swilo:
My eyes were just opened to some ratios. It is amazing the way a newbie can be easily deceived.

Assignment for all newbies:

Go an do the basic maths of calculating how much profit each company on NSE makes from a revenue of 1 billion.

You will quickly see why some companies are preferred over others, you will know why some kobokobo banks are actually more expensive in the long run.

Those are EFFICIENCY ratios. Nothing to do with how expensive the company is. Different ratios for different things.

fxuser:
Sterln bank
- (putting the yeye MM volume behaviour aside)
- SP breaking into month 4 high
- monthly macd above zero line
- monthly RSI holding above 50
- SP breaking back above 50dma & 200dma
- even d 50 dma is curving back to break above d 200dma
- weekly MACD breaking above the sig line
- BB squeeze with price breaking above the mid line
- daily macd rising above the zero line join ehn ehn . .
and be be lo


#JustObserving

MM wey no get shame.

wanaj0:


Those are EFFICIENCY ratios. Nothing to do with how expensive the company is. Different ratios for different things.

Thanks a lot but there was a good correlation and differentiation. The part that got me thinking is when I divide the profit by the number of outstanding shares. It messed up the maths.

swilo:
A question please, what does it mean when we say:

PROFIT FOR THE PERIOD is 11,843 and TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX is 8,514 when tax has been deducted previously.


Secondly, wouldn't it be right to factor in the reclassified losses when calculating the true EPS?

Is there a separate account where these reclassified losses are channeled to (eg the retained earnings)?

#refer to Fidelity H1 result.

wanaj0 pls help me answer this.

wanaj0:


Defend? Really

I only explained to currentprice the 'abracadabra' that made their retained earnings to move 'suddenly' from positive to negative.

Wema does not meet my investment criteria and it is a PERSONAL thing. Same way NOSPETCO and co never entered my consideration. I don't comment on the possibility or otherwise of people making money!

Life is all about choices. We don't all have to make the same choices. And note, any choice you make, you are RIGHT.

On the bolded, am SURE u actually meant to type from negative to POSITIVE.
...'cause that's currently the TRUE picture of WEMAs RETAINED EARNINGS.

That said, I agree with u that investment decisions should be a matter of choice. ...and those choices should be hinged on one's PERSONALITY, STRATEGY and INVESTMENT HORIZON.

Like I said before, the criteria for choosing WEMA was based on the coys INHERENT GROWTH. ...That bank is a GREAT growth coy.
Let me point out this very important factor;
With finding GREAT BARGAINS in the stock market, there are 2 core areas to focus on;
1) Look out for the GROWTH BEHIND THE VALUE !!
This is where coys like WEMA, MAY&BAKER, INTERNATIONAL BREWERIES and SEPLAT currently fall in.
...and where companies like BETA GLASS, CUSTODIAN, UNILEVER and a few others had their roots. I recall that this was how I spotted the growth potential of BETA GLASS when it was still selling for FAR LOWER than its current market price.
That's GROWTH investing approach.

2) Look out for the VALUE BEHIND THE PRICE !!
This is where coys like CAVERTON, UPL, UNIONDAC, AIICO, NEWREST ASL, UBA, ZENITH, and JB currently fall in.
...and where a company like FIDSON HEALTHCARE and C&I LEASING had their roots. Folks can remember how FIDSON rose from just above N1 to more than N6, returning over an incredible 500% gain !!
This is VALUE investing approach.

Both APPROACH can make one some very good ROI.
When u can spot a 'gap' wide enough to make for a great margin on either the GROWTH or VALUE potential in a coy, RUN IN and ask questions later !!
...this is KEY, and an almost certain route to EXCELLENCE in the market !!

Regards.

swilo:
Thanks a lot but there was a good correlation and differentiation. The part that got me thinking is when I divide the profit by the number of outstanding shares. It messed up the maths.

How? That should be your Earnings Per Share

Guys remember the discussion on First Aluminum not to long ago. This article will be of interest to those contemplating buying that stock.

https://nairametrics.com/first-aluminium-delisting/

...GOD IS NO LONGER IN NEED OF BURNT SACRIFICES TO APPEASE HIM, AS WERE DONE IN OLD
TESTAMENT. HOWEVER, HERE ARE 3 MAJOR SACRIFICES THAT GOD NEEDS FROM US IN NEW TESTAMENT.

https://www.nairaland.com/3560501/holineness-righteousness-revival-daily-messages/17#71564308

wanaj0:


How? That should be your Earnings Per Share

I wonder oh. I have been reading the guys comments and watching him go round and round only to arrive at the same place. Assuming fidelity took 3months doctor their result, he wants to now catch them and unravel it in less than 24hrs without any knowledge of accounting/auditing.

