₦airaland Forum

FlyStuff:
Investment opportunity

I don't understand the government organisations again o! Offering about 9% in an economy that the inflation rate is officially inching towards 20%. Always spinning some surprise on their citizens.

It will be better for like minded individuals with integrity to collate their funds together, convert them to USD via inflows and purchase one of the FGN Eurobonds that offer a coupon close to this 9% whist commanding a good yield.

They will be better off in the long run because with the way this economy is going, nobody can run things alone not even Alhaji Cement.

Integrity is the most important thing that could spell success for many in this financial terrain.

OBAGADAFFI:
What is the shareholding of GSK UK in GSK Nigeria?

I believe some people are underestimating GSK Nigeria due to the deal with Fidson.

You raised a very good point that we may have been underestimating that company. Oga @Onegentleguy don talk plenty things so tay I doubt he still has more saliva to spare on GSK PLC. More blessings to you Sir.

The lease of that manufacturing facility to Fidson PLC transfers a huge cost component to Fidson PLC and will enable the company to focus more on funding research development and marketing its successful products.

It's similar to how Apple or Amazon operate with their business model. Imagine if banking and non banking financial institutions had Uber or Bolt driver as marketers for their products and they share the income earned from each client onboarded via a commission structure?

It reduces the cost that would have been spent on cars, depreciating assets as well as human capital costs which allows the company focus on product designs and service systems.

Dostartlimab, new drug cures colorectal cancer after trial.

https://nairametrics.com/2022/06/07/dostartlimab-new-drug-cures-colorectal-cancer-after-trial/

I remember the big boss @RabbiDoracle mentioning the various things GSK's global organisation has been cooking in terms of their arsenal of new drugs in the medical field.

This discovery also supports the positive view that the big boss, @Onegentleguy has been singing about the company.

zippie5:
Please i'm yet to receive GSK dividend. does anyone have a contact i can reach the registrar? the phone number on the website is never answered. Thank you

Get a copy of your CSCS statement showing the shares, a letter requesting for your dividend (the letter must contain your bank account and BVN details as well), a valid means of Identification.

Go to the office of GTL Registrars Limited located at Modupe House, 274 Murtala Mohammed Way (Beside CashCraft Limited), Yaba, Lagos and present your request to them.

They will guide you of there is any further request and also let you know when you should expect payment as well.

You will be asked to complete a mandate form if you haven't done so before and assisted on further steps to process it.

RabbiDoracle:
We are in an inflationary environment globally and investing in real estate is an inflation hedging strategy.

What is a building made of? Cement, sand, aggregates, aluminium, PVC, steel rods, electrical, furnishings and fittings, paints, landscaping plants etc. And you will transport these to site o (diesel from petrol retailers).

Dem no dey use superglue to hold blocks together

So cement is needed to make that inflation hedge possible.

Much respect and acknowledgement for your wise words @RabbiDoracle. They continually embellish the insights and deep knowledge you continue to share with us here.

Blessings upon you our great teacher.

Ifa Olokun; Asoro dayo
Ojise Eledumare; Ti o mu aje wa!

Mpeace:
I always valued the stock above 40 for now. That moment it started moving I thought 40 was the destination, knowing fully well that it has prospects for future growth. Its a long term investment sha

You shouldn't bother yourself about it at all. It will arrive at your desired destination especially when you consider the projections for growth in the construction and infrastructural development industry.

Mpeace:
I just hope no body bought wapco at 30 with borrowed money.

This question wey you dey ask this early morning get as e be o! Wetin happen o my dear?

CBN’s monetary policy committee raises interest rate to 13%

The Monetary Policy Committee of the Central Bank of Nigeria has voted unanimously to raise the benchmark interest rate to 13% after over two years of expansionary monetary policy.

This was disclosed by the Governor of the CBN, Godwin Emefiele, while reading the communique of the third monetary policy committee meeting of the year, on Tuesday 24th May 2022.

