emmasoft:


It's simple. If you already have a stock/cscs account with a stockbroker, send them a mandate of the quantity you wish to buy or you can do that on the stockbroker online trading platform and buy yourself.

Otherwise you can click the link on my signature to open a stock/cscs account with Investment one stockbrokers for free and you will be able to buy Seplat, Airtel or any stock on the NGX

customstreet:


There is no wahala whatsoever, when u missed this train, u can enter another train. A lot of opportunity abound. But it pains emotionally just as u said when u missed a train with good facilities inside or a First class private jet �����

onegentleguy:


A critical view on how the whole exercise (both the reverse stock split and the rights issue) was planned and it is clear that one of the aim is to ensure there's no sharp deviation in the shareholding STRUCTURE of minority holders.

In retrospect, a rights issue of 2 for 3 immediately proceeding a reverse stock split(RSS) of 1 for 3 means that as an investor, you lose 2/3 of your initial stake (1-1/3) from the RSS and add back (2/3X + X) to that figure from the rights exercise. (where X is your vol post RSS)

To illustrate:
Assuming u hold 90,000 units of WEMA BANK before now...
Then the RSS exercise will reduce your vol/stake to 30,000 [i.e 1/3 x 90,000 or 90,000- (1-1/3)90,000]
While the rights issue takes you back up to 50,000 units [i.e (2/3 x 30,000) + 30,000]
Effectively implying that an investors overall initial stake would decrease by approx 44.4% post execution of both exercise. [(90,000- 50,000/90,000) x 100]

That 44.4% gives a clue of how much premium the share price might need to adjust to ensure that the coys book value remains unchanged.

If we utilize the banks closing price of 72k on the last day of business in 2021 (Dec 31st) which also doubles as the qualification date, a 44.4% premium would imply a price peg of approx N1.16 per share of WEMA BANK.

This is only an extrapolation of the effective price but might well serve as a benchmark or yardstick for weighing in on how risk measures against reward post execution of the proposed exercise.

For clarity, pls NOTE that the N1.16 is NOT the pricing of each share of WEMA factoring in both deal. It should be much higher than that. Think the market price should peg @ N4.6+ or near that figure after both exercise.
That price of N1.16 measures the benchmark of what floor peg I'll be looking to buy post the conclusion of both exercise.
I got some persons sending me messages on this. Pls kindly do well to be guided accordingly.

By inference, paying a premium to that N1.16 price is a No for me... while getting a good % discount from there (better if its near or higher than the value of that 44.4% vol squeeze) post both exercise is a fair enough deal.

WEMA though will do well when all of this is over.
The bank may be looking at pursuing an aggressive organic growth plan via a merger or acquisition.
It's a growth stock.

Short term? Neutral
Mid to long term? Yes... but as I said before, I'd like to see management do a bit more from here.
Q1 and H1 2022 will be KEY!

Enough on WEMA.
Selah

#EDITED

RabbiDoracle:


Does it mean they want to bid the stock from seventy something kobo till N1.60?

How did I get this value?

Current share outstanding = 38.58 B
Current share price = 85 kobo
Market capitalization = N32.793 B

Like you explained, reconstruction details of 1 for 3 reduces the shgare outstanding to

New share outstanding = 12.86 B

For market capitalization to remain the same at the final date they embark on it, price needs to increase.

Assume it is now, current price = 0.85 * 3 = N2.55

Market capitalization = 2.55 * 12.86 = N32.793 B

And they are saying they want to raise N40b in a right issue of 2 unit for 3 units held (source
is Nairametrics) .

Since the outstanding units = 12.86 B

Right issues additional unit = 8.57 B
And amount to be raised will be N40 B

So this means that the right issues price will be N4.67.

At this right issue price, no one will want to take his rights because you are holding a reconstructed stock at 2.55 and you are telling existing holders to take up their rights at N4.67.

How can price after reconstruction (at N2.55) have such a huge gap compared to right issues price (at N4.67)? How can this be bridged?

The way it can be bridged is for the current price of the stock before the reconstruction to rise rapidly from the 85kobo till it gets to N1.56 or over.

Why did I say this?

Because at price of N1.56, if you carry out a reconstruction of shares, the new price will settle at N4.68 (i.e. N1.56 * 3).

And after reconstruction, once you set your right issues price at N4.67, existing holders can easily buy since the price post reconstruction and price post rights are almost same.

Note:

From 85 kobo till N1.56 will be 84% gain in the stock.

yMcy56:
WEMA BANK
Seems like too much grammar dey worry this bank.

3. Market Maker has been appointed to repurchase reliquished shares.........

We will understand the grammar much better as time goes on........
We may likely witness some manipulations here in coming days....

https://doclib.ngxgroup.com/Financial_NewsDocs/34771_WEMA_BANK_PLC%20WEMA_BANK_PLC_%20_DEC_31,_2021_COURT%20ORDE.pdf
https://doclib.ngxgroup.com/Financial_NewsDocs/34772_WEMA_BANK_PLC%20WEMA_BANK_PLC_%20_DEC_31,_2021_EXTRAORDIN.pdf

Oga @Onegentleguy happy new year sir!
More of God's protection, direction, good health and blessings for us all IJN.

RabbiDoracle:


Does it mean they want to bid the stock from seventy something kobo till N1.60?

How did I get this value?

Current share outstanding = 38.58 B
Current share price = 85 kobo
Market capitalization = N32.793 B


From 85 kobo till N1.56 will be 84% gain in the stock.

