₦airaland Forum

yodiyokun:
@all,
anyone know the last time WAPCO or Flour mills declared a bonus? and what the ratio was?

Any inclination as to whether they will declare a bonus this year end?

WAPCO paid N1 dividend paid for their last financial year 2006 around middle of this year but I don't think there was a bonus.

Flour Mills also declared a dividend of 90 Kobo around September this year and I think no bonus either.

If the stock prices don't rise well beyond the highs for this year which is over 80 Naira for each stock, then I won't expect any bonus.

Costain on TS today @ N18.89. I hear PO is @ N13 and rights issue @N11. Looks attractive looking at the fundamentals but will wait for the prospectus.

Costain on TS today @ N18.89. I hear PO is @ N13 and rights issue @N11. Looks attractive looking at the fundamentals but will wait for the prospectus.

Rob-roy:
Pumping777
Abeg rescue me here o! It appears that NO ONE on nairaland bought into the SKYE REIT offer ( NO ONE!!) Ive been begging and pleading to members to tell me why the shares havent been listed on the NSE after all these months, and even though a subsidiary of Cashcraft ( African Select) says it was slated for trading on the 22nd of Oct. maybe you can help?? .
Thanks abeg.

Sorry, no idea about this one,

I thought SKYE REIT was around July this year, I don't think there is cause for alarm yet,

Another one bites the dust!!

EVANS MEDICAL PLC
UNAUDITED Q-2 RESULTS FOR THE PERIOD ENDED JUNE 30, 2007
PERIOD 2007 2006 ABSOLUTE CHANGE %CHANGE
TURNOVER (N'b) 1.74 1.59 0.14 9.0%
PBT (N'm) 71.30 216.61 -145.31 -67.1%
TAXATION (N'm) 22.82 64.98 -42.17 -64.9%
PAT (N'm) 48.46 151.63 -103.17 -68.0%

Net Profit Margin 57.32% 44.47% 12.8%

Higher turnover but PAT dips by 68%.

48.8M PAT from turnover of 1.74B

dollarmani:
pumping777


pumping777, i suspect you have something to do with this people who have done this terrifc job with all the facilities available on their website www.nigeriansecurities.com. The quality of the work reeks with you. The so called improvements you mentioned earlier about formatting number and other issues have been taken care of. Tell us the truth. We will support this initiative because meeeeeeeeeeeeeeen, your contributions to this forum has been invaluable

I no dey there o,

Actually, it was your thread that pointed me to the site yesterday, God bless you jare, but as I was going on one would think I have investments there, I agree sha, but the site just takes care of a big headache I had, It used to take like 30 minutes of my day to update my portfolio daily with price changes , and I end up doing it during work hours, so I don't feel too good about it,

, and thanks for the compliments.

Design Union Developing Limited

--------------------------------------------------------------------------------

I was invited for the private place of this company. Does anyone have any information on their activities? I know they are into construction. They sent me an introductory letter but missed out the brochure which I have requested for. I'm just wondering if anyone on the ground knows much about the company.

"Private placement of 716,666,700 ordinary shares of N 1.00 each at N1.50 per share"

EMMAACHILE:
BGL Securities have not been too good. Don't have online accounts and have even upgraded their minimum investment to 2.5 million naira.
I think you can try IBTC Asset if you have the cash of 10m or Zenith Securities for 5m. Mandates are executed almost perfectly.

Finmal Finance Ltd (100k) /APT Securiities & Funds Ltd (250k) do not have online accounts either but their mandates are executed ontime.

My experience with BGL has been good. My orders are executed same day and I've had online access from day one. I can also access my CSCS account directly from there, just now that the online service is down, my instructions are still being executed, but I don't have the flexibility of verifying this myself ,

Is anyone suffering as I am with BGL They've always been so good, but their server has been down for this entire week so I can't access my account, so inconvenient,

easimoni:
I Concur! I signed up and I really like the layout. V professional (well almost; they need to format the numbers better. Can't read ten digits without commas or spaces) but I hope they improve

I originally taught the formating was dodgy too but after updating the portfolio the commas were added to the numbers. It was a big relief.