The rate which had been at 11.5% since September 2020, in a bid to spur economic growth from the recession witnessed in 2020 due to the covid-19 pandemic, has now been raised by the apex bank after inflation rate rises above 16%.


https://nairametrics.com/2022/05/24/cbns-monetary-policy-committee-raises-interest-rate-to-13/?amp=1

RabbiDoracle:
Monkeypox is now trending all over EU, US and the world at large.

Something that even many Nigerians have not seen any person suffering it or even if they had seen, they are very few. It is a very rare disease and seeing the sufferers is usually a bad sight to behold.

And now it is trending. Awon were jatijati.

What could be the likely impact?

Looking at events in the last 2 years, it is very likely the releases of these events are there to crush demand for fuels, foreign and domestic travel, hotels, vacationing companies etc. If the panic spreads as they are hoping, they tend to boost healtcare and pharma, hygiene goods, food storage/hoarding, vehicle leasings/rentals, online education etc. So these are areas of investment that may see a boost if they spread the panic like they did for covid.

Effect on NSE?

I don't think there will be any negative impact on stocks that cater for these events(highlighted above). 100K here we come.

Stay safe.

Many thanks for your wise words and insightful contributions to this forum Sir which allows us to learn more. You continue to bring forth perspectives that are invaluable towards wealth creation on this forum and protect its members from inimical events that happen across the globe.

May the Lord continue to bless you and the works of thy hands Sir.

Twale Sir!

wanaj0:
An illegal deed is always UNETHICAL. In most climes unethical bahaviours are illegal. However in some situations an unethical behaviours can be legal. Cheating on your spouse is unethical but not illegal

In this case it is legal and nothing unethical in crossdeals or off market deals.

Greetings Oga Wanaj0, the revered elder of our forum. Many thanks for your contribution over the years to this forum. We need more it as often as possible o and e sweet my belle say I got you to comment this early morning. This your example na ogbonge one wey sweet my belle especially for Nigeria. But for my obodo oyinbo peeps, cheating on a spouse or adultery in some places in the USA could lead to a fine or jail term which could cause the erring party serious gbese when divorce proceedings are brought into the matter especially regarding alimony payments.

Once again boss, I greet you o! Twale Sir and many thanks for your insights and ideas on this forum.

emmasoft:
Your references are noted but that doesn't make cross deals illegal or bad.
The point I'm trying to make is
That a process is abused doesn't make it illegal.

For example it's a normal and legitimate process to access funds by way of loans from financial institutions but we can testify how some companies (banks) have been sent under and investors lost their money because of abuse of the process resulting to bad debts etc.
In fact cross deals has solved some family issues that could have arise when an investor is deceased.
Some investors use the process to allot their shares among their children before death and a cross deal can be used when giving out shares as a gift etc.

With right regulation and enforcement cross deals can always serve its purpose.

My dear brother @emmasoft, all through my several posts, I never mentioned that they are illegal o. I just highlighted how they have been used in unethical ways by some investors to get away with abusing its application for personal gains on such deals without considering the effect on retail investors.

The bank issue you mentioned regarding loans is also an unethical way that a lot of people have used to rob banks and make investors and stakeholders suffer losses.

My point highlights the unethical behaviour which clearly differs from illegal ones.

emmasoft:
Please understand cross deals are legal and not fraudulent; it's allowed.

A cross deal can happen between a debtor and a creditor, two friends, parents and child/children, husband and wife, institutional investors, two stockbroking firms, etc

Most of the takeover bids and getting majority holdings of a company are by cross deals.
Of course no system is perfect there will always be people trying to play smart.

The issue of insider information can't be ruled out in any market.
So we just have to keep doing our due diligence and get the right information as much as we can.

But by all standard cross deals are normal market activities all over the world.

We don't need to do much research o how cross deals led to a lot of old people having a heart attack with Oando shares some decades ago. Oops, I hope we haven't forgotten the African Petroleum saga trying to purchase Texaco PLC (now MRS Petroleum PLC) which caused the raucous between Ote$ and Alhaji Cement then.

