₦airaland Forum

PETERiCHY:
Some food for thought

This is the performance of First Bank from 2000 to date.

100k will buy 20,000 units of FBN shares in 2000.


Year Bonus Units
2000 20,000
2001 1 for 4 25,000
2002 1 for 5 30,000
2003 1 for 6 35,000
2004 1 for 8 39,375
2005 1 for 4 49,218
2006 1 for 25 51,186 ( Special distribution)
2006 1 for 1 102,372
2007 1 for 6 119,433
2008 1 for 4 149,291
2009 1 for 6 174,171
2010 1 for 8 195,000 units


Valued at over N3.8 million Naira

This post was made by our pa ewunmi over 2 years ago, when FBNH was 17 naira. At 5.47 naira, this same quantity is now worth just over 1.2 million naira (excluding dividends). All of a sudden is the investment made in year 2000 worth it??

Lesson: Buy and Hold may not always be the best

Culled.

Being a long term investors does not mean you invest and go to sleep, you need to keep on monitoring the fundamentals of of your company. I was an investor of Oando for about 20 years before selling all my holdings in 2013.

.................................................. ................................................


This is the dividend payment history of First bank from 2000 to date.


Year end Units Dividend Total dividend paid less WHT
Mar 2000 20000 N1.25 N22,500
Mar 2001 25000 N1.30 N29,250
Mar 2002 30000 N1.30 N35,100
Mar 2003 35000 N1.50 N47250
Mar 2004 39375 N1.55 N54,928
Mar 2005 49218 N1.60 N70,874
Mar 2006 51186 N1.00 N46,067
Mar 2007 102372 N1.00 N92,135
Mar 2008 149291 N1.20 N161,234
Mar 2009 174171 N1.35 N211,617
Dec 2009 174171 N0.10 N15,675
Dec 2010 195000 N0.60 N105,300
Dec 2011 195000 N0.80 N140,400
Dec 2012 195000 N1.00 N175,500
Dec 2013 195000 N1.10 N193,050
Dec 2014 195000 N0.10 N17,550




Total dividend earned between 2000 and 2003 is over 134k, which is already more than the 100k invested in 2000.


Total dividend earned from 2000 to date is N1,418,430, the investor could have used the dividends earned to increase his holdings, buy others shares, invest in treasury bills or real estate.

Ronkuns:
Boss, you confused me by alluding to @NextProdigy claim that FBNH is overvalued at N4.00.

Sarcasm

Youngzedd:
And it shall come to pass.

Amen

feelamong:
Bros are you Monkey Hunting on this FBN?

Monkey hunting is for traders and sellers, I am an investors and a buyer at this point in time.

Agbalowomeri:
Bros u get time o

You know say, I no get oga.

currentprice:
don't mind the noise maker,,,Lol he said his heart is bleeding for oando shareholder.... abeg make you help me ask him... is he not part of the shareholder when he bought at 32, 22, 16.5 and 12.5 nonsense

He will tell you he sold all his holdings before the tsunami occured.

lancee:
If fbnh hit 2.00 , then transcorp nko sub 50k , oando 50k ..Thanks u tryoo ..Well all things re possible in NSE

The most important asset in a company is the quality and sincerity of management. Wapco sold for N8.00 in 2006 because of market negative sentiment due to their 2004 result, i managed to buy 10000 units in 2006 and have increased my holdings over the years. I dont have any problem seeing FBN at N2.00, provided I can get a minimum dividend of 60k in 2015.

PETERiCHY:
I said this sometime ago I foresee the ELEPHANT drinking the same bitter water UBN drank in 2009.

Above all STOCK MARKET of the 1990 analog era is far different from this current digital mago-mago era in other words thinking of selling your property to invest in stock without a first hand insider information is a GROSS idea.

*ThE OcToPuS*

What about the revealation you had in 2013 that Oando will get to N1000 in 5 years time, which is 2018. Is that prophesy still valid?

