₦airaland Forum

STNWAUME:
Is UBA a Bargain @#8:20k ?

Ades1:
According to most analysts on here, the answer is yes.

At current price, it represents a 13+% yield. If that yield makes sense to you personally, then it is time to load up

12.1% after the deduction of WHT.

mendes911:
https://doclib.ngxgroup.com/Financial_NewsDocs/242_Geregu_Power_Plc-Notification_of_Shareholder-_Olufemi_Peter_Otedola_(1).pdf

Otedola chopping left and right.

I guess FO needs the money to buy shares in another company.

My guess would be UBA.

As i have been seeing unusual volumes being traded since Monday.

If FO is able to buy up to 40% of UBA, that would be a serious problem for TE.

Just a guesswork.

Do your due diligence, please.

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.

Frangel:
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.

I just studied the annual reports of foreign central banks. I observed they hold their large reserves in Gold and the rest in major foreign currencies.

I am yet to find a good reason why our own CBN is hiding their reports.

That could have shed light on the composition of our reserves.

BabsO2:
Exact numbers will be better to know how far out.

Apart from costs, IBTC web trading platform does not give a good view of current bids, offers and their sizes like FSDH does. So even when placing a trade through IBTC I usually log into FSDH eTrade to give me a feel of that day's (time) bid and offers. A negative for IBTC.

I also use CSL to do the same thing. Our brokerage firms don't create their own trading software, instead they procure and develop features from a third party software such as:

1. Neulogic Solutions Limited (CSL)
2. Infoware (Stanbic IBTC, Coronation, Vetiva, FSDH etc)
3. Caladata Limited (Morgan, UCAP etc).
4. Zanibal (Mytradebook - Greenwich)
5. Add yours.

yMcy56:
STANBIC IBTC na big men's broker......
Starting from their minimum investment amt.......to buy/sell fees.
Guess it's most suitable for value investors.
The big ogas using it here may be of help anyway.

With zero Naira, a person can now open a brokerage account with Stanbic IBTC Stockbrokers Ltd.

Their fees are as follows:

Self-directed trading (through their website or mobile app)
Buy - 1.133%
Sell - 1.48%

Broker assisted
Buy - 1.455%
Sell - 1.80%

emmanuelewumi:
One smart way to go about it for small business owners, is to try to use substantial profits from their businesses to buy stocks in very good companies so that within 2 decades once can get more Investment income than profit from the business.


I used to have a neighbour who was selling building materials at Coker but with substantial investments in stocks and commercial real estates built over the years.

Alhaji used to go to work twice in a week spending about 5 hours per day. He used to tell his workers if you run the business well we all make money, if you don't run it well, I have enough income to pay my bills

Your neighbour made a brilliant move!

I love to read such stories.

However, Oga Emma, please note that a business name buy a property in its name. Only a legal name or an incorporated company can do that.

emmanuelewumi:
Well the line of business I do, I pay an annual due of about 150k to the supervising ministry at Alausa for the renewal of my approval after that the only tax I pay is the direct assessment from LIRS which I pay in January of every year.


A doctor does not need to have a limited liability company in order to establish his clinic. A business name will do, he only needs to have the necessary requirements to get the approval from the ministry of health. After which he will pay an annual due in order to renew his approval

Yes you're right.

Lawyers and Accountants also practice under a business name. However, when it comes to investing in securities, it is advisable to invest either in one's legal name or through an incorporated company.

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

Yes, that's correct.

However, unlike the PITA, the concept of what constitutes a franked investment income is "clearly" spelt out in the CITA and also beneficial when you are re-distributing the profits.

Therefore, FIRS won't have any discretion to add something more on the top of your due taxes again.

Which is why a business name is considered to be relatively tax inefficient in this regard.

Frangel:
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).

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.

handsomebolanle:
Is it safe to invest with them?

NO

emmanuelewumi:
Do your due diligence and consult a financial adviser.


