₦airaland Forum

[quote author=jero_dawiz link=topic=74997.msg1433235#msg1433235 date=1188134706]Can anyone help a brother out?, I need to open a swiss account. What are the requirements if anybody knows. Minimum balance, how much (in dollars) is required in opening one and so on. What are the advantages and disadvantages. Please anyone with concrete and genuine information about opening a Swiss account should please contact me on 08077909951 or jero_dawizard@yahoo.com
thanks.[/quote]Yaa what do u need the account for if you dont mind my asking I am actually resident in switzerland but i`m not sure exactly how that`s going to work out for you if you are not in switzerland. I can assure you its going to be a lot harder in your particular instance except you show proof of business connections in switzerland. Either you are in export/import business and allied businesses where you have swiss suppliers who can either be paid in swiss currency and that would make sense for you to transfer funds to the account or transactions conducted in switzerland but baring that i`m not exactly sure what you can do

Naijadr:
stevie and co, wait isnt it being sold for N14.90 a share

anyway people, from this here
http://odili.net/news/source/2007/aug/23/301.html

it appears zenith is going to be having another PO soon

so much to comment about this move, but for now make I go sleep small

Yaa its being sold for 14.90 if you buy into the PO then you will have to wait 6 months to get your cert before you can do anything with it and in the meanwhile you have to hope and pray and cross your fingers that the share price after all the `aggro` will be worth it.

Zenith Bank is increasing its authorised share capital from N5B to N7.5B and additional 5B shares will be listed to support the increase in authorised share capital . This is a bank that has seen its shares nose-dive from the highs of N68 to about N48 caused by the bearish run on the NSE and the adjustment for dividends and bonuses

The only thing left for me to say is wao!

Read the details here----->http://odili.net/news/source/2007/aug/23/301.html

frankiriri:
Incorrect. People will forget that a bonus was declared and still be comparing the performance of the share to its price pre bonus. Last year First Bank doubled on the news of the declarattion of 1 for 1 bonus.
If not for the bearish trend in the market each of those new shares would have been worth at least N60 for Zenith and N52 for First Bank. But alas the bears rule the marklet for now.
For this very reason it does pay to buy stocks that give bonuses.
As I said elsewhere Naija is the only place where the size of the cake can be increased by cutting it into smaller peices.

I beg to disagree with you brother Frank there is no way a company will increase its stock of outstanding shares and still maintain the PE and EPS ratios hence the mark-down. Like you said  Naija is the only place where the size of the cake can be increased by cutting it into smaller pieces which proves my point that this is trickle-down economics. The mere fact that price increases on bonus and scrip issues is very very artificial, sentimental and irrational and ultimately defies fundamental investment theory and logic but from our collective experience we know this phenomenon does not tend to last long or prove sustainable in the long run. So once again i say this is "voodoo economics" why do u think Warren Buffet has never done a stock split in his investment company Berkshire Hathaway? because he doesnt believe in "voodoo economics" or why do some companies pump millions and billions into buying back their own shares?

I`m not railing against bonus and scrip issues i`m an investor in the stock market so i also get a slice of the cake (excuse the pun) but we need to put this into perspective and see it  for what it is!

Nuff said

easimoni:
That's incorrect. Both companies declared "bonuses" and the prices were adjusted downwards on Friday to account for the "bonus" shares. Since FBN did a 1-for-6, the new price would be (6/7) x the old price. Same goes for Zenith: (5/6) x the old price. See why bonuses don't mean anything and why you shouldn't rush  or ask for a abonus?

Correct my brother. This is that your EPS and P/E will still be the same because by right the shares outstanding would have increased and they need to be seen to maintain  the same  financial ratios before the split.
That is what i call "tricke-down economics" so we are not fooled by "bonuses" and what else

easimoni:
That's incorrect. Both companies declared "bonuses" and the prices were adjusted downwards on Friday to account for the "bonus" shares. Since FBN did a 1-for-6, the new price would be (6/7) x the old price. Same goes for Zenith: (5/6) x the old price. See why bonuses don't mean anything and why you shouldn't rush or ask for a abonus?

