₦airaland Forum

Please, which stock are we buying going forward ooooo...I need to channel veritas and DS gain somewhere

megawealth01:
No...

"It also allows Unity Bank and its shareholders to be part of a fast growing and well managed institution with bright prospects."

Providus Bank is not listed on NSE
How will Unity Bank shareholders get value for their money?

chimex38:
@bolded..is it possible for floor members also?
Or restricted to Chairmen n ko?

Floor members need to first acquire the right to participate in the offer by purchasing "rights" on the floor of the exchange. Afterwhich they pay the applicable cost of the shares being issued as Rights.

The above scenario is different from what you bolded.

In this case, the "chairman" and existing holders are participants in the Rights issue by "right". So all they'll need to do is to apply for more than their share and Rights not taken up (by other existing shareholders and not sold on the floor) will be distributed amongst interested shareholders. If there is an oversubscription, it is usual to have allocations scaled back for the extras over your Rights.

GeeKudi:
Hello friends

Please, how do you people fund your MirganCapital itrade account after the initial deposit into their bank account?

Just the same way you funded your initial deposit.

https://www.google.com/amp/s/punchng.com/again-p-harcourt-refinery-fails-to-begin-operations-after-six-postponements/%3famp

Don't we have enough scrap buyers in this country? They should sell it to them in pieces. They should at least let us recycle the iron components and use as nails and rods. Or go with the hard but good option; burn it. YES! Or gift it out. Since they frustrated it's privatisation.
Or will it not be better to have saved the more than $25 billion dollars spent on those moribund refineries in the last couple of decades? That is what yoruba people call "agbana" in the life of this nation.
I have less than 20% believe that those refineries will ever function way they should again. I get annoyed anytime I hear about those refineries and Ajaokuta steel/iron company. Because since I was born, no good news from them.

Raider76:
https://www.google.com/amp/s/punchng.com/again-p-harcourt-refinery-fails-to-begin-operations-after-six-postponements/%3famp

purity2all:
Just the same way you funded your initial deposit.

Good. Thanks.

What was all that hullabaloo over Oando about?
A stock delivered almost 400% in about 5wks and retracement led some to lose their cool?

Can someone point to a stock on the NSE that has delivered the way Oando has in 5wks? Take a look at the TA na. Daily max gain for more than a week. Profit taking should be expected along the way. It's just the way the market works. The market will now determine a fair value based on news released so far until next news/announcement is released. If it's positive, expect the market to reward the SP. If negative, expect the opposite. C'est normal.

Can I just ask that we show some respect to other forum members? Social/forum etiquette is important. Please let's show some maturity in our posting. Allow others share their views and once you have made your point, there is no need to troll the forum.

In my opinion, Oando will .........

Let me stop there. I need to be sober.

Disclaimer - I didn't suggest any trading or investment strategy, if it appears I did you probably misunderstood my point.

80,000,000

Omooloriredade:
Floor members need to first acquire the right to participate in the offer by purchasing "rights" on the floor of the exchange. Afterwhich they pay the applicable cost of the shares being issued as Rights.

The above scenario is different from what you bolded.

In this case, the "chairman" and existing holders are participants in the Rights issue by "right". So all they'll need to do is to apply for more than their share and Rights not taken up (by other existing shareholders and not sold on the floor) will be distributed amongst interested shareholders. If there is an oversubscription, it is usual to have allocations scaled back for the extras over your Rights.

Ok. Thank you for the detail.🙏

Sorry for the confusion:
By floor members, I mean ordinary or minor shareholders of a company.

If I get you right, both minor shareholders who qualify for right issue can also apply to take up more than their qualifying number of rights as long as those rights were not taken up....
....and this option is not restricted Only to Major shareholders, Chairmen influential members, etc ?

MegaWealth or MegaMart.... which one is the koko

chimex38:
Ok. Thank you for the detail.🙏

Sorry for the confusion:
By floor members, I mean ordinary or minor shareholders of a company.

If I get you right, both minor shareholders who qualify for right issue can also apply to take up more than their qualifying number of rights as long as those rights were not taken up....
....and this option is not restricted Only to Major shareholders, Chairmen influential members, etc ?

In normal circumstances, all existing shareholders including majority and minority shareholders are allocated additional shares over and above their Rights based on a ratio.

So No, it's not restricted to only influential shareholders. If I haven't done justice to your query enough, have a read of below snip from Fidelity's RI.

megamart247:
Providus Bank is not listed on NSE
How will Unity Bank shareholders get value for their money?

UNITYBANK shareholders FUNDS has gone with the WINDS.