(@easimoni - Actually this is what happens when you hold to much quantity of stocks (10 digits, )  )

Another minor glitch is having 2 decimals after the quantity which is not necessary but I can definitely live with this.

The portfolio functionality is awesome and of course it feeds current stock prices for you so you only have to set up each stock one time. It allows you to enter the same stock multiple times in case you bought at different prices. So for the average downers, it does not get better than this. 

I don't know if there will be any limit to stocks listed in a portfolio but I've tried a sample portfolio with 33 stocks and no issues.

It saves me the hassle of maintaining my portfolio manually in excel.

I suspect this site won't be free for long but then it will be worth paying for. The data is so up to date.

dollarmani:
D-DOTS,

check out www.nigeriansecurities.com. They may already have the info u need. They sure have a lot of data available once u subscribe. I use them for monitoring the value of my portfolio and also their graphs and valuation page for determining my fundamentals.

Though they seem conservative as the PE ratios of the companies already factors in the potential shares allottment all the people with recently concluded IPOs or are concluding right now will have at the end of the exercise. I like that.

Thanks. This site is great,

Julius Berger posted 995 Million PAT for Q3. If full year is projected at 1.3B, this is a forward eps of 4.3 and PE of 17.2.

I expect the movement north will be reversed.

*(Breaking down the results, Julius Berger made 300M PAT Q1, 390M PAT Q2 and 305M PAT Q3 to total 995M)

PHB
FCMB


Fidelity

dollarmani:
Kpineao

You don't want to bail out of NASCON prematurely at this time. What i told a freind of mine who got caught up in the hype of NASCON's one day PO is to reduce his exposure per share by buying more at this time since the stock seems to have sstabilized at 14+. He is buying a little more to reduce is exposure per unit share from N22 to N17. That way you are not waiting for N22 to break even . At N20, you can exit with a profit.

My own two cents.

Has the stock really stabilized at 14+? The stock has been falling consistently for a while until today when it gained 5% but this is not enough to establish a trend.  

The hard part is being certain this stock will rise back to N17 in the near future. If not, your friend may end up losing more money.

You need some analysis so support the possible rise of the stock back to N20 as you have suggested. Remember that a stock will not necessarily rise back to a price it attained in the past.

kpineo:
Personally investing in a bank like WEMA, a bank without results for 3 years is just too risky. The might be taken over or something really incredible will happen. Insider info is needed for this one.

It all depends on your risk appetite. Similar sentiments were echoed when AP was in court and nobody touched it.

It's good to preserve money. This should be priority but some may be happy to take the risk this because of the potential yield.

Here sentiments will play a big part not even just the value of WEMA. If WEMA releases even a moderate result today that says the house is in order expect the stock to head north even before enough analysis is done.

That aside, some may even sell now if they see %20 or more and move on, no need being greedy,

In the end, it's all up to you.

JULIUS BERGER NIGERIA PLC
UNAUDITED Q-3 RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2007
PERIOD 2007 2006 ABSOLUTE CHANGE %CHANGE
TURNOVER (N'b) 49.65 38.90 10.75 27.6%
PBT (N'b) 1.45 1.09 0.36 33.0%
TAXATION (N'm) 455.00 381.50 73.50 19.3%
PAT (N'm) 995.00 708.50 286.50 40.4%
* Means Decrease & * Means Increase
Net Profit Margin 2.00% 1.82% 0.2%

*From Meristem Securities*

MyPeace:
Pumping, whats the meaning of this net offer/bid

My bad for the stock grammar. Simply put I wanted to know if the demand for the stock was more than the supply or vice versa in today's session.

If demand greatly outstrips supply it may indicate prices will rise again the following day but this is no guarantee because tomorrow you may have a significantly increase in supply that will make up for the gap due to the higher price.

damoche07:
Still on goodwill,please

Do u just assume any amount as a goodwill value?

Is there no standard for measuring it?

As Wanaj0 pointed out, there is a way of measuring it.

