₦airaland Forum

I agree with you on this. I personally have two sets of portfolios tailored towards FA - or TA - influenced investment decisions. Sometimes I briefly I mix FA and TA. But ultimately, I would not buy into a company that is not sound or showing good signs of recovery. So many options to choose from on NGX. And I have no stock I cannot sell.

BullBearMkt:
The beautiful things the stock market brings to well-informed are: VALUE or GROWTH or BOTH.
-FA alone can give you value
-TA alone can give you growth
-Combination of FA & TA gives both.

It's until we understand the role each play that's when we'll appreciate each other.

It would be better not recommend UnityBank that is terminally sick. A bank with over N200billion negative shareholders fund when CBN regulations say minimum of N25billion capital should not be recommended, except you caution it's a gamble. It should not be all about you making the money.

He will sell to individuals that might buy your projected N1.80.

Zero sum game.

locodemy:
Why will the person who bought unity bank at 50kobo and now it is sold over #1 come here to blame people?Cant he sell it or wait for another rally if that is what he wants?

A stock you invested with 500k turned to #1m plus in a couple of days and you refuse to sell because someone said it will touch #3.Is this not greediness if not wickedness?

If bank stocks show more strength, unity bank will still go above 1.80 if you don't know.

Sometimes, these things are pointed out by some persons here, but people get carried away by the euphoria and ignore such caution. Besides, everybody has the right to take a decision.

I cautioned about Unity Bank 3 days ago. Normally, some persons supported my position whilst some opposed and projected higher prices. The market do wetin e do. Ordinarily, UnityBank is terminally sick and should attract gambling only.

Zero sum game.

BullBearMkt:
One of our major weaknesses is the tendency of Nigerians to remain passive in the face of unfolding events. We withhold our voices until the final outcome is revealed, only to unleash our accusations when circumstances take an unfavourable turn. This sound much like a "pull-them-down syndrome!"

Why do you keep mute when price was rising only to start pointing accusing fingers when its going the other way?

If you perceived monkey hunt post, seize the opportunity to raise your concerns. By challenging their perspective, we invite a deeper understanding of the underlying reasons behind such a post. Through this process, we cultivate an environment conducive to knowledge, growth and collective improvement, even to those new to investment among us.

Let's learn to be our brothers' keeper.

Fundamental Analysis (FA) and Technical Analysis (TA) are two recognized schools of thought, with some peculiar leanings. It would be beautiful if an individual knows both. However, a lot of times, they don't necessarily yield same results if applied together in a decision to invest or not to.

Whilst TA (by extension our SA - sentimental analysis?) would be more favourable to 'traders', FA would be more favourable to long term investors. Both can give good returns.

I would think that any person following TA should also closely monitor the market to know when to enter or exit. Why I normally would caution 'newbies' on that. The health of the company itself is very important, when applying TA, otherwise na gamble you enter. Of course FA would do justice on that.

ZERO SUM GAME
During training in stockbroking then, an instructor alluded to securities trading as a zero sum game. Bullish or bearish.

The consolation is that the market moves in cycles most times, especially for good/healthy/sound stocks.

Nobody knows the market perfectly, just like there's no perfect market. We all operate at varying levels of knowledge. We should all strive to grow/improve on our knowledge so as to be better always.

LoL. Pastor nor wait for N2 (abi N3). Lucky you. Welldone for the alert sha.

veecovee:
In case you have unitybnk, I sell this morning oo.

I no like wetin I see for Jaizbank

If you mean new investors, at least N250billion would be injected to meet the minimum capital requirement to have a banking licence.

If you mean investors buying existing shares on NGX, the price could go up or down and they earn profits or losses, life goes on. Also, the CBN could take over the bank for persistently having negative shareholders fund, failing to meet the required minimum capital for a bank in Nigeria; shareholders lose their investments.

veecovee:
What do you think will happen to the bank if investors show interest in the bank

I can actually trade on Unity Bank shares but will not hold overnight. E get why. My advice was primarily to 'newbies'.

Good we agree it could be 'extremely dangerous' to hold Unity Bank shares. 100% loss is possible anyday CBN decides to do the needful.

