I will simply sue Ecobank for all the embarassment.
The law is clear that a buyer buys both the assets and liability and that a guarantor only comes in once the company cannot pay back and has no asset to be attached.
Flourmills already bought the assets and liabilities of Honeywell, and are therefore liable for the loans. Why chase the Oba around when Flourmills have not been liquidated.
Its very unfortunate that most of our banks have very very poor legal departments. You need to see how many of them get messed up in courts across the country

Another perspective is that the loan was obtained by Honeywell Group (then holding company of Honeywell Flour). That's a different entity from HFMPlc acquired by FMNPlc. It's a whole web of intrigues. The loan by HFM was to FBN and was disclosed during the acquisition process.

https://businessday.ng/business-economy/article/sanusi-weighs-in-on-ecobank-vs-otudeko-saga/

emmanuelewumi:
It happened about 20 years ago when Access Bank was still a small bank


Aig tried hostile takeover of the defunct Afribank on the floor of NGX, CBN asked Access Bank to sell the shares of Afribank


Two years after the same Access Bank tried a hostile takeover of Union Bank on the floor of NGX. CBN nullified the acquisition
Ebong then started using the bank funds through Ololo to defend the share price of Union Bank and ward off corporate raiders

Days of the 'cowboy bankers'.

Funny thing with Ololo, he would allow purchase of UBN shares at lower prices during early trading sessions only to come few minutes to bell ring and mop up everything to the highest price. I was on the floor one of the days and we hailed him seriously because guys made money, unfortunately at the expense of UBN shareholders. Peter Ololo. One-man squad.😁

emmanuelewumi:
Abi ooo.


I don't do fixed deposit again, Rather buy Money Market Fund from

Stanbic IBTC Asset Management
FBN Quest Asset Management
United Capital Asset Management
Meristem Wealth Management.

You can always redeem your investments through the app.

Better to initiate the redemption 24 hours before when you need the fund or before 8am on business day so that the redemption will be processed before 2pm ot close of business

Axa Mansard Investment Ltd. is good too. Efficient. You're assigned an account number for easy subscription.

emmanuelewumi:
Yet to get the figures for the Rice business. I believe the rice business should be smaller than NASCON

They would do enough bonuses and stock-split in Dangote Rice to look good and fitting. That's where he would compensate himself in the deal.
He already has about 70% holdings in both DSR and Nascon.

ositadima1:
4.2

Aaah. I for don hammer.
I got more units last week at 2.60. Enjoyed the last bonus and dividend should be declared soon for year ended 30 April.

ositadima1:
I have also been invested in CUTIX, the stock that Loco was badmouthing for his selfish interests. It has a ROE of 36%, equity growth of 25.5%, and my valuation is 42 naira. For now, it is impervious to bears. Do your own DD.

Did you mean to write N4.20 or N42.00?
It's a small company with good products and some market niche. Seems well run too.

[quote author=jarkbauer post=124380440]This. [quote]Closing price is the last price at which a single transaction of 100,000 units of a share is traded before close of trading. If no single transaction of 100,000 units occurred, the price does not change for the day.

Only (I think) market makers can view the market between 2.20-2.30pm but transactions continue at the background for all till 2.30pm.

kolaish:
With due respect, I think you and others should stop trolling @locodemy. He has done well for himself and for all that followed him, if any. You mean someone advised you to buy a stock when it was between 25k and 40k and you are so frail that you did not exit the stock after 100% return. Are we kids here?

I bought 3m units of japaul at around 33k when I made comments about Japaul here and added another 6m units @40k making my average price 37k, I exited at 85k. That gain is fair enough for me. I like getting out of a stock when the door is wide open and the ovation loudest, with pump and pageantry.

Summary

Please and please, if you are following someone, do not wait for the person to tell you to exit when you have met your target, because that person would have sold before coming to tell you here, just as he bought, before telling you to buy.

I come in peace o.