A company cannot just assume a value. It is determined I believe by Accountants using acceptable Accounting standards. Over the years, the goodwill will also have to be re-evaluated to reflect the current situation of the company.

wanaj0:
Made 15% after charges on Wema within 3days!!! Bought on Monday at 8.60. Now price is 10.29.

Pity those who are yet to sell their IBTC. It has started its free fall now.

Wema may officially take over the rank of gamble stock from AP  , Who knows if Wema is on net bid/offer, ?

Like IBTC, AP has also started free fall, and the amount that was sold today was pathetic; 291,630 so I suspect it is on net offer.

netotse:
ummmm can someone please expantiate in this goodwill thing a bit(actually a lot)more have absolutely no idea wot it means,

then someone posted something about the norm for the xmas season being a bear run and the possibility that this xmas may be diff, well i want someone to help me think this through, how will this present round of po's affect the market since people'll be locking the money in and some will prolly use xmas money to subscribe and might have to sell of oda secuirities to get money to spend?

p.s. no one's answered my question about whether u can open an acct at cashcraft with 100k

You can also look at goodwill as the value of attributes of the company that you cannot quantify. For instance, the brand of the company, the existing customer base and prospects and also the human capital managing the business.

This in a way is what is paid for in a franchise. So for instance if you take an example of a franchise like Mr. Biggs, people know there is already a brand and a customer base exists which will increase the value of the company. Someone buying Mr. Biggs today may be expected to factor this in beyond the value of the assets and liabilities on the books.

Ben0524:
To All GURU's

Why is it that its this time of the year that majority of the banks decide to sell their P.O
And why can't they wait for each other at least 6months interval so that we salary earner can partake in their Offering
or is it that they are competig or something, i can't figure out anything for now.

If any bank waits, it will be swallowed up quickly by the bigger ones that would have gathered momentum,

RoughCut:
I have WEMA which i have been holding onto now so the question for me is to sort out how many more units i need to acquire_{i'm talking extra large here}. I feel like i'm taking the biggest gamble since 2004 so i'm a bit jittery just now

A bit like my situation. I have Wema I've been holding. It has always been my gamble stock. Serious gamble when tangible news are not forthcoming but I'm going ahead if I can get more for 8.50. When a stock like Wema starts a sudden movement north I'm curious if some people know what we don't and are taking position. I don't intend to wait to find out though,

Disastrous Results

LIVESTOCK FEEDS PLC

AUDITED ACCOUNTS FOR YEAR ENDED MARCH 31, 2007.

PERIOD                                         2007 2006 ABSOLUTE CHANGE      %CHANGE
TURNOVER (N'm)                  581.76    560.02           21.74           3.9%
PBT (N'm)                           8.84   728.17             -719.33         -98.8%
TAXATION (N'm)                   0.52     20.25              5.95          29.4%
PAT (N'm)                           8.32    748.42         -740.10         -98.9%
EXCEP ITEMS (N'm)               28.66 709.00         -680.34         -96.0%

* Means Decrease & * Means Increase
Net Profit Margin                 1.43%   133.64%            -132.2%


NOTE
The auditors expressed some opinoin and stated some post balance sheet facts on the
"going concern" status of livestock feeds plc.

-----------------------
Decrease of 98.9% PAT Year on Year.

What exceptional items is this company making adjustments for? The adjustment of 709 Million from the previous fiscal year when the PAT was 748.42 is almost as high as the PAT.  The company's PAT in 2006 was higher than the turnover!!! It will be interesting to see the corresponding balance sheet of this company.

Interesting. I love this chap's courage and he should be encouraged,

shigidi:
pumping777, i can see the nice work youve been doing here. keep it up.
however, i must correct u om bank phb, the po will be a DFEINITE YES. itsgonna be offered at 17 naira which is a trailing pe of 17.7, thats the lowest pe you can get now in this sector. its projected PAT is going to be above 15 billion. this offer should be more fundamentally sound than the fcmb offer, but i want to seewhat their plans for the money raised will be. yet again, nice one

Thanks for sharing your analysis. Makes a lot of sense. I like to leave the PO analysis until the prospectus is out but you have stimulated my interest, .

