₦airaland Forum

We need to see the outcome of this, but this reprieve is good news for Nospecto and others.

[QUOTE][B]EFCC removes block order on accounts of NOSPETCO & others
Posted Thursday, May 3, 2007[/B]

The FIU branch of the Economic & Financial Crimes Commission has now reversed its earlier instructions to banks to stop all transactions on the accounts of the 'Oil Deal' companies operating in the country pending the conclusions of its 'monitoring' of the activities of this concerns.

http://www.proshareng.com/myproshare/portal_news.php?id=2299[/QUOTE]

@ Everyone - Have you considered the upcoming First Bank offer? It falls under the new policy of the SEC, which stipulates a minimum of 80% underwriting. With regards to First Bank, this means N80 billion has to be underwritten. Wow!

With this new recapitalisation on going in the capital market, who will step up to take this risk? Will this hinder the kick off of this offer? This is something that needs to be worked out before the start of the offer.

At least we can be certain that subsequent offers won't be manipulated as was done by UBA

What's your take on this issue?

@ Dollyp1 - So which broker did you choose? Cashcraft or Zenith?

@ Dis Guy - What of the new rates introduced? Aren't they supposed to take immediate effect?

I anyone has the answers to these questions please tell us so that we don't get ripped off! I would go as far as reporting any stockbroker that still charges the old rate, to the SEC.

It is fair if you have been told the percentage they'll charge you for every transaction

It's a rip off if it is well above the 'normal' commsion rate and you've not been made to understand that before you bought the shares

not too sure, what the current charges are

@ Dollyp1 - You already answered both your questions

@ Windywendy - This is what BusinessDay says about the Jos Breweries investor:

BusinessDay
Major Equity Swap At JIB
17 April 2007

A major divestment in Jos International Breweries Plc, yesterday may chart a new course for the shares in the coming weeks.

Stockbrokers said the cross deals where 200 million shares were transfered to new investors, has put the company in focus again.

The Brewer of Rock Larger beer among other brands has not declared dividends in a long time now. Specifically, the market capitalization of shares which were traded yesterday at N2.94 was N588 million.

The highest price during the year has been N3.26. The new investor(s) may turn out to be a booster to the company, which currently carry zero price earning ratio and earnings per share.

Earlier in March 2007, the Nigerian Stock Exchange allowed a supplementary offer of the brewery company listed. The supplementary offer of 303,500,000 shares was listed.

@ Dollyp1 - A utility bill from your current residence is acceptable. If you buy shares through a stockbroker from the secondary market, you won't get share certs, you get a CSCS account to which your share holdings are electronically lodged. As for IPO's, unless the option of crediting your CSCS account with your holdings is not available, you can use a trusted persons address (in care of).

Alternatively, get your stockbroker to buy on your behalf.

@ Dollyp1 - Both Zenith and Cashcraft ask for Utility Bill, what about Nigerians resident abroad.

I have heard it is better to use a Nigerian addresss because of posting of share certificates e.t.c

@ Windywendy - Check out the news in the Vanguard re: Unilever:

http://www.vanguardngr.com/articles/2002/business/april07/30042007/b230042007.html

Unilever returns to profitability first quarter

The restructuring exercise in Unilever Nigeria Plc has started paying off as the company returns to profitability in the first quarter 2007.

@ Windywendy - Your knowledge of stock is quite deep. I am really impressed.

Does anyone know what's going on with Jos International Breweries? I hear some core investors are taking over . . .

From what I've read, Jos Breweries are in serious trouble, despite a core investor coming in. I'm sure the investor went in with eyes wide open, and can hopefully turn things around.

http://www.businessdayonline.com/?c=56&a=12768

April 19th, 2007
Jos International Breweries battles for life
E-MAIL THIS PRINT THIS Most Viewed


Activities at Jos International Breweries Plc are gradually grinding to a halt, indicating that all is certainly not going well with the brewing company.
Chinedu Dike

The slide to a shutdown is making shareholders to be deeply concerned and is making them to seek the intervention of the regulatory authorities to help salvage their investments in the company.

The company accessed the capital market in 2004 for fresh funds to strengthen its operations. But the results of the offer are yet to be published and there are no clues of the level of subscription.

