₦airaland Forum

dipoolowoo:
BREAKING: Finally, Senate Passes 2018 Budget of N9.12tr
https://www.businesspost.ng/2018/05/16/breaking-senate-passes-2018-budget-of-n9-12tr/

When will the house of reps sign. When will it be transmitted to the president for his assent. Time.

Yayira:
Is that diamond I’m seeing bid ? Now trading between 1.50 and 1.52 ? isoright
Please what happened to our 0.80 abi na 0.50 ?
I was also waiting to buy at 0.40
E better come down oo

I was waiting to average diwn at 0.20. Lol. Una no go kee person. This stock is going back to 2 by month end. One week punishment is enough.

aremso:
FBN can not be spared in the current free fall

With NPL at 22%, shareholders will certainly wait longer for recovery.

swilo:
Seems you are not treating Diamond Bank the way you treated OANDO

I can go long term with diamond bank but oando has to leave my portfolio with buhari's exit.

samzepaparazi:
350k units traded since morning.


Transcorp move nah.

My bid dey 1.57. Make una let me enter na.

Pls guy, does japaul have an MM.
The stock just dey fall like pikin wey no get mama and papa.

locodemy:
Have you seen Mpeace here today?
He just called me and asked if I am seeing his hand.
I wounder what that question could be until I begin to see another round of offer.
Mpeace will be selling till the next 20 days if MM no come intervene.

Lol. I no go sell at loss. My average entry is 1.47, so if the trend continue by tomorrow I go dey loss. That one no go happen.

Zenith, 27.70

Mcy56:
Will be better o. That fall must not last for a week, it will give some people HBP. At least let them stabilize the price first.

No worry about me, I don buy enough medicine.

Mcy56:
Respite seems to be coming Diamond way o. ... Seems their MM are waking up from their slumber...

They better return it to 2. Thats where it belongs.

yok:
MSCI MOVEMENT FOR 15 MAY 2018

The fund did not sell yesterday. Fund made some few purchases in the blue chips stock (no banking stock included)- Transcorp and Nigeria Breweries in the purchase list

Generally the volume traded in the market is still thin. There is not likely to be substantial movement in the market.

Caution: This is for information purpose only. Data used are assumed to be correct. However, you may want to verify the data from an appropriate source.

The fund I must confess is confused. They sell a stock on monday and buy back on tuesday. I thought they were leaving transcorp for good Pls may I be there broker? Their broker will just be chopping brokerage fee for doing nothing.

wanaj0:
It cannot be true that they still gave GEOMETRIC Power almost N50bn in Q3 and Q4 2017! What for??

Maybe he meant to say that they took impairment of 45billion in q3 and 4 for the said loan given in 2011.

Kolping:
Nairametrics - May 16, 2018

Diamond Bank - Alone in the wild

If your interim or full-year results are bad, then it’s typically the norm to release them on Friday, hours after the trading must have been closed. So, we were not surprised when Diamond Bank released its much awaited 2017 Full Year results a few minutes after close of trading on Friday. Just like we expected, the results were bad by most counts.

Diamond Bank reported a loss after tax and before discontinued operations of N12.89 billion. Gains from the sale of its overseas subsidiaries (Diamond Bank UK) helped reduce the losses to N9 billion. The losses, as you would come to expect, were induced by a N56.8 billion provision for loans that have been impaired (gone bad). The last time Diamond Bank reported a loss was in 2011 where they reported a loss after tax of about N13.9 billion. Back then, the loss was induced by (you guessed right) another N55 billion loan impairment.

Since 2011, Diamond Bank has now taken total loan provisions in excess of N290 billion. That’s an incredible accretion of capital from one of Nigeria’s oldest banks and one that you will expect to be vying for the Tier 1 status.

So what went wrong?

Poring over the results, we observed two major reasons for the disastrous result. Firstly, Diamond Bank reported that its loan to Geometric Power was impaired by about N45.7 billion. The bank granted Geometrics a N49.3 billion loan in the third and fourth quarter of 2017, contributing to the N56.8 billion loss recorded due to impairment.

A brief background of Geometrics Power

The company was founded by Professor Barth Nnaji in 2000 as one of the first private power companies in the country. However, it has been embroiled in one controversy or another over its power supply deals to Abia and Enugu States. This has resulted in loss of revenue, unpaid debts and rising overheads. Quite frankly, the company can’t meet its debt obligations.

Diamond Bank is an equity partner in the project and owns about 25% of its equity valued at N2.49 billion which it has since been written off. Unfortunately, the bank still has about N49.3 billion in loans, granted since 2011, that has now essentially gone bad.

The second problem Diamond Bank has is also with its non-interest income which dipped by 24% Year on Year (YoY). A closer look reveals that the company recorded a quarter on quarter dip in revenues dropping from N36,481 to N10,721, N9,178 and N 5,106 in the first, second, third and fourth quarters respectively.

Fundamentally, the bank is struggling!

Is the bank healthy?

Diamond Bank reported a Capital Adequacy Ratio of 16.5%, 1.5% above the minimum 15% stipulated by the Central Bank. On this basis, one can safely infer that the bank is healthy. The bank has deposits in excess of a trillion and net assets of about N223 billion. For proper context, their balance sheet is still bigger than Stanbic’s and FCMB’s.

However, Diamond Bank’s position as one of the leading Tier 2 banks is under threat. For example, despite its N223 billion net assets, its market capitalization is N44 billion. Now, compare this to Stanbic with N180 billion net assets and N492 billion market capitalization.

Do I sell my shares?

Ironically[b], I have a BUY rating for Diamond Bank with a long term outlook. I mean, how low can it still go? At 0.18 price to book ratio, the stock is cheap [/b]despite its weak fundamentals. However, I do not expect anyone with a short term outlook for their investment to hold on to this stock. Diamond Bank’s year low is around 88 kobo and that was about this time last year. Since then, the stock is up 90% and is likely to fall further as all the debris created by this results fall over.