Also I wonder if new subscribers will partake of the booty for year end 2007/2008 in case of bonus issues. I have a phobia for dilution. I know any potential bonus issue is 1 year away but who knows what the prospectus will say?

This brings me to a question on a possible anomaly.

Is it possible to have newly listed shares on the floor not entitled to future bonus and dividends while others stocks from the same company also on the floor are entitled, ? To be clear, is it possible for new shares from a PO not entitled to dividend or bonus to be listed on the floor before the register has been closed for bonus or dividends declaration for shares bought outside the PO?

Maybe I'm missing something,

bibiking1:
@PUMPIMG 777

you doing a great job brother.
whatcha think 'bout acen insurance? that company bothers me both medium trm and long term wise

I've not heard anything about Acen since their PO this year so I don't know what's up with this company. I have no projection for them. I'd also be worried if I had the stock,

tonyjon:
HI PUMPIMG 777,

I have a question for you.
If you have some money to spend on stocks, will you buy shares from the following banks

FIDELITY BANK PLC
FCMB PLC
BANK PHB
AFRIBANK PLC
SKYE BANK PLC
FIRST INLAND BANK PLC
WEMA BANK PLC
IBTC PLC.

tonyjon.

This is my answer based on current prices and other opportunites I think exists in the market today bearing in mind that ultimately my funds are limited. I have stocks from some companies below I say I won't buy today but I bought them cheaper than todays prices.

FIDELITY BANK PLC - No
FCMB PLC  Yes, PO             
BANK PHB   No, Maybe PO after seeing the prospectus
AFRIBANK PLC - No, Maybe PO after seeing the prospectus
SKYE BANK PLC -  No
FIRST INLAND BANK PLC - No
WEMA BANK PLC - Yes, it is my gamble stock. It could be another AP
IBTC PLC. - No

X-2-X:
@ all

Kindly enlighten me about the difference between EPS (basic) and
EPS (adjusted) as seen on profit and loss accounts of some
companies.

Which is the correct to use for fundamentals analysis? Adjusted?

Sometimes companies have to use part of profit for exceptional items or one-off payment that will not normally occur in the normal course of business in a fiscal year.This will reduce the declared profit and will not reflect the actual performance of the company. The adjusted ratio is used to present a better picture of how the company is doing.

Adjustments can also be made for shares. For instance shares that are due to be listed in future.

The adjusted figures should be used for trend analysis as it is more indicative of what to expect in normal operating conditions and the potential growth of the company.

However, if you are only interested in the current value of the company, then the basic figures make more sense.

baba .y.:
This question goes out to the gurus well versed in financial analysis,

AUDITORS REPORT OF BANK PHB'S ACCOUNTS
The bank obtained the approval of shareholders at an extraordinary general meeting held on 8 December 2005 and the sanction of the court on 22 December 2005 to reduce share premium that arose from the allotment of PlatinumBank shares to Habib Bank shareholders by creating a special reserve to be used in writing off the goodwill that arose upon the merger of Platinum Bank and Habib Bank. Accordingly, the goodwill of N5.96 billion was set off against the special reserve account; rather than being amortised over a period of not more than five (5), years in accordance with Section 21(2) of Schedule 2 of the Companies and Allied Matters Act 1990. Had the bank amortised the goodwill over the maximum period of five (5) years, the profit before tax of N10.159 billion would have been reduced by N1.192 billion and goodwill and reserves balances would each have been increased by N4.174billion.

My question is this?
1. what does this mean
2. Does this have any +ve or -ve impact on the company as a whole, in the long or short term.
3 If it does have any impact how will it influence its share price in the long, medium and short term.
4. Finally, do the laws actually allow fo this? because i find it very hard to understand that simply restructuring your accounts can translate to so much profit.

I am no financial guru but I like to task what is left of my brain. I will have to proceed with layman language so bear with me,

1. It means the company used its reserves to write off the goodwill on it's books at once rather than write it off over at least 5 years with future earnings. This reserves would have been accumulated from earnings over the years.