I have no reason to troll Loco. I only offered a brotherly/friendly advice which I presume he has seen.

locodemy:
Please I beg for pardon.
Don't feel somehow pls.
General market pullback befall on Japaul suddenly.When coolcash gave the signal,I discovered that the japaul bids has drastically reduced to 33m bids.Knowing fully well that one can pick more units during pullback,I decided to exit all.i don't know how long this pullback will last but I must reload the Japaul because I still have confidence in it.

Pls next time, when you have a stock and discover the market is bleeding, do good to sell because it will shake the stock too.

Whilst your action to exit is good for you, your high recommendations for Japaul, even earlier today, should make you have a rethink on your 'strategy' for the sake of others (especially 'newbies') who look up to you in this business. The other day was Chams. InterBrew. Ellahlakes sometime ago. It should not be all about you making the money.

Thanks. I saw the news last night in a WhatsApp group I belong to.
Still unfolding.

yMcy56:
FBNH
* @Frangel - it wasn't new investors as earlier said....the shares were mopped from Oba's allies who must have acquired the shares for this particular purpose...
It was pre-planned
https://nairametrics.com/2023/07/07/exclusive-oba-otudeko-behind-4-5-billion-fbnh-shares-transfer/

yMcy56:
I don't think they are new set of investors but Oba's faction...it's a planned work which they must have been planning since he was ousted from FBN board.

We should expect counter action from the Adenuga/Adeduntan's faction as well.
We needed to know Otedola's faction and who brought him in, or maybe he just saw opportunity and entered that time.

We'll likely see rain of billions in coming days......
11% no be moinmoin, let them sha come and mop up on the floor......retailers need to chop...

And they waited till the closed period to execute when others cannot officially counter. Interesting days ahead.

FBNH is a very huge business with many profitable subsidiaries. A giant in the sector, limited by insiders.

Thanks for your insights.

Mpeace:
Otedola's hands must be tied right now by the closed period. He cannot buy nor sell. He can only wait till the q3 results are out

Q2 results

Harvestock01:
The closed period is always before the public declaration of FS.

Most (if not all) companies on NGX have current closed period from July 1 till 24hours after results are released. From first day after end of quarter till 24hours after results are released.
Standard practice.

yMcy56:
11% was recorded to have been purchased by Oba.
* As it is now, he has become the highest single shareholder in FBNH.
- Otedola: 5.57%
This baba like vawulence so much....
Let's see how Otedola will respond to this....they pursued him in TRANSCORP, will he concede to defeat here too?
Hope he's not the one that sold at premium again..because he's average price was less than N10...
- Let's hope it's not planned work btw Oba and Otedola as well.....because those ogas can be something else.
We see how it goes.....but whichever way, I think it's a win win for shareholders.

Sure Otedola did not have that volume. Oba has had strong influenced in FBN for quite a while. Possibly new sets of investors altogether are taking position. To gather that volume must have taken some time.

All would be revealed in the next few days.

sincerelymine:
https://nairametrics.com/2023/07/07/exclusive-oba-otudeko-behind-4-5-billion-fbnh-shares-transfer/?amp=1

This is more like it. Closed period comes to mind when insiders are restricted; and corporate raiders can have the field.

That's over 10% shares of FBNH.

onegentleguy:
On FBNH's huge volume of cross deals and intra-day mkt trades, I've been informed that the name behind the deals is Sir Femi Otedola.
A total value of over N87.8B was put in the bank yesterday.

...Likely scenarios;

• Current positioning may likely take his stake to within 10% or above and ensure broader board control.
On that backdrop, there's a possibility some select board members of FBNH appointed by the former CBN Gov, Mr Godwin Emefiele will be dissolved with names loyal to him brought in.

• He's mopping up additional stakes to wade off competition from fellow BoD rep Billionaires, Oba Otudeko, The Odukale's of Leadway Ins... but particularly Sir MA the Conoil/Globacom chief.