We should also mention the Tantalizer PLC, Tetrazinni PLC, Big Treat PLC, Starcomms PLC and all those private placements where crosses at the minimum standard to raise prices was being done to push prices up to suddenly dump them on retail investors.

No be today things don dey happen like wishy washy for Nigerian market. Things don happen for this market especially for period between 2007 and 2011 then.

emmasoft:
sure @YMcy56 you correct 101/100 The koko is that agreed and arrangement between known parties is key. In fact, it's even easier when the two investors are in the same stockbroking house.

Oga Emmasoft, you are a player within the system so I won't expect you to support such positions. A lot of people know that most of those cross deals are done between related parties (friends, business associates, special purpose vehicles, etc).

When results are sent to the regulatory agencies and they are favorable, certain people who have interests take positions in a bid to benefit from such positions. The public where you and I reside are part of the last set of operators in the system to see these results. This is why I sometimes understand when some people feel that Technical Analysis starts off th3 blocks before Fundamental Analysis decides to bend down on its mark.

I also don't think this is limited to the Nigerian Market alone. As a matter of fact, na foreign markets ended happen wella and na dem teach our people sef.

Dum20:
Okay, i see,

They are cross deals. The price is already agreed on and will not change no matter what is going on in the market.

Whenever I see cross deals or trades regarding stocks, it just screams insider deals or trades. I just get the feeling that someone has gotten wind of some information that is not yet out in the public space.

One major reason why a lot of the banking sector players with Holding Company structures want to set up a PFA is to enable them leverage on their customer database, branch network for customer acquisition and funds being retained, investment opportunities from securities and listings as well as bank assurance or insurance services that captures the annuity market which has been gradually eating into a section of the pie in the pension industry.

OBAGADAFFI:
According to PENCOM

Pension Fund Custodians (PFCs) are responsible for keeping safe custody of pension assets on trust on behalf of contributors. The main functions of PFCs are to receive pension contributions on behalf of PFAs; settle transactions and undertake activities relating to the administration of pension fund investments on behalf of PFAs and to notify the PFA within 24 hours of the receipt of pension contributions from employers.

This means PFCs are making money Both from PFAs and millions of customers.

My dear brother, I'll share a story with you here. NLPC used to own a Pension Management License before the advent of the Pension Reform Act 2004 and had a lot of corporate and mega oil and gas institutions under their management. When PRA 2004 kicked in, their Managing Director at that time pushed that they should surrender the PFA license and get a PFC license instead.

Years later when organizations like ExxonMobil, Mobil Oil, Central Bank of Nigeria, NEPA, etc moved their accounts to companies like Stanbic IBTC PFA, PAL PFA, ARM PFA and were earning fat fees during those mad capital appreciation days, they realized the folly they had made because they saw their income drop drastically. The Managing Director who recommended the strategy was told to leave. NLPC had to submit that PFC license to apply for a PFA license which they hold today.

I even remember Mr Fola Adeola and some of his team members at GTB saying at an event that he regrets not resigning from the PRA Reform 2004 board at that time because it denied GT Bank PLC the opportunity to partner with ARM PFA to set up a PFA then because of potential conflict of interest issues that some industryplayers would have raised. This would have made them a behemoth in the banking and non-banking financial industry at that time using their commercial banking and bank assurance network nationwide. He has even boasted that Stanbic IBTC for no smell anything near wetin dem get today as Retirement Savings Account customers (over 1 million RSAs).

PFC money na small money compared to the money PFA wey get lots of accounts dey see. PFCs are just like your custodian in the same business warehousing the funds. They don't charge investment management fees or incentive fees.

OBAGADAFFI:
PFC is very profitable with little competition
Access bank shouldn't have sold that PFC.

The PFC business was a forced one because of the acquisition of Diamond Bank PLC and its subsidiaries. Also, that PFC business is not a cash cow like the PFA business. Access PLC used to be a shareholder in Stanbic IBTC PFA but had to sell their shares as a result of the acquisition.