Geovanni412:
Unity bank is for hit and run

Someone looking for a quick 20-40% profit in days

In 13 days for the month to end, it is very likely unity bank will achieve that.

AFTER THE MONTH ENDS, it is[b] extremely dangerous[/b] to hold onto or buy Unity bank .50-50 chance it pumps like ftn cocoa or crashes like penny stocks like abc transport. Whichever one happens, will happen with speed.

Unity Bank!
I have noticed the recent rally and interest in the price of Unity Bank. 'Newbies', please stay away o. Leave the stock for the 'smart' ones o. They can handle any outcome better. Reminds me of Skye Bank and my loss there (even though Skye was healthier than Unity).

Unity Bank is and has always been around because of other considerations - political, etc. It could not even meet the minimum N25billion capitalisation after the banking consolidation exercise that year. Now, it has been on NEGATIVE 'capital' for some years.

T+3 relates to when your executed trade settles and you get paid.

If you specified a price limit, maybe it has not been attained. If no price limit and you inputted your trade on their portal, it has not reached the NGX, maybe due to an unresolved technical glitch. If you gave them the mandate to execute for you, then it's a result of their inefficiency.

MTN is a liquid stock that can be sold anyday as long as there is no price limit. Contact them tomorrow to deal. If sold tomorrow, your pay is due on 17th June (T+3days).

Kikiwalle:
Hi, Good evening.

Please someone should help.

I initiated a sell order via Chapel hill denham last week Monday, 5th June for my MTN shares. But up to now it's still in executing stage.

They say it's T+3, now T+5 no feedback

Thank you

It's final dividend payable by the bank to its shareholder(s). Now, the holco is only shareholder to receive it from the bank, and then pay as interim dividend to shareholders of its (holdco's) shares now listed as Sterlingng.

My confusion is the 'qualification' date of 19th May stated there. Does it mean those who held Sterlingng shares as at 19th May will receive the dividend or a future qualification date (as usual) would be announced? Or the date applies to Sterlingng as only shareholder of the bank? More insights, please.

Accesscorp did a better job at communicating their similar scenario.

beejay1:
Thanks...i thought this was meant to be the final dividend as stated in their 2022 audited FYS. So where is 'interim dividend' statment coming from.

Terms for the Tier 1 capital ($500million) are actually stated on page 247 of the 2022 Annual reports. Rate now is 9.125%, payable from 7 July 2022. So should have been charged to arrive at the profit for the year.

BabsO2:
Access raised additional tier 1 capital about two years ago. The providers of this capital deserve a share of profits. The annual reports does not state explicitly what portion of profits belong to these equity stake holders. It will be wrong to assume all the profit attributable to shareholders for Access belong to NSE listed share holders when they were not the ones that injected the additional tier 1 capital 2 years ago. Look at the two clips from their financial statements below to help further appreciate the issue. Hope you get it now why I discounted the EPS of NSE shareholders.

Even after apportioning a portion of profits to the Tier 1 Equity Stake holders in proportion to the size of their Equity. Access EPS of N3.57 for 2022 is still very good. Plus the rate at which Access has grown incomes in the last couple of years has been excellent. Perhaps the foreign acquisitions have done very well and the Injected Tier 1 capital completed in FX was good. And as you noted if Ghana impairment is discounted, Access is doing very well.

yMcy56:
Yes, in most cases.

Aside the published big ones posted by OGG and referenced, there are some smaller ones that could be noticed too........ especially if you queue for a particular stock and you're monitoring your order.

If you queue and you noticed your Order is No.2, then you saw some trades on that stocks but No.1 is not filled, then just know those are Cross Trades.

Unusual huge trades, single huge trades, chains of Trades are mostly crossings too.

The attached 75M single trade on Access is cross trading.....

Thanks. I understand you now. It's more by observation.

On the automated trading system (ATS) the firm's trade on NGX, there's a CROSS submenu (box just like SELL and BUY) to input a cross deal and the transaction is flagged (with a sign) as a cross deal. That was what I looked out for on itrade to identify cross deals (apart from those announced).

yMcy56:
If I get you right, it's Cross Deals.
We've discussed much about cross dealings here.....
It could be mvmt of stock from one customer's account to another; or from one broking house to another.
The transactions just have to pass thru the NGX Trading Engine for proper documentation and the likes.