NextProdigy:
FBNH is over valued at N4.00

If u try am na one chance u enter.

I love one chance, I am not new to boarding one chance stocks but I do it with facts and figures.

NextProdigy:
FBNH is over valued at N4.00
If u try am na one chance u enter.

I know and am not new to the game.

rebekah2011:
What if the value of the house has now risen to N10m by then. Stock market investment is good, but when the opportunity beckons to divest into real estate. Please do.

When will it rise to N10 million? Who told you that FBN shares would not have risen to N8.00 per share making the 1.25 million units of FBN shares to be worth N10 million.

angelo82:
........Sure you will make profit but how much capital appreciation is what we don't know because from 4 it could reach 5.8 now and stop there........Most stocks are creating new low and new high and I don't like it...............So if you buy FBNH at 4,please don't expect to climb more than 6...................Except if they pay dividend.................

I am not a capital appreciation investor, I am a cashflow investor who is more concerned about continous cashflow from an investment and using the income earned from the investment to increase my holdings over the years At the fullness of time just like a thief in the night the capital appreciation will come provided the fundamentals are good, this is how the average people I know made their fortunes through the stockmarket.

manie:
I gave instruction for the purchase of FBN when it gets to N5.00. If FBN touches N4.00, I may consider selling one of my cars, sell a plot of land and even get a loan to buy more.

Instead of keeping a 3 bed room bungalow at Ikorodu, which is valued at N5 million and generates rent of 250k. I will sell such a house at buy FBN at N4.00. This will give me 1.25 million units of FBN shares. FBN managed to make EPS of N1.50k In 9 months, hopefully EPS at the end of the year will be around N1.80k. If a conservative dividend of 60k is paid, I will go home with a dividend after WHT of 675k and a probability of a higher dividend next year, compared to a rental income of 250k.

Youngzedd:
Followed by fbnh @ 4

I gave instruction for the purchase of FBN when it gets to N5.00. If FBN touches N4.00, I may consider selling one of my cars, sell a plot of land and even get a loan to buy more.

ihedioramma:
manie,9free&co e.t.c what was the news by 4pm about oando? .

You can follow it on SMN

jauntty:
Any update about the OANDO conference?

You can read comments about the conference call on SMN

manie:
You can not compare the corporate governance of FBN with Oando, Onasanya made mistakes and he is going in December 2015 spending about 5 years as MB/CEO of FBN. Wale and his gang have repeatedly ruined and mismanaged Oando since 2001 and they are are still at the helms of affairs in the company.

I will rather invest in an over-valued bad company that is managed by good managers, to an under-valued good company that is managed by bad managers.



Unipetrol was a very good and under-valued company that had created wealth for the shareholders, before the coming of the cow-boys who are bad managers.


Wale is a very good story teller, he told us good story about the future of the company 10 years but the story and projections are yet to become a reality. Imagine buying Oando for almost N100 in 2005.

angelo82:
I thought he left already...................

He has turned in his resignation letter, it will be effective from January 2016.

angelo82:
The good thing about them is that they are not hiding the situation of the bank...........Ethically that is good.............

You can not compare the corporate governance of FBN with Oando, Onasanya made mistakes and he is going in December 2015 spending about 5 years as MB/CEO of FBN. Wale and his gang have repeatedly ruined and mismanaged Oando since 2001 and they are are still at the helms of affairs in the company.

The Securities and Exchange Commission, Nigeria Stock Exchange and Pension Commission, should be please come to the aid of shareholders by making sure that Corporate governance becomes the other of the day in Corporate Nigeria. Pension Fund Administrators have invested in some of the companies that have issues with Corporate governance. PENCOM should make sure that Pension Fund Administrators have a representative on the boards of companies where they have invested workers fund in. We do not want a situation whereby workers and pensioners retirement funds will be in jeopardy.
We need a culture of good corporate governance in all the business organisations in Nigeria. Therefore individual and institutional investors should make sure that the activities of our managers and directors are guided by the principles of corporate governance, which are listed below.
• Rights of shareholders and equitable treatment of shareholders.
• Having the interests of the stakeholders e.g. employees, investors, suppliers, creditors, local communities, customers and policy makers.
• Roles and responsibilities of the board.
• Integrity and ethical behaviour by management.
• Disclosure and transparency.
When our managers and leaders are guided by these principles, things will truly change for the better in Corporate Nigeria, Stock Exchange and the nation as a whole.