It is important to note that Stanbic Nominees sold down from about 11.99% to 8.52% resulting in a sale of over 800 million units.

I said it. Nairametrics guy has lots of diamonds in his portfolio. And he wants you guys to buy(not even a hold recommendation)
For me, after reading an investors presentation from diamond bank itself, I cannot recommend it to anyone. Many things have equally gone bad. The worse is their NPL ratio which rose from 10% to 15.7% as at q1 2018. If the cbn dividend policy should continue, it means no dividend for next year.

dipoolowoo:
BREAKING: Senate Finally Lays 2018 Budget Report
https://www.businesspost.ng/2018/05/15/breaking-senate-finally-lays-2018-budget-report/

If the market does not react positively when budget is finally passed, be sure that the problem is no longer a physical one.

Manonamission:
Conoil Producing and Conoil Plc are both controlled by Mike Adenuga via Conpetrol Limited. They are affiliate companies but shareholders of Conoil Plc do not benefit from Conoil Producing (as such). Conoil producing is an upstream player dealing in exploration and production. Conoil Plc is a marketing associate publicly owned and listed. Conoil Plc has more business dealings with NNPC than with Conoil Producing sef.

I don't have much info about ownership structure of Conoil Producing as it's privately owned. You can go through Conoil Plc's last audited results to understand their business.

Oando and Seplat are the only indigenous company quoted on NSE that deals in crude oil. I might be wrong though.

fxuser:
u don mop am abi ! ..

No be me oh. But I see as samzepaparazi hand de do and I immediately know say something is about to happen to transcorp.

maishai:
which of the tinubus owns oando jagaban or wale tinubu, are they related, pls o! 4give my prudery

Na dr same family. I think jagaban is wale's uncle. Wale is at oando. I don't know if he owns it cos some pple say he doesn't have majority share.

fxuser:
squeezing to d last drop . . SP looking to test below dat 1.60 for last blood

It might just end the day on full bid.

Do you know fcmb, diamond bank and fidelity have the same MM? Why do they always single out fcmb for defence.

Veritaskap. Lol. If you are trapped you are trapped. No two ways. Hope that guy that was asking questions on this company did not plunge in.

samzepaparazi:
7:1 no foreign body should infect this matter plis.

This guy done enter oh. Chai. I put 1.52 bid, e no reach me. I dey target 20% this time. I feel rgere would be a small bull soon for select companies, and transcorp won't be left out.

samzepaparazi:
If diamond can fall to N1 like it did last year, that would be beautifully amazing.

Bro mind ua sef oh. You want kee persin abi.

By this time yesterday, diamond offer was about 44million. Today its 27million. Thats an improvement lol. Chibuking81 was right. It might not go below 1.50.

mendes911:
Fidelity!

I pity those that rushed in for that 11k dividend.

Obene Kwa Kwa (x2).

If one does not have a strong mind and cannot manage his fingers well, he won't do so well on nse. Stocks don't move in straight lines. They lose only when they sell low.

dipoolowoo:
To me, Oando should be avoided for now until the coast is clear. Remember the suspension was lifted when Bubu needed Jagaban and if Bubu gets a second term next year, he might dump Jagaban like he did in his first term and Oando might "hear wen" by that time.

Yes, no doubt but I want to hold oando till the elections. Its a gamble. I will only sell if it goes below 7.

Mcy56:
You are joking right? You mean you went ahead and bought Oando the day you posted below mention? It is well o.

I bought oando during the suspension. You forget that I and loco entered together. But he left early. I have not sold. My jijo money is intact. Transcorp or eterna will give me jijo opportunity. Eterna jijo was so sweet last year but transcorp seem to be showing more jijo potentials this year.

TLAX:
It was not necessarily a scam. Everything to point to current performance is in past accounts. Its just people looking at tell tale signs and refusing to see it. Go back and look at that Bank's financials for the past 3 years (including quarterly statements). Non Performing Loans ratio is rising, loan impairment charges in past two years average N56 billion, earning per share has been dropping for consecutive quarters etc. Anybody who sees this will know something is wrong and can only rely on the general bull to drive this share price up.

No be scam my brother. Its about looking and not seeing.

I beg to differ. Pple had genuine and valid expectations. The economy had improved and loan recoveries stepped up. NPL of most banks like FBNH was on a steady fall with writebacks seen in banks like stanbic. Even if impairment was flat year on year, they should have atleast matched the previous year's performance. When you also add the money made from divestments (22billion) you see why even morgan capital placed a target price of 5.71 on Diamond bank. They played a fast one on us all, nairametrics guy inclusive(given his countenance since the result) but their plan will not work. I go dey this bank, Dozie and co will not buy me off.

Following the suspension of the license of first nation airline owned by Bola tinubu, fear done dey catch me. I need to sell my oando before it reverses back to my starting point.

Nigeria's list is also out.

Oya make I hep una
https://www.channelstv.com/2018/05/14/dbn-shortlists-nine-banks-for-loan-disbursement-to-entrepreneurs/?utm_source=FB&utm_medium=ChannelsTv&utm_campaign=SNAP%2Bfrom%2BChannels+Television

Chibuking81:
Peter, are you the one holding Diamond bus key. Many people are trying to escape, but door is locked up with many padlock.

Pls if Peter is in diamond, let me know. I am ready to buy his units. I mean all of his units at N2each. Please don't ask me why.

Chibuking81:
Peter, are you the one holding Diamond bus key. Many people are trying to escape, but door is locked up with many padlock.

Pls if Peter is in diamond, let me know. I am ready to buy his units. I mean all of his units at N2each. Please don't ask me why.