₦airaland Forum

pumping777:
Could anyone access this link? It works for me.

http://us.f13.yahoofs.com/bc/4642fd5emb4d0c819/bc/Shares/PHB+Full+prospectus1.pdf?bfV4qOHBM97eOumb

Thanks for the link and it works for me

wanaj0:
Red Star Express is the company that is listed and not FEDEX. So the revenue/profit of FEDEX does not impact on Red Star Express at all.

I think Red Star is planning for an IPO. No date yet but it was mentioned not too long ago.

I tried finding a connection between  Fedex and Redstar and so far nothing apart from the fact that REdstar said they have a strategic partnership with Fedex(i'm assuming this on the operational and logistics level and not on the ownership/capital structure)

Redstar is a wholly owned nigerian company as it says on their website so not sure why the article pumping777 posted is linking Fedex to Redstar. So the long and short of it is that whatever Fedex does will not affect Redstar's bottomline.

[quote author=Rob-roy link=topic=31554.msg1678711#msg1678711 date=1195012986]and based on the offer details is it a strong buy or not? Bearing in mind that the PE will shrink in 09 and beyond, and the xtra mouths to feed from the offer?[/quote]The offfer will be made public on Nov 19 and the prospectus will be made available then so we can start doing the number crunching if you are interested

aquita:
I wish to thank pumping777,wanajO and easimoni for their contribution on Redstar Express. Kindly inform nairalanders as soon as you have any gist on their IPO. More grease to your elbow.

They are not doing an IPO per se they did a private placement so they could satisfy the requirements for listing on the NSE. Once they are listed it means they are now a PLC (public liability company) meaning they are subject to the rules and regulations of the NSE and the SEC and therefore are compelled by law to make public their financial results within a given period of time. Also when they are listed it means you and i can buy and sell shares in the company on the NSE through stockbrokers.

Until it is listed on the NSE they are a private company and those that bought into PP(the lucky ones ) can do what they like within reason

Sometime in the future they may want to float an IPO(open to everyone) or rights issue(open only to existing shareholders) or both  if they feel they need to raise more capital in which case you will be able to apply to be a shareholder even if you have never heard of the company before

The purpose of the PP(its not PO or IPO because the NSE will not be directly involved in supervising the subscription and they don't need NSE approval) was to increase their share capital(capital raised by selling equity or shares in the company) and also in order to satisfy requirements for listing(25% of the company must be owned by members of the investing public) that is why Dangote has offered 25% of  his holding in Dangote Flour Mills(owned by him thru Dangote Industries Ltd and he happens to be the largest share holder) to qualify for listing on the NSE and also 25% of his holdings in Dangote Sugar(guess who the the controlling shareholder is? ) and he owns the remaining 75% so if Dangote sugar declares a dividend of  N10B today he will be paid N7.5B and the rest goes to the other shareholders(including you and me if you own the stock that is) not bad for the man at all so it is in his own interest to declare dividends(subject to profit) so he gets paid that way and we are also happy because we are getting something back for our investment and that does not hurt the share price one bit infact that's why the share price is where it is today! so a win-win situation i would say

pumping777:
This is what I think will work but I am not quite sure.

The new broker should open a new CSCS number but retain the same CHN number used by the old broker. So your new CSCS number is now linked to your existing CHN number.

In this case, your friend can use the same CHN number on the PO form but with the name of the new broker.

If the new broker opens a new CHN number instead, then then the new CSCS number will linked to the old CHN and your friend will need the old broker to execute orders on the stocks when listed.

The CHN is the clearing house number assigned to every stockbroker registered as dealing or non-dealing member of the NSE by CSCS so it is unique for every stockbroker this is what the CSCS uses to identify the stockbroker

So your friend should use the CHN of the new stockbroker and the name on the form and whenever the new stockbroker gets the CSCS number that will be your personal stock account identification number to the CSCS and if you fill in this number (assuming you get it before the offer closes) on your PO/IPO form then the company doing the PO/IPO through the registrar to the offer will credit your purchase (if successful) to CSCS or in the case of Oceanic do an e-allotment(credit your CSCS online automatically) and if you have have an online account with CSCS(cost N2500 and link doesnt work most times) you can see what your broker has purchased or sold on your behalf or in the case of PO/IPO if e-allotment was done