The PFA business is like an organization printing money. You earn an administrative fee of NGR100 per month per account, earn a management fee as well as an incentive fee for significant growth in your assets under management. Imagine how much they will earn with the appreciation the market has witnessed year to date.

If you have a million customers, the administrative fee will be NGR300 million a quarter and NGR1.2 Billion a year for administrative expenses which are exclusive of your management and incentive fees.

Mpeace:
No body said seplat is a bad company. We only advised that seplat be cautious in loans and acquisitions. Too much aggressive investments in bullish period is not too good.
Remember First bank almost collapsed because one CEO(Bisi Olasanya) decided in time of high oil prices, to give out too many loans to oil companies without due diligence.
Mind you, The said CEO was an experienced hand in the field of banking. He wanted to make huge profit for the bank thus his decision to give out more loans to the oil industry. FBNH has not fully recovered from the repercussions even as we noted that only a few banks would have survived that experience.

Chai! You are right my sister. FBN Holdings PLC was another organization that had massive corporate governance issues. Leave that part about making huge profits for the bank because his Chief Risk Officer warned about the exposures to a lot of those transactions but they trudged on. Some of these people ought to be in jail for those insider related facilities they influenced towards Seawolf Oilfield Services Limited as well as other companies influenced by top shareholders and board members.

It was alleged that he got massive kickbacks from those transactions and these were later used to finance his real estate portfolios in places across Ikoyi, Lekki Phase 1 and Banana Island towards his retirement. The dude is also involved with the company that produces Bigi drinks and their associated sausage products.

When corporate governance goes out of the main door, it usually walks away with the key to the main doors of any building. It is always better for investors to exit such building using the emergency exit or windows which is quicker because the crowd presence at the main door may be too much for ease of passage.

These people don't care about retail investors o! Aside the dividends they get, they already make a large chunk of their returns from deals.

GreatEko:
Unipetrol Plc used to be a well-managed business until WT & co bought a controlling stake in the company. These guys ruined it because they have absolutely no experience in managing an oil and gas business.

Seplat is different in that they have experienced managers in their leadership.

I disagree o! Seplat is already treading that path slowly. Their corporate governance structure has been largely influenced by the major players therein which is a red flag.

They need to ensure that their corporate governance structure is given the necessary premium it deserves or they will become Oando PLC Pro Max.

It is this optimum corporate governance structure that will ensure the necessary risk and controls are in place to mitigate against any downward trend in the price of crude oil whenever it happens.

Seven Energy Limited, an associated company of theirs is a good example of what could happen when corporate governance goes downhill.

naturalflow:
Based on lattest result,I will buy fidson at #10,but I no fit buy GSK for even #4.

Gentle reminder o! I hope you are still waiting for it at NGR4.00

Happy Sunday everyone.

samguru:
Instead of buying Unity Bank, go to your bank and withdraw the money you want to invest in Unity, put everything in a basket add small petrol to it, light it and wait for everything to burn to ashes.

Unity Bank is a BIG RED FLAG, I will not recommend you buy even in 5 years from now except miracle happens.

CBN should have performed euthanisia on this bank, if not for the strong politicians behind the bank

Hard truth spoken by @Samguru regarding Unity Bank PLC. Don't view it in any other way than a brother telling you the hard lined truth.

I could say it in a subtle way though. It will be more beneficial for you to take that money and use it to lodge at Lagos Continental Hotel, enjoy the skyline view of Lagos as well as enjoy the sumptuous dining, music and the ambience available there.

For a fact, plenty babes go wan join you for the period you dey there because it will bring better memories than what buying Unity Bank PLC shares will do to your psyche.

The Bank's shareholders funds are deeply in the negative territory and from their shareholding structure, AMCON practically owns that bank. They will be unable to sell for as long as the political heavyweights are still around. Even the heavyweights are not willing to inject funds to rescue the Bank from its precipitous situation.

