₦airaland Forum

I got my intercontinental certificate like a month ago and got my dividend about 3 weeks later. So, go and check with the registrar to see what the problem is

Can we idea of the selling price?

@Toy boy
so u don't know jack about what obtains there

I wonder why people like to be aggressive on a public forum instead  to read between the lines.
I wrote that "my friend told me" , at no point did I claim that I verified. So, Mr Know-All, it would be nice to be choosy in the kind of language you use. Thank you.

@busta
because those girls are in it for the money and not the long run

Then why so many ladies fight so hard to land such a man in marriage

When i was given to test drive it, i was so tempted, i nearly ran away with it

That was quite hilarious

Anyway, what do u have to say abt second hand value?

@ all

Interesting thread.

Nice to see ladies condemning these acts, but one question is, if this is TRULY how girls feel, why do YAHOO YAHOO boys still have string of ladies at their beck and call

Some things are easier SAID than DONE

Guys

Just trying to compare and contrasts those cars. What do you have to say about 'em.

Which one will you go for and why?. I'm being tempted with any of them.

Cheers

Any idea of the MINIMUM capital required to go into property investment

@ panache

can u post the pix on this forum or send it to my email : yankeegee@yahoo.com
?

@Pumping,

Thats a throurough educative one from you. You got it spot on. Thanks cos someone is enlightened here

@WOODBOI

This is my personal opinion. I initialy felt that fidelity bank share would be good until I read about the fidelity GDR offer. I have a feeling that the GDR offer will greatly dilute the shares (as seen in GTB GDR offer).

So, my take is fidelity offer might not perform in a short or mredium term, but probably in the long term. I stand to be corrected though

@demmyqueen

have followed the analysis on this thread but no one had mention the importance of EPS and Diluted EPS. what is the difference and how do you calculate Diluted EPS, Diluted DPS etc.

I'm interested in that your question as well. I hope a guru in the house will do justice to it using a purely lay-man statement for better understanding.

My contribution is simple.

See your present situation as a challenge to ADD VALUE to your life, so that when next she sees you, she will know what a gem she has stupidly lost.

She will come back begging and like Hadley Chase says, you will have the last laugh!.

Im talking from experience brother

@buttyelele,

Thanks for that rejoinder. Moreso, thanks for correcting that mistake in your previous posts. Everything is now crystal clear and I can now do some proper evaluations using PE, EPS & PAT on stock now.

However, pls always keep an eye on this thread as there could be some questions from other people that we can learn from.

You have a great skill in teaching!

Thanks , you will always be remebered for good!.

@ Roughcut & easimoni,

Thanks for your contributions. You 've enlightened some man here

@ easimoni,

That was an amazing job u did. Thanks for taking your time to explain  vividly

@all

For those asking about intercontinental share certificate, I got mine today (but no dividend warrant o). I suggest you exercise a bit of patience . I learnt that they are doing it according to surname's alphabetical order.

Thanks

@Easimoni,

PE is a double edged sword. Let's consider you proposal. If EPS is 1.20 and price is 60, PE is 50. Most people would scream overvalued. What is the annual earnings growth rate is 400%? Next year the[b] EPS will be 1.20 X 5 = 6 and the PE would have dropped to 10 (if the price held constant)[/b]. Forward PE takes the growth factor into account and should be the basis of an investment decision. For the above example, current PE may be 60 but forward PE is 10. It's clearly cheap going forward.

Thanks for your comments, but how did you calclutate the earning growth rate and the forward PE in the above example? Pls you can use my previous example as an illustration

PS:- We still await the other Gurus contributions , likes of Shigidi, frankriri etc

@ Contributors,

Thanks for all your excellent contributions, most especially, ABOTT, BUTTYELELE, KINGZY, BABAIFE

However this is becoming challenging but there seems to be a logical twist to this.


I understand summarily from Buttyelele's post that :

- the MPS (Market Price ) is the relative bench mark to the EPS and PE

- IF the PE of a company is too low continuosly over a period of time, then the company is not doing well

- If the gap between the EPS and the MPS is too wide, then the share is not regarded as being ok



Now the twist is this, according to the principle of mathematics,

since PE = MPS divided by EPS , therefore, in order to get a high value for PE then EPS MUST be low (ie the denominator must be very low comared to the numerator before very high value could be gotten. For instance 10 divided by 5 will give you 2 while 10 divided by 2 will give u 5)

What I'm driving at is that , I think there's a bit of contradiction because if we want the PE to be high (which indicates good performance), then I think the EPS has to be really lower compared to the MPS, and this again indicates wide margin between the EPS and MPS which in turn lead to non-performance.

