₦airaland Forum

emmanuelewumi:
It is always difficult to increase your return when you have more fund.

You can easy make a return on investment of 30% on N10 million but will be difficult to maintain that with N10 billion.

So when a business shareholders fund increase and the return on equity increased, the managers of the business are efficient.











If this assertion is true. I guess I have take my investment away from banking stocks as they may not really pay me more dividend. This is because some don't really need the recapitalization. They were only forced to do so because of Government policy. Most are struggling to meet up the recapitalization. Though, I am certain FUGAZ will meet up the international license, Fidelity and FCMB will also want to join in the bandwagon.

In most cases when shareholders fund increases, return on equity take a slight dive or at best it will be flat

guyzgirl:
I also have the issue with iOS. Unable to open it on Safari and chrome as well.

BullBearMkt:
I recently came across this attached 150-year-old chart created by a farmer named Samuel Benner in 1875. How relevant is this chart, particularly to the Nigerian Stock Market? That’s the first question I asked myself. Looking at the recent yearly data of the NGX ASI, it appears to be quite relevant. We are now moving towards "B," the good times, which are projected to end by 2026 - three years after 2023.

PLAN YOUR TRADES AND TRADE YOUR PLANS

emmanuelewumi:
Please get in touch with your financial advisor or subscribe to the numerous fee paying platforms to get recommendations

Audacius:
IN-HOUSE DICTIONARY OF ACRONYMS



NSEMPA: Nigeria Stock Exchange Market Pick Alerts – Name of the thread.

BNSTIL: A very old NSEMPA shorthand for "Brothers and Sisters in the Lord".

FA: Fundamental Analysis – Stock analysis done with fundamentals of a stock such as financial statements and other economic indicators.

TA: Technical Analysis – Stock analysis done with using some technical tools and charts.

GA: Gut Analysis – From claims of having “gut feelings” about how a stock will move.

SA: Spiritual or Sentimental Analysis – From sentimental attachment to a stock and claims of spiritual insight into the future of a stock.

FUGAZ: Acronym for First Bank, UBA, GTCO, Accesscorp and Zenith. Conisdered highly capitalizaed banks.

MH: Monkey hunting/ Monkey hunter – An allegation/accusation that a stock is being manipulated either by calls to buy or sell off. The "monkey hunter" then profits by buying more or selling off their holdings when prices move in their favour.

Background: From story of a businessman who goes to a village to buy monkeys. He buys at different intervals at ever higher prices thus creating a market for monkeys along with artificial scarcity. He ends up selling off all the monkeys back to the villagers who hoped there will always be market for monkey sale. He disappears after selling at the highest price and all the villagers had monkeys with no one to sell to, losing all their money in the bid. Author of the real story unknown. It is posted here once in a while.

SMN: stockmarketnewsnigeria [dot] com. A now-defunct website exclusively created for stock discussions like here. Was probably owned by owners of Nairaland.

Cowboys: CEOs of notable companies who are considered to display manipulative business tactics.

Men in Black: An old NSEMPA term for deep pocket investors who can cause stock price movement because of the volume they trade, and who actually do so to cause price movement.

One Afolabi Unit: 2,000 units of any stock.
Background: I can’t recall. Someone should kindly provide the story behind the “Afolabi units” term.

JIJO: Jump in, Jump out. Term used by traders. Means buying a stock and selling at the very shortest term especially as soon as it makes some gains.

Tashere Units: Very few numbers of shares bought or left unsold. Amount depends on the person. Such shares are either bought or left in the portfolio to have a "foot in the door”, e.g. so as not to have to process e-dividend all over again or just to see how the stock will perform.

Loot: A gloating or bragging term for large profit from short term trade. A jackpot from JIJO. (As described by @Zendi)

Bull from Burundi: A way to describe noticeable general rise in the prices of stocks. An apparent play on the words bull and Burundi.

Stockfish: The newest NSEMPA term. (c. 2024) Used to denote a stock that is considered as having lost value so much that it is nearly worthless and a trap for whoever buys it. A play on shares as a financial instrument and fish in the market.

NOTA BENE
- Some of these are standard investment terminologies (FA, TA, FUGAZ), others grew out of constant conversations and banters and created by members here or brought from SMN. I cannot recall who started using what term. All rights reserved to them.

- This compilation is just a contribution to render this thread easier to understand for new readers. It will be reposted maybe monthly or quarterly to aid new readers. Kindly correct, modify, clarify and add.

Thanks.
Also, special thanks to: Zendi, Sunrisepebble.

Mpeace:
Me too. Yet to get paid

chidiebere1999:
Happy Sunday, I have done some technical analysis on BETA GLASS and I believe that the stock price can rally to as high as 105. Below is my analysis. Does anyone have any criticisms

emmanuelewumi:
I believe we still have enormous opportunities in the banking sector. They are the major drivers of economic growth

Youngzedd:
I believe with the expansion to other countries, they will keep up with the good financial record.

Locotrader:
@essentialone1

Which upgrade oga?
The app is functional and user friendly.
Only that they can't see my BUY because of 1.8% and 2.18% fees in buy/sell.

I use Afrinvest and investmentone to view market data till they reduce their fees,we can start funding and buying

The page below is from Afrinvest app

Toluway:
Please what are your criteria for ranking Omatek as SELL?
NOTE that Omatek is still perfectly in a BUY zone.
Even buying it today, for price appreciation is a perfect decision.
Daily, Weekly and Monthly Charts are Bullish.

babytoun:
Its true . The app works on phone but the website upgrade has been on for months . As for commission they charge 1.35% not 1.8

bastardson:
No one is saying anything about Ellah Lakes.. All so quiet about it.

