₦airaland Forum

yMcy56:
Thanks for the post Pluto
We still dey plead for God's divine intervention, make CBN tender justice with mercy.

* The NDIC action here is suspicious and a pointer to some inside politics....
* Why is NDIC so eager to pay investors off?
* Why the immediate action? ...because we all know when it comes to making payments, these guys can lag and frustrate investors....
Why the haste from NDIC.
** What was CBN looking at since they'd been on suspension for quite some years?
** Who was approving their financials for release to the public thru NGX?

** Anyhow comment is not allowed pls....
In fact, hold your negative comment if you have one. 🙄

NDIC is not paying investors off o but depositors.

nosa2:
Make I plug shamelessly small.......

Based on today's closing price

Zenith bank
forward PE 2.53
Expected Return on Equity 21.53%
Q3 Net profit margin 22.65%

Eco-bank Transnational
Forward PE 1.59
Expected Return on Equity : 25.82%
Q3 Net profit margin: 19.86

Now I dare anyone to find a listed company outside the banking sector that has similar profit margins and return on equity that is trading at similar earnings multiples.

Banking sector is grossly under priced relative to the market.

I have asked questions from other investors as to why they think this is the case and I am yet to hear any valid reason.

So yes, a repricing is necessary. Either the general market falls or the banking sector rises. The status quo makes no sense.

P.S I have one more investment to make in the banking sector in the first half of January but aside from that I am invested in the two stocks mentioned and as such you can look at it as me trying to sell my market.

For a better perspective, you need to look at history of Nigeria banks p.e and some other ratios.
This is not the first time that banks earning multiples would be very low.
The big question is, will it continue to be low or something is about to change?

UNIBENDON:
UCAP
WEMA Bank
Okomu Oil
Nahco
Access Bank
Zenith Bank
Dangote Cement
Transcorp Hotel
UBA.

The above companies are good for a newbie to start an investment portfolio.

You mean a newbie should buy Transcorp hotel with a p.e of over 100

Those who like to play bet naija with stocks can take a look at Austin laz

chimex38:
why exit Geregu now?

FG has set up a bond to repay Gas and power legacy debts.
Probably much likely this 2026..
Well, they are the cow boys of this investing game. Who I be?

He has already made his money and the asset is overpriced.
How he gets people to buy his overpriced assets at inflated price remains a mystery.

Anyone that has FBNHCO should hold it tight for now. Ote can pump anything!

nosa2:
In my opinion buy and hold is what will pay now in Nigeria oh. The removal of subsidy, building of refinery and liberalization of the FX market is going to do wonders for our economy over the next 30 years. Forget the short term pains, Nigerian economy is going to the MOON.

I AM ULTRA BULLISH ON EVERYTHING NIGERIAN IN THE LONG TERM

There are still a lot of work to be done.
Yes those policies are good and right, we will only reap the benefits if we continue to do the right thing ,, security, debt management, fx diversification, revenue mobilization etc.
Otherwise we will be back to the same spot.

emmanuelewumi:
Revenue growth

2021 N35.4 billion

2022 N46.3 billion

2023 N52.9 billion

2024 N82.9 billion

2025 N111.3 billion

What of profit growth??

emmanuelewumi:
Dividend is N3 from an Earning Per Share of about N10.

The stock currently has a sustainable earning growth of about 20%

Major growth happens this year.
Assuming,we did the compounding last year the growth rate for 2019-2024 would present a different story.
Vitafoam is a good company that is well managed no doubt but there is no guarantee that the next five years will be good as this year.

emmanuelewumi:
I totally agree with you.


What you have is a yield on cost of 38.46%.

But the price today is N94.
For someone who wants to deploy his funds today, does the company offer a margin of safety for discounted price or is the company appropriately priced?

mikeapollo:
Crypto does not seem to have masters. Anybody can sink in that ocean.

But crypto will give him the advantage of leverage, depth and excitement.
With $1000, he can do a trade of $100,000 and that could be done in minutes,both the buy and the sale.

Agbalowomeri:
How ChatGPT take know say na late-bull we dey?

ChatGPT might have peep into your script

awesomeJ:
Merry Christmas everyone!

Merry Xmas.
I quite agree with you that our market is very shallow and there is need for SEC and NGX to do more to increase depth.
However, I am still wondering why you are not putting this your knowledge and expertise into use in other jurisdictions where we have the sophistication and instruments you are looking for, the global stock market, crypto , volatility index and the likes.