It's logical and seems contradictory ( my own thought ooo)if carefully followed. Please can you make clarifications on this logic?

Another fresh question is this,

will i be right to say that the share is Over valued if the earning per share is far lower than the market price . eg EPS = N1.20 and market price = N60 ?

Then if the above statement is correct, what condition will trigger a share being UNDER VALUED ?

I'm sorry for asking too much questions oooo

Pls I still dey await response oooo

@ Contributors,

Thanks for all your excellent contributions, most especially, ABOTT, BUTTYELELE, KINGZY, BABAIFE

However this is becoming challenging but there seems to be a logical twist to this.


I understand summarily from Buttyelele's post that :

- the MPS (Market Price ) is the relative bench mark to the EPS and PE

- IF the PE of a company is too low continuosly over a period of time, then the company is not doing well

- If the gap between the EPS and the MPS is too wide, then the share is not regarded as being ok



Now the twist is this, according to the principle of mathematics,

since PE = MPS divided by EPS , therefore, in order to get a high value for PE then EPS MUST be low (ie the denominator must be very low comared to the numerator before very high value could be gotten. For instance 10 divided by 5 will give you 2 while 10 divided by 2 will give u 5)

What I'm driving at is that , I think there's a bit of contradiction because if we want the PE to be high (which indicates good performance), then I think the EPS has to be really lower compared to the MPS, and this again indicates wide margin between the EPS and MPS which in turn lead to non-performance.

It's logical and seems contradictory ( my own thought ooo)if carefully followed. Please can you make clarifications on this logic?

[b]Another fresh question is this,[/B]

will i be right to say that the share is [B]Over valued[/B] if the earning per share is far lower than the market price . eg EPS = N1.20 and market price = N60 ?

Then if the above statement is correct, what condition will trigger a share being[b] UNDER VALUED ?[/B]

I'm sorry for asking too much questions oooo

@buttyelele,

Thank you so much for taking me to the classroom again. Our tertiary institutions would be more than willing to employ you as a lecturer. You r simply great and thorough!. You examples make it so clear.

However, I must tell you that as at now, I have grabbed the mathematical aspect of how to calculate EPS, PE & PAT (interestingly within such a short period on this thread ooo), but the only area remaining is how to use these 3 parameters as tools to forecast the future value of a share and how to use them to establish if a value is under-valued or over-valued.

Then, I will still like to know the full meaning of PE please

Lastly, you stated that

The PE ratio is only a comparison between the market price and the EPs, derived by dividing the market price by the EPS e.g if the market price is 45k and the EPS is 32k the PE ratio will be 45 divided by 32, which will give u 1.41. a coys EPS should not be too low in comparison to the market price.

Do you mean to state that " a coys PE (and not EPS) should not be too low in comparison to the market price?.


PS : It is interesting to note that nairaland is now my virtual classroom,  and I'm so eager and willing to learn. Always on the look-out for my lecturers on this thread.

Also, that I can read the prospectus of coy with clear understanding and interpretation is such a soothing relief.

Thank you all.

MT:
@Babaife & femi4love,

That's really a detailed one, and you explained in such a way that virually anyone could understand it.

@All

However, could  someone please state under which conditions that EPS, PAT, and PE could determine if a share is over valued or under valued. (e.g if EPS is greater than PE, what does that indicate, if EPS is lesser than PE, what does that indicate etc)

Also, how do we use this result to forecast the share future of a company.

Then, what is the full meaning of EPS, PAT and PE ?

@ stock gurus, please this question is still pending oooooooo

@femi4love,

That's really a detailed one, and you explained in such a way that virually anyone could understand it.

@All

However, could  someone please state under which conditions that EPS, PAT, and PE could determine if a share is over valued or under valued. (e.g if EPS is greater than PE, what does that indicate, if EPS is lesser than PE, what does that indicate etc)

Also, how do we use this result to forecast the share future of a company.

Then, what is the full meaning of EPS, PAT and PE ?

Thanks WALCOM & kingzy, but it seems you have a differing interpretation of what the 50k represents. Can more gurus in the house please contribute to know which side i have to swing to. Thanks.

How can one determin a stock that is over or undervalued. How would one know the the companies with good fundamentals. How would one calculate PE and EPS and where is the easiest way to get coy info. and how to use them to determin the future price of a stock.

Besides I'm very much interested in this question posted by KINGZY as well

@skintom77,

Thanks so much but I must say i'm still not cleared.