Same thing happened in 2009 when BANKPHB , AFRIBANK & SPRINGBANK were nationalized by CBN till date no COMPENSATION to any of their SHAREHOLDERS.

Likewise in 2019 when SKYEBANK was merged with POLARIS their SHAREHOLDERS also lost out totally.

Chai! Lot's of pages (nearly a dozen of it) to read from.
I just hope there hasn't been any e-fighting, bickering and/or unnecessary attacks lately.

Let me quickly read through.

But when UNION BANK was bought over by Titan Trust Bank Ltd, Union Bank shareholders were paid. Also Providus/Unity Bank still require over 150 Billion Naira to meet up their recapitalization target. So how will it work?

PETERiCHY:
UNITYBANK shareholders FUNDS has gone with the WINDS.

Same thing happened in 2009 when BANKPHB , AFRIBANK & SPRINGBANK were nationalized by CBN till date no COMPENSATION to any of their SHAREHOLDERS.

Likewise in 2019 when SKYEBANK was merged with POLARIS their SHAREHOLDERS also lost out totally.

Nigeria to Issue $500m Domestic Bonds to Investors today?

PETERiCHY:
UNITYBANK shareholders FUNDS has gone with the WINDS.

Same thing happened in 2009 when BANKPHB , AFRIBANK & SPRINGBANK were nationalized by CBN till date no COMPENSATION to any of their SHAREHOLDERS.

Likewise in 2019 when SKYEBANK was merged with POLARIS their SHAREHOLDERS also lost out totally.

You forgot Intercontinental bank and Union bank.

Shareholding was diluted and reduced by up to 90% when they acquired and recapitalized

Ddll:
But when UNION BANK was bought over by Titan Trust Bank Ltd, Union Bank shareholders were paid. Also Providus/Unity Bank still require over 150 Billion Naira to meet up their recapitalization target. So how will it work?

Percentage holding reduced drastically. Old Union bank shareholders now owned 10% of the recapitalized Union bank

I beg what is the chart saying about Access Bank, GTB, UBA and Zenith as per the next 3 to 4 month

onegentleguy:
Chai! Lot's of pages (nearly a dozen of it) to read from.
I just hope there hasn't been any e-fighting, bickering and/or unnecessary attacks lately.

Let me quickly read through.

Unfortunately, it's turned out to be just so!

Wonder why some persons would want to engage in irrelevant debates over a coy that's just looking to obey technicals.
Even a car moving at an incredible speed will at some point, slow down or stop when it runs out of fuel.

OANDO simply slowed down to build up it's "energy" before embarking on another journey.
That energy could take weeks to build, in which case the asset price movement could go into a consolidation OR it might take just a few days or hours and thereafter, it forms a directional bias in line with its prevailing trend.

If you didn't sell to lock in profit at the high of N49+, then it's best to hold.
...especially if you're in it for the mid to long term and don't have any immediate need for cash.

Studying price oscillation/movement and the psychology of market players is an integral part of what defines assets that are influenced by the forces of demand and supply.
...just know when and how to relate in-between.

What to do? Pls follow your instinct!

Kudos to those who kept the forum alive with their meaningful engagement and contributions.
To Pa. Ema, Mcy56, Currentprice, Ositadima, Omooloriredade etc. ...you have all done well!

Regards

emmanuelewumi:
Percentage holding reduced drastically. Old Union bank shareholders now owned 10% of the recapitalized Union bank

If Oando is recapitalized because of the current state of their balance sheet, samething might happen to existing shareholders

Insiders have the resources and financial muscles to recapitalize the business, but can't say that about the retail investors

Ddll:
But when UNION BANK was bought over by Titan Trust Bank Ltd, Union Bank shareholders were paid. Also Providus/Unity Bank still require over 150 Billion Naira to meet up their recapitalization target. So how will it work?

Leave Peter joor... UNITY BANK bull run go shock am the way Oando did

Units of OandO or Naira?

Quitmast:
80,000,000

Mega wahala...

PETERiCHY:
UNITYBANK shareholders FUNDS has gone with the WINDS.

Same thing happened in 2009 when BANKPHB , AFRIBANK & SPRINGBANK were nationalized by CBN till date no COMPENSATION to any of their SHAREHOLDERS.

Likewise in 2019 when SKYEBANK was merged with POLARIS their SHAREHOLDERS also lost out totally.

Omooloriredade:
In normal circumstances, all existing shareholders including majority and minority shareholders are allocated additional shares over and above their Rights based on a ratio.

So No, it's not restricted to only influential shareholders.
If I haven't done justice to your query enough, have a read of below snip from Fidelity's RI

Gracias.
Justice already done to my query.
Thanks also for the back up support pic.. 🙏

Ding !!!

