₦airaland Forum

Chillisauce: Good advice, but at the bolded. You dont know Nigerian Politicians. Till date, have they paid the savanna bank folks their funds.

Chief, come 2015, nothing will happen. You no get mind jare...

gabscity: am aware sir! even at that...

Don't know how you are doing your calcs o, all I know is this, 12% is greater than 10%, and if you pro rate returns, the former will still be greater than the latter, just ensure you compare like to like, so prorate both rates using the same investment time horizon.

gabscity: pls, how can kgif pay better if it offers 12% in 6months and MM funds offers average of 10% in 3 months
or am i mistaking somthing?

Please note that these rates are annual interest rates.

Meanwhile, we have net asset value of collective investments (funds) in total of 186 billion naira, do you think all that will just disappear with Nigeria?

Anyway, my candid advice to all is to invest in funds of correct houses, check the history of the funds, the house and the financials of such houses. It should go a long way.

Chillisauce: When y'all investing in other market funds, remember the election in 2015. If anything should happen to The entity Nigeria. Your money don loss o. Better re invest your funds in tbills until December, relax..watch out for the following months. Make 12 % longer throat no let you loose all your principal while moving funds up and down.
As per ibtc. Their money market is about 10%, with I think 0.5% charge fee if you stop before 3 month(will have to confirm), I'm sure there will be other fee like service charge. I'm still watching them closely, haven't read all the instruction.

Lol @ bolded.

Meanwhile, you can actually exit these funds, just that there will be a charge of 10% on interest accumulated, especially if you are exiting within the stipulated months (which is always around three to six months).

So, should we still bother about disintegration?

jeffharden: Good day sir,i have a national diploma in banking and finance, but now am considering going to university to study economics. Can i still use that to further more on investment banking?. cause i want to be an investment banker. i will really appreciate your reply sirs.

Nawa o, everybody wants to be an investment banker, God dey!

Economics is a solid background for investment banking, so give it a shot, and graduate with firstie or 2.1, maybe, you would get your desired afterward.

I aint happy with all these sh11ts, it becoming unbearable!

Abeg, why is Diamond rights trading at 1k? Strange!!!!!

mercylicious: I dont think it has anything to do with performance. Trw stockbrokers in their news/blog section posted this abt a month ago. They said d deal was abt to mature and will be redeemed by the coy. i feel its a kind of instrument dt is redeemed after a specified period of time. ill check trw stockbrokers blog and post d link here.

I am very sure that they exited at a very good price (premium).

Charlesnerd: Pardon my ignorance.
If Actis had a shelf life of six years,its apparent their set target was not met ,taking into consideration the poor performance of the bank during the period.Is it possible Actis benefited from the partnership through other means?.
Assuming there was no side benefits,it seems logical to extend the tenure of your investment at a period when the bank seems to be turning a new corner.

Don't forget that aside capital appreciation, there are other earnings, e.g bonus, dividends, etc. So, Actis probably made cool earnings every year (like on the average 12%), bought the shares at discount (maybe 7 naira), 12% for five years, and your principal back at the end is a good deal, also, our currency depreciated over the six years, and am sure their fund has dollars as base currency, so to speak. Lotta stuffs to relate it to.

NB: PE firms don't always get their fingers burnt, they do due diligence like mahd, and they will never exit a good investment, if the target hasn't been met.

Dexterax: And based on vested interests, P. Dozie has a major one in Actis so no issues really.

True

Charlesnerd: http://businessdayonline.com/2014/08/kunoch-acquires-diamond-bank-stake-from-actis-cdc-group/#.U_cRPKNmi_0

Actis divesting from Diamond bank and Dozie family buying off their shares through its holding company ,Kunoch.

A vote of no confidence?. Actis kept faith with Diamond bank through its dark period,why would they want to leave now,when the bank is supposedly positioning itself to join the league of Tier 1 banks?.

Bros, PE firms always have shelf life for their investments, they exit at the end, for Actis, I think it is six years, they can exit by selling the investment to another PE firm, sell to an HNI or some other way. Basically, they set a target return, and shelf life so to speak.

Diamond is still cool, no problem with the bank.

omaojo1: So sorry I did not check that mail. As per calling me your oga, you are always the boss. Still an infant trying to learn the ropes of this trade. As a clue, was hoping to nail the other stuff by 30 before those guy disappointed me.

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Shit happens, dont worry, it is all good, me still hope to nail it by 25 Though its going to be tough sha.

This matter tire me o, no wingers, no DM, no experienced CM. Don't tell me that we have Young and Valencia as wingers o, they won't even make it to the bench of Arsenal,Liverpool and Tottenham, all our DMs are old, slow and not really aggresive, meanwhile we have youngies as defenders, no experience in that department, omo, wahala dey o!

We need a miracle!

Aks: CP, TB and other derivatives are at my beck and call cos i work in a FI. I know all that it entails BUT @nitrogen, if u open a new thread for it and place the link here on this thread, i bet you, a lot of people will be interested in the discussion. You can also educate guys who are new to it as well. #justmythought

Yes boss!

