Agbalowomeri:

Na lie o

Chai... Uncle you make me miss today market

erwinschro:


Both are good banks but I like access more at current prices for the following reasons:

Access bank is the largest bank in Nigeria by assets, customer base and deposits but on a relative valuation basis, Access is the cheapest T1 bank. They earned N4.85/share in the last 12 months and trading at N8.50 - just 1.7x earnings which is the cheapest of all the banks. Access along with UBA also trade at the lowest multiple to book value in the industry (0.3x). In other words, a bank with over N1trn shareholder's funds and almost N11 trillion in customer deposits that earned N175bn in last twelve months is trading at a market capitalization of less than N300bn.

Perhaps the market perceives more risk in Access but I can't pretend to be able to evaluate that accurately but I don't think they are that much less disciplined in lending than any other bank. What I think is more likely is that they are being punished for their relatively low dividend payout, which I think is unjustified. They have a lot of free cash and can probably double their dividend at any time they decide to slow down with the acquisitions. They are in a growth phase and surely can't keep swallowing other banks and financial institutions at this pace forever.

The icing on the cake for me was that Herbert Wigwe bought almost N1bn worth of shares in November at an average price of about N8. Many people don't give any weight to insider dealings because you can't know what drives their decisions. The way I see it; there are many reasons why an insider may sell shares that have nothing to do with underlying business value but there can only be one reason why they are buying.

Brilliant analysis. That's why I like people with fundamental analysis orientation. Fundamental analysis is more on value while Technical analysis focus more on growth!

erwinschro:


Both are good banks but I like access more at current prices for the following reasons:

Access bank is the largest bank in Nigeria by assets, customer base and deposits but on a relative valuation basis, Access is the cheapest T1 bank. They earned N4.85/share in the last 12 months and trading at N8.50 - just 1.7x earnings which is the cheapest of all the banks. Access along with UBA also trade at the lowest multiple to book value in the industry (0.3x). In other words, a bank with over N1trn shareholder's funds and almost N11 trillion in customer deposits that earned N175bn in last twelve months is trading at a market capitalization of less than N300bn.

Perhaps the market perceives more risk in Access and I can't pretend to be able to evaluate that accurately but I don't think they are that much less disciplined in lending than any other bank. What I think is more likely is that they are being punished for their relatively low dividend payout, which I think is unjustified. They have a lot of free cash and can probably double their dividend at any time they decide to slow down with the acquisitions. They are in a growth phase and surely can't keep swallowing other banks and financial institutions at this pace forever.

The icing on the cake for me was that Herbert Wigwe bought almost N1bn worth of shares in November at an average price of about N8. Many people don't give any weight to insider dealings because you can't know what drives their decisions. The way I see it; there are many reasons why an insider may sell shares that have nothing to do with underlying business value but there can only be one reason why they are buying.

On NSE, there are two metrics that can quickly reprice a stock. ACCESS is poor in both:

- Dividend yield
- ROE: what's the return on all the assets it has been acquiring?

ukay2:


Happy New Year Boss

Thank you boss

Agbalowomeri:


On NSE, there are two metrics that can quickly reprice a stock. ACCESS is poor in both:

- Dividend yield
- ROE: what's the return on all the assets it has been acquiring?

It is not all growth that create value

@ Loco

weyting happen? you forget to update us youR CWG

see last week stock pointer o, if they can continuing performing in their numbers for next few quarters then they can do vitaform , ucap magic as mentioned

VV
V

currentprice:


NAHCO may be next vitaform thing if there is no Covid again. Fv @ 13 could get better base on future performance +/-
_{^{na my opinion o}}

currentprice:

fidson a ucap in d making.. though high debt but earnings and cash generation is high enough to cater for the debt.^{one of the stock to make investor rich}

currentprice:
Note for Fidson ;
bedsheet recommend the stock here @ N3,8 and still one of the best @ cp ^{so i call it ucap in the making}

currentprice:

.
bro. are you looking at STERLING @ N1.4 as cheapest banking stock ?... in reality sterling is one of the most expensive stock in the sector. penny stock lovers may push the price toward the fair price sha.. but I prefer UBA .

I mention Dangote sugar (DS) and Afripud too. yet to shake body but watch out

I wish everyone super green portfolio this year

currentprice:
I mention Dangote sugar (DS) and Afripud too. yet to shake body but watch out

Of all the stocks you mentioned, I only have reservation about DS.
I am not comfortable with their q3 result.

pluto09:


Of all the stocks you mentioned, I only have reservation about DS.
I am not comfortable with their q3 result.

Thank u boss, let me go re-check my bedsheet again to see thru you

currentprice:
@ Loco

weyting happen? you forget to update us youR CWG

Cp, CWG from .72 kobo to 1.44 is +100%.It is already above 1.00.
Today is just the first trading of the yr.It will do 1.50 in the coming days.

I wasn't active online today to monitor events.Lets see how tomorrow will go.

locodemy:


Cp, CWG from .72 kobo to 1.44 is +100%.It is already above 1.00.
Today is just the first trading of the yr.It will do 1.50 in the coming days.