...the floor is for FA guys. I'm enjoying every bits of it! Kudos all

BullBearMkt:
...the floor is for FA guys. I'm enjoying every bits of it! Kudos all

Good morning my Oga. In Peterichy's voice how are your made in China candles

Infinitisi:
Guys remember the discussion on First Aluminum not to long ago. This article will be of interest to those contemplating buying that stock.

https://nairametrics.com/first-aluminium-delisting/

I think that makes it a good buy. For this reason:
"For retail investors, the situation could most likely lead to a mandatory tender offer (MTO). Under NSE rules, the tender offer would be at the highest price in the last six months before the MTO was announced. This would most likely be in the region of N0.55 per share."
Culled from the quoted site.

Pls will the market open today? Or are they also on strike?

In as much as I will want to agree that the books are looking right for Wema. The events in the background suggest the opposite. The tier 2 banks as currently constituted carry too many baggages and are potential landmine to investors. Although, I am currently in it and ready to see it for at least the next 6 months. In the banking sector, the tier 1 banks with the exception of First Bank holdings represent the best option to would be investors. Speculators, however, could choose to go with the tier 2 banks. The risks are higher here.

But many companies do use the share premium to adjust against the negative retained earnings to allow them to pay dividend in the future. That is one of the uses of share premium account. I do not think it is any abracadabra. But there are too many good stocks way above Wema. It is the choice of any investor to buy any stock that he/she sees an opportunity to make it in the market. It is good that the alarm bells are ringing sha.

wanaj0:


Defend? Really

I only explained to currentprice the 'abracadabra' that made their retained earnings to move 'suddenly' from positive to negative.

Wema does not meet my investment criteria and it is a PERSONAL thing. Same way NOSPETCO and co never entered my consideration. I don't comment on the possibility or otherwise of people making money!

Life is all about choices. We don't all have to make the same choices. And note, any choice you make, you are RIGHT.

Mpeace:
I think that makes it a good buy. For this reason:
"For retail investors, the situation could most likely lead to a mandatory tender offer (MTO). Under NSE rules, the tender offer would be at the highest price in the last six months before the MTO was announced. This would most likely be in the region of N0.55 per share."
Culled from the quoted site.

What is the likelihood they will go the MTO route?

Mpeace:
I think that makes it a good buy. For this reason:
"For retail investors, the situation could most likely lead to a mandatory tender offer (MTO). Under NSE rules, the tender offer would be at the highest price in the last six months before the MTO was announced. This would most likely be in the region of N0.55 per share."
Culled from the quoted site.

No wonder, someone wanted us to help push the price to between N70K - N1.00.
The real problem is that you may enter and get locked with this issue lingering for several moons, meanwhile, fundamentally sound stocks may have returned nearly 100% with dividend while you stay locked to get the 37.5% gain from 40k to 55k...
Even rats dig their homes with emergency exits in place.
This is not the kind of trap that catches me.
Even the management is forced to admit that they have fallen into a very big hole and are still asking to be provided with additional modern digging tools.
The only real protection for the retail investors (a listed firm) is about to be removed. After that, their voices shall be heard no more...

Infinitisi:


What is the likelihood they will go the MTO route?

Very slim...

rebekah2011:
But many companies do use the share premium to adjust against the negative retained earnings to allow them to pay dividend in the future. That is one of the uses of share premium account. I do not think it is any abracadabra. But there are too many good stocks way above Wema. It is the choice of any investor to buy any stock that he/she sees an opportunity to make it in the market. It is good that the alarm bells are ringing sha.

Transcorp comes to mind.

For those buying First Aluminum

https://nairametrics.com/first-aluminium-delisting/

DeRuggedProf:


No wonder, someone wanted us to help push the price to between N70K - N1.00.
The real problem is that you may enter and get locked with this issue lingering for several moons, meanwhile, fundamentally sound stocks may have returned nearly 100% with dividend while you stay locked to get the 37.5% gain from 40k to 55k...
Even rats dig their homes with emergency exits in place.
This is not the kind of trap that catches me.
Even the management is forced to admit that they have fallen into a very big hole and are still asking to be provided with additional modern digging tools.
The only real protection for the retail investors (a listed firm) is about to be removed. After that, their voices shall be heard no more...

very said indeed.Nigeria situation,somebody is about to be raped.

wanaj0:


AND why do you think the biggest investors are not offloading? Why are those BIG investors not in Wema, Japaul, Skye and co?

