₦airaland Forum

RabbiDoracle:
That is the result of throwing stones at people who analyze and tend to stop people from buying.

Anyway no be our money dem take buy.

Abi

Yes o.

You guys are even trying. if I'm not asked a direct question, I tend not to respond, because I don't want anybody that is looking for "Yes, go ahead" to insult me.

I really researched that Livestock when it was touted here as a future messiah and I saw it was trash and that's why I'm offended by the Olam blame game.

I will repeat it, most Nigeria company's problem is internal. Anybody that wants to start blaming the competition should not be in NSE. Go to NYSE and see what competitors are doing to directly tarnish each other's brand and yet they will still make profit.

For reference see: Ryanair vs Easyjet

RabbiDoracle:
Pioneer status is 5 years and it can be extended to a maximum of 2 years after the 5 year period.

Yes, I get.

But Olam's pioneer status has long expired.

Moreover Olam did not stop anybody to apply for their own.

Blaming Livestock woes on Olam is like blaming Dangote flour for Honeywell flour issues. The management should wake up.

Who wants to buy should keep buying, but atleast people should know the problems within the company.

Mcy56:
I disagree with you on this!
How is it self inflicted? How is it foolishness on the part of the company striving hard to stay in business? Have you considered various factors that makes operating in a serene and conducive environment and making profits a lot easier? When there's adequate backing and funding, wouldnt they favourably compete with their counterparts?
While I understand that Olam is trying to grow the country, why giving them huge loan? Are we saying we dont have capable and qualified local companies to favourable 'discharge such duties' as well? I'm just not understanding

Livestock is not well managed. Instead of the shareholders to do something about it, they want to be crying Olam.

They should keep crying. if not for Ihedi's stock tip, I don't even research companies of this nature.

Mcy56:
I doubt if it'll be up to that, highest 5% because the government's sole interest is to resuscitate agricultural sector.

This is not correct.

Cbn loan comes as on lending facilities, which at the end of the day can't be 5%

rebekah2011:
Olam is really distorting the market. These indian guys were granted PIoneer Status, CBN gave them billions in loans well above single obligor limit. It is a long walk to freedom here Connection with one Governor in the North too.

Abeg how is this Olam's fault? Let's not compare eggs with stones abeg. Because they are both round doesn't make them mates.

When did Olam start business that you are still talking pioneer status? Abi is pioneer status not still 4 years? Even smaller companies are collecting CBN and BOI loans, so Olam did not stop Livestock from getting cheaper source of funding.

Livestock problem is self inflicted, competition cannot be blamed for any company's foolishness.

RabbiDoracle:
Parisfran ......you wished for this ooo

It has been long awaited. Una wan use bad mouth wound people and you think say them no go vex.

Me I don't like advising anybody, we all have different financial situations. Personally my money market and stock market funds are equally separated and I sell or buy to rebalance. My 9-5 is enough for my regular spending activity.

But I will soon get to Agbalowomeri level and trade full time

mendes911:
Oya, which part of the divide are you on? The group that's waiting to buy Fidelity at ₦1.50 or the other that's waiting to sell at ₦5.00?

Waiting for NGSEINDEX at 35,000. So I can take loan and die put

Agbalowomeri:
I no talk anything o, I am only recommending stocks
Na Pasifran bring fights. Na jeje we siddon she come sprinkle acid all over

Agba, the polity has been hot since and it was beginning to get boring.

Yayira:
@ Parisfran e bi like say e won start. I’m sleeping here today

My sister, I done they wait for the fight for 1 month.

If the MD of the company no be your personal person, why you go put all your money inside 1 stock?

No matter the analysis you do on the financial and non-financial information that gets publicly released, you can never know 75% of what is happening inside a company.

I've been on social media for too long to actually believe most of the claims on this thread. My own is to read, learn, gather information and laugh.

We will be alright, last last

Agbalowomeri:
Yariya I know
Jeez2 I know
Investnow I know
Even Mercy I know

Who are you?

A nobody.

Na only me waka come.

I've been expecting quarrel on this tread for the past 1 month.

All these coded insults you guys are doing is getting boring

As for me and my household, I know that nobody knows tomorrow. Just do you.

All I see is you

2/10.