In effect your new CSCS number should be linked to your new broker's CHN(this is what identifies the stock broker to the CSCS)The CSCS is responsible for clearing (settling) i.e transfer stock to the new owner and ensure the buyer pays for the stock purchased on the NSE that is why its called a clearing house

Since it is virtually impossible to transfer accounts between the conventional wisdom is to stop putting money into your old stockbroking account and systematically liquidate all your holding(dont do this at a loss though)by issuing a SELL and not a BUY order and that way you will be shot of your old broker and then make sure you close the account so your old account is not used for something else!

pumping777:
Can anyone confirm the outstanding shares of C&I Leasing. I have 600M. Thanks.

They did a PO sometime June 2006 and 1.4B shares were listed so add that to what you have. It's one of the stocks on my to-buy list for 08

EMMAACHILE:
I heard Wema Bank shares may go on Technical Suspension on Wednesday tomorrow and Guys please sell because it will not pay you to be in the market where it is suspended. Foward PE will not be as juicy as you think because of the short-term dilusuion of the shares.
Thank you.

WEMA bank Year End is March 2008 so the full-year results should not factor in the shares that would be listed or the cash they expect from the PO.  On current form they are up there without bothering with the impending PO. They most likely would not have finished the allotment from the PO before they release the results for the full-year(confirm this from the prospectus whenever it is out)

When they go on TS it would be several weeks before the PO actually sees the light of day so i wouldnt bother myself  with something that has not yet actually happened the conventional wisdom is if you still have WEMA by the time they go on TS just position yourself to sell in order to take advantage of the post TS rally since you dont need to wait for the cert before selling and may be hedge a small proportion of your shares to lock in profit for post suspension bull run

You can start worrying about the the PO and the shares that would be listed  after the financial year and hopefully a lot of  us would be shot of WEMA by then(Adios WEMA)

easimoni:
Dunlop, I can't fully speak to. But here goes; they had a PO last year and promised to use the proceeds to pay off debts related to the construction of a new factory. The factory is now complete and the losses they've been incurring will come to an end. Dunlop will see a sudden turn-around in fourtune but I think it's too soon to jump on the train. The losses (so far) were bigger than expected and the PO was oversubscribed (more mouths shares to feed). They will be hard-pressed to deliver 10k per share this year (min I think is required to justify the current price) but will be positioned to deliver 25-30K in 2008. It hink the best time to position is sometime in 2008; try to time it before the good results start to come out. If you have patience, by all means join now.

Ikeja hotels; this is simply a short-term play. The forward PE is v low (11)  and the PO buyers are selling in multitudes. The free-fall must stop soon and the market will adjust it to it's fair value (methinks N6.50- 7). Not a long-term play for me (low growth. I plan to sell within 6 months (or whenever is reaches fair value)

On Dunlop as i mentioned on the sister thread they have now turned the corner they declared a half-year PBT of N83M and their biggest investment which is the new plant is now on stream(they invested N8B) and don't forget they incurred a lot of debts on this project which forced them to pay about N600M alone in interest charges now they have negotiated a favourable interest repayment and now they have the the cash from the PO and that will greatly improve their liquidity position going forward.

These all the hall marks of a company that is turning the corner and that is why i think  there's  a lot of upside to its bottomline and that is what we are investing in

aktopgun:
yeah, heard the gist about the new plant etc but shouldn't they be seen to be returning to some sort of profitability first before we jump in (assuming one does jump in)?

they've been dismal in the last 3 years and reported losses up till 2005. but i'm still sceptical though on the back of 2-3yrs straight of losses

definitely one to watch i guess

will probably wait for FY results

roughcut, any gist on ikejahotels then?

easimoni, what say u?

That was before the PO/rights isssue Dunlop did in May this year and they have been able to inject N8B into the truck radial tyre plant which has now come on stream and they have been able to negotiate a favourable rate of interest on their loan and with the receipt of the capital market proceeds they are now set for a turn-around they made a half-year pre-tax profit of N83M

aktopgun:
@ roughcut

i've heard so much about this P.O i'm beginning to wonder if its not a red herring u know

the rumors sure are helping the share price though.

