₦airaland Forum

KarlTom:
This is a classic COMPENSATION money.

Cash for 500k units @ ½ SP (₦35) will give ₦17.5m

SAK:
Perhaps he gets lot of units he want to dump!

Sunrisepebble:
The Access Bank I sold "too early" at N27.80 is now available to me at N26.65

Makanjuola89:
Mr Market is already responding to Prof Wale's memo

nosa2:
You dey use day to day price movement? Ok na. For all we know some guy needed to sell to pay foreign school fees. Another guy may be selling to buy cocaine or a new house.

Daily price movements in the stick market are very random. I'm the long term people selling now will regret their decisions

BullBearMkt:
Uuuhmmm!!!
Current banking valuations being historically low seem reasonable, but a bank like ACCESS has potential to dip low with current price hovering in the sellers' region. It might be better to align valuation with price for more accurate results.

bolton08:
Aradel made 53% of 2023 PAT in Q4 (N21.67B Q4 PAT against N40.84B annual PAT). Maybe they can replicate that in their FY'24 report.

emmanuelewumi:
They have been dirt cheap for the past 6 years, it was in 2006 that Price Book Value of 3 and above was the norm for them

robobo:
and they can be for longerrrrrrrrrrrrrrr

what i would want to tease out of this discourse is what are the triggers to look out for that would help correct this anomaly/mispricing.

or what are the drivers/ factors that brought the said situation (anomaly/mispricing) 6 years ago? ? ? ? ? ?

nosa2:
Incredibly daft economic/ monetary policies, insecurity in the country, COVID and high rates in other countries.

That's my view

robobo:
and they can be for longerrrrrrrrrrrrrrr

what i would want to tease out of this discourse is what are the triggers to look out for that would help correct this anomaly/mispricing.

or what are the drivers/ factors that brought the said situation (anomaly/mispricing) 6 years ago? ? ? ? ? ?

BullBearMkt:
Uuuhmmm!!!
Current banking valuations being historically low seem reasonable, but a bank like ACCESS has potential to dip low with current price hovering in the sellers' region. It might be better to align valuation with price for more accurate results.

Sunrisepebble:
I did not like their Q3 result at all. The tax wiped away everything, just like Seplat is experiencing

pluto09:
I want to believe they will still be cheap for a long time unless they ramp up dividend payments to match their bogus earnings.
The sector has arguably been the one with best dividend yield in recent years but that might not be the case this year.

SAK:
Perhaps he gets lot of units he want to dump!

robobo:
hmmmmm

Incredibly daft economic/ monetary policies, (this is an ongoing target and may never be met, even the Feds/BOE are sometimes wrong)

insecurity in the country, (50/50, while in my opinion this is not deteriorating further than it was 6 yerars ago, it has also not appreciate better than it, we have just learn to kind of live with it)

COVID (resolved)

high rates in other countries. (moving target but easing compared to previous years)

overall ambivalent meaning we might still need to tarry a little (kind if medium term) if there would be any correction to this anomaly/mispricing

Fundlocator:
Please we need JIJO stocks, We have missed LOCO so much here.
Na so so bad belle we dey see.
All the bad belle wey dey sing TA, TA.
Una TA no dey give us shishi

emmanuelewumi:
The marketing gimmick used then was that the Private placement shares par value was N5.00 and the par value when they will be listed would be 50k.

With this those who bought 1 million units at private placement would have 10 million units when listed.


So people sold solid and quality stocks to take speculative positions in the private placements offers.

KarlTom:
UPCOMING BM

TUESDAY 28 January
CONHALL, M&B, LASACO

WEDNESDAY 29 January
PRESTIGE, BUAFOODS, GEREGU, CHAMS

THURSDAY 30 January
AIRTEL, OMATEK, OandO

Agbalowomeri:


Abeg LOCO come and carry ya disciple make he no slap somebori here

nosa2:
I expect the cheapness to be around for another year or two but it will end eventually. Either it ends or Nigeria ends in a civil war.

Deadlytruth:
One major precedent that made private placements hot cake then was the NAHCO story. Recall that in 2003/4 NAHCO did its private placement at N5 per share with very low OS, and soon afterwards got listed and within two months or so of listing, it rose from the quoted price of N5 to N70+ meaning a 1300% gain in such a short time. That created the perception that private placement is the easiest way to financial breakthrough.

pluto09:
I want to believe they will still be cheap for a long time unless they ramp up dividend payments to match their bogus earnings.
The sector has arguably been the one with best dividend yield in recent years but that might not be the case this year.

Deadlytruth:
One major precedent that made private placements hot cake then was the NAHCO story. Recall that in 2003/4 NAHCO did its private placement at N5 per share with very low OS, and soon afterwards got listed and within two months or so of listing, it rose from the quoted price of N5 to N70+ meaning a 1300% gain in such a short time. That created the perception that private placement is the easiest way to financial breakthrough.

essentialone:
A lot of staffs working in Stockbroking Firms, do not have any single shares, in any company.

Agbalowomeri:


Abeg LOCO come and carry ya disciple make he no slap somebori here

emmanuelewumi:
Nahco did not do private placement oooo. Nshco was owned by federal government of Nigeria. The company was privatized and the public offer was sold to Nigerians based on state of origin.

Bureau of Public Enterprise headed by Nasir El Rufai believed previous privatization was cornered by the South Westerners

emmanuelewumi:
Nahco did not do private placement oooo. Nshco was owned by federal government of Nigeria. The company was privatized and the public offer was sold to Nigerians based on state of origin.

Bureau of Public Enterprise headed by Nasir El Rufai believed previous privatization was cornered by the South Westerners