The only reason it has 2, is because the concept of the movie is good.

Rivers state....

Chibuking81, God will bring her back safely. I will remember you in my prayers.

gloriousdawn:
At #3.85, Ucap is 9% (including WHT) DY.

I told myself I won't touch UCAP and Afriprud until both are under N4. Now 1 is within my grasp but I'm hoping to catch an elusive bottom.

Maybe it will fall to the extent that DY and Tbills rate will be the same ☺

Mpeace:
If pple are dumping UCAP and Afriprud like this, what will happen when gtb releases its own with 2.9 kobo dividend.

You made me laugh out loud.

This year we will see DY of 1%.

Agbalowomeri:
The journey farrrrrrrrr

E no too far.

1 of them might achieve it in 3 years.

Deadlytruth:
Question of the day:

Why is it that, despite its yoy and qoq inconsistency as per results, LIVESTOCK has not only remained liquid but even appreciates sometimes with percentages fair enough put a smile to the bank on jijoists' faces.

Our gurus here need to weigh in on this.
Cc: Wanajo1, Current Price, Emmanuelewunmi, Bullbear, Agbalowomeri, Ihedi, RabiDoracle, fxuser, Obagaddafi, Yayira, Investnow 2017, Parisfran, Onegentleguy, Coolcash, Locodemy, Godlyguy, Tritritri, etc.

I no be guru o. Never opened livestock financial statement.

RabbiDoracle:
Holding small units which I can sell off depending on the market sentiments. Some herds no dey look notes to financials. They just look at P & L account. Get carried away by PAT. If they bidding it recklessly, I hand over to them

If it falls to N22, I still buy more and wait for the ultimate gain.

OK thanks

RabbiDoracle:
The proceeds will be used for offsetting their loans and then part used for working capital.

If they pay dividends, I will sell my holdings.

I expect the stock to drop to N22 once the result is released

Pls clarify, if you expect it to drop so much why are you still holding it.

I don't have any unit of FMN, I'm asking for knowledge sake.

[quote author=tritritri post=64853227][/quote]He has given UPL as expo, but till it reaches N3, he won't talk much about it. Baba is afraid that upl can run back down to 2.11.

RabbiDoracle:
For bull, lots of things could cause it. Different factors.

But for worldwide bear, na only dominoes ooo. Fear!

Wait let's see if Dow will fall to the point that the circuit breaker is activated, na that time people go understand wetin be fear. CNN will not rest. Richard Quest will be featured everyday.

Bear time news can irritate me. Some newscasters go dey do like say na armageddon, meanwhile most of the world no know say anything they happen.

Agbalowomeri:
People will see what they want to see and feel what they want to feel

Imagine buying shares in NSE in 2015, because analysts said DJIA will break the 20,000 mark. That's when one will realise that this life na turn by turn.

millo:
Look at the graph again, how is this not correlating? The percentage rise and fall is only different, but the trend is [b]mostly [/b]in same direction.

Oga, if you feel it's correlated just say it.

Me and you don't have to agree.

Analyse this.

Is the US equity market correlated with ours? To me the answer is no.

In the last 5 years, their DJIA has done over 80%, while ours is just doing 34%.
Infact in 2015 and 2016 both indexes where moving in opposite directions.

Discl: I'm neutral, neither pessimist or optimist. That's why I bought various stocks, so as to not get feelings for any company.

Nichee:
Skye bank audit shows negative capital position of N730bn

courtesy BusinessDay

…Mainstreet Bank acquisition partly financed with depositors funds

…Former GMD, Treasurer, CFO fingered

…CBN working out forbearance package to fill hole

(my comment - Nigeria has rewarded too many people for being inept, greedy, and outright criminal. these bankers have no right to criticize the civil servants and politicians. they aren't any better)

A forensic audit commissioned by the new board of Skye bank and carried out by KPMG and PWC has shown that the tier-two lender had a negative capital position of N730 billion by the end of June 2017.

The central bank stepped in to replace the chief executive officer, chairman and 10 other directors of Skye Bank Plc on July 4 2016 after the nation’s eighth-biggest lender consistently breached cash and liquidity ratios.