Though subscribers to the offer have received their share certificates, they are not yet verifiable as the shares are yet to be listed for trading on the floor of the Nigerian Stock Exchange (NSE).

Worried by this development, Boniface Okezie, President, Progressive Shareholders Association of Nigeria (PSAN), said he went to the company’s factory in Jos to appraise the state at the company. What he saw there was near zero operations. He did not see any truck moving in or out of the factory an indication that no production activity was going on.

He said efforts to reach Albert Kattiens, the managing director, was rebuffed. He wanted to find out from the MD why Jos International Breweries (JIB) has not convened an Annual General Meeting for about five years now and to tell shareholders what is going on in the company. He also wanted to know why the company has not paid any dividend for the past ten years, and the status of the last public offer of the company.

But he was disappointed. Kattiens refused to see him but merely sent a note through his secretary that he should go to the Corporate Affairs Commission (CAC) at Abuja if he wanted to know why the company has not held an AGM.

The PSAN leader said he later reached out to Garuba Izam, Chairman of JIB, who told him the company was having financial difficulties and is currently shopping for core investors to inject fresh funds in the company.

Izam gave an assurance that as soon as a core investor is secured, the company would bounce back into full production.

Efforts by BUSINESSDAY to reach Kattiens were unsuccessful. His Secretary said the board and management of the brewery are working out the way forward.

Though he did not give further details, he said the company is aware of the concern of the shareholders but it would be preempting issues to call the shareholders when the board is still discussing with some investors that have shown interest in investing in the company.

But the PSAN leader is calling on the Securities and Exchange Commission (SEC), and the Nigerian Stock Exchange (NSE) to prevail on the board of Jos Internaional Brewery to convene an AGM and tell shareholders exactly what is going on in the company.

He said if this not possible, the entire board members and management should be made to resign their appointments, while a new leadership would be appointed to ensure that investors interests are not jeopardised.

@ Cheexy - this is also my beef with Cashcraft.

slow to respond to emails, requests, purchase orders etc

Do you mind sharing who your broker is? That is if all the above is the exact opposite with you.

@ SavvyLanre - Please update us with how the service with Zenith runs, as you go along.

@ Everyone - Have noticed that Damadsuite last visited this thread on the 13 January? Or that he last posted on his forex thread on the 2nd March?

I just thought you should know, since he is expected to respond to queries.

@ olucooler - www.deapcapital.com

@ Frankiriri - Thanks - I stand corrected

@ Obamedo, @ Hbrednic - You pay the standard broker charges, but getting them yourself, if you are in naija or in this instance through Jossy, you pay only the cost of the shares. Hopefully if First Bank gives this option, choose to have your CSCS account credited with your share certificates.

@ oshkosh - Honestly, how possible is this rumoured dividend? From which profit /trade will this manifest itself? Probably the same magic that turned their N7 share to N9 overnight without any trade to back it up.

@ Iyke-D - I hear you loud and clear, but come on, are you telling me you buy everything anyone has to sell (the crappy stories and explanations)?

No! I don't see you as such. I don't really care about whatever story those behind Transcorp have to tell. All that matters is for them to show good corporate governance. I care about people like you and I not being taken for a ride with out hard earned dough.

The Trancorp concept is brilliant. Its the foundation that is no good. No matter how good a structure that is built, if built on sand or anything that is not solid,
it is bound to fall sooner or later. I will buy into Transcorp when the moment is right.

But for now, my prayer is for people like you that trusted this institution, at this point in time to reap where you have sown bountifully and that means some how, some way Transcorp rises from the dunghill.

With all the negative news and 75 million odd share waiting to be dumped as at Tuesday's trading day, only 947,316 shares exchanged hands leaving the stock to close at N7.54.

Miraculously (if such a thing exists in the stock market), the stock has closed at N9.71 after trading 3,011,808 shares. Today's low/high price was the same N9.71 how miraculous can this be for Transcorp Something does not add up. Dare I suggest insider trading? And all this in 69 trades only!

Let's see where all this is leading to

With all the negative news and 75 million odd share waiting to be dumped as at Tuesday's trading day, only 947,316 shares exchanged hands leaving the stock to close at N7.54.