They are not offloading, because Stanbic IBTC Holdings and all the subsidiaries are highly profitable, Stanbic Africa Holdings Limited(SAHL) have majority shareholding 50.75% in StanbicIBTC.

Wema, Japaul, Skye and co. are not in that league.

Good morning.

We begin our pre-market coverage of the Nigerian Stock Exchange (NSE).

Pre market runs from 9.30 to 10am daily on the NSE.

During this period, investors can place orders, but no trade occurs.

Figures will take the format Bid(k) vs Offer(k).

Bid represents the amount of stocks people want to buy.

Offer the number of stocks, people wish to sell.

K represents thousands.

Net bid means there are no offers for a stock.

Net offer means there are no buyers for a stock as at pre market.

Bid vs Offer figures are subject to change all through the day.

Access Bank 3k bid vs 13k offered

Dangote Cement 500 units bid vs 1600 units offered

FBNH 1.4 million bid vs 50k offered

Seplat 150 units bid vs 851 units offered

UBA Plc 379k bid vs 200k offered

Wapco 100 units bid vs 18k offered

Zenith Bank 2k bid vs 61k offered

Dangote Flour 68 units bid vs 13k offered

Dangote Sugar 5k bid vs 35k offered

Guaranty Trust Bank 2 units bid vs 1k offered

Guinness 1k bid vs 1k offered

International Breweries 5k net offer

Nigerian Breweries 7k bid vs 4k offered

PZ Cussons Nigeria 20k bid vs 1k offered

Unilever Nigeria 1k bid vs 1k offered

This Nairametrics post is brought to you by I-Invest. Invest in treasury bills in 5 minutes by

Visiting http:///i-invest_ng Today
Download the app via your Playstore or Apple Stor

onegentleguy:


On the bolded, am SURE u actually meant to type from negative to POSITIVE.
...'cause that's currently the TRUE picture of WEMAs RETAINED EARNINGS.

That said, I agree with u that investment decisions should be a matter of choice. ...and those choice should be hinged on one's PERSONALITY, STRATEGY and INVESTMENT HORIZON.

Thanks. It was meant to be from NEGATIVE to POSITIVE

If only people understand the item in RED

PRE-MARKET COVERAGE OF THE NIGERIAN STOCK EXCHANGE (NSE) ON 27 SEPT 2018:

Pre market runs from 9.30 to 10am daily on the NSE. During this period, investors can place orders but no trade occurs. Figures will take the format Bid(k) vs Offer(k). Bid represents the amount of stocks people want to buy.

Offer is the number of stocks people wish to sell. K represents thousands. Net bid means there are no offers for a stock. Net offer means there are no buyers for a stock as at pre market. Bid vs Offer figures are subject to change all through the day.

--Access Bank 3k bid vs 13k offered
--Dangote Cement 500 units bid vs 1600 units offered
--FBNH 1.4 million bid vs 50k offered
--Seplat 150 units bid vs 851 units offered
--UBA Plc 379k bid vs 200k offered
--Wapco 100 units bid vs 18k offered
--Zenith Bank 2k bid vs 61k offered
--Dangote Flour 68 units bid vs 13k offered
--Dangote Sugar 5k bid vs 35k offered
--Guaranty Trust Bank 2 units bid vs 1k offered
--Guinness 1k bid vs 1k offered
--International Breweries 5k net offer
--Nigerian Breweries 7k bid vs 4k offered
--PZ Cussons Nigeria 20k bid vs 1k offered
--Unilever Nigeria 1k bid vs 1k offered

SOURCE: Nairametrics.

Please is trading on strike too?

Krisuba:
Please is trading on strike too?

NO!

Infinitisi:
Good morning. We begin our pre-market coverage of the Nigerian Stock Exchange (NSE).

Are you also prof2007 ?

Wema cannot be in the league of Skye, Japaul, Oando and other loss making companies now. Wema is profitable.

OBAGADAFFI:


They are not offloading, because Stanbic IBTC Holdings and all the subsidiaries are highly profitable, Stanbic Africa Holdings Limited(SAHL) have majority shareholding 50.75% in StanbicIBTC.

Wema, Japaul, Skye and co. are not in that league.

wanaj0:
How many months delay compared to SKYE?
There are many reasons why audited results can be delayed. It is not only because the result is BAD. Auditors give priorities to companies based on audit fees and the controls you have in place.
If Fidelity full year result is LATE then something definitely is wrong with their systems/controls which is a RED flag.

Okay Sir. As it is now, it was just quarterly report that was late, so no cause for alarm
.......... hope I got the answer right sir. I cannot come and go and make mistake with fidelity again jare.