The new board then engaged KPMG and PWC to carry out a forensic audit in order to ascertain the state of affairs and financial position of the struggling bank which last filed a financial statement in 2015. Despite sending a notice to the Nigerian Stock Exchange in June 2017 that it would realease its 2016 financials within the quarter, the results have not been released yet.

A document seen by BusinessDay showed that the bank had a negative capital position of N690 billion as of December 2016, which then worsened some 5.8 percent to N730 billion as of June 2017.

“Contrary to the 2015 financial statements, which indicated a loss of N42 billion and erosion of capital to the same value, the draft report for full-year 2016 audit revealed a negative capital position of N690 billion as at December 2016,” according to the document signed by the bank’s Chairman, Muhammad Ahmad, Group managing director/CEO, Adetokunbo Abiru and company secretary, Babatunde Osibodu.

“The major reasons for this position are impairment of loans to the tune of N529 billion and transactions in suspense to the tune of N280 billion, relating to balance sheet and profit and loss manipulations from 2006 to 2016, and direct and apparently fraudulent cash withdrawals by certain individuals,” the document stated.

Skye bank traded at N1.28 per share as of 2pm on Friday, down 17.42 percent from a 52-week high of N1.55 set on January 23, according to Financial Times data.

On receiving the report from the forensic audit, the bank’s board set up a special Investigation Committee to look into circumstances surrounding the N280 billion in “suspense”.

This was in order to identify possibility of recoveries and to recommend appropriate sanctions against culpable individuals.

The amount was linked to some N29.5 billion spent in acquiring Mainstream bank in addition to a purchase price of N126 billion, manipulation of the bank’s accounts, and some N7 billion disbursed to individuals and corporates without due process.

The bank’s current Chief Financial Officer (CFO), Pius Olaoye said the unreconciled debits in the balance sheet dated back to 2006 and profitability, liquidity and capital ratios were managed on a month by month basis throughout the year, with contributions from various departments.

“The head of risk would identify the obligors to be managed to mask their loans which were going bad,” according to Olaoye. “The bank would then arrange to fund the customer’s account by routing the funds through third parties, so that it would appear as if the accounts were performing, when in reality they were not,” Olaoye said.

On the N126 billion acquisition of Mainstreet bank, Olaoye said it was financed by free funds of N80 billion, but the balance of N46 billion had to be funded, with some N15billion of depositors funds forming a part.

According to Olaoye, the former GMD, Treasurer, CFO, and head of strategy were in on the project to disguise the true picture of the bank’s accounts.

Former CFO, Kunle Adedigba said the bank has operated two books of accounts since inception, when in order to disguise the capital shortfall of some N6 billion, deposits were supressed and netted off against assets.

“Everyone in top management (at least the executives) knew this was going on,” Adedigba said.

Kolade Ojo-Osagie, the bank’s treasurer since 2010 said the GMD periodically instructed him to move some funds to Abuja, as he explained the N28 billion cash withdrawn showing in head office suspense pertaining to the Mainstreet bank acquisition.

“Many of the payments were to people who were helping with the Mainstreet bank acquisition.”

Former GMD, Timothy Oguntayo, who held the post from April 2014 to July 2016 denied any wrongdoings.

Oguntayo said he was unaware of balance sheet management but admitted to paying lobbying fees to “several influential individuals,” which had “become necessary because some issues arose after payment of the purchase price in October 2014.”

“Firstly, the CEO refused to hand over and secondly, there were several petitions objecting the bank taking over. The bank had to engage some friendly senators and other influential people to help lobby and ensure regulatory approval,” Oguntayo said in an interview with the auditors.

The bank’s GMD between 2006 and 2010, Akinsola Akinfemiwa said he had “no real information” about what went into the suspense accounts. Most of the time, he had not been involved in the nitty-gritty of the accounts.

Both GMDs denied knowledge of the bank’s dual reporting system which had come to light after the audit.

Kehinde Durosinmi Etti, GMD between 2010 and 2014 said he was dumbfounded when after assuming office was briefed by the CFO of the unreconciled items held in suspense accounts.

In what seemed to indict Akinfemiwa, Etti said he “immediately drew a line under the previous practice of doctoring figures and stated reporting figures as they were.”