@ all

Take the NAHCO public offer as an example : "90,000,000 ordinary shares of 50kbo each at N17.50K per share[/B]

Whats the difference between that N17.50 and 50 Kobo ?. My own interpretation of the above statement will be :

90,000,000 = Total Number of shares availabe for sales

N17.50 = The present amount that each share will be sold for

50k = I don't know this one

PS : Please is it appropriate to use the word [b]share and unit interchangeably?. Do they mean the same thing in stock market?

Please enlighten me

@ All

Please, let us use this thread to educate and enlighten ourselves, especially the "newbies" in the stock market.
So, if you have any thing that you will need clarification on, post the questions here, and hopefully you will see people putting you through.

Allow me to bell the cat. Pleae when they say a company is offering 1.25 billion naira offer of 50k each, what does that 50k represent ?.

I thought that it was envisaged that it would be over-subscribed. Why the extension again ?, Just wondering.

@ bantos

As the only logical person on this thread, i will tell you what i know

I'm deeply pissed by your comment. I wonder why people find it so easy to be at offensive when people don't share their views. Who made you to be the judge on a forum like this?.

I guess you need a bit of education on how to express your views in a public domain without stepping on toes.

Why are you surprised that Akala is acting a naked mad man on the street ?.

Remember the time of Ladoke Akintola of Ogbomoso, he performed so awful in the western region. Now it is the turn of Akala of Ogbomoso.

So, definitely the period of [b] "operation weti e" [/B] is at hand again in Oyo state. Let's see if he or his god father STUPID ADEDIBU can contain the wrath of the masses.

History is about to repeat itself!

It is bizarre for Adedibu's stooge, the stupid  Gov Alao Akala to declare the whole Oyo State workforce sacked, and asking people to start applying to fill the "VACANCIES". This man lacks administrative sense and a total disgrace to Nigeria Politics. I can't wait for the tribunal to send him packing of Agodi Government House.

He should ask himself why Yaradua didnt sack the whole of Federal workers when they went on strike. Akala keeps on painting a picture of how mentally depressed he is by his daily action.

If he doesnt know HE IS A COMPLETE FAILURE !

http://www.tribune.com.ng/20092007/news/news2.html


Oyo sacks striking workers; Calls for fresh applications; We will resist it - Labour
By Akin Durodola and Tope Abiola - 20.09.2007

THE labour crisis in Oyo State took a new dimension on Wednesday as the state government sacked the striking workers and immediately called for fresh applications to fill the vacancies.


The new development, according to the state government, followed the rejection by labour leaders of the fresh concession by the state government of agreeing to pay the requested minimum wage to workers on Grade Levels 01-08, instead of 01-06, adoption of Osun State wage table to workers from Grade Levels 09-14 and additional payment of N3,000 as domestic allowances for officers on Grade Level 15-17.


According to Governor Adebayo Alao-Akala’s Special Adviser on Public Communication, Prince Dotun Oyelade, who made the intention of the government known in a press statement, “in spite of these huge concessions, which are far in excess of the 15 per cent originally demanded by Oyo State workers, labour has refused flatly to go back to work.”


He said the state government had shifted ground three times while the labour position remained unchanged, by insisting on “controversial unsustainable wage that they negotiated with the past administration.”


Already, the state government has placed an advertisement in national dailies to fill the positions it just declared vacant. In the advertisement, the positions of four categories of workers were to be applied for and these include primary school teachers, secondary school teachers, junior staff of between Grade levels 02 - 06 and senior staff from Grade levels 07 - 09.


While the State Universal Basic Education Board (SUBEB) is to handle that of public primary school teachers, the state Teaching Service Commission (TESCOM) will handle public secondary school teachers, the Ministry of Establishment, Training and Poverty Alleviation to handle the junior staff cadre and the state Civil Service Commission to handle the senior civil service cadre.


All applications, according to the advertisement, are to come in within one week. Justifying government’s decision, Oyelade said the state government had no choice but “to invoke the civil service rule as provided for in the General Order that says that any civil servant who absents himself from work illegally shall be summarily dismissed.


“In a counter affidavit sworn to and presented by Oyo State labour at the National Industrial Court which sat in Lagos on August 28, 2007, labour swore that it had never been on strike in Oyo State.


“This proclamation, made and signed before a court of law by labour, means that no worker in Oyo State has been on strike and, therefore, absenting themselves from work all this while has been illegal and unconstitutional.


“In this regard, government has declared their positions vacant and advertisement has been placed by constituted authorities in national dailies for the positions to be filled forthwith.”