Agbalowomeri:
Na like this Ololo take start o

Na bull market we dey, make people enjoy it while it last

awesomeJ:
@Mankind2024.

You should add the core factor to this first bank story you've been writing.

Many posts on it, yet not once have you mentioned Otedola's acquisition drive.

You make it seem like the only reason the stock has been climbing is cos it's solid.

That's not a complete story, in fact it's almost misleading.


If you think Access will have the same jump in the next 18 months solely based on results, you might be very wrong.


Some people take what you write very seriously, you shouldn't leave out core contexts like that.

FIRSTBANKHOLDCO has not only been lagging behind in dividend payments but also on other key investment metrics.
I want to believe it is in other if one sells off his/her holding in a company that has been lagging behind in key investment metrics.
The major thing pushing the price up is the Ote$ factor, the bank is still behind in financial solidity.

awesomeJ:
Yes.
Dangote currently does about 4x seplat's volumes.

So as long as seplat's margins are more than 4x DR's they will have bigger earnings.


DR has the FZE advantage though, while SEPLAT still has to battle taxes (higher taxes at least).


@mikeapollo

There is the probability that DR might not be profitable yet...

ositadima1:
You can see it as half full or half empty, depending on which side you’re on. I guess you’re on the pessimistic side, so let me engage you.

I think they are "close". The offer has been below its market value for quite a while, even throughout the initial offer period. That suggests the public is not as pessimistic; otherwise, the traded share price would have fallen below the ₦12.50 offer long ago, especially given that it has averaged about ₦172 million in daily turnover over the last 20 days.

That said, I also admit that raising ₦235 billion is not easy in the current climate.

I don't just trust those guys, they are in the same category with OandO in my opinion.
It is all about forward looking statements.

Come and buy what we are selling

https://www.thecable.ng/ellah-lakes-the-final-window-to-invest-in-nigerias-integrated-agro-industrial-transformation/

Agbalowomeri:
Many still dey buy Oando o

They are all gamblers.

Mankind2024:
The momentum that greeted the suspension lift by the NGX was what drove investors to board the Aso Savings train, and no one saw the breaking news coming.
The odds of double-digit profit were in their favour.
I'm sure you would have mentioned it here if your crystal ball or instrument was 50% predictive of the delisting and liquidation.

NB: I never had a zero unit of Aso Savings.

Any financial institution with a negative equity should be a no no for an investor.
Those that bought ASO savings on NSE this Year are purely gamblers.

Divineability:
Geo-Fluids
I received a notice of General Meeting of Geo-Fluids plc from PAC Registrars. Out of curiosity, I clicked an accompanying link, and that took me to the detailed notice of the GM for the presentation and approval of their audited financials, I think from 2012 or so, to 2024. The notice also is full of forward-looking statements, including movement from nasd to ngx, recap etc.
I hope village winch are not at work again. Not investment call (NIC).

So you get Geo-Fluids experience and you are still buying another dead stock in Aso savings.

Divineability:
I had to sweat it out to get the stock to buy, as it was always on full bid. The day my bid was filled was the day it made its first loss. Before I knew it, suspension followed. And now finally, licence revoked!
Looking like I'm being targeted.

You are really being targeted
The village people on your case are really strong

Mankind2024:
@Pluto, it's not your fault, and village people are not to be blamed. This can happen to anybody. I had a similar experience with the defunct Intercontinental Bank.

I had already written the money off years back when they were not producing any financial statements to the public.
Don't just know why cbn did not revoke their license then. Why waiting for aso to raise our hope before the sledge hammer

Agbalowomeri:
Don't worry NDIC go settle una

😂
With that big negative shareholders fund

Agbalowomeri:
They should have sold by now

How would they have sold?
My school fees money on this one has finally entered bush🤑
I thought I would be able to recoup my money when the suspension was lifted some months ago but village people no gree me sell until the undertaker came.

Agbalowomeri:
Next is ACEESS

That is an expensive joke.

Raider76:
Dangote offers dollar dividends to lure investors to refinery IPO

https://businessday.ng/news/article/dangote-offers-dollar-dividends-to-lure-investors-to-refinery-ipo/

Either dollar or naira, the dividend yield is the most important thing.