Elai147: CP is as risky as FD. I still prefer TBills (0% risk). Rates are currently not too good with Tbills hence, i am fully in the stock market for now. Interest from CP is subject to tax deductions unlike Tbill and Tbill has better liquidity in the secondary market. People should consider the country in which they are investing their money before taking any step (AAA rating or no AAA rating), depending on your risk tolerance. Abeg make una open another thread for this una CP. This is stock market thread and BnSITL are currently not happy. Biko.

Tax freeeeeeeeeeee...

Anyway, I aint looking for people to buy, just thought I could share some other options in this interesting times. Back to our stock Market matter, since our local investors are not ready to to delve into other aspects, which will never aid the development of our financial market.

Dexterax: Meanwhile bruv...its funny these guys would issue a 'AAA' rating on that CP, considering that the Sovereign within which the company's domiciled bears a lower rating.

Rating agencies sha...

Well, they have to consider the business as an entity, the environment is nothing really, there are other factors to be considered. The likes of GTB is thriving big time in west Africa and maybe UK, also, good corporate governance, and interesting results, non performing loans too would be checked. Nigeria is having a lower rating because of lack of infrastructures, corruption etc.

Public corporations and Nigeria will definitely have high positive relationship(s) with respect to credit ratings, but good private coys run by technocrats tend to have low positive or even negative relationship.

Afo1k: hope u can seee, pple dont really know much abt d cp stuff.....my oga u can create another thread for dat like tbill

Nah! No need. This simple explanation would do.

CP is like treasury bills, but issued by companies, you pay a discounted amount and collect the face value at maturity date. Simples!

Though, it is a bit risky, but there are good companies you can buy their CPs, like Gtbank, Stanbic IBTC, Access bank etc, their credit ratings are very okay.

CP is a short term investment, and you are safe, the better the credit rating of the issuer, the lower the rate offered. So a bank/company not really strong can give you 14% while a strong bank/company can give you 10%.

jaybee3: O'boi, abeg yarn me story na...

no chop all the money alone na

Boss, nawa for you o, you be my oga na!

angelo82: I have just invested in another T.Bills with two banks which will expire in Feb.2015 but by then I can contact Investment One but the only thing I dislike about the KGIF is the resemblance with mutual fund because it has a price and I don't like that.I prefer product that specify minimum investment and fixed rate interest with duration.If not I am ready to invest 20M in any product that can give me fixed 12% per year,but I will do more research by January.

Send me a mail, gennitrogen@gmail.com or provide your mail.

insideview: @nitrogen

Kindly provide info on the CP you referred to. Appreciate kind response. Tnx.

118 days, up to 20b naira on offer, implied yield is 11.35%, issuer is one big bank in Naija, rating is AAA (fitch)

gennitrogen@gmail.com for more.

Dexterax: Hehehe.
My oga, baby steps. But you're right; I'm in this to exploit anything that can be exploited. Just that for now, due to the orientation of our local bourse, only one half of such strategies can be exploited; the LONG side.
After pitching my hypothesis to an uncle in the City, he advised me to go LONG on Presco instead. I disobeyed. The game's not over though. But for now, I'm ahead.

Abi na!

@Afoks1 baba, the stuff (commercial paper) is still available o, 5m minimum, better than bills at the moment.

IYANGBALI: come my house and watch it and other chinese and american movies like oko gbona,oko esin,oko to le,fadiya,gbe simi labe

Chisos!

Dexterax: The historical relationship between Okomu Oil and Presco is reasserting itself finally, re. Reversion to the Mean. Only if one could play the real statistical arbitrage with both!

Choi! You better go and join HF guys so you can hedge many things...

Gtb

http://www.nse.com.ng/Financial_NewsDocs/7261_GTBANK_AUDITED_HALF_YEAR_JUNE_2014_FINANCIAL_STATEMENTS_AUGUST_2014.pdf

Agbalowomeri: You want to sell afriprud for 3.80 in 3 months? Why don't u add another 3 months and see if you can still get this to buy at 5.0?

You are right, but uncertainty is extremely high at the moment, I don't think we will get to see any trend (positive or negative) in the next three months, we've got to be careful.

Okay, as promised, lets kick it off, first, you need an entry and exit price, don't be greedy please, and invest a certain percentage of your portfolio.

A target of three months, go for Afripud, set an entry price of 3.25, and an exit price of 3.80. The half year result was cool, we expect times two of the group's net income in the 2014 FYE, it is a registrar business, which generates a lot, most of these businesses invest the cash with them in bonds and bills, so it's safe to assume that they will hit the forcast net income. I guess everyone knows how registrar business operates.

Afripud, 16.90% return after three months.

Dont be greedy, exit when it gets to that mark.

2cato: .
BSITL I am Redoil who was ban for 93years.

These mods are bad o, imagine 93 years, humans' average age on earth is less than 80 sef. Choi!

elampiro: . These were my best positions in my playing days-10, 8, 4. Everything she does reminds me of my game- the goals, dribbling, some speed, stamina and energy.

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Back in those days, under Amodu Shaibu.............

#Respect