Correct my brother. This is that your EPS and P/E will still be the same because by right the shares outstanding would have increased and they need to be seen to maintain the finacial ratios before the split.
That is what i call "tricke-down economics" so we are not fooled by "bonuses" and what else

Transcorp Pays N40 Million a Day on Loans

Looks like Transcorp in deep in it----------------->http://www.proshareng.com/myproshare/portal_news.php?id=2764

Thethy:
Yes,Ostrich farming is a viable project.Am all working on it.

Yeah i have been to your website and i must say i`m impressed. Are you working on a kind of feasibility study or report? if that`s the case how do i get access to the outcome of the research. I`m seriously looking into agro-based business an alternative investment vehicle so i would like to get in touch with you. You have the consultancy skills i think i will find very useful so i will be getting in touch soon

Looks like its not going to be a PO for Dangote Flour.Check the excerpts of an e-mail i got from from proshare.

Quote
Dangote Flour will most likely now be a Private Placement due to the non-agreement of a fair value for the offer between SEC and the company. The PP should take place in the next few weeks

Unquote
So the question is what is a fair value? looks like the authorities is on the guy`s case. If its a private placement am i right in assuming that the guy can float the shares or place the shares at a price he deems fit?

swiftycool:
@ md_dude


AT last!
One sensible post from someone who understands the topic, well apart from stock market
please if u can help out, what do you think the effects of this will be on FOREX trading, (not capital market)

I think your post is a bit patronising to say the least what exactly would you classify as sensible? peeps on this forum are just sharing their opinions as far as they understand so you coming with your sensible-than-thou attitude is quite offensive to say the least
Nothing personal but that attitude just doesnt sit right with me. You could be a bit more gracious to those that have endeavoured to reply your post either sensible(like to know your definition of sensible) or not . This attitude is not what we are about on this forum we are here to share and educate ourselves

Does anyone know about ostrich farming as in Nigeria?. I understand there are only about 7 of such farms in the whole of Nigeria and similarly in Ghana. I have got some figures from a research i`m conducting at the moment as below and if it turns out they are reasonable i dont think its an oppotunity to be sniffed at. I would appreciate your contributions. Refer to the paragraphs below

Each fertile egg is sold for between $400-$500 in Europe and America. Then if the egg is hatched, (which is between 42 to 45 days) the young bird is sold for about $1, 000. If the bird is about one year old it sells for between $2, 500-$3, 000, but if the investor wants to sell an old bird that has started laying eggs especially female bird, it can go for as much as $9, 000-$12, 000. The project actually is for middle class entrepreneurs. With a little over a million naira an investor can go into this venture. Apart from the meat, which is very low in cholesterol, it is rich in protein. It is also excellent for hypertensive patients and for those watching weight. The feathers are bought for decoration, while the skin is highly priced for ostentatious leather works.

Apart from the above needs, Ostrich is an animal of unique feature and this makes it highly tradable for tourist uses. Various zoos across the world demand Ostrich for tourist needs.

I beg take time to read this-----http://www.businessdayonline.com/?c=45&a=15493

According to the article Nigerians have learned what to do in a bull market, but they have yet to learn what to do in a bear market. They might find out shortly

Sometimes its good to have a shot of reality injection so we can put things in perspective

coollove:
if =N=1 is equal to $1 will their purchasing power be the same? I don't think it will be the same.

If there is fiscal discipline on the part of Government by reining in INFLATION and pumping up our external reserves hopefully a lot more foreign direct investment which would suppport the naira i don't see any reason why  in REAL terms the value of the naira should not be at par with the dollar. Its a long shot but i think its worth a try IT CAN BE DONE and it  CAN HAPPEN

frankiriri:
On the redenomination issue we can expect share reconstructions to be the order of the day except the government would introduce half kobo.

As long as it does not result in reducing the value of our holdings they can play with the zeros behind our currency for as much as they like!

Seun:
Welcome to Nigeria. Put on your seatbelt and enjoy the ride. (You seem to be new to this country)

I hope to mate some other third-world countries or is it emerging markets? have done it and world war III did not break out so dont see any reason it should be a peculiar situation in nigeria

For those who read through the Access bank prospectus have you noticed that there is $18M convertible loan and N13.5B redeemable convertible bond on the balance sheet. So what is significant about this? 25% of the loan and 25% of the convertible can be converted to ordinary shares if the creditors so desire which means that for argument sake if this were to be the case there will millions if not billions of shares listed and the EPS nose dives so may want to factor that into your projections.

