₦airaland Forum

Agbalowomeri:
Ahh iro o

Whenever I make a kill in stock market, I first run away before the feeling of invincibility sets in Lol. I have mastered my own emotions

That feeling..
"Who dey breathe?"

emmanuelewumi:
What are friends and family for?

Lol.. no be lie

megawealth01:
That's if it will be paid back 😔

emmaodet:
No bro.

Check the break down of how to get PAT from NOPAT and notice finance cost was deducted.

Finance cost was deducted from NOPAT to get PAT; this suggests that Finance cost is already included in NOPAT. Thus actually verifying Pa Emma's claims.

You can't subtract from sth if it (the subtracted amount) wasn't included in "the sth" in the first place.
if I am not mistaken.

therefore NOPAT includes finance cost from my understanding of your screenshots.

I really wish you'd stop talking about loans for stock investing on this public forum.

Borrowing at high double digits to bet on stocks is a bad idea for most people. And by bad, I mean ruinous, you-become-someone-else's-bitch, dem-curse-you-for-village? bad.

Don't do this at home, kids. This is not your turn to shine (or whatever marketing trick they use to seduce you).

emmanuelewumi:
They do through their sister company called XXXX.

Loan is for a year and bullet payment of principal and interest at maturity. Just that their interest rate is high at 33%. Another problem is that they only give a maximum loan of XXXX.
...

HesInMe:
I really wish you'd stop talking about loans for stock investing on this public forum.

Borrowing at high double digits to bet on stocks is a bad idea for most people. And by bad, I mean ruinous, you-become-someone-else's-bitch, dem-curse-you-for-village? bad.

Don't do this at home, kids. This is not your turn to shine (or whatever marketing trick they use to seduce you).

There is nothing wrong with borrowing to buy stocks. Just make sure you know what you're doing and you're not FOMOing into the market

emmanuelewumi:
You should crunch the figures.

ROE is not reliable because it does not include the debt portion of the capital structure.

Eg

A company made a profit after tax of N10 billion, finance cost is N4billion equity is N20 billion and and debt is N30 billion.

This will give invested capital of N50 billion .

The return on equity will be N10 billion/N20 billion multiplied by 100 to give ROE of 50%

ROIC will be N14 billion/N50 billion multiplied by 100 to give ROIC of 28%

I disagree with this. Want you're saying is that leverage is bad and I believe leverage is good.

Example is AfrasiaBank that was reently acquired by Access Bank, For the nine months ended 31 March 2025, the Bank recorded a net profit after tax (“NPAT”) of MUR 4.8bn, which is 161bn in naira

https://www.afrasiabank.com/media/15591/unaudited-interim-condensed-financial-statements-for-the-nine-months-ended-31-mar-2025-
signed.pdf

chimex38:
Maybe except Access Bank.
They are acquiring REAL assets not monetary

thebargainhunte:
Gosh, my bad. I think the bonuses stopped in 2011. They were as follows:
2004 – 1 for 1

2005 – 1 for 1

2006 – 3 for 2

2007 – 1 for 2

2008 – 1 for 4

2009 – 1 for 5

2010 – 1 for 3

2011 – 1 for 4

I bet to disagree with these bonuses rolled out. With my little years of experience in stock market, i participated in GTB first public offering. They had never at any point gave a one for one bonus. Please check your source very well. I am very sure of what am saying.

nosa2:
I disagree with this. Want you're saying is that leverage is bad and I believe leverage is good.

Leverage is good. I use leverage.

Just telling you ROIC gives a better picture of the business efficiency and profitability compared with ROE


MTN used to have ROE of over 80%, Nestle used to have ROE of 100%.

But we can see what happened to them when we had economic challenges in the country.

When a business has a return on equity of over 20%, one needs to dig deeper through Du Pont Analysis to find out if it is due to the net profit margin, asset turnover or financial leverage

HesInMe:
I really wish you'd stop talking about loans for stock investing on this public forum.

Borrowing at high double digits to bet on stocks is a bad idea for most people. And by bad, I mean ruinous, you-become-someone-else's-bitch, dem-curse-you-for-village? bad.

Don't do this at home, kids. This is not your turn to shine (or whatever marketing trick they use to seduce you).

Not to bet on a stock but to invest in a stock, provided you have cash flow and it is the cash flow that will service the loan.

You are using loan to bet on a stock if you wish to service the loan based on the expected capital appreciation of the stock

Please a quick question guyz. I sold my Chams on 26th of June. I had their shares as at the qualifying date. Can I still buy at the discounted price?

We might see another scenario of a post someone shared here yesterday on JAPAULGOLD that if one had invested N10m in that stock in July 2022, that N10m would have become N140m today. So we might see the same come next year or so in Insurance sectors.