Emmanuel Ewumi wrote in from Lagos Nigeria.

When will the notes be converted to shares, at what rate will they be converted to shares. We all know that the net asset per share of the company’s stock is over 40 naira, converting the notes to share at anything below 40 naira is detrimental to shareholders interest. By doing so we would have succeeded in mortgaging our future and stakes in the company. What the core investor is trying to do is for them to own majority shares in the company through the back door. If management believes strongly in our company, and they are concerned about shareholders interest, they should get the termination fees in cash and use the cash to buy more shares of the company on the floors of the stock exchange.
This company is planning an EGM which is slated for October 12th 2012, shareholders should express their minds about the negative happenings in the company because what we are experiencing in this company is not in the best interest of shareholders.
The company is now a conglomerate, as a result of this, investors and analysts do not know how to value the company and coupled with the corporate management problem which is making our company to sell at a ridiculously low price.
For us to derive better value from our investments in the company, it will be better if management can unbundle, spin-off and list the various subsidiaries of the company. Each subsidiary should be made to operate as an individual corporate entity, this will aid accountability, stop the milking of our company and improve corporate governance in each subsidiary. With this investors will be able to value each company on an individual basis, instead of the very complex structure that is in operation in our company.
Making a reckless and greedy management to sit up is not an easy task, but with focus and sincerity of purpose on the part of shareholders it is very possible. With the caliber of shareholders which we have in our company, we should be able to make management to amend their ways. As at December 2011, Pension funds owned 440 million shares, Public companies owned 61 million shares, Mutual funds owned 101 million shares, Nominees and Trust companies owned 375 million shares. Our Institutional investors should be able to organize themselves, so that they can demand and expect good corporate governance from the management and board of our company. They have the expertise and financial resources to fight this cause.

The core investors signed on behalf of our company and their own company a Technical and Management service agreement. The terms of the agreement include payment of Technical and Management Service fees of 4% and 3% respectively of our company’s net profit before tax, where net profit before tax is under 2 billion Naira, and Technical and Management service fees of 5% and 4% respectively of our company’s net profit before tax, where net profit is over 2 billion Naira. The company received these fees for many years before they decided to waive it in 2010 and terminate it 2011. If this was done they would have received 1.7 billion Naira in 2010 and 1.3 billion Naira in 2011.
The question I want to ask is this, in whose interest was the agreement signed. This is a management that earned 880 million Naira in 2010 and 930 million Naira in 2011, even though shareholders went home empty handed at the of 2011 financial year. This is a management whose affiliate companies received over 1 billion naira in 2010 and 1.3 billion Naira in 2011 for professional services, consulting and provision of personnel, this is a management and core investor that received a total dividend of 923 million Naira in 2008, 580 million Naira in 2009 and 737 million naira in 2010.
When a fellow shareholder saw the happenings in this company, he asked me the following probing questions. What is the role of SEC? How can SEC truly protect minority shareholders? Is SEC capable of enforcing corporate governance? How can SEC prevent conflict of interest between managers’ personal companies and the companies they are managing? Did SEC verify, investigate and approve agreements and transactions that mortgage the interest of minority shareholders? I am yet to provide answers to my friend’s questions.
Although the core investor cum management have decided to terminate this obnoxious technical and management service agreement, but the termination of the agreement will be at a great cost to the shareholders. Because of the not too fair manner, the core investors want to be paid. Rather than paying off the negotiated termination fees in cash, management decided to settle the liability through convertible notes instruments and cash. Paying off in cash is in the best interest of shareholders, it is even better to borrow the cash and pay an interest of 30% or use the proceeds of the forthcoming right issue to pay the termination fee.