Any reason i should be looking at ikeja hotels and dunlop roughcut, any news/gist

what say u?

You know you may be right  i have heard last week and now its this week but i don't think they want to come out with PO when Zenith and the big boys are playing so not sure what's happening there
As per the second question easimoni is the best person to ask but i understand that Dunlop have just finished their brand new radial tyre plant and have just come out of some sort of restructuring so that's kind of generating some interest

I think  the fascination with WEMA will end when they do their PO and  hopefully the max 5% post TS rally for a few days or weeks and the price can settle down somewhere respectable then  we can start looking in other directions

aktopgun:
@ roughcut
yeah i saw their results and they were disappointing
i'm not buying them yet but theyt are one to watch
they've been good the last 5yrs or and can be forgiven for a bad quarter.
the worry is if the trend continues into full year results

my bubble remains intact or have i misunderstood, were u talking about wema?

There's no bursting WEMA bubble i meant Cutix!

easimoni:
Ol boy, I've issued my buy order and I'm waiting for my broker to confirm the purchase.
As per the Wema success, na God O! I'd never have predicted Wema getting to 18 when I bought in Jan. But it validates both things I always look out for in "home-run" stocks, just coming out of debt (or goodwill/bad loans or losses) and having a very (relatively) low forward PE. In both regards, Wema exceeded my expectations.

That's the first thing on my to-do list for tomorrow_{issue a BUY order to Mr Stockbroker} what more can i say? So ikeja hotels and possibly Dunlop are next on the booty list

yodiyokun:
This WEMA na ilabe!!!, chei,

I should have bought it at N10, anyway God dey??

Roughcut et all -- enjoy your loot.

Jesu loba

easimoni:
They do this when I've taken 75% of my Wema off the table? So much for the TS gist. No way this stock isn't doing 5% daily for the next week. N18 on Monday next week.

Are we still on for the merry-go-round ride on Ikeja hotels?

easimoni:
They do this when I've taken 75% of my Wema off the table? So much for the TS gist. No way this stock isn't doing 5% daily for the next week. N18 on Monday next week.

The only thing that stopped me from selling my WEMA @N8 was because you mentioned that 80% of your portfolio is WEMA_{r u a genius or what?}

Many igbosas to you!

Sorry to burst your bubble but have you seen the 1Q results for Cutix? They are down 33.6% from N42M last year to N28.2M this year so you might want to think about that before diving in!

The forward PE Ratio for WEMA is 11 compare that with the sector average of  26.14 and forward EPS=1.28  only 10 other banks have  forward EPS >1.0.  I don't even want to comment on what the fair value of this stock should be i will give you a hint though: _{divide the sector average PE by WEMA  PE ratio and multiply your answer by the current share price please keep the answer to yourself}

Temmie10:
Wema's result is the bomb!!!
Few months ago, when i was shouting "buy wema!", i was predicting a full year part of 6.4B based on qtr1 result of 1.6B,
Now, their half year result is even more than my projected PAT.
Enjoy your loot, people!!!

60% of my WEMA has gone for > N14_{sell order to Mr Stockbroker} and the rest hedged against the share price rallying to between N18-20 post TS definitely this is a done deal with the results i'm loooking at unless my eyes are deceiving me

hispy99:
Did anyone see WEMA Bank's half year result? PAT is N6.46billion

Share price crossed the magical N14.19 and you can be sure this is the opening price for tomorrow_{dont need BIGBOY LARRY's crystal wotsit called}!

hispy99:
Did anyone see WEMA Bank's half year result? PAT is N6.46billion

They are on target to exceed PAT of N10B! More on this later

osazeet:
Can anyone in here advise me, if Wema bank will be good to buy at this moment?
i will be very happy to hear back from you, please let me also know the reason why yes or no

Not at N13-14 i think your best bet is if the PO comes out at about N8(you have to pray this happens)

The horse has already bolted on this one

pumping777:
N14 Naira is a fair deal to me. I will sell 90% at that price.

I think also that if WEMA releases results in line with the Q-1 results, hitting N18 after lifting TS is almost a done deal.

You are thinking for me that's what i thought!

Panadol:
@RoughCut,

How do you see BagCo? Is it a good buy?