Also when calculating your EPS take into consideration that the dividend payment to preference share holders is usually subtracted from the PAT and this will also impact the figures you arrive at for your EPS

Seun:
It will have no real effect on the value of your investments, but it will definitely cause a lot of confusion.

The first statement is true but i think the second statement is a bit alarmist it will cause confusion only  if the logistics are not properly managed i wouldnt  go as far as saying it would definitely cause a lot of confusion

I think peeps are making a mistake this is not a revaluation it is a redenomination to the order of 100 if i may put it that way. A revaluation will occur if for example as it is now the value of the naira to the dollar is N125 or N1.25(by august 2008) a revaluation or devaluation will occur if nigeria were to depreciate the value of the naira by say 20% it means the dollar will exchange to the dollar for N100 or (N1.00 by august 2008)

We are playing with digits by this exercise of redenomination to prepare the naira for convertibility(more on this if you are interested:-)

Hope this is a bit more sensible

stanchuks:
@RoughCut
please could you enlighten me on what to look out for in a prospectus, how do you know that this is a good stock or not.
i usually listen to you guys everyday, without really knowing whats on the propectus, when i see your views on the forum i simply take my decision without looking into the prospectus

As standard in a prospectus they usually make projections of what profit they hope to make in the next 5 years so for an intending investor what you need to look out for is the profit estimation for the next year and more especially the profit after tax(PAT) and then if you have the info as to the number of shares that will be listed(PO+shares already listed) you can calculate your earnings per share(EPS) and the price earning ratio(P/E) since you know the share price on a forward basis so you can make make a reasonable estimate of what the share price will be in a year`s time for example and then you can determine if you want to take a position at that point when the PO is issued or if you want to in the secondary market.

Also use the info in the prospectus to make your calculations based on past performance for example the last 2-3 years and this way your figures is based on historical performance which allows you to make a judgement a sthe the feasibilioty of the projections.

CAVEAT EMPTOR

The mere fact that you have used the figures in the prospectus to arrive at your financial ratios or even the ones in the prospectus does not mean it is going to be the case in the fur^ture a lot of things may happen the value of your investments may go down as well as up but at least you are not investing because you didnt have the information

Nuff said!

Iwerebor:
ROUGHCUTAccording to japaul Oil & maritime's web site, their public offer is currently going on. It is to end in September not begin then.
Here's a link:http://www.japaulplc.com/japaul_application.pdf

yes that`s just the application form so where is the prospectus? I got an e-mail from japul telling me the they have to sort some regulatory issues and the offer is coming out sometimer in september. Once the regulatory formalities have been completed then you will have the prospectus on the website as well which is one of the dicuments the SEC will  need to approve before they can get approval to raise funds from the capital market.

Or are you saying you are just going to apply without even seeing the prospectus? if you want to go ahead and apply before they have been cleared then i suppose that would be your look-out and almost certainly the application will be invalid and almost certainly rejected by the issuing houses or the SEC as they have the final say.

Well enough said!

[quote author=yemi_yemi link=topic=72555.msg1393704#msg1393704 date=1187164976][b]Central Bank Governor, Prof. Chukwuma Soludo.unveil new naira reform


Under the plan, the current N1,000; N500; N200 and N100 notes will revert to N10, N5, N2 and N1, while fresh N20 note will be introduced.

Also, the subsisting N5 note will become 50 kobo, while coins will be reintroduced. These are one kobo, two kobo, five kobo, 10 kobo and 20 kobo.




The advantages of the plan are legion, according to Soludo. These include:


To better anchor inflationary expectations, strengthen public confidence in the Naira;

1).Make for easier conversion to other currencies;

2).Reverse tendency for currency substitution;

3) Eliminate higher denomination notes with lower value;

4).Reduce the cost of production, distribution and processing of currency;

5).Promote the usage of coins and thus a more efficient pricing and payments system; and

6).Lay the foundation for the convertibility of the Naira as well as make it the 'Reference currency' in Africa.