As for Morgan, they suppose reward me o.

Please can you identify cross deals on the MorganCap itrade platform? If yes, how? I understand what cross deals are.
Thanks.

Ibrahim505:
I sold my stock on Friday, is my fund available for widrawal today? (T+3 rule)

Yes. T+3 rule.

I would guess most (if not all) our commercial banks will hold mainly cash balances. I see they do derivatives. Bulk of their earnings are within Nigeria though. However, those with treasuries would need made provisions, just as with the Ghana debt crisis. I don't see replication of the UStreasury-induced crisis affecting banks in Nigeria.

For CBN, I can't guess. But our reserves are thin and fluctuate rapidly to think anything substantial would be invested in US treasuries; or where invested, not held to maturity.

RabbiDoracle:
The simple question we should be asking ourselves is : how does CBN store her foreign reserves in US banks? Cash? or it is invested in US treasuries?

How do Local banks store their foreign reserves in corresponding foreign banks? Cash or it is invested in US treasuries?

Many banks will invest in the "risk-free" instrument of US or EU treasuries as at 2020 and 2021. And in 2022, there was a huge decline in these treasury prices and automatically causing any financial institution to take losses on these supposedly risk free foreign reserves.

Were these factored into their P/L accounts like the type we see in many US banks that have collapsed as a result of the bond losses which many EM banks have their foreign exchange reserves invested in.

On this note, financial institution doesn't seem investable for me for now because there are lots of issues that are unresolved in the country where their foreign reserves are invested. If the US and EU banks are taking severe losses, how about our banks and central bank that invested in the same instrument? This goes for all EMs financial institutions.

When GTB declines to such low price, then imagine where other tier 2 banks could get to. It will be kobo kobo galore.

Good morning.
I think the confusion might be from the zero PAT. Depreciation is already deducted in the income statement to arrive at the zero PAT. The next place it's deducted is from the cost of asset. E+L=A must balance.

Another way to look at it is, if depreciation is not deducted in the income statement, the PAT balance would be profit (not zero). So it's been deducted 'indirectly' from equity (PAT) and also the cost of asset (to get carrying value of asset); the balance sheet remains balanced. Both are just entries, not affecting cash.

When PAT is zero and no PPE purchased in a given year, depreciation deducted in the income statement is for the already existing assets (if any) and the value of the assets on the balance sheet would be cost less accumulated depreciation.

I hope this is helpful.

ositadima1:
Good morning. I am not clear yet. When PAT is zero and no PPE is purchased in a given year, I understand these happen:

1. From the revenue depreciation is deducted along other expenses including tax and interest. So, because depreciation is a non cash (it is not actually expended) item on the income statement there is actually a net income despite PAT being zero.

2. On the balance sheet, If depreciation is deducted from the cost of the asset on that given year then we have a PPE account that is reducing.

If equity remains unchanged, I think there has to be some other account on the balance sheet that was increased to offset the reduction in PPE. Which of the accounts get credited with depreciation proceeds to maintain the balance unchanged?

The deducted depreciation is accumulated (accumulated depreciation) over the years of the asset (until sold or scrapped) and deducted from the cost of the asset to arrive at it's value stated on the balance sheet (carrying value). It doesn't affect the cash balance.

Where PAT is zero and no PPE is purchased, equity and cash remain unchanged. Depreciation is just a provision (book entry) involving no cash movement. Items that affect equity are share capital/premium, revaluations, PAT balances and appropriations/reserves. There's a basic formula: EQUITY+LIABILITY=ASSET

ositadima1:
Thanks, I would also like to know where is the deducted depreciation (in d income sheet) accounted for in the balance sheet?

I think it is added to cash account, what confuses me is that it seems to be deducted again in a counter account under PPE.

In another example, where PAT is zero and no PPE was purchased equity suppose to grow from excess cash due to depreciation not being a cash expense?

If the purchase was during the year of account, depreciation for the period in use would have been charged to arrive at the zero PAT (strange). PPE will increase while cash decreased by the cost of acquisition. Equity doesn't change. At the basics, equity would change in a situation of zero PAT if there's a revaluation (up or down) of assets.