OBAGADAFFI:

Maybe WEMA will employ a Market Maker to manipulate the price.

sterlingD:

Is Wema Bank to be suspended from trading to effect this and possibly when

gbengafaro1986:
Wahala for who no buy UCAP for 2020, because now entry point is very confusing ...no pull back since 2020

gbengafaro1986:
Wahala for who no buy UCAP for 2020, because now entry point is very confusing ...no pull back since 2020

ositadima1:


In my opinion, even at current price a 50% plus rise before yearend expecially if they increase dividend again is very likely, maybe #1 plus in dividends per share.

To be clear, I didn't study their books, just my deduction from patterns.

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RabbiDoracle:


Does it mean they want to bid the stock from seventy something kobo till N1.60?

How did I get this value?

Current share outstanding = 38.58 B
Current share price = 85 kobo
Market capitalization = N32.793 B

Like you explained, reconstruction details of 1 for 3 reduces the shgare outstanding to

New share outstanding = 12.86 B

For market capitalization to remain the same at the final date they embark on it, price needs to increase.

Assume it is now, current price = 0.85 * 3 = N2.55

Market capitalization = 2.55 * 12.86 = N32.793 B

And they are saying they want to raise N40b in a right issue of 2 unit for 3 units held (source
is Nairametrics) .

Since the outstanding units = 12.86 B

Right issues additional unit = 8.57 B
And amount to be raised will be N40 B

So this means that the right issues price will be N4.67.

At this right issue price, no one will want to take his rights because you are holding a reconstructed stock at 2.55 and you are telling existing holders to take up their rights at N4.67.

How can price after reconstruction (at N2.55) have such a huge gap compared to right issues price (at N4.67)? How can this be bridged?

The way it can be bridged is for the current price of the stock before the reconstruction to rise rapidly from the 85kobo till it gets to N1.56 or over.

Why did I say this?

Because at price of N1.56, if you carry out a reconstruction of shares, the new price will settle at N4.68 (i.e. N1.56 * 3).

And after reconstruction, once you set your right issues price at N4.67, existing holders can easily buy since the price post reconstruction and price post rights are almost same.

Note:

From 85 kobo till N1.56 will be 84% gain in the stock.

Slimdove:
Like me I don't understand the kind of business UCAP is running that is giving them the kind of profit they declare in every quarter as if to say we don't live in the same country and know how difficult it is to run such business.

customstreet:
There is no wahala whatsoever, when u missed this train, u can enter another train. A lot of opportunity abound. But it pains emotionally just as u said when u missed a train with good facilities inside or a First class private jet �����

yMcy56:
DANGCEM
Alhaji's boys in market today......
Maybe they're planning another set of share buyback, who knows......

yMcy56:

Aside the businesses mentioned by Obagadaffi, some of these companies also invest in other instruments that generates steady incomes.
Remember they are financial company with lots of top notch financial experts that research the market for them and give them the best advice on investments.

Some of them invest in other good companies too.......example is the case of FBNH that invested in Airtel and HW, which they now opted to sell at huge premium. Who knows maybe FBNH picked Honeywell @ 60k or thereabout self.
Don't be surprised that some of these financial companies and some other ones invest in Crypto/BTC and all those money spinning investments.
International markets are also there.....
Let me stop here.......

Don't mind my amateurish way of looking at various means whereby they can generate fund. Just thinking out of the box.

Mpeace:
Do you know if fbnh completed the sale of their stake in airtel and Hw last year? Will it reflect in their result for 2021?

yMcy56:
TRANSCORP
This stock too like wahala.
Was trying to behave like say e wan gbe body earlier....touched N1 and moved back to 0.97k........but some accumulations are seriously going on here.

Make the stock do quick and move so Peter can come out from Hilton top.
Will be watching out for Tony's moves here, when he's ready....

WEMA
Bargain hunters or is it bargain jijoists on queue here...

JBERGER
Much activities here today....

GTCo: 25.55..
ZEE: 25.45........@25.35, giving space for the boss to pass.....lol. Whosoever is doing this to GTB surely has a mission. Don't mind me o..... I no be analyst.

yMcy56:
TRANSCORP
This stock too like wahala.
Was trying to behave like say e wan gbe body earlier....touched N1 and moved back to 0.97k........but some accumulations are seriously going on here.

Make the stock do quick and move so Peter can come out from Hilton top.
Will be watching out for Tony's moves here, when he's ready....

WEMA
Bargain hunters or is it bargain jijoists on queue here...

JBERGER
Much activities here today....

GTCo: 25.55..
ZEE: 25.45........@25.35, giving space for the boss to pass.....lol. Whosoever is doing this to GTB surely has a mission. Don't mind me o..... I no be analyst.

Calebbold:


Wahala for who no get UCAP. The stock is currently running on steroids.

Dollarwoman:
I don't think Peter invest in stock, even if he does it should be once in 10 years, he only comes here to put fear and fire into peoples life.

Heishere:
Has Cutix distributed the bonus?

yMcy56:
TRANSCORP
This stock too like wahala.
Was trying to behave like say e wan gbe body earlier....touched N1 and moved back to 0.97k........but some accumulations are seriously going on here.

Make the stock do quick and move so Peter can come out from Hilton top.
Will be watching out for Tony's moves here, when he's ready....

WEMA
Bargain hunters or is it bargain jijoists on queue here...

JBERGER
Much activities here today....

GTCo: 25.55..
ZEE: 25.45........@25.35, giving space for the boss to pass.....lol. Whosoever is doing this to GTB surely has a mission. Don't mind me o..... I no be analyst.