Miraculously (if such a thing exists in the stock market), the stock has closed at N9.71 after trading 3,011,808 shares. Today's low/high price was the same N9.71 how miraculous can this be for Transcorp Something does not add up. Dare I suggest insider trading? And all this in 69 trades only!

Let's see where all this is leading to

With all the negative news and 75 million odd share waiting to be dumped as at Tuesday's trading day, only 947,316 shares exchanged hands leaving the stock to close at N7.54.

Miraculously (if such a thing exists in the stock market), the stock has closed at N9.71 after trading 3,011,808 shares. Today's low/high price was the same N9.71 how miraculous can this be for Transcorp Something does not add up. Dare I suggest insider trading? And all this in 69 trades only!

Let's see where all this is leading to

With all the negative news and 75 million odd share waiting to be dumped as at Tuesday's trading day, only 947,316 shares exchanged hands leaving the stock to close at N7.54.

Miraculously (if such a thing exists in the stock market), the stock has closed at N9.71 after trading 3,011,808 shares. Today's low/high price was the same N9.71 how miraculous can this be for Transcorp Something does not add up. Dare I suggest insider trading? And all this in 69 trades only!

Let's see where all this is leading to

@ Cheexy - Re: Afroil, still looking as well.


@ SLEEK_CHIC - Does this help?
http://www.cashcraft.com/stockinfo.asp?Sec=GROMMAC

@ Cheexy - I see your logic. From the example you've given I would say even if the goal is long term it would only make sense for the investment to be quite minimal. It would be better financially if one was to invest larger sums into a stock or stocks that would generate better income returns in the time frame that would take a stock like Transcorp to generate good or substantial returns I assume?

But I would still agree to go ahead and buy Transcorp after the dust has settled and it starts to show signs of recovery. This requires being vigilant and "eagle eyed".

Xechem plan N2.5billion IPO. They already enjoy good patronage from foreign investors which puts them in good company.

This was culled from BusinessDay, published today.

Xechem Plans N2.5billion IPO
BusinessDay
Badejo Ademuyiwa, Abuja

Xechem Pharmaceuticals Nigeria Limited is heading to the capital market to raise N2.54 billion through an Initial Public Offer to buoy its working capital.

The IPO is being perfected by Chapel Hill, and will hopefully be in the market by September, this year.

Xechem in agreement with the Ministry of Health and the National Institute for Pharmaceutical Research and Development (NIPRD) is to develop, produce, sell and market NICOSAN.

NICOSAN, a non-toxic drug from extracts from tropical plants, was developed by NIPRD scientists to manage sickle cell disease.

Iretiolu Oniyide, managing director, Xechem Nigeria, disclosed this during a facility tour of the plant at Sheda, Abuja and noted that the offer will complement other facilities under way to improve the working capital of the drug firm.

Bullet points:

$8 million has been invested to date.

A N350 million NEXIM loan to be sealed next week.

Direct investment of $12 million from the USA.

$9.2 million facility guarantee from U.S Exim/

Local guarantee from Diamond bank and Bank PHB.

NISCON is currently available from 1,500 pharmaceutical shops across the country.

Target of four and eight million capsules per day to meet Nigerian demand and that of the continent.

@ Cheexy - I learnt from good authority that if you allow shares you bought to fall from 10% to 75% of its cost price, with the intention that it averages out your loss, you are very wrong!

All this means is that in order to recuperate your initial capital the stock will need to more than double, if not quadruple i.e

Initial cost: N20

Price drop: N15

This stock would need to first of all treble, just to get back your initial input. You will now compound issues by buying more.

At least this is what I think. What's your take?

Previous post:

Transcorp was not oversubscribed as initially reported. It can be deduced from info readily available. Consider that if the opposite was true, It would be all over the news. It would be news worthy.

On a much more gloomier note, as of the 5th of April, Trancorp was today lifted off technical suspension. The market was swamped with excessive supply volumes which sent its prices crashing to a maximum of 4.91%.

Currently, there is an excessive supply of approximately 75 millions units queued on the system waiting to be dumped at the next trading day.