Return of my money is more important than return on my money.

Good luck

To give you a quick hint on the due diligence part

Risvest is not "properly" licensed & regulated.

In the sense that they don't have a fund/portfolio manager license from the SEC (Nigeria).

My advice to them is to start applying for the said license, if they haven't done so.

In the meantime, if you are looking for a dollar mutual fund to invest in, go for the ones at Stanbic IBTC Asset Mgt, FBNQuest Asset Mgt, United Capital Asset Mgt etc

Happy holidays!

emmanuelewumi:
I started filing it myself about 6 years ago, a tax professional used to do it for me in the past for a fee

Oh okay. For your business name, right?

.

emmanuelewumi:
I am not a salary earner, I file my tax papers in January and you are expected to submit records of investment and business income and the taxes paid.

You are expected to inform the government he total income you earned for the year both active income and passive income.


Unfortunately it appears those guys no too like people wey dey earn passive income, they believe we are not paying enough tax.


You will always need the tax clearance if you have anything to do with the government

Did you file your tax papers by yourself or through a tax advisory firm?

RabbiDoracle:
Also in the news today:

-RUSSIA'S DEPUTY PM NOVAK: RUSSIA to implement voluntary cut in oil production by 500,000 BPD till the end of 2023

-SAUDI ARABIA will reduce its oil production by 500K BARRELS PER DAY, starting from May until the end of 2023 - STATE MEDIA

-UAE to lower oil production voluntarily by 144,000 BPD starting from May to end of 2023 - MINISTER

-OMAN to reduce oil production voluntarily by 40K BPD starting from May to end of 2023 - MINISTRY

-KUWAIT to voluntarily cut oil production by 128K BPD starting from May to end of 2023 - MINISTER

-IRAQ decides to start a voluntary oil production cut of 211,000 BARREL PER DAY as of from May to end of 2023 - OIL MINISTRY

After currency wars, now Oil war has started.

I am loving it.

The age of economic imperialism is fading.

RabbiDoracle:
If Zenith Bank can have N123B impairments, then there will definitely be issues with other banks.

Net income higher but
Net income after impairments lower
PBT flat
PAT lower.

Have you looked at their contingent liabilities?

RabbiDoracle:
Has there been any time in a bull market where in 2 weeks period four (4) international banks collapsed?

Has there been any time in a bull market where over 200 US banks are groaning under severe bond losses and are at the risk of bank run?

Has there been any time in a bull market where large US and European banks are having massive deposit runs? Credit suisse, UBS and now Deutsche Bank.

Has there been any time in the world where all financial leaders in US and EU and the leaders of these countries where jointly saying that their banks were strong? All at the same time yesterday evening.

These are red flags occurring in western financial institutions and we should not ignore them.

In case you have forgotten, we were all invested in the market when :

March 2008 - Bear Stearns collapsed
September 2008 - Lehmann Brothers collapsed.

And we were told all was OK in Africa. Up until March 2008, everything was fine in Nigeria and in Africa, I believe. Afterwards, the rest of the event was history.

When international banks start having issues, it usually cascades rapidly. It is usually the start of bigger things to come. Lending freezes, companies start to fall and second order effects starts to arise.

If foreign banks are having these losses, what about insurance and pension companies? What about hedgefunds, educational trust funds and other wealth managers? These are the second order effects that are yet to surface.

When a ship capsizes, it takes time for the bodies to float to the surface.

Currently, we have had Five (5) bank failures in Y2023 alone.

1. Silvergate
2. Silicon Valley Bank
3. Signature Bank
4. First Republic
5. Credit Suisse (forced to merge with UBS)

Now, Deutsche Bank is wobbling.

rookidmart:
Matt Levine is one of my favourite finance writers.
Sadly there aren't (m)any local finance writers.

The writers of Nairametrics and ProShare try, but are not up to his calibre.