2. If you look at it in a simple way the net effect of either using reserves or future earnings is the same on the whole for the company. If you go more complex (or u be accountant or banker), it is better on the books to write off the goodwill over time because money depreciates over time. So if they write off some of the goodwill in future, compared to today, the real value lost will be less. Remember this is all about the value of the company on the books. Nothing is paid out in cash or otherwise.

3. This is the real deal. The reason for taking this decision I believe is to protect the price of the shares and the perceived value of the company. If the bank makes deductions from profit, the bottom line will indicate they are not doing so well when they declare profits at the end of the year. Most people will not be looking to see that goodwill is eating into the profit. The more influential fundamentals of the company like basic PE ratio e.g., will be impacted negatively because there is no provision for loss due to goodwill (adjusted PE ratio should take care of this though) and this will drive down the share price. This is because unless you are an accountant it is likely the profit and loss account will always win against the balance sheet  . So with the way they have decided to go by using the reserves, the share price should not be impacted because the net effect of either action is the same and this is in a way transparent to the ordinary investor. However, if the other alternative of amortizing against profit was chosen this would have had a negative impact on price because the bank will be declaring less profit and investors will be looking elsewhere.

4. Based on the Accounting standards used in Nigeria at least, I understand this is allowed. I'm thinking Access did something similar. This restructuring of accounts did not generate any profit. The bank just decided not to write off goodwill accumulated in the past from the profit it had generated legitimately today. I do feel for the banks or companies a little. The Goodwill of these banks was accumulated over previous trading years and investors at that time benefited. Why should future earnings of the companies be used to pay it off? Why not the previous earnings from previous business activity that generated this goodwill?

slaykay07:
Guys,
Are you guys now saying we shouldn't buy japaul oil anymore because we know they'll issue bonus shares to compensate shareholders for the discount given to new investors.?

What i can sense from people contributions is moving towards FCMB(April 2008 dividend) than Japaul and secondly we'll all been more sceptical about Crusader(expect frankriri) because of their merger.

Interesting turn around,

Temmie10, frankriri, wajana and co, please correct my interpretation if i'm wrong

Regarding FCMB I think one can expect only dividends but no bonus because of the new shares that will be listed from this PO. So the fact that you will get something from the year end in April 2008 may not be such a big deal.

I don't have any facts to back this but this is my own analysis of the Japaul offer

- Rights issue of N3.50 compared to a market price of N6.02 means discount of over 40%. End of year is Dec 31st and new shares don't qualify for bonus or dividend. Very likely the stock will be diluted by bonus shares to existing shareholders. I thought of CCNN but then I recall that CCNN had only rights issue. In the case of Japaul there is also an offer for subscription at N3.95 which is over 33% discount.

- Despite this perceived discount this stock is on net bid on the floor. It appears existing shareholders are not thinking of taking advantage of this "discount" by using the funds from here to subscribe to the rights issue. To qualify for rights issue you need to be on the books on 6 July so nothings stops these shareholders from selling but they are not. Maybe shareholders are expecting bonus shares and other goodies  . Maybe. Somehow this reminds me very much of First Bank. Despite the discount from the PO you could only buy  First Bank on the floor if you pay a "premium". Those that did and off loaded at the right time never regretted it  .

* I always make an assumption on the NSE. For every stock, there are individuals with large holdings that have privileged information due to their position and will not hesitate to use it for profit. I wonder why AP crossed my mind, 

To summarize, I believe if one chooses to buy Japaul, the discount should not be the main focus for one's analysis. Analysis should also be based on the potential of the company and the fundamentals and the conviction that one still gets good value even with dilution.

wanaj0:
An offer that is 80% underwritten is not likely to have a problem. The underwritters are expected to cough out 80% of the offer if the 'public' refuse not to subscribe to it. That way, the underwritters will ahve to do a lot of marketting or else they will be left with 'bad shares'. Just ask IBTC. They are 'forced' to own Presco and First Aluminium shares just because of this.

What I mean is that Bank PBH should be able to secure underwriters ready to cover this amount,