Apart from re-strengthening the naira, Soludo said the new agenda, which is the second phase of the Financial Sector Consolidation, will assist in inflation control. And that effectively at the prevailing exchange rate, US$1.00 will exchange for approximately N1.25 from that date onwards.


TELL YOUR PEOPLE WEY YANKEE AND LONDON AND ALL OVER THE WORLD TO START COMING HOME


YEMI
LEWISHAM ,LONDON [/quote]I think you are missing the point the naira is not being revalued or devalued it is being redonominated. If a bag of cement for example sells for N1000 it will now be N10 and if you have a pound it will be worth about N2.50 so if you an item that sells for N250 it now becomes N2.50 and you 1 poound will exchange for N2.50. This redonimination will make the naira attractive to hold and hopefully strengthen the value of the niara relative to other currencies so on the long run it will attractive to hold the naira and consequently imports will suddenly become a lot cheaper and therefore increase the inflow of foreign direct investment (FDI) into the country and hopefully nigeria will become a more attractive to do business which means we have to now develop and revamp our productive/export capacity to make the exercise a worthwhile one

Time to invest in Nigeria i would say

Enough said

easimoni:
I know I'm pedantic. I'm an engineer.

But remember Warren Buffet's 1st rule? Never lose money. Just covering all my bases.

And Warren Buffet`s second rule is Dont forget the first!

Yeah i got an e-mail from Japaul oil to say the offer will be sometime in september so i suspect we wont be getting any propectus before then

Please read this-------http://odili.net/news/source/2007/aug/12/552.html

Looks like Dangote is in a bit quandary with the Fed Govt not sure how this will play out regarding the proposed flotation of some of his conglomerates as the Fed Govt is bent on withdrawing the concessions some of his companies enjoy

crazyT:
Hey guys, at last the IPO of Japaul is out , though the released date on the form is Monday 18th of August, but I heard it has been prosponed till September.

Here is the link to the IPO



http://www.japaulplc.com/japaul_application.pdf

or
http://www.japaulplc.com

Yeah you are right the PO is out sometime in September even though the app form is posted on their website-----japualplc.com. I sent out an e-mail and this is exactly the reply i got and i quote We are just waiting to perfect some Statutory regulatory requirements, the offer will open within the month of September
Unquote i must add this is the fastest i got a response from any e-mail i have sent to any organisation in nigeria as i only sent the e-mail just this morning

NICON insurance is planning a N50B PO or is it IPO imminently-----------http://odili.net/news/source/2007/aug/8/507.html

The question is this worth waiting for or should one dabble into the secondary market and wait for the post suspension bull run and then offload. I havent been in insurance stocks so would appreciate your thoughts on this

easimoni:
With FBN attempting to absorb N500B? You wish! I had to read it 3 times. and it still reads N500B. Amazing!

Is it a serious proposition that FBN will absorb N500B? that is half a trillion naira! cant even begin to imagine how many shares will have to be listed to support that. Probably they will just keep the stash of cash in their reserves and in the near future spalsh the cash to buy back back the shares. If this is true it will be a long time before there is any significant appreciation in shaare price the shares are just too many well, well i will watch the space

aylala2002:
Good all!!! Work has been tooooooooooooooooooo!!!!!!!!!!!!!! demandin,



Market pundits have the believe that the Nigerian Equities Market is witnessing a correction stage in the sense that the market having witnessed a boom in the first-half of the year with stocks returning as much as 900% capital gain, profit-taking has now resulted in the current share price plummet. The mad rush for penny stocks have thus resulted in price rallies across the board. Fundamentals will still continue to dictate stock pricing in any developing market. This is a period of CAUTIOUS-BUY.



INSURANCE

A careful research on the insurance sector has revealed that a stock like LASACO which was overvalued is currently trading at its fair value (below N3.00), the only result from the insurance company was its 3 months result for 31 March in the 2006 fiscal year which showed a decline in PAT to N73 million from N78 million in 2005,



NEM is a N4.00 stock bearing in mind that its new issues are yet to be listed.



Mutual Benefit is a N6.00 stock on the short-term; it should be trading at par with Continental Re: bearing in mind their similar capital base, Crusader is undervalued so also is Wapic,



Cornerstone is another stock which is hibernating, a sudden upside is likely.