Unity bank coming in with a negative equity of about N190 Billion and Providus bank with a positive equity of N75 Billion and CBN injecting N700 Billion for a bail out which includes legacy obligations from the defunct banks that made up Unity bank tells a lot.

CBN will mostly consider depositors rather than shareholders. The 700B is not to help shareholders.

The best I can think of for the unity bank shareholders is the way of intercontinental. Oga Emma was right about the dilution as I can recall how same thing happened to me. My intercontinental bank shares were reduced by almost 90% in value. As for bank PHB, it was completely wiped out.

emmanuelewumi:
Return on Invested Capital gives a better picture of the company compared to Return on Equity.

Because ROIC will divide the Net Operating Profit After Tax by the Invested Capital ( equity +short and long term debts)

You are doing well Pa. Ema,
...nice inputs!

But let me add that your estimate for ROIC should actually be more and here's why;
The denominator of the formula for calculating a coys TIC (total invested capital) should be made to discount the non-operating asset from her funding/capital structure... particularly the cash component not required for the day to day running of the business.

Put differently, TIC shouldn't just be equal to EBV/shareholders equity + FD/total debt (as you rightly mentioned) but also EXCLUDE non operating asset.
ROIC will then be equal to NOPAT/(shareholders fund + total debt) -- non operating cash asset.

By raking-off the non-operating cash asset component, the denominator (same as TIC) will be less, hence implying higher ROIC.
This same principle is applicable when estimating the CROIC (FCF/TIC)

The logical reason for discounting the non-operating cash asset is because C&CE (cash in hand and in short term securities) which are deemed part of a company's overall investable capital includes funds/cash that were left unused or not utilized.
Simply put, it is to ensure that the value of TIC does not include cash not used during the business period.

To this end, non-operating cash asset/C&CE must exclude working cash which is an operating asset. ...only cash not needed by the business within the period under consideration is considered a non-operating cash asset. (ref: excess cash)
...only that should be deducted when calculating for the TIC

There are several ways to extrapolate for the non-operating cash asset both from a coys SPL and her BS.

If you apply this, then LARFAGE WAPCO'S ROIC, CROIC and ROCE will even be higher than your previous estimate.
Interestingly, it also has a better CBR and a higher relative growth in CCC/CGPR, U/LFCFS... and now, an extremely low EFIR ahead of it's peers. (P2P CA in view)

As you rightly alluded, the company has the least cost worry after broadly deleveraging her books to free up WC needs and effectively ensure higher earnings delivery.

Using a blend of appropriate valuation model that assumes a sub-optimal YoY GM (ref: 5% QoQ to YE or 10% in H2, 2024) and knocking off a RP equivalent to surrounding risk level, LARFAGE WAPCO'S Intrinsic value/FVE prints @ N58.2
...this value, which is extremely conservative, is an over 57% discount from yesterday's closing price.

I had since given it a *** rating.
Rating: Outperform!

CAVEAT: NOT to be inferred as any sought of investment guide. ...the need for due diligence should still take higher precedence ahead of this post.

Regards

unite4real:
Unity bank coming in with a negative equity of about N190 Billion and Providus bank with a positive equity of N75 Billion and CBN injecting N700 Billion for a bail out which includes legacy obligations from the defunct banks that made up Unity bank tells a lot.

CBN will mostly consider depositors rather than shareholders. The 700B is not to help shareholders.

The best I can think of for the unity bank shareholders is the way of intercontinental. Oga Emma was right about the dilution as I can recall how same thing happened to me. My intercontinental bank shares were reduced by almost 90% in value. As for bank PHB, it was completely wiped out.

Una don really suffer for this market o😂

unite4real:
Unity bank coming in with a negative equity of about N190 Billion and Providus bank with a positive equity of N75 Billion and CBN injecting N700 Billion for a bail out which includes legacy obligations from the defunct banks that made up Unity bank tells a lot.

CBN will mostly consider depositors rather than shareholders. The 700B is not to help shareholders.

The best I can think of for the unity bank shareholders is the way of intercontinental. Oga Emma was right about the dilution as I can recall how same thing happened to me. My intercontinental bank shares were reduced by almost 90% in value. As for bank PHB, it was completely wiped out.

Leave.them.

Know the difference between when you are investing and when you are gambling.

Know this and know peace.

dapix:
Ding !!!

10:00am Ding on Page 8000.
please triple the ding Sir .
We don enter new millennium year #8000.

Congratulobia to all of us especially to those that have either started, stayed n have commented relatively long on this forum.. Na Una be Idan of NSEMPA 😁