₦airaland Forum

easimoni:
First Bank returned money for 10k+ units, Access returned money for 5k+ units. If Zenith does not absorb all (and they prob won't be able to), you can bet your money will be returned. Buy 10k for yourself and 10k for a family member who would otherwise not buy (or you can contact me , but I go charge o!) and cross-deal when he/she gets the Cert. Then pray the cut-off is 10k units.

If Zenith does this, then this bank and other listed companies that see PO as a guarranteed source of funds should forget it because there will be a backlash from Nigerian investors.And anyone who wish to start a class action against Issuing houses that keep billions of naira of hard earned money for 3 sometimes 9 months and return without interest is free to append my name Mr Pennywise P. Foolish.

The SEC deserve some kind words for recent albeit belated action against illegal fund managers http://www.sec.gov.ng/illegaloperators.htm. People need to see more acts like this. You cant over-regulate operators in this climate.

If they cannot even do a 3-month forecast, then why do you believe all the financial projections in the prospectus? I am sure it takes less than 3 months or so from the date the offer closes to know how much was raised. So in the space of 3-months, things have suddenly changed dramatically?

There is actually a law that prevents companies from absorbing more than 25% oversubscription, the SEC was just not enforcing it in the past.

It is a pergogative of the SEC and it is designed to protect investors. If a company comes to the market claiming to need only N100billion and raises N1 trillion should the company be allowed to keep the excess funds? Remember that the company's plans and projections as stated in the prospectus only accounted for N100 billion. Furthermore, if the company really did a great job forecasting, then it should only ask for how much it needs (in this case N100 billion), any amount above this was not budgted for.

What happened to all our investments in your defunct MLM scheme? I hope you have paid back all your depositors. Hey I am only joking.

Could you tell me how you can make profit from PO within 3-6months considering the Nigerian situation at the moment.
From my experience, you will be lucky if share cert is ready withing 4 months of purchase from IPPOAlso it takes another 2 months to do the verification with CSCS and get it registered. May be another 2 months to trade and get your money if you have a good broker. It is not a straight forward process.
Maybe you have a better approach please share your ideas.

Are you considering taking loan in Nigeria for the purpose of stock trading?
Please be advised to have all your fundamentals checked properly before you venture into such a thing. If you look at the interests, most of your profit must have been eroded if at all. Look at my analysis:

Bank Interest= 23% PA
Broker(Buy/Sell) = 6% or 5.5% on cost
COT = 1% if I am coreect.
Total = correct 30%

From the above calculations, your growth must be above 31% before you can make any profit.
Although you might be lucky to grow your portfolio by more than 50% but you need to do your research very well.
Dont forget, if the market moves against you, you must still pay back the loan to the bank within the agreed time. If that time is exceeded, bank can sell all your stocks to recover their loan at any current price, your loss notwithstanding.
I am not trying to be pessimistic but I am just giving advice before you go into it. Here in the UK, things work differently. You can get a loan for 6-9% depending on your credit rating. So I am looking at it from UK point of view. Nigeria situation is different.

All the best for the future.

I do not think the observation I am going to make now will have any effect on the share price of oceanic bank, but I must state here that their service delivery is very poor.

I went to Oceanic bank to pay in some money, the queve was too long so I dashed out to another part of town and paid into Zenith, another money. On coming back to Oceanic, the line was still too long so I moved again to Spring bank and made more payments, I also did the same thing at Access, and when I came back to Oceanic, I still had up to five persons to wait fo before Icould be attended to!

Paid into three banks in three diferent parts of town and still its not my turn at Oceanic? and I know they don't have the largest # of customers.

Summarily, I say have the following sectors in your portfolio
Banking sector--too many that i can't make suggestions except that Soludo had said 3 of them are on the margin and have asked on this thread which folks think those three are (I have Zenith and am eyeing PhB seriously because they are favored in govt especially up north)