• He will likely take up the position of new BOD Chairman of FBN Holdco when all of this is over.

CAVEAT: NOT to be interpreted as any sought of recommendation. The need for due diligence should always take higher precedence ahead of this post.

Selah

Most probable.

On a second thought, this should be CLOSED period for FBNH and most companies on NGX when directors, insiders and connected persons should not trade on the related company's shares. Ote$ falls in that category. Maybe I don't understand that rule properly.

Na naija we dey sha.

emmanuelewumi:
This revenue reserve is cumulative, built over the years.

Investors will love to see growth of the retained earnings.

If dividend paid is higher than current earnings, there should be a cause for alarm if it becomes a regular occurrence

I agree with you. Rational investors would.

customstreet:
Thank you my brother
Dividend are usually from the reserves
I attached this document to buttress my point
Have a nice day

Both of you are correct depending on the question in particular being answered.

Dividends can be paid from current earnings and/or revenue reserves (carried forward from previous periods).

Another name for Retained Earnings is Revenue Reserves, distributable as dividends. Na turenchi.

IYGEAL:
The way I understand it, brokers make the deals and send values to CSCS. It's possible they will choose high offers from their clients (for a buy order) and execute in-house before CSCS knows about it. I stand to be corrected.

Presently, what you described is possible when the client is in agreement with the deal i.e. a price is agreed off-market and trade completed on NGX, the official fees are paid at the executed price, then consideration exchanged with client as agreed.

A client has right/opportunity to get his trade history from CSCS giving prices, quantity and dates. Any distortion with what the firm gives him can be queried and the firm risks sanctions. The scenario where firm tells you a different price from price of execution could happen maybe 20years ago.

I agree with you. Net Margin dropped to 1% in Q3 2023 because of a N10billion loss at Honeywell. Hopefully, the acquisition of Honeywell would bring more benefits than costs. Borrowings are growing quite fast, with the attendant finance costs.

Audited reports should have been out by end of May. Who knows.

Las las, I hope they discover the trick to bring efficiency to FMN. It's a sleeping giant that I would like to align with.

emmanuelewumi:
Flour Mills of Nigeria can do better, but currently not doing enough.


Return On Equity of about 10% considering the huge debt is not good enough. Net margin of about 2%


The valuation is cheap, but profitability ratio and efficiency are not encouraging.

Since the market is bullish, anything can happen.


I don't know the catalyst that will ensure the latent value in Flour Mills is discovered.

June is end of Q2 and H1. Portfolio managers and firms invested in shares will prepare financials. Profits earned. Provisions made for carrying values, up or down, referencing prices as at June 30.

Trade cautiously, even though the market generally is upbeat, going into Q3 and probably Q4.

Just my thoughts, anyways.

Something they did not do to meet N25billion capitalisation that year? Anyways, they can if they want to.

But would it be wise putting about N300b into UnityBank to bring it out of the woods or use that amount and take over a relatively sound existing bank, start up a new one or support Jaiz? Up to them sha.

BullBearMkt:
...well, I presume the Northern govt would rather sell their stakes in other ventures and put the resources in the bank to remain afloat, than to see it oblivion.
My thought though!

Unity Bank is still existing because of other considerations like politics, etc (possible in naija). It's banking licence should have been withdrawn over a decade ago for not meeting regulatory requirements. It's shares have a negative book value (not upto 1kobo).

You can't compare other (non-regulated) companies to it. Dividend payment is not a yardstick for measuring health of a company. A company can decide not to pay dividend from profits or even decide to pay dividend from retained earnings in the years it operates at a loss.

locodemy:
What of if there is merger or buy out?
Will it be sold at same 50kobo?

Why has NSE or Central bank not sanction them if the 200B negative shareholders fund is a problem?

What of those companies that has Billions and refused to pay dividend if the negative of unity is the headache?

So people should stop trading on unity bank right?

This is selfishness bro.