He said he didn’t raise an alarm with regulators because he wanted to get to the bottom of this first, and by the time he was leaving, the board had set up a committee to look into the matter, but he wasn’t privy to the report of the board which came after he had left.

As the investigation into the bank progresses, invitations for interviews have been extended to various persons and entities that benefitted from the various sums disbursed from the suspense account and whose accounts funds were disbursed for purpose of avoiding their loan from being classified as non-performing loans since 2006.

Nigerian lenders struggled to make money and extend credit with unpaid loans on the increase in an economy that slipped into its first full-year recession in 25 years in 2016, hurt by the plunge in oil prices and a lack of foreign investors.

Improved oil prices and production have however helped lift the economy from recession in the second quarter of 2017, with banks benefitting.

Skye Bank has failed to report annual earnings for 2015 and 2016 after it combined its operations in June 2015 with Mainstreet Bank Ltd., which was rescued by regulators during Nigeria’s banking crisis of 2009.

“The bank is gone,” one financial analyst told BusinessDay on condition of anonymity.

“A negative capital position of N730 billion, and the fact that it probably worsened since then, coupled with the N25 billion capital regulatory minimum for banks means an investor would need a short crawl from a trillion naira to snap up the bank, and I cant see that happening.”

Sources at the bank said a forbearance package was been worked out, but didn’t have detailed information. It is understood AMCON is involved and it is expected to cover 25 years.

“The CBN could opt to create a bridge bank to safeguard depositors’ funds,” a banking source said.

Analysts say it’s a big indictment for the CBN that it sanctioned the acquisition of Mainstreet bank by Skye bank despite the latter being in dire capital straits.

On August 06, 2011, the Nigeria Deposit Insurance Corporation (“NDIC”) and the Asset Management Corporation of Nigeria ("AMCON" after intensive negotiations through the night, announced that they have signed an agreement for AMCON to acquire Mainstreet Bank Limited, Keystone Bank Limited and Enterprise Bank Limited; being bridge banks created to acquire Afribank Plc, Bank PHB Plc and Spring Bank Plc respectivel

This country!!! The more you look, the less you see. Nigerian business management is not friendly to investors.

Mpeace:
Danglourers, what is the news. From serious red to almost full bid.

They saw HF result and realised that cost of sales in flour business is dropping.

Lol... I'm just playing o.

mendes911:
Remember that this is Unaudited result.

I know. That's why I said N4.

Parisfran:
I can remember last year there was talk here about something fundamentally wrong with Honeywell flour.

I cant seem to remember the exact details.

Can anyone with the information help.

Thank God no bad news popped up.
HF journey to #4 has been issued with that Q3 result.

P.E is about 5

tiar:
FCMB is being managed for purposes of badly needed equity capital. The problem here is they have picked on Diamond Bank as their support price; I. E. Our price must be higher than Diamond bank no matter what.

A lot of money is being pumped to get the stock to at least N5 and hold. FCMB will be among the last banks to release 2017 result while it perfects its share price spike . Enough said.

It and FBNH are usually late because of holding company structure. But if you say it's for manipulation sake, I can't also argue.

Deadlytruth:
Methinks that fixing price limits for brokers is only useful for jijoing.
Why fix price limits when you were desperate to buy? It is like trying to bargain transport fare with drivers on a day passengers are very plenty and vehicles are extremely scarce. You'll sleep at the bus top.

Lol.. that's one way to look at it.

But the way bids and offers disappear in this our market, you have to be careful not to go and carry last.

These 3 have been running at the same pace for the past 6 months.

It's audited financial statement that will separate this their harmony.

Fbnh, Fcmb and Diamond.

fxuser:
lolx
d forex challenge dat hit all d FCMG's is longer no more .. FA's in d hse will help us with FYE later on
dis one wey CBN de maximize current situation on debt swaps / balance sheet restructuring / Window dressing books.. (same noni)
dis our country na turn by turn .. banks had their turn , fcmg's turn is loading . they will see significant finance cost changes going fwd
all dem non banks are wud hav sent love letters to banks to renegotiate their loan rates else they re-issue new debt at lower levels to refinance debt and be be lo
interesting yr ahead

wetin i sabi

Newest form of Due diligence advised?