How can the management or core investor of a company, use the funds from the company they are managing to set up a subsidiary which is owned by both the company and the core investor or management. Is this not a glaring case of conflict of interest. This anomaly went on for about five years, before it was corrected in 2007. This abnormality in corporate governance was not observed by the authorities of the Nigerian Stock Exchange or the Securities and Exchange Commission, but by authorities of Johannesburg Stock Exchange because the company is quoted in Johannesburg and a subsidiary was just quoted in Toronto Stock Exchange. While this anomaly lasted the company won Nigerian Stock Exchange Awards for performance and corporate governance, what an irony? Correction of this anomaly led to dilution of our share holding, because over60 million new shares were allocated to the core investors in our company.
During the right offer in 2010, the management of the company made the following turnover forecasts for 2010, 2011 and 2012 respectively, 600 billion Naira, 780 billion Naira and 980 billion Naira. Profit after Tax forecasts for 2010, 2011 and 2012 were 18 billion Naira, 41 billion Naira and 58 billion Naira respectively. Shareholders invested based on the deceptive projections made by management, whereas the performances of the company is far below the forecasts. They planned to make a profit after tax of 41 billion Naira in 2011, but that was the year investors never received any dividend.

Many organisations in the country have issues with corporate governance, be it Banks, Insurance companies, Oil and Gas firms, Manufacturers, Regulators and recently Religious organisations.
If I really want to do justice to this topic, it will involve writing a book. Since this is an expository essay, I will only focus on corporate misgovernance and management recklessness, a case study of a Petroleum Marketing company quoted on the Nigerian Stock Exchange.
This company was fully privatised in 2001, but the problem with the privatisation of this company is that the core investor did not have an enviable track record in Petroleum marketing, which should be a pre-requisite for any organisation that wants to manage a company of such magnitude. The capital base of the core investor which is a group of lawyers and politicians was less than 20% of the company they acquired. How they became the core investor? Is a question for another day. Late Chief Asalu the foremost stock market investor and activist advised investors to sell their shares in the company because he doubted the competence and sincerity of the new management and core investor of this company.
The core investor in our company did not stop here, when the foreign investor in an Italian Oil Marketing company wanted to divest their investment in their own company, the new core investors in our company became the new majority shareholder in the Italian company. Although people like the late Chief Asalu, and other shareholders challenged this acquisition in the court but they lost.
A merger between the two Petroleum Marketing companies was completed in 2003. Projections regarding the performance of the enlarged entity were made, but the management and the core investor have never been able to achieve their profit forecasts.
The company had a successful public offer in 2005, and an over-subscribed right offer in 2010, they are equally planning another right issue in the last quarter of 2012.. The problem is that shareholders have not seen any meaningful return on their investment due to management recklessness, unorthodox practices and greed

manie:
I know Wale, I have been studying and following him since he joined Unipetro; now Oando in 2001. This is what I wrote to SEC, NSE and PENCOM about the ruining of Oando by Wale and his gang in September 2012. i tried to publish the article on proshare, sahara reporters, punch, vanguard and thisday, but they did not publish the article. Bu I posted the article on SMN and Naiarland.



https://www.nairaland.com/1065198/corporate-misgovernance-management-recklessness-corporate