I wasn't active online today to monitor events.Lets see how tomorrow will go.

am not doubting this, it 2.4 on my bedsheet as posted last week but....

currentprice:


am not doubting this, it 2.4 on my bedsheet as posted last week but....

Once it does +100℅, my target is met.Anything above 1.50 to me is Jara.Anybody waiting for your 2.40 projection can sit tight waiting while I look for other opportunities.

Why did UBA start the first trading day of 2023 with a big sprint? Jumping from N7.6 to close today at N8.3 ! A jump of 9.2%

Maybe Mr Market is just remembering to price in expected dividend to be paid by April of 80 kobo or 100 kobo sef

yMcy56:

UCAP now @ KM 14....…...

Btw, where's Megawealth01, bros I dey greet oo.

How far UCAP?

Load up Oando and thank me later!

Greetings!!!

I want to work in Nigeria Stock Exchange. What are my chances of getting a job?

UBA and PZ still doing me good since 1914.

But it's like time has come to sell off UBA ooo. Or should I hold?

IgiveLadiesBj:
Greetings!!!

I want to work in Nigeria Stock Exchange. What are my chances of getting a job?

From your moniker,,I think you already have a highly demanding job. Your area of specialisation is a hot cake.

essentialone:
UBA and PZ still doing me good since 1914.

But it's like time has come to sell off UBA ooo. Or should I hold?

UBA still have some potential to go higher though! Due diligence advised.

Agbalowomeri:


On NSE, there are two metrics that can quickly reprice a stock. ACCESS is poor in both:

- Dividend yield
- ROE: what's the return on all the assets it has been acquiring?

I totally agree with you that those metrics have a large effect on short-term repricing and Access is not great in those metrics. Everyone has what they are looking for in the market and I am not looking for a quick repricing so I didn't write my response from that perspective.

Like I said, I think the market is punishing them for the dividend payout and to me it's unjustified.

Our market has a strong taste for dividends because our macro environment forces investors to demand more of their profits up-front. But what really matters from a value perspective is the *ability* to pay dividends (or otherwise return cash to shareholders) in the future. That ability comes from cash profits minus whatever amount you need to spend to maintain your competitive position and unit volume.

Out of 150bn cash profits, Access kept N120bn to finance acquisitions but it doesn't cost that much money to maintain their volume or competitive position. So projecting into the future it's a potential double whammy of expanding payouts on increasing profits. I believe that they can continue to expand that ability at satisfying rates for me, but everyone has to make that determination themselves

emmanuelewumi:




From your moniker,,I think you already have a highly demanding job. Your area of specialisation is a hot cake.

Good morning. The moniker is just a troll name. Can we get serious?

emmanuelewumi:




From your moniker,,I think you already have a highly demanding job. Your area of specialisation is a hot cake.

Lol.
Funny people dey this thread.

IgiveLadiesBj:

Good morning. The moniker is just a troll name. Can we get serious?

Your moniker don't let people take you serious.
Change it to be taken serious.

Wapgod:

Your moniker don't let people take you serious.
Change it to be taken serious.

The moniker does not look like that of a serious person.

Coolcash1:
Load up Oando and thank me later!

why
is your reason technical or fundamental

essentialone:
UBA and PZ still doing me good since 1914.

But it's like time has come to sell off UBA ooo. Or should I hold?

Newbie spotted

emmanuelewumi:




From your moniker,,I think you already have a highly demanding job. Your area of specialisation is a hot cake.

There are many ladies who work in NSE. So, his chances are high. They need social care

erwinschro:


I totally agree with you that those metrics have a large effect on short-term repricing and Access is not great in those metrics. Everyone has what they are looking for in the market and I am not looking for a quick repricing so I didn't write my response from that perspective.

Like I said, I think the market is punishing them for the dividend payout and to me it's unjustified.

Our market has a strong taste for dividends because our macro environment forces investors to demand more of their profits up-front. But what really matters from a value perspective is the *ability* to pay dividends (or otherwise return cash to shareholders) in the future. That ability comes from cash profits minus whatever amount you need to spend to maintain your competitive position and unit volume.

Out of 150bn cash profits, Access kept N120bn to finance acquisitions but it doesn't cost that much money to maintain their volume or competitive position. So projecting into the future it's a potential double whammy of expanding payouts on increasing profits. I believe that they can continue to expand that ability at satisfying rates for me, but everyone has to make that determination themselves

There is nothing like quick or slow repricing. If those metrics remain poor, ACESS will remain a laggard.

If you deny shareholder the much dividend need, at least show that you are a good optimiser of shareholders' equity. That's why some people believe much of those declared earnings are audio Lol.

Agbalowomeri:


There are many ladies who work in NSE. So, his chances are high. They need social care

Lol.
Investors too have sense of humor.

Agbalowomeri:


On NSE, there are two metrics that can quickly reprice a stock. ACCESS is poor in both:

- Dividend yield
- ROE: what's the return on all the assets it has been acquiring?

Wise