-

DEAP Capital declares 800% return on investment

(companies very easily provide us with polished and made-to-look-good-for-investors, improved earnings and profit margins)

Does this take into account their 2005 loss? For those good at analysing financial data, if you can, I wouldn't be surprised that 800% turns out to be 80% return on investment. It makes me wonder exactly what level of profit was really made and against what data was this comparison/measurement arrived at?.

Are you encouraged to invest with DEAP? Does any of the info they have put out encourage you? Why? Please share.

The Punch
Deap Capital declares 800 per cent return on investment
By Atser Godwin
Published: Monday, 9 Apr 2007

Deap Capital Management and Trust Plc, one of Nigeria’s fund-management companies, has declared 800 per cent return on investment for shareholders in four years.

The Managing Director, Deap, Mr. Emmanuel Ugboh, made the claims at the company’s yearly investors/brokers forum in Lagos on Thursday.

He said that the company’s operations had consistently resulted in profits in the past three years and that during its first six months it broke even.

“The company has paid dividends to shareholders twice in four years. It has also issued bonus shares twice in four years,” he said in a statement on Friday.

The company’s Chairman, Chief Sylvanus Ezendu, said Deap Capital’s excellent performance was due to the commitment demonstrated by its management team, especially in their effort at ensuring that they derived the best and highest yield for investors.

http://www.punchontheweb.com/Articl.aspx?theartic=Art2007040822232215

Transcorp was not oversubscribed as initially reported. It can be deduced from info readily available. Consider that if the opposite was true, It would be all over the news. It would be news worthy.

On a much more gloomier note, as of the 5th of April, Trancorp was today lifted off technical suspension. The market was swamped with excessive supply volumes which sent its prices crashing to a maximum of 4.91%.

Currently, there is an excessive supply of approximately 75 millions units queued on the system waiting to be dumped at the next trading day.

@ Smithid - I would like to disagree with your take on things, considering the PO was over a year and since then the stock appreciation is total crap in comparison to other stocks. The time frame its taken Union to get to its current level, one would have made better value investments with good appreciation.

My take? - whatever type of investor you are, you would have been better off investing in something else and gotten better returns. Everyone's goal is to make the best profit available and possible, at least I think

@ frankiriri - thanks for further enlightening me

@ Tmoni - if you are buying 50,000 units and under I don't forsee any problems with your allocation. If you intend to buy more, get those you trust to buy and then transfer the shares over to you.

my 2cents!

@ ebony9ja - do you still have access to the article? I would like to hav a read if possible, otherwise can you tell me which companies were chosen by the NNPC?

Something to share about stockbrokers!

The daily bid & ask on stocks are determined by buy and sell orders.

Stocks are bought at the "ask" price and sold at the "bid" price. Most trades in the world today are do electronically. Therefore, most brokers don't even have to go to the trading floor (NSE trading floor) to execute their trades, even in Nigeria.

I visited two brokerage firms last November (2006) and watched them buy and sell stocks electronically from their offices. Believe it, buying and selling of stocks in most advance countries is like the haggling process in the market, but on a more sophisticated manner.

For example, let assume a stock closed at N30 yesterday. Additionally, lets assumethe stock is Dangote Sugar and it is in high demand.

Before trading starts today, most brokers will post their buy and sell orders on their electronic trading system. These buy and sell orders are seen by all brokerage firms that have access to the electronic trading system. However, there are tricks to the trade too.

Some brokers may occasionally hide their sell orders to create artificial scarcity and drive the price of the stock up. And as soon as the price goes up they dump their shares on the unsuspecting buyers.

Therefore, if demand exceeds supply the stock will open higher than it closed the previous day. If supply exceeds demand the stock will open lower than it closed the previous night.

Remember that there is a 5% threshold in Nigeria. Therefore stocks cannot increase or decrease more than 5% in a given day. However, during the trading day the stock will vacillate between the upper and the lower 5%.

@ Egoldman - All that happens is the stock is put on technical suspension (the price frozen at the last trading day b4 tech susp.) The stock is then offered to the public at a slight discount i.e. normal price N40, offer price N37.

Upon conclusion of the offer the price will resume normal price of N40. There after the price should normally continue to rise, all things being equal. Except in the event that the offer was not totally subscribed, the issuing houses/stockbrokers will buy up whatever is left and then flood the market with it which will then push prices down, since there are surplus shares and few buyers.