₦airaland Forum

'Seller' made no loss. E go dey see bid for high price, dey sell for lower price. Try understand wetin I write na.

Mpeace:
Which open market. E be like say you no dey see the level of bid. The seller made a serious loss. The seller lost over 140 million naira and counting.

You get it.
They rush to bid at highest price to mop up any sales, sell off some to raise cash (like yesterday), make sure it closes up so that any contenders would have to buy at higher prices next day. Bulk of his/their holdings might be at less than N1.50.

He could not be calling the shots at Transcorp all these years with less than 5% holding. And he must have been privy to the sale to FO before it was concluded.

PS: Same game Access guys tried to play on UnionBank that time before the unions in UBN started screaming and they had to sell off what they had accumulated.

Lion123:
You are actually VERY CORRECT. I am actually now just hearing that TOE owns more than 40% of Transcorp and that all his shares have long been held by these proxies and he's only bringing them out now. He's following the Keem Osagie playbook with UBA pre-2004. I don't know why he'll be hiding his true position.

Transcorp:
Off-market sales at N1.85 when the open market could absorb the volumes at higher prices (more profit) to the 'sellers'? These shares might have been held off-the-radar in pseudo/proxy accounts controlled by TOE before now. They're being consolidated now so as to declare the holdings officially, with FO's deal made public.

These things could happen.

Even the NGX. Before, stockbrokers were required to notify the exchange on transactions that meet a threshold (in this case, N100m).
Buying and selling in tranches can make monitoring difficult.

Most compliance would voluntarily come from big ticket transactions by HNWIs, fund managers and the like.

emmanuelewumi:
So my Stockbrokers will have records of my purchase price and the profit made

I'm not a tax professional but the provision applies to capital gains (profits) made when shares with value of N100million and above are sold, without all or part of the proceeds reinvested in shares within a year. The 10% tax is applicable on the capital gains (profit) made in the sale.

Example, shares bought at total cost of N70m were sold for N120m and cost of sale was N1m, capital gains would be N49m. CGTax is N4.9m, assuming the proceeds were not reinvested within a year.

emmanuelewumi:
Can a tax professional explain this to me

Wow. And a draconic part of the recent law, I think, says you have to pay before an appeal would be entertained.

BoJ leaves room for intrigues by the tax officials.

emmanuelewumi:
For Lagos State, dem no send you oooooo.


After submitting all the necessary documents in January 2023, they still asked me to pay an additional 500k based on their Best of Judgement from the tax office

No. For both individuals and corporates.

An efficient way to avoid tax. Some of our billionaires go for dividends. Total tax paid by them is not proportional to what they earn, given corporate tax at 30% and personal income tax upto 24% on chargeable income.

robobo:
After this 10% WHT, is the balance still subject to PIT (Personal Income Tax) if the dividend is paid to an individual?

Transcorp o
Transcorp o
Una fi run take cover

Yes, main reason EPS dropped. The impairment is largely as a result of the Ghana debt crisis.

beejay1:
Net impairment charge on other financial assets of 35B (2022) as against 760M (2021)....
Could this be the reason why there was a drop in profit and EPS?

LoL.
Price of Forte Oil (AfricanPetroleum) came down the way it went up. What was AP's price before the take over? If you know, you know...

perfectgen:
Add Forte oil; I dodnt only take a haircut on that stock, I became bald; all the way from.162 naira entry price to selling it at 19 naira.

Use the website. The app has not been functional.

Curiouscity:
Please, does anyone here know what is happening with the Meritrade App? I can't login for more than 2 weeks now.

Is anyone using it successfully?

Good quality stocks are of companies with good fundamentals. Semantics. I can't put Oando (since acquisition as Unipetrol) and Skye in that category. It's not about price or visibility.

Of course companies with good fundamentals can hit the rocks with time, but the signs would be out there a long time before. Hence the investor has to be on the outlook.

Please note I was advising on "long term investing" and not "trading". Any stock at all can be traded.

dapix:
Hope you can say the same thing for OANDO, SKYE and other Companies that have been delisted or scrapped? Trading on shares with good fundamentals remain the best strategy.

My simple advice to the average investor on NGX is to have a simple plan of thinking long term, buying good quality stocks that pay dividends regularly and reinvesting the dividend. Buy more when you can add more funds. You would have grown a good portfolio over the years. Be disciplined with reinvesting your dividend.

An investor that bought 1000 units of GTBank@N5.10 at the IPO in 2001, would have shares worth about N170k now and received over N172k as dividends to date. An investor that bought Presco at about N10 around 2008, would have it at N150 per share today (not recognizing dividends paid o).

Please leave the complex strategies for those that might know how, until you learn better. They don't always win.

The audited financial statements are not yet out.

27k was for Q4 (Oct-Dec), while 2k is for Jan-Dec 2022.

Like I posted earlier, they have a healthy retained earnings balance, so can pay 20k or more if they want and can raise the cash, other factors assumed normal.