Watch out for Aiico, which will soon become a bigger general insurer, we also advice investors to gear-up for position taking in Continental Re (the sole-quoted Re-insurer in Nigeria with a minimum capital base of N10bn), this is a N10 stock on the medium-term to long-term. Custodian is also looking good, while UNIC is a bit dicey for now but with strong future prospects.



BANKING



I regard Access as a ‘sleeper’ for now, once the suspension is lifted. I project N30.00 by March 2008, the bank’s MD is projecting N38.00 for the same period, the management comprises of intelligent individuals who leverage on new innovations in utilizing its funds.



Afribank is a laggard hence efforts are being made to push the price to @ least N20.



FCMB can only shoot higher with a good dividend declaration, Diamond bank is a good HOLD same goes for Platinum (a merger possibility with Afribank is the current market-hearsay), Diamond-First inland is another merger plan in focus.



Wema could do a profit after-tax of N6bn in its full year result for March 2006 which brings it to a fair value of N15.00 per share. Unity is a SELL as it has no fundamentals. Sterling is a long-term buy. You can invest in GTB, Intercont, Oceanic, FBN, Zenith as a long term buy that will yield maximum returns.



UBA’s court case if immaterial will drive the price to above N65 by December. I believe Fidelity’s price is managed by its brokerage subsidiary due to its public offer proposals.



Skye should trade well above Fidelity’s price since Skye has 7bn shares Fidelity has 16bn while the two banks make the same P.A.T in their quarterly un-audited results.



I shall continue to X-ray some other sub-sectors as more interesting scenarios unfold. A sure security against price losses is to buy public offers, though Dunlop was a bad investment.

HOT RAVES OF THE MOMENT!

Niger Insurance, Ecobank (long-term), Royal Exchange, Aiico, Law Union, Intercont, Wapic Oceanic, the list is inexhaustive.


Other goodies 4 Y'all;

STOCKS & THEIR FUNDAMENTALS
GTBank
Scorecard:
• Floated the first Eurobond by a Nigerian Bank worth $350 million which was oversubscribed.
• Return on Equity of 27.8%-highest in the sector
• Capital base of N150bn post GDR Offer
• Retail customer base grew from 139,000 in 2005 to over 450,000 as at June 2007
Recommendation: Long-Term BUY Price as @ 9th July 2007 (N) 35.50
Year-till-date (% Appreciation) 95.59
Latest Dividend Per Share (N) 0.75
PE Ratio (Times) 24.32
EPS (N) 1.46
Entry Price (N) 35.55
Exit Price (N) 45.00
Year End February

Mutual Benefit Assurance
Scorecard:
• Largest composite insurance company in Nigeria with N10bn capital base.
• 1st insurer to initiate interim dividend payment scheme
• Injection of foreign investor’s funds (Augustus Group Washington)
• Wide range of insurance products
Recommendation: Medium-Term BUY Price as @ 9th July 2007 (N) 4.81
Year-till-date (% Appreciation) 568.06
Latest Dividend Per Share (N) 0.10
PE Ratio 40.49
EPS (N) 0.12
Entry Price (N) 4.82
Exit Price (N) 7.00
Year End December

WAPIC Insurance
Scorecard:
• The lead Nigerian risk underwriter of the launched NigComSat 1 to the tune of N2bn. The 5,086kg communications satellite, first of its kind to be launched by an African country, is designed to operate in the C, KU, KA and L bands and is Africa’s geostationary communications satellite expected to offer broadcasting telecoms and broadband services.
Recommendation: Long-Term BUY Price as @ 9th July 2007 (N) 7.97
Year-till-date (% Appreciation) 99.25
Latest Dividend Per Share (N) 0.18
PE Ratio 16.05
EPS (N) 0.50
Entry Price (N) 7.95
Exit Price (N) 12.00
Year End December