I think we are all agreed its expensive at a forward PE or it trailing PE of 22x but its your call if you still want to go ahead

pumping777:
WEMA is still very resilient, closing strong at N13.52 (~5%) after hitting a low of N12.55.

Now we can assume the thing will hit N14 next week and if it goes on TS then is it a reasonable supposition to assume that the post TS rally will push it to N18?

Dont forget that they will likely release 2 or 3Q results before they finish the allotment next year and then if the TS is lifted i expect a rally if the results are what we expect

pumping777:
Yes, I was happy to see the further drop. I will be meeting you in the boardroom  

Keep a seat for me in the boardroom. By the time i offload my ACCESS and UBN i think i should be able to afford 1% of the 1% of hotel i hope this will not result in a bidding war!

wanaj0:
CBN will not give any of the BIG bank the approval to raise convertible debt that will make them target of a takeover!!!!! It is not a matter of Soludo fooling anyone. His point is simple, let them come and establish in Nigeria. They can come and establish the BIGGEST bank here and compete. But to just come and acquire one of our own BIG banks, that's what he said CBN will not allow.

Hope you know that your Access, FCMB and co are not aprt of the BIG banks

I was actually tempted to add FCMB to my portfolio but the report i read a few days ago regarding the business transaction with CSL did not do it for me i think i will let that one pass

We all know which ones are the  'BIG'(BIG in the naija context) banks in nigeria i think i have been around nuff times to realise ACCESS is not yet ready to play in the premier league as long as its making money for me  i no go complain!

So anything you fit do to push the share price past the N20 mark will be very much appreciated

wanaj0:
That na old news! Foreign investors will not be allowed to take over our 'BIG' banks. However they can come and establish there own BIG bank in Nigeria. Equity is not the only way of raising capital. You can use debt to also raise capital.

Soludo will put a cap so as to prevent a take over. If they need money, banks can use debt to raise the needed capital.

Soludo is not being realistic between you and me we know that more than 90% of the debt instruments these 'BIG' banks have so far used in raising capital are from offshore sources. Give me one 'BIG' bank(may be excluding First bank and UBN) that does not have a substantial amount of debt stock on their balance sheet and the funny thing most of the debt and debenture stocks are convertible instruments which means at maturity the holders of these instruments can elect to convert to preference or ordinary shares

So who is Soludo fooling?

wanaj0:
well when you get, you go allocate am to me OOOO.

BTW, if I am the architect of my life who is the builder??

Can you believe this Soludo guy? i have just read a report where he was quoted as saying that CBN will not allow any more foreign take-over of domestic banks and that there would a cap on the equity stakes by foreign investors in nigerian banks.

My question is how are the banks supposed to compete on the global stage if willing investors are limited in what they can invest in these banks ? the truth of the matter is there is a limit to which these banks can continue to raise funds from the local capital market (no wonder Zenith has approached the market 3 times in the last 4 years)

Foreign take-over, yes may be that needs to be disallowed at least for now but putting a cap on the amount of capital offshore investors can invest is non-starter for me.

I hope this guy has not overstayed his welcome!!
na wa o

MyPeace:
Roughcut, l don't have that share, as u may believe.

Just remember us when everything dey rosy

wanaj0:
Don't know whether you should keep Access. But do your calculation and you will see that Access has delivered superior shareholder returns. That is a fact. You are angry with the reconstruction that reduces your number of units but it increased your VALUE which is the important thing!

Never got Trans Express. My Peace to no get. She don tire for my harrassment also. Na small remain make she report me give her usband. So make we just forget about am dey look at something else. No be all meat man must chop!

wetin man go do now? make we begin look at other things then

wanaj0:
First Bank will always be a core holding for me.

Never liked Access Bank but since the take over by AIG and co, they've DELIVERED to shareholders. If you remove sentiments and calculate your return, you will be surprised that it is one of the BEST performing stocks in your portfolio.

Same way I don't like Union Bank (at least ot again), but they sure deliver superior shareholder return. Even better than First Bank. So cut Access some slack!!!!

May be i will keep my ACCESS then.

To matters in hand what say thou about Transnationwide express? have you made any headway i don dey beg Mypeace now she no gree answer me again