Streetinvestor2:
Wapco how far now.I don't like this silence. If you are delisting. You guys should better pay me before full yr results come out so I can take new position

Onado I don zero my mind till full year results too for any news concerning redistribution of any shares.

Palomadove:
https://www.stockbubbles.com.ng/

swiperthefox:
Thank you. Do you have their link?

Streetinvestor2:
Wapco how far now.I don't like this silence. If you are delisting. You guys should better pay me before full yr results come out so I can take new position

Onado I don zero my mind till full year results too for any news concerning redistribution of any shares.

emmaodet:
Beta Glass -
The company is into the production of glass bottles for companies like Smirnoff Ice, Mcdowells, Squadron, Best Whisky, Chelsea, Lord's Gin, Royal Eagle, Schnapps, Orijin Bitters, Veleta wine, Amstel Malt, Guinnenss, Heineken, Guilder, 33, Harp, Trophy Goldberg and many more.

5% of revenue came from exported products while 95% sales is from local base.

Current P/E = 4.1, Forward P/E = 3.7, 5yrs P/E (mean) = 5.4, Current price = #64.9
Calculating for the implied earnings:

TTM earnings per share = Current price ÷ TTM P/E
#64.9 ÷ 4.1 = #15.83 (TTM EPS)
Forward earnings per share = Current price ÷ Forward P/E
#64.9 ÷ 3.7 = #17.54 (Forward EPS)

Using the TTM EPS = #15.83, Forward EPS = #17.54, historical 5-year average P/E of 5.4:
TTM-based price:
Implied Price = TTM EPS × Historical P/E
#15.83 × 5.4 = #85.48

Forward-based price:
Implied Price = Forward EPS × Historical P/E
#17.54 × 5.4 = #94.72

Therefore, based on the company's own historical valuation:

Using TTM earnings, the implied price is #85.48
Using forward earnings, the implied price is #94.72

Since the current price is $64.90, this suggests the stock might be undervalued by:

#20.58 (31.7%) based on TTM earnings
#29.82 (46.0%) based on forward earnings

NettyNelly:
I believe it's a #80 - #90 stock as well.
I started looking at the stock at #49, but I didn't buy cause it's not the type of business I would like to hold for a long time.

They are really struggling with energy cost and I couldn't see a favourable runway ahead of the business, like most of my portfolio businesses.
If I was a trader I would have loaded up and hold it for a year for capital appreciation.

Locotrader:
Oga I have said it several times here that Afrinvest total charges is 1.80% on buy.After 1.35% brokerage fees,there are other applicable charges that brings it to 1.80%.I only use their app to trade and it's working fine.I don't use their web portal.Maybe the web portal is undergoing upgrade.

Atlas portfolio is 0.80% total charges on buy.
Stanbic Ibtc total charges on buy 1.15%
Cardinalstone is 1.45% .
Investment one 1.80%

I use all these brokers.I am not a novice on them.

Pls be guided accordingly

NettyNelly:
Since my thesis is that the market has yet to recognize the company's recently improved earnings, I chose to value the stock purely from an earnings perspective, based on how much the market has historically paid for such earnings.


Beta Glass reported an improved EPS of ₦2.4, ₦4.78, and ₦6.68 in Q1, Q2, and Q3 2024, respectively. This sums up to a 9-month EPS of ₦13.86. I forecast a full-year (FY) annualized EPS of ₦18.46, which assumes the company will earn an EPS of ₦4.6 in Q4. At the Current ₦ 49 share price, this projection translates to a forward P/E ratio of 2.65, which is remarkably low for a company with a 5-year average P/E of 5.

If we multiply the average P/E of 5 by our forecasted FY EPS of ₦18.46, we arrive at a target price of ₦92, representing an 88% upside from the current price of ₦49 per share.

Alternatively, if we take a more conservative approach and assume the company will earn just ₦2 in Q4, the FY EPS would be ₦15.86. Multiplying the same average P/E of 5 yields a target price of ₦79, representing a 62% upside from the current price of ₦49.

My assumption of ₦2 EPS for Q4 2024 is highly conservative. Post-COVID, the only instance where the company earned less than c.₦2 was in Q3 2022, with an EPS of ₦1.46. Apart from that, the business has consistently earned at least ₦2 per share over the last 16 quarters. I believe my target price would be met as the market reprices to 5x earnings or more on the back of strong full-year results, that it is yet to recognize.



Below is a chart I created to illustrate the market doesn't reflect current earnings.

Streetinvestor2:
Wapco how far now.I don't like this silence. If you are delisting. You guys should better pay me before full yr results come out so I can take new position

Onado I don zero my mind till full year results too for any news concerning redistribution of any shares.

NettyNelly:
Well done
I believe it's a #80 - #90 stock as well.
I started looking at the stock at #49, but I didn't buy cause it's not the type of business I would like to hold for a long time.

They are really struggling with energy cost and I couldn't see a favourable runway ahead of the business, like most of my portfolio businesses.
If I was a trader I would have loaded up and hold it for a year for capital appreciation.

ojeysky:
So meristem is not the only expensive one, they get senior. Meristem is 1.35% as well excluding other charges.

emmanuelewumi:
What is your average cost price?

If it less than N40 you can book profit.

With the appreciation of Naira, I don't think investors will be paid more than N90 per share and this should be paid by second quarter of 2025