You may be thinking about being speculative but it is a dangerous game with that Bank. The moment the influence of those political heavyweights disappears, the bank will likely follow the path of Skye Bank PLC or Bank PHB PLC.

emmanuelewumi:
The guy suppose share his analytical tools with us.

He identified Dangote Flour around N2. I bought the stock at N4 and rode till N17 before i sold. Those who waited till the end of the film sold to Olams at around N24.

He also identified Vitafoam at around N5, although my average price for Vitafoam is less than N4.

You are correct my Oga. I remember the Dangote Flour PLC scenario. What surprised me about his prediction was that a lot of investment professionals in some of the big named organisations doubted the significant rise would happen to the stock and kept a lot of their clients in the dungeons.

Senior man, @Currentprice was able to create an opening for the few who trusted to see some light and crawl out of those dungeons. May the Lord continue to prosper his Ministry o!

@Emmanuelewumi, your advice has been very insightful and valuable too and we appreciate you too Sir.

May the Lord continue to crown our efforts with achieving positive results and greater milestones.

emmanuelewumi:
You suppose share your tools with us oooo.


Shey you go drop am for the other side!

@Currentprice, your market don dey sell well well o! See as accolades just dey drop in like people buying APC Presidential nomination form.

You are doing well Sir.

currentprice:
I remember when my Boss OGG yab me and my bedsheet on fidson when i picked the stock over gsk here.. he dare me to bet with 7 figure numbers gsk price was even trading higher than fidson as at that period... i think around Nov/dec 2020.

rest is story now. fidson trading @ over N10 today while gsk senn @ N6

I no know which kind motivational dream you get when you sleep last night but you dey try step on Oga OGG toes as well as comot shirt and inner top from him body outside in this early morning rain o!

sonofElElyon:
Thanks bro.. you think it's a good buy now?

I feel that there are better options in the market for now and even down the line especially when you consider dividends yields and growth trajectory in revenue terms.

When a company has challenges releasing its result when it is due, it signals a red flag for me.

Our elders on this platform have spoken so well about other companies that have brighter prospects in the medium to long term.

sonofElElyon:
When is Abbey mortgage bank going to release its final results They said it would be released end of April and they failed so to do

People will just have to wait until they decide it is ready because na the VFD Group men dey control that company currently. Their former Managing Director just got appointed into the board of the Federal Mortgage Bank of Nigeria Limited recently.

They also purchased shares worth above 5% holdings in the NGX PLC this year.

Bature1:
.

With all due respect to the publishers of this Oando's earnings warning, I no understand this English wey dem people dey use communicate o! I thought the major effect of Covid-19 was in 2020. How will this now affect results for the period ending 31 December 2019?

Abi eye dey either pain the person wey type that information or the people wey dey read am differently?

What a wondered statement!

Ribena, Lucozade brands in Nigeria acquired by Africa FMCG for $14 millionThe new owner is expected to expand the business by leveraging on its robust supply chain management infrastructure.

 by Zainab Iwayemi

 April 12, 2022

Energy-boosting drinks Ribena and Lucozade brands are set to operate under a new owner, Africa FMCG Distribution Ltd (AFDL) following the acquisition from Suntory Beverage & Food Limited (SBF) for $14 million.

The deal which reportedly cost $7 million each for the transfer of share and loan would be completed in the second quarter of 2022 subject to a nod from regulatory authorities in Nigeria.

The new owner, AFDL is a subsidiary of Chanrai Summit Group, a multi-faceted company distributing products and is expected to expand the business by leveraging on its robust supply chain management infrastructure.

Culled from Nairametrics.

https://www.youtube.com/watch?v=S11bA6Jek-I

[quote author=Olaide1295 post=111639777][/quote]You should forward the electronic mandate form through your banking financial institution. This should be done free of charge.

Kind regards.

This video looks interesting especially the manner it explains the behaviour of a particular stock listed on the floor of the Nigerian Stock Exchange using an easy to understand approach.


https://www.youtube.com/watch?v=S11bA6Jek-I

Please note that ensuring your due diligence activity applies as well.

Interesting times lie ahead.