The company has a book value of about N5 per share.

ositadima1:
Thank you for pointing that out. Does this mean that the EPS is actually 2 kobo? I had based my calculations on the fourth quarter results, and I was under the impression that the Audited financial reports were delayed.

Yes, they can pay 20k or more from their retained earnings, if they can raise the cash for such.

Q4 2022 EPS alone is 27k, but they have 2k EPS for the Year 2022 (UFS).

ositadima1:
Caverton has the potential to make a strategic move by announcing a dividend of 20 kobo, which would result in an impressive yield of 20% based on the current market price. If such a move is made, I anticipate the stock price to rise to approximately 1.7 naira. Considering the 2022 fourth-quarter reports, the earnings per share (EPS) stands at around 27k, which makes a dividend payout of 20k feasible.

I guess 'Apr' means AfricaPrudential, the qualification date is 14 April 2023 (14/04/2023) and closure date is 17/04/2023.

In this case, if you sell on 15th (assuming it's a work day) after it's price has been marked down for dividend, you will get the dividend.

Streetinvestor2:
Pls I use to think the the interval btw the qualification date and closure date is usually a day.Using Apr with qualification date to be 14/03/2023 and closure date 17/04/2023.What happens if you sell in btw this two dates?Do you still get dividend

The NGX is basically a market for trades on existing securities (in this instance equities). The price movements directly affect sellers/buyers of the equities, not the company (except for perception and valuation).

Companies largely raise capital via equity through public offers or private placements, handled by their issuing house(s), brokers(s) and other parties, after approvals from SEC at a fixed price. The capital raise could be promoted on the NGX if the company is already listed.

comatekeke:
If a company plan to raise capital(on NGX) via equity issuance,will the share price go up, down, or remain stagnant?

Your order should have gone through if you left it valid. They're up and running today.

dongallant5:
Actually that's true I just checked and the order was actually for 7 days. That's why I need to change my broker.Trades don't always get executed timely on Meristem gotta always keep reaching out to their customer service maybe it cos they have lot of clients.

This is not correct. I placed an order today on Meritrade, tried to confirm on another platform and it did not get to the market. This technical glitch happens occasionally. I've used them for some years now.

Streetinvestor2:
It is another way to scam thr clients because you put market limit. If you had left in best Market price.They would have dumped on you.

Was your order valid for more than a day? If yes, the problem must have been from Meristem. Seems they had a glitch today. Stanbic traded below N41 today, so your order would have been filled if it got to the market.

dongallant5:
Pls I need help oooo.I placed a buy limit price order for Stanbic IBTC bank #41 Friday closing price.At the end of today trading the price still remained #41 and Meristem has not executed the trade.What are your views pls? Is the problem from the market or the stock broking firm

The pictures were not taken same day.

PO's first pic (Owerri) posted by ANAP Foundation, the shirt has no right breast pocket.

The other pics (Ilorin), the shirt has a right breast pocket.

lhordspy:
Few days back, When the news of ANAP foundation sponsoring Peter Obi's campaign with their jet for transportation broke.

ANAP foundation through its official twitter account dismissed the claim as a lie targeted at their ANAP & NOI polls ; which project Peter Obi as the frontrunner of the presidential election; Calling it 'an act of desperation of some persons to present the photo as a proof of bias by the polls'.

The link to the ANAP official statement denying the claim on twitter here:
https://twitter.com/anapfoundation/status/1626516657500717056?t=PcIi0J3VnwzUMS3gziGrpg&s=19

Today , Pictures emerged of Peter Obi actually highlighting off the same ANAP jet. Infact Peter Obi tweeted it himself during one of his campaign in Kwara state.

The underlying assets in MMFs are TBs, commercial papers, bank deposits, etc.

TB rates are crashing but the rates for others are still double digits. So the managers could do less of TBs and more of others to maintain double digits returns.

Foodempire:
Can someone tell why money market is still at double digits while it's totally finished for TB. If treasury bills is the major force for money market interest, how come it's not crashing , maybe soon though.

The icing is that there is no further tax payable on dividend income, after the 10% WHT.

igboboy3:
Just read that FO earns nearly a billion naira in dividend from his FBNH shares. I wonder if there are ordinary Nigerians who live on dividend. I actively trade but now I'm seriously considering switching to accumulating for dividend
Btw, does anyone have comments on Moody's downgrade of some Nigerian banks due to govt debt exposure

No, don't stop. That is defeatist. Reflect on his advice and make amends. We're here to exchange ideas, knowledge and grow.

You even do me somehow in one of your mentions but we move. Some of us here have been in the business for decades. You can learn if willing and humble.

Cheers.

Wapgod:
I will stop posting on this thread.

The deduction of N50 per receipt is a FG policy for bank receipts by transfers (10k? and above). Some banks deduct per receipt, and some at month end from your bank account. Firms that don't deduct from clients would absorb it, since it's not much.
2. It's a normal account and I bought this week. I can calculate transaction cost to about the nearest naira. I know that sometimes, during trading, it doesn't allow you have less than N100. But normally, it allows.
3. I mentioned MorganCapital because that feature of order validity is a plus to Meritrade when compared. I use both so I know pros and cons of each.

essentialone:
Just for clarification Sir. Do all stockbrokers deduct this your so called electronic transfer levy?