It was bloody on Friday in insurance sector as profit takings started or maybe panic sells due to the news that the sector has been giving a timeline period of 12 months to comply on their recapitalization.
And as experts have also mentioned here, yes some of the insurance companies have already met the capital benchmark. One needs to know the insurance company he/she is holding which segment they fall into. For example; Life Insurance, None Life Insurance, and Reinsurance. With this 1 to 2 weeks rally in Insurance sector, likely 75% - 80% of the insurance companies listed on the NGX already attained this benchmark and with this 12 months time frame giving to them, they will surely meet the requirements. We might still see more reds tomorrow on this sector and when the dust settles, some of us will later come back to buy this stocks at a higher price. They said a patient dog eats the fattest meat, so those in a long run, should worry not or panic.
The rally we witnessed within 2 weeks in the Insurance sector, is just a tip of an iceberg. With the reform art bill been signed by Mr. President, soon all the states in Nigeria will make it mandatory that all public business owners, car owners, house owners, etc must get an insurance coverage, and what does that mean? So the insurance sector is just gearing up for a take off and there is no cause for alarm, rather one need to taking more positions and increase his/her holdings. May we have a productive and wonderful week ahead.

This is not a financial advice...the outcome maybe different. Always do your own research if you are not willing to accept the risk.

This is a clearer picture of the capitalization history of GTCO which I shared yesterday.

N1 million would have bought 26351 units at N37 per share and it grew to 70,760 units

The following bonus shares were issued

1 for 4

1 for 10

1 for 4

1 for 4

1 for 4

Considering our discussion as per NOPAT last night.

From 2021 annual report of Nigeria Brewery.

The operating profit was N41.5 billion

Income tax expenses was N11 billion

When we subtract the income tax from the operating profit we are going to have NOPAT of N30.5 billion

While Profit after tax is N12.67 billion

Earning Before Interest and Tax will be operating profit plus the finance income of N313 million

So EBIT will be N30.8 billion

EBIT and Operating profit can be the same if the business did not earn finance income, investment income or made profit from the disposal of assets

jonnysessy:
I bet to disagree with these bonuses rolled out. With my little years of experience in stock market, i participated in GTB first public offering. They had never at any point gave a one for one bonus. Please check your source very well. I am very sure of what am saying.

Correct

emmaodet:
No bro.

Check the break down of how to get PAT from NOPAT and notice finance cost was deducted.

To avoid this confusion get an annual report.

Check the operating profit and subtract the income tax profit to give you the NOPAT

To get Profit before tax, check the operating profit add finance income if any, add profit from disposal of assets if any, add investment income if any. Then subtract the finance cost.
That will give you the profit before tax.

To get the profit after tax, subtract the tax from the Profit before tax

Pojomojo:
We might see another scenario of a post someone shared here yesterday on JAPAULGOLD that if one had invested N10m in that stock in July 2022, that N10m would have become N140m today. So we might see the same come next year or so in Insurance sectors.

It was bloody on Friday in insurance sector as profit takings started or maybe panic sells due to the news that the sector has been giving a timeline period of 12 months to comply on their recapitalization.
And as experts have also mentioned here, yes some of the insurance companies have already met the capital benchmark. One needs to know the insurance company he/she is holding which segment they fall into. For example; Life Insurance, None Life Insurance, and Reinsurance. With this 1 to 2 weeks rally in Insurance sector, likely 75% - 80% of the insurance companies listed on the NGX already attained this benchmark and with this 12 months time frame giving to them, they will surely meet the requirements. We might still see more reds today on this sector and when the dust settles, some of us will later come back to buy this stocks at a higher price. They said a patient dog eats the fattest meat, so those in a long run, should worry not or panic.
The rally we witnessed within 2 weeks in the Insurance sector, is just a tip of an iceberg. With the reform art bill been signed by Mr. President, soon all the states in Nigeria will make it mandatory that all public business owners, car owners, house owners, etc must get an insurance coverage, and what does that mean? So the insurance sector is just gearing up for a take off and there is no cause for alarm, rather one need to taking more positions and increase his/her holdings. May we have a productive and wonderful Friday ahead.

This is not a financial advice...the outcome maybe different. Always do your own research if you are not willing to accept the risk.

This episode of insurance rally is over, but its echoes are still with us.

If you are on this forum, you had enough warning to protect yourself by selling.
There may be another rally, the market isn't on its last legs. But the stage has to be set by a decline upon which the next rally will then feed off.

I see at least a 50% decline from recent peaks across most insurance stocks.
If you haven't sold, it isn't the time to wear yourself ragged in indecision and uncertainty.
Better to protect yourself and join in the game by selling for a possible buyback later.

emmanuelewumi:
Government should not be running a business, they should create enabling environment that will make businesses to thrive

Government will make money from taxes, levies, dues and duties

Well said sir. Government is for policy and regulations.

emmanuelewumi:
Government should not be running a business, they should create enabling environment that will make businesses to thrive

Government will make money from taxes, levies, dues and duties

Governments can run businesses as it's done in other nations

Countries like China and Singapore have successfully utilized SOEs to drive economic growth and development. 

It's called State-Owned Enterprises

Thanks for the explanation

Cadbury for eg has the same ROE and ROIC (ref Trading View) meaning it holds no debt, right?

emmanuelewumi:
You should crunch the figures.

ROE is not reliable because it does not include the debt portion of the capital structure.