Access Bank
Scorecard:
• 1st Bank in Africa and 2nd Globally to implement Flex cube 6.2
• Currently ranked 9th in the banking industry
• Rated ‘A+’ by Global Credit Rating Company
• Over $500 million on on-lending relationship with all Major DFI and IFIs
• Leader in Government Securities Trading
• Ranked N0 1 Globally in utilization of IFC Trade Facility
Recommendation: Long-term BUY Price as @ 9th July 2007 (N) 19.32
Year-till-date (% Appreciation) 177.59
Latest Dividend Per Share (N) 0.40
PE Ratio 16.64
EPS (N) 1.16
Entry Price (N) 1.32
Exit Price (N) 30.00
Year End March

Intercontinental Bank
Scorecard:
• The 5th largest bank in Africa by capital base
• Biggest bank in Nigeria by capital base
• Among the 1st 500 banks in the world
• Influx of foreign investors like Rand Merchant Bank, AIG Investment Group, RICO-a leading business group in the mid-east
• 1st Nigerian Bank to cross the $1bn capital base
Recommendation: Medium-term BUY Price as @ 9th July 2007 (N) 25.50
Year-till-date (% Appreciation) 87.50
Projected Dividend Per Share 0.65
PE Ratio 17.67
EPS (N) 1.44
Entry Price (N) 25.55
Exit Price (N) 39.00
Year End February




MY DISCLAIMER
This report contained herewith is produced by A.Y. as a guideline for investors who intend to trade in securities. The information contained herein is merely an invitation to treat and has no intention to create legal obligation. Therefore, investors have the option to invest without complete reliance on any part of the information contained thereof. hence, A.Y. LA LA shall not be liable civilly or criminally for actions taken as a result of the information provided herein. Please pardon my gramatical errors.



GOD BLESS Y'ALL AS You MAKE SUM KOOL MONEY.


Invest wisely!!!

Insightful and forensic analysis i dare say. But i didnt see anything relating to japaul oil in your analysis. That stock has got to be one of the most under-priced equity on the stock market.  Currently trading at about 6 Naira i understand its going to do a PO at offer price of of around 3 naira how cheaper can you get?
I was planning to take a position when the Kaduna and PH refineries are floated nect year but with the shenanigans going on now guess that`s the end of  the road as far as that is concerned

Tmoni:
if i remember basic investment descions,

i was taught that it is cheaper for organisations to procure funds through debt than equity,although its more risk added to the shareholders

with the recapitalisation, other sectors of the economy can go about borrowing money to serve their expansion needs and shore up their working capital, e.g is the 2billion pound "share buy back" that is recently in the works for BT (BRITISH TELECOM).

These other sectors also do not have to grapple with the issuance of new stock, advertisement et al. , it could be a silent background collateral and loan process

hope i make some sense,

PS-- on www.punchng.com today, the stock price for ACCESS bank is lower than the suspension rate of N19.32,
is there anything in the works?

In a stable interest rate environment that might be an option the moment inflation rate rises that is the interest rate gone up but does it make sense for a company to borrow billions of naira from the banking system when for a small equity and in most cases the authorised share capital of these companies are not fully subscribed they can riase the billions needed have you thought of how much proportion of their operating profit will be used to service these debts and you agree with me that does not look good for the balance sheet either!

Access share price has been adjusted for dividend payment of 40 kobo

Now guys something that has been a worry for a while now, it looks to me like coming to the capital market to raise funds  has more or less become the exclusive preserve of these megabanks because of the mouth-watering profits they are declaring and the fat dividend warrants they are sending through the post to investors this has made it virtually impossible for other companies in other sectors of the economy to raise funds in the primary or secondary markets. Already the MAN have started complaining and dont forget that the economy also needs the other sectors of the economy to develop this can only happen if they can raise needed capitalt from the capital market

Or sholud we move this discourse to another thread? Let me have your contributions

well as long the errant capital market operator(s) have been sanctioned and everyone who may be tempted knows that SEC will not hesitate to weild the big stick. I think the SEC has handled the anomaly as correctly as possibe since we dont want our foreign investors to get the jitters

egoldman:
well i wont comment on this news untill i read it .

Well i will put you out of your misery egoldman, enjoy ----------------->http://www.financialstandardnews.com/news_page.asp?id=24

Better still if you are self-employed or you are in the online/internet business you can easily convert your study or spare room in your accommodation to an office you would not believe how much you can claim from the tax-man for using a spare room in your house as your office