Reduction in cash cancels increase in PPE. Accounting wise, for every debit(PPE), there must be a corresponding credit (cash).

ositadima1:
If a company made zero profit after tax and purchased property and equipments from its cash, would the equity remain same?

Should d reduction in cash account cancel out the increase in property and equipment account?

Hmm. Might have been cleared by those who put the bulk there. Costs only the transaction fees. Still closed down. A director who had 11.6m units sold 11.4m units at N3. Will need to buy back low.

onegentleguy:
They have cleared the near 250M unit of TRANSCORP on offer.
Some VIPs dey read our post here.

God is watching you people.
Let's hope that the price will come down a bit more.
It is well

It was not a mistake. Was the same last year. It's distributed from profits made when they enjoyed pioneer status from the FG. That is a period the government grants tax holidays to qualifying companies that apply. It's for a given period, as an incentive or for protection. Profits made during the period are not subject to tax.

PS: In the announcement, it's stated to be payable from the Pioneer Reserve.

Ginalex:
Please is it possible that WAPCO made a mistake of not deducting WHT from their dividend payouts? If it's not a error, please can someone help with any document that throws more light on why WHT may not be deducted from dividend? 🤲🤲

Thank you. I know about the new biz areas, hence my interest in the company. My worry was the increase in Cost of Sales (2450%) vis-a-vis increase in Revenue (72%).

Anyways, subsequent financials would give clearer picture.

Thanks.

Heishere:
They are branching into providing IT solutions. The cost is probably for purchase of servers, storages, software, licenses, cloud subscriptions etc

Africa Prudential Plc
Please anyone with insight on what the N496million cost of IT Infrastructure, under Cost of Sales in Q1 2023, means. It's a new cost item in the financial statements and significant.

Yes.
And probably United Capital and African Prudential. Don't forget they're not as regulated as UBA.

Two years ago, I was surprised to see AFRIPRUD had a N2billion deposit for shares in Heirs Insurance biz, which shares have now been issued.

emmanuelewumi:
Las las na UBA shareholders go subsidize the transaction.

If you pay up to 500k as tax, it means more than half of your tax is at the rate of 21%.

emmanuelewumi:
Mind you, I don't pay corporate tax


My younger sister pays far more than that oo. I am sure a lot of people on NSEMPA pay more than that

21% as tax is on the high side

That's wrong of them to tax your dividend income again.

They have discretion with other income classes but not dividend, once you can back up your claims with proof.

emmanuelewumi:
Yes.

The tax people won't believe you only earn investment income.


So they will size you up and award something extra

10%WHT on dividends as final tax payable is also provided for in the Personal Income Tax Act. S 71(5).

GreatEko:
Due to the absence of "franked investment income" provisions in the Personal Income Tax Act, best thing would be for him to upgrade his Business Name to a Limited Liability Company.

Any dividends he receives after the deduction of 10% withholding tax are regarded as "franked investment income".

Franked investment incomes are exempted from excess dividend tax under the CITA.

You're correct. LIRS or any State Internal Revenue Service is in charge of PAYE and all taxes from personal incomes/businesses earned by residents.

emmanuelewumi:
Yes.


But LIRS or the state Internal Revenue Services are in charge of PAYE.

Can you kindly throw more light? Divest from what? Thanks.

Oyindamolah:
Divest

I would guess the business is registered as a business name (sole proprietorship), hence LIRS.

For limited liability companies, the tax applicable would be Companies Income Tax Act, administered by the Federal Inland Revenue Service (FIRS).

emmanuelewumi:
It is registered, they are paid PAYE every month from the workers

I think the direct assessment from LIRS which I pay once in a year is cheaper for me

Use the website. The app has issues but you can trade via the website.

drotba:
Meristem that one cannot login for over a month now.

Good dividend.
Good results save for the N103billion charge due to the Ghana debt crisis.

Teeonly:
https://doclib.ngxgroup.com/Financial_NewsDocs/38273_ACCESS_HOLDINGS_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2022_FINANCIAL_STATEMENTS_APRIL_2023.pdf

N1.30 Dividend