Earlier, the Commissioner for Information, Culture and Tourism, Mrs. Risikat Alabi, had appealed to the workers to try to understand what she called the plight of the government and resume work with the fresh concession by the government.


Meanwhile, organised labour has vowed to resist the sack, describing it as a ruse. Speaking with the Nigerian Tribune in telephone interview, the chairmen of the two labour unions in the state, Bayo Ajayi of the Trade Union Congress (TUC) and Bashir Apapa of the Nigeria Labour Congress (NLC), described the action of the state government as a contempt of the court.


Comrade Apapa, the NLC chairman, maintained that workers in the state would resist the action of the government. According to him, “the matter is still pending in court and it will be very unwise of the governor to take that step. That is a contempt of the court and we shall take him up on that. It is a dream which can never be realised. We shall resist it.”


Comrade Apapa further said, “we have also shifted ground by telling the government to improve on the Ogun State government’s circular to pay levels 9 to 14, which I believe would not have any negative effect on the government.”


Apapa maintained that Oyo State workers would not accept the Osun State government’s circular. The TUC boss, Comrade Bayo Ajayi, also described it as a ruse, saying that “I know Otunba Alao-Akala as a responsible person who will not take that type of irrational decision. But if he does, the workers’ congress will decide on the next step of action, but I am sure that he would not do it.”


He added that “to sack workers in the state is like sacking the whole state. A good leader will not dream of doing that. He will embarrass himself if he plans to do that. Oyo State belongs to us and one will not want the government to set it on fire.”


Also speaking, secretary of the Nigeria Union of Teachers, Comrade Olu Abiala, who is also the NLC secretary, said teachers and other civil servants in the state were ready to call off the strike immediately the Ogun State salary scale was improved on by the state government.


Abiala added that religious and civil organisations and all stakeholders in Oyo State had been appealing to the NLC and the entire workforce to accept the modified Ogun circular, which he said was not even good enough for the workers

Akinloye played a MAJOR part in introducing Thuggery and Holliganism to the Nigeria Politics. He supposed to die and be celebrated like a statesman, but reverse is the case. In short, his death is a good riddance to bad rubbish!

This stupid man has been warned not to engage in partisan politics again by the newly installed Olubadan of Ibadan. This old fool dares everybody ---- the ibadan indigenes, the olubadan of ibadan and now the entire nation by getting mixed up in Etteh Saga. I hope he gets incinerated and die a painful death!

http://www.punchontheweb.com/Articl.aspx?theartic=Art200709191411478



Is this man (Adedibu) sick or what is his problem ?



Meanwhile, a Peoples Democratic Party chieftain in Oyo State, Chief Lamidi Adedibu, has appealed to President Umaru Yar’Adua to save the embattled Etteh by stopping the ongoing probe into the scam in the House.

Adedibu, who spoke when Etteh visited the family of the slain member of the House, Mr. Segun Oladimeji, in Ibadan on Tuesday, said stopping the probe was one of the ways Yar’Adua could reciprocate the Yoruba, who ‘voted for him en masse’.

He said the President needed to emulate his predecessor, Chief Olusegun Obasanjo, who, according to him, had a way of settling controversial issues within his ‘closet.’

Turning to other members of the House that accompanied the speaker on the visit, he said, “Tell the President that he is our son.

“We know how many votes he secured from Yorubaland. If it were Obasanjo, he would have invited everybody to the closet and settle the matter and that will be the end.

“He (Yar’Adua) should learn from that. We will not accept that anything should happen to the seat being occupied by Etteh now.”

He said Etteh’s ‘trial’, as exemplified by the probe, was tantamount to putting the entire Yoruba race, whose slot the speaker was occupying, on trial.

Adedibu, who spoke through an interpreter, said, “We are all the same, whether you are from the North, East or West. This country belongs to all of us. This is the person we (Yoruba) put there to represent us.

“Tell others (lawmakers) that we need to live in peace and harmony. They should not think that they are probing Etteh; they are probing the Yourba.

“We are not moved by the so-called investigation. We will not succumb to any intimidation. We will not accept that they do anything that will threaten the position of Etteh.

“During the eight years of Obasanjo, he did not probe anybody. We are not taking this matter lightly. We are speaking with one voice. Whatever they do against Etteh now is done against Yoruba. Please deliver our message to your colleagues.

“What is on the ground now is more than meet the eyes.

“Why do you need to probe anybody when you know you have eight years to spend – the speaker, the President of the Senate and all of you? Why do you have to strain your relationship now?”

He then turned to journalists and said that instead of whipping up ‘unnecessary emotions’, they should write reports that would explain the position of the Yoruba, as expounded by him.

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