CORPORATE MISGOVERNANCE AND MANAGEMENT RECKLESSNESS IN CORPORATE NIGERIA
Good corporate governance is an important factor for investors’ confidence to return to the stock market. Lack of good corporate and its enforcement on the part of our Companies managers and the regulators e.g. Nigerian Stock Exchange and the Securities and Exchange Commission is one of the factors that led to the collapse of our Capital Market in 2008.
According to Wikipedia, Corporate governance is the system by which companies are directed and controlled. It involves regulatory and market mechanism, and the roles and relationship between a company’s management, its board, its shareholders and other stakeholders, and the goals for which the corporation is governed.
Much of the contemporary interest in corporate governance is concerned with mitigation of interest between stakeholders. Ways of preventing these conflicts of interest include the processes, customs, policies, laws and Institutions which have impact on the way a company is controlled. An important theme of corporate governance is the nature and extent of accountability of people in business.
Happenings in some of our quoted companies will be a good case study for graduate students of Business policy and strategy researching on “ Emergent issues in Corporate misgovernance and management recklessness in Corporate Nigeria”. Please permit me to you the word ‘misgovernance”

angelo82:
Enough of your pessimism.................Yes FBNH is exposed to non-performing loans and thats why they couldn't pay dividend because they are trying to clean up their balance sheet.................I am not happy with current trend too but the picture that you are painting is with prejudice............

After making provision for the impairment I can still see profit of about N50 billion and earning per share of about N1.50k.

mojeer678:
It's obvious that you don't know WT.

Until the NSE & SEC get their acts right with adventurers who have no business running public-quoted companies, the likes of WT will continue to bamboozle you with highfalutin sound bites.

The Oando scandal, for that's what it is, is a shame in a country struggling to convince investors that its regulatory bodies are up to the task. Ever since Ndidi Onyiuke violated the trust of the public by getting in bed with buccaneers such as WT, it's the public that had been suffering from the unholy alliance.

Oscar by now should have taken over Oando and expose its convoluted books to the light.

BTW, what's really Oando had been transferred to a private company called TSL.

Guess who owns TSL?

I know Wale, I have been studying and following him since he joined Unipetro; now Oando in 2001. This is what I wrote to SEC, NSE and PENCOM about the ruining of Oando by Wale and his gang in September 2012. i tried to publish the article on proshare, sahara reporters, punch, vanguard and thisday, but they did not publish the article. Bu I posted the article on SMN and Naiarland.



https://www.nairaland.com/1065198/corporate-misgovernance-management-recklessness-corporate

Agbalowomeri:
The truth is all of una still love Oando! Let market makers mop up the offer, una go see rushing inside the BRT. Even LASTMA self go follow enter. Chai humans!

Market makers will not touch the stock until when the price is right. The right price is sub N5, but Wale and the gang can do series of cross deals to give impression of trades on the stock.

Born2berich:
30M units on offer and no single buyer....I really pity the oandos faithfuls.

But seriously, Wale tinubu needs serious bashing. Which kind result be this?

Dont mind Wale, the result is good, he only released a bad result in order to crash the price to N5 and below so that he can mop up Oando's shares at a cheap price. I hope you are not selling yours.

Oando is the bomb, another set of analysts are talking about the result. They all believed there are hidden losses that will manifest at the end of this year or next year.

Just finished listening to a stockmarket programme on 98.1 smooth fm. The analysts said the volume of Oando share quadripled between 2013 and 2015, can someone please confirm this information. I also learnt the the loss recorded by Oando is the highest in the history of any quoted company in Nigeria, according to the analysts the loss ought to be higher but for creative according and the loss will continue in 2015 and may extend beyond 2015. They also said the banks who financed the deals do not have problems because of the way the loan was structured, infacts the banks have started getting their money. The people who will suffer loss are Oando shareholders. The company will come to raise more funds, but analysts are not sure if future fund raising exercise of Oando will be successful only until things change for good in the company. Wale has a meeting with analysts at 4.00pm, and some of the questions they hope to ask him will be, 1. Did he pay a good price for the COP asset. 2. Is the COP deal a profitale one. 3. Does he think the timing of COP deal was right.

cassimere:
Well I have just a little over 200,000 units but I'm not selling.

You can sell your over 200k units of Oando provided you can get buyers at the current price, the fund realised from the sale can be used to buy back over 300k units of Oando at a cheaper price.