Yes I agree.

https://www.bloomberg.com/opinion/articles/2023-03-20/ubs-got-credit-suisse-for-almost-nothing?srnd=premium-europe

Something good to read.

HSBC buys UK subsidiary of Silicon Valley Bank for £1.

Screen replacement for HP Envy x360 Convertible 15-ed1055wm.

How much?

Streetinvestor2:
You couldn't have said it better.The country is finished. Why should I pretend about it.Apc government failed Completely in economy and security of this rich country

This thread is created for one thing - Stocks.

If you have political views to drop, a proper section to do so is Politics.

SMN was destroyed because people fought over political disagreements.

Therefore, we won't want a repeat of such here.

Please and please direct your political views to the right section.

Thank you.

emmasoft:
Yes between August and December last year, I was there but the terms of bringing me on board didn't work out so I have to move on.

Currently, I do this:

I sell fixed income for SFS capital,
MMF for Stanbic and EDC, and
Stockbroking for Investment one.

Please note I'm not saying FSDH is a bad firm.

Thank you.

Are you a licensed sub-broker?

RabbiDoracle:
We are cool. The series of events was very far to where I reside.

Thankful

RabbiDoracle, I hope you and your family are safe.

I read from here that you live in Turkey.

yMcy56:
Lol.
I doubt if people do this here.
Telling you lkely entry seems easier than coming to tell you exit.......few does but many won't for reasons best known to them. It has even been discussed here before self.
*Be reading the signs on the wall, follow news and trend of events. Most importantly, have your own strategy in place.
My opinion......

RabbiDoracle did it around 2018.

Within a week, market fell.

From my observation here, I am of the opinion he knows how to predict a bear market better than a bull one.

https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/3000#64353504

yMcy56:
Free float is 4.4%
So manipulation is very possible...... though he didn't own all the 95.6% all alone. Some directors also own smaller %.

There may still be interim dividend in the half year.

It is below 20% required by the NGX.

debeey87:
Man's got to remain a billionaire.

BTW, why can't some companies upload clear result to ngx? They will upload results that will make you wonder if they're actually corporate firms. Courtville, Honeywell and their friends are in this group.

With his 96% holding, he should take the company private and chop alone.

Zagee:
Ote$

He owns more than 95% of the company and the free float is just under 5%, as at 31 December 2022.

seyisanya:
To buy substantial units of UPDCREITS below N3 will take a whole lot of patience!

Yes, that's how something of great value can be obtained.

Tohmey:
Help
Is NESTLE and UPDCREIT a better buy now?

drills:
If you lucky to get UPDCREIT accumulate, it is grossly undervalued

Please go ahead and buy it. It is substantially undervalued below N3 and very useful too.

Nigerialabalaba:
Oga locomotive, happy new year Oga mi. I sabi u say u no dey do monkey hunting o but dis ur news no apply for Japaul o. Japaul neva even start to dey dig gold comot for ground let alone say dem go reap for the gold price bull dem predict for 2023.

Na when e reach prediction of gold price for 2030 den u fit share dis kain news for here wella. As u share am now wey japaul no dey produce or sell gold, u come look like monkey hunter b cos some people wey no sabi tink say japaul go benefit and dem no sabi say Japaul neva even start to dey produce gold let alone to dey sell am to benefit for dat news wey u share.

Na dredging and quarry jobs still dey give Japaul tashere money but gold mining and sales never even start o.

Mining companies often take several years before they can generate positive income, while many of them will go under. This normally deters equity investors who demand quick, or at least safe, returns on their capital.

Cation:
But their 2022, 9 months result showed that debts and cost of sales are increasing.

What can be the possible implication of this?

My other ogas in the house pls contribute. This is my way of learning since you people no organize tutorial lol

Going by your analysis, you're definitely not a newbie

Under the same period, Ardova's costs of sale and debt also increased and ended up with a huge loss compared to the same period in Y2021.

While Total ended with a decent profit. Majority of this profit will be distributed to us as dividend.