2. Well I do not know if there are different types of accounts on Meristem, but you can make a deposit and try to use all the funds to purchase shares. Maybe you would see what I saw.

3. I never mentioned Morgan. Only Meristem and what I consider as it shortcomings for me.

I agree with you that in a margin arrangement, contribution can be in cash or securities.

I know that in naija, a lot of variation is introduced to protect the lender. I learnt some of the lenders then extracted personal guarantees from the borrowers and some form of collaterals to fall back on.

The real margin I think of is as I described with the N5m portfolio. Both parties take the risk but the lender is protected by having the rights to forcefully sell the securities to recover it's exposure, while leaving the investor loosing. The investor gains by sell down at a profit when prices have rallied so that the lender recoups and investor gains too.
But greed does not allow some to sell when in a good position. I know a guy I advised to sell down when he had attained over 100% profit but he was still hopeful until the market crashed, firm eventually sold off at a loss and still came for him because he gave a personal guarantee.

emmanuelewumi:
It is a margin loan, you can either contribute cash or acceptable securities as your equity in a margin arrangement.


I just explained the margin arrangement of FSDH Capital and it is risk free to them, the borrower also has the freedom to speculate on any stock he likes provided he has done his home work.


No seasoned investor or trader will want to be controlled on what to buy, provided he has provided enough security cover for the loan

I have not done margin trading before, but I know it's very risky, just as it's very profitable, especially in a bullish regime.

I think what you described with N10m portfolio is not margin (I stand to be corrected). In this scenario, the firm's N4m is covered by your N10m portfolio so they can allow you do whatever you wish.

In a margin facility, if you want to buy stocks worth say N5m, you would be required to contribute say N3.5m, while the firm contributes N1.5m. Margin contracts would be executed such that If the value of the N5m portfolio falls to an agreed value (say N4m), you would be called to make further deposits. Where the client does not meet up with the margin call(s) based on the contract, the lender would sell the shares and recover their contribution (N1.5m here), leaving the client with whatever that's left (if any). This is why they are interested in what you buy, whether it's liquid or not, amongst other considerations.

emmanuelewumi:
They can minimize the risk by requiring bigger equity from the clients instead of asking clients to buy stocks on their own lists, some of us believe they are only trying to dump such stoks on the clients after 3 months they will review the stocks on the list again.


FSDH Capital margin is very strict, they require 250% security cover but you are free to buy whatever you want.

Eg with a N10 million portfolio that has their acceptable securities, you can get a loan of N4 million which you can use to buy any stock of your choice and you are expected to service interest every quarter or earlier depending on your cash flow.

You are correct on personal loans.
Margin loans are different and riskier to the borrower because the lender would take all measures to cover its exposure. They wouldn't even delay to sell off once margin calls are not met.
A lot of the stockbrokers suffered in margin arrangements with banks during and after the financial crisis of 2008/09.

IHelp:
For the 3 reasons he stated, I think they can be easily overlooked if other services are okay.

I do take personal loan from my broker. When the fund hits my account, I can use it for whatever I like. I can also move it to another broker and buy what ever I want to buy.

These are not correct, sir.
For 1, N50 is deducted at the bank for the FGN on transfers (I think it's called electronic transfer levy).
2, I have access to two portfolios on Meritrade with balances less than N50.
3, whilst you can place orders valid up to 14days on Meritrade, orders on Morgan C is only valid for the day (I use both).
Meritrade is not perfect but not on the issues you pointed out.

essentialone:
3 reasons why I will be completely quitting the use of Meristem stockbrokers by Q3 of this year.

1.
2. .
3. .

Another way to transfer your portfolio is to have a Special Account with CSCS.

Once set up, you can move any or all your shares in a firm into that special account and store there. You can also detach those shares to another firm you use whenever you want. You can also transfer shares from as many firms you use to the special account as long as they all have the same CHN. And detach any or all to your preferred firm. Any of these actions can be effected in less than 48hours.

The above was how it worked some years ago, but your stockbroker can advise you on current modalities for CSCS Special Accounts.
[quote][/quote]

The last time I did that was about 10years ago and it was via a formal letter I dropped at their office.
Their email contact should be on their website. Maybe on enquiry, you might be redirected.

Wapgod:
What is NGX email address for reporting stuff like this?

If you want to move your portfolio to another house, get your target house (where you want to move) to initiate the process. Provide them with needed documents, especially your recent CSCS statement. If there is any unreasonable delay, threaten to report the releasing house to the NGX, and actually do so if they don't respond within your deadline.
NGX could be swift if you have nothing outstanding with the releasing house.

Streetinvestor2:
When did you use it.I have been with them for over 12 years now.why I asked is because they have been dribbling me for over a year now since I have been asking for access to use it since I am no longer comfortable with the analog way I was doing with them.And now considering to move out my portfolio to another house if they continue to dribble me.Is just the wahala/time it takes to move to another house that has kept with them