Eg

A company made a profit after tax of N10 billion, finance cost is N4billion equity is N20 billion and and debt is N30 billion.

This will give invested capital of N50 billion .

The return on equity will be N10 billion/N20 billion multiplied by 100 to give ROE of 50%

ROIC will be N14 billion/N50 billion multiplied by 100 to give ROIC of 28%

ceelog:
Thanks for the explanation

Cadbury for eg has the same ROE and ROIC (ref Trading View) meaning it holds no debt, right?

So what is the ROE?


Better to learn how to crunch the figures, some of those sites make mistakes.

austinkenneth:
This episode of insurance rally is over, but its echoes are still with us.

If you are on this forum, you had enough warning to protect yourself by selling.
There may be another rally, the market isn't on its last legs. But the stage has to be set by a decline upon which the next rally will then feed off.

I see at least a 50% decline from recent peaks across most insurance stocks.
If you haven't sold, it isn't the time to wear yourself ragged in indecision and uncertainty.
Better to protect yourself and join in the game by selling for a possible buyback later.

The red u see in some insurance won't be thr tomorrow max Tuesday based on what I saw on bid/offer table. So I disagree with u.
Let time decide

Joyful365:
Since the previous chairman of Aradel Ladi Jadesimi retired, the stock has been almost on full offer above ₦520. In fact, the total offer is above ₦4.5 billion compared to bid around ₦400 million.

Jadi has two daughters. One is the CEO of LADOL, the other is a socialite abroad.

There's been a significant buying of Aradel shares by employees of Aradel or people connected to them in recent times.

What are the chances that Ladi has put all or majority of his shares on offer to the public, with a plan to distribute the proceeds as he likes when he passes on?

If it isn't Ladi, then who is selling such a huge quantity and why? The company has performed well in the past two years from their financial statements, so is there something inherently wrong with the company that people are not yet seeing?


With such a huge offer compared to bid, how long will it take for price to fall another 10-20% so one can buy in for the long term?

emmanuelewumi megawealth01 KarlTom Streetinvestor2 Locotrader

Please you guys should analyze this issue

This asset will most like touch 300 or slightly less before any real reaction will set it..some people have been waiting since the middle of this year ....your post further buttresses the reason to always follow the money, no emotions.....its all about the money...DYOR
Ref:
https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/9097#135718300

Streetinvestor2:
The red u see in some insurance won't be thr tomorrow max Tuesday based on what I saw on bid/offer table. So I disagree with u.
Let time decide

Time will definitely decide. Hope you didn't get into this stuff late.

Good day locotrader and other gurus in the house. Am new and have been following this thread for some months now. I invested in some banks with little capital. I want to keep investing every month as I make small profits from my business. Lots of people talk of Ja paul, chams ella lakes and the new trend of insurance.

Like I invested in banks to hold for long time and want to diversify. Like buy and sell when I make profit

Streetinvestor2:
The red u see in some insurance won't be thr tomorrow max Tuesday based on what I saw on bid/offer table. So I disagree with u.
Let time decide

But some of them would have lost 50% if they lose another 9/10 tomorrow and Tuesday

thebargainhunte:
An investment of ₦1,000,000 in GTBank shares at a price of ₦37 per share in 2007 would have yielded 27,027 units. After accounting for all subsequent bonus issues, the total holding would stand at approximately 113,613 units today.

Extending the analysis further back to 2004, when the share price was ₦17, the same ₦1,000,000 investment would have secured 58,823 units. With bonuses included, this position would have grown to approximately 3,676,438 units as of today.

Despite the growth in units, the overall performance does not appear particularly impressive when evaluated against alternative investment opportunities.

₦1 million invested in GTCO in 2004 that results in 3.6 million+ units of shares today will be valued at nearly ₦350 million in capital appreciation alone, excluding dividends, at current price of ₦97 ps. I don't know of any other investment more valuable than this unless you gave wrong numbers

Joyful365:
₦1 million invested in GTCO in 2004 that results in 3.6 million+ units of shares today will be valued at nearly ₦350 million in capital appreciation alone, excluding dividends, at current price of ₦97 ps. I don't know of any other investment more valuable than this unless you gave wrong numbers

The calculation is wrong oooo.

Even N1 million invested in 2001 is worth about N135 million. The IPO was sold at N5.10k

While the public offer of 2004 was sold at N10.90k or thereabout..So the stock bought in 2004 can't be worth N350 million

Agbalowomeri:
But some of them would have lost 50% if they lose another 9/10 tomorrow and Tuesday

These folks who bought at highest price before the reversal of price in a no-dividend paying insurance stocks are the real losers(also known as the bag holders)!

EDUECO:
These folks who bought at highest price before the reversal of price in a no-dividend paying insurance stocks are the real losers(also known as the bag holders)!

Experience is the best teacher. Smart people learn from other people's experience, average people will want to have a personal experience

They will learn the hard way, unless they have booked profit.

emmanuelewumi:
Experience is the best teacher. Smart people learn from other people's experience, average people will want to have a personal experience

They will learn the hard way, unless they have booked profit.

Is unfortunate some were waiting to get 500% before selling.