₦airaland Forum

Please what has happened to stock market nigeria or SMN?

Rarely comment here but I commend the thread for constantly improving knowledge of young Nigerians. The thread improves in quality of discussion day by day. Go back to page 1000 and below and compare that discussion with today. You will be all impressed

Well done all

Dexterax: Bruv that statement is based on pure investment psychology. And the data confirms it.

Interesting. If that is the case then I guess SEPLAT is rightly valued.

Agbalowomeri: Bros I no be man o, I be ur boy o. And I am a newbie, joined this forum only recently and actually na woman I follow come. Anyway, she has abandoned me.

Back to the question sir, if I am to invest 2m in stock market, I should not expect less than 300k dividend. I am a greedy person o. With my little experience now, I target stocks that can give me over 10% dividend with a measure of high probability. And I try to run away from stocks with ROE of less than 20% because i have learnt that ROE determines the price elasticity of stocks. I also run away from stocks that is demonstrating consistently falling ROE; there is no point running after 10% dividend only for the value of ur holding to be falling. Thirdly, I do not put my money in stocks showing no growth because that is the only way that I can convince myself that it will not pay less dividend that the previous year.

Based on the above epistle, the only coy holding my attention right now is Afriprud. Ubcap also falls in that category but somehow, my instinct is not comfortable with the coy.

Anyway, "who are mine"?

NB: I also do not believe in


diversification. Don't try this at home o

Can you shed more light on this statement. This is new to me

emmanuel ewumi: http://www.jarushub.com/frequently-asked-questions-about-the-nigerian-stock-exchange-ii/



Which stocks should I choose?

That depends on what you want from your investments. About 300 securities are quoted or listed on the Nigerian Stock Exchange; they range from government stocks to ordinary shares and their coupons or dividends vary from low to high. The important thing is to first determine your own objectives, discuss with a stockbroker and then invest accordingly.

What does “XD” mean?

It is a financial expression for “without dividend”. A stock that is purchased during the “without dividend” period will not earn a dividend declared in that period for its new owner.

What are scrip or bonus shares?

These are new shares made fully-paid by the capitalisation of reserve and allotted free of charge to ordinary shareholders in proportion to their existing holding. In this process, fractions of shares sometimes arise and are often aggregated and sold, after which a cash payment in respect of the fraction is made to every shareholder entitled to it.

Sir manie, as a dividend investor which i know you are, you may want to pick up unviersity press. this stock has the best dividend yield as at fridays closing price. Close to 10%. i fear its liquidity sha

emmanuel ewumi: @ shigidi when did you join nairaland? I hope you still active on smn.

Of course sir. SMN remains my base. but we pop in here once in a while

anyanwu58: Chei..... This is a very bad result for the girl's father company, no dividend and for the molester, his company's shares price will start falling on Monday like fcmb. Lol

Very poor joke attempt

Good day house. Please is smn down?

morenaira: atleast you should be able to realize like 600 naira

Kai!!! . It is well

ifyclose2: assuming you charge N2m for d 3-bedrooms and N1.5m for d 2-bedrooms....that's a total of N12.5m in rent per annum.....its definitely something around that range.

N2M is not impossible around ikota. But it may be a bit of a stretch. 12.5M for a 180M naira porperty is a 15 year payback period. EXPENSIVE MEN!!!!

4 3 bed room units and 1 7-bedroom, yet you say 7 apartments??

phemmie06: Please how can I operate a single chn with two broking firm, and what is the cost implication

Zero cost. Write a letter to cscs stating bith acciunts and chn numbers and the one chn number you wish to maintain. This letter will be addressed to cscs and will be through the broker whose chn you DONT want to maintain.

ucheson2: I HAVE THIS UNVERIFIED INFORMATION THOUGH FROM A RELIABLE SOURCE AN INSIDER: NEM Q4 2012 EPS IS OVER 32K, THE FIRM IS PLANING BONUS ISSUE AND DIVIDEND OF MORE THAN 10K PER SHARE. PRESTIGE Q4 2012 EPS OVER 15K.

If I hear!!!!!

9free: Na wa ooohhh. To make a speculative short term gain for this Market na JUJU and PROPHECY man go start to use.
Can someone explain the rational behind many dead stocks with neither technicals nor fundamentals be gaining while sound stocks will be loosing almost on a daily basis

The good Lord wants you to die a rich man!!!

manie: We have been together in the stock business together for 20 years.

I share your optimism about the market, if I have 100 million Naira cash, be sure that 75% of the sum will be invested in shares based on the current valuation of some stocks.

Pa manie, if you purchase 75m worth of stocks only to see it lose 20%, you go fit handle am? Isn't it safer to buy small small so u may average down?

stockbear: My stockbroker recommended a sell position on julius berger 2day..any1 agree with dis..but I feel it'll get to 100 naira cos the number of shares in circulation is low,dats Y it has not been able to rise well..

Depends on what you've made so far as per margins. i believe 90 by year end is not impossible. Just my own 2 cents

Elai147: JB may get to N90 before responding to the forces of the market. I am crying for not entering @N55. Imagine my profit by now...

It could have gone the other way round!!

datovid :
With d current rally of JB..I think it'll rise to 90 naira n above

To be honest it is very possible. I bought at 48, offloaded at 67. But with the new government contracts, 100 naira is not unrealistic.

Toluway: Oga 9free, pls let me be cosulting you before I pick my stocks. I am too old to be looking at all these factors. But I think gtb, fb and zenith are not overvalued at current prices, same for skye bank. Thanks.

Most people agree the banks are still probaboy the only undervalued stocks on the NSE right now. Maybe a few other stocks woukd be julius berger , vitafoam and maybe the insurance boys if your liver gree.

pleep: So even nigerian dey get stock market now?

the black man dey fly oooooo!

HAHAHAHAHAHAHAHAHAHAHAHAHAHAAHAHAHAHAH, Dis guy don kill me this morning

9free: Omo, these bears dey out for Skyebank and Okumo oooohhhh...... Make I dey arrange my Cutlasses well.
By thursday I go unleash mayhem for these two

If you are who I think you are. I Must say you posess almost a dual personality from your posts.

mindtricks: Why? Could you throw more light, thanks.

NB is quite expensive at the price you bought it. That is not to say it may not even surpass that price in the coming months. But to be safe, i gave that time frame.

anyanwu58: Greetings everyone, this is my first time of posting in this forum.
I bought 20,000 units of NB in may this yesr at a price of 175 and now the price has dropped to 150, pls i want to know is it time to offload or do i still hold on?
Ur advice will be appreciated.

HOLD, but with an outlook of 2-3 years

9free: Madam Mercy, please clarify your claims because I am very heavy on NEM (more than 60% of my portfolio).
Awaiting your prompt reply.

Ha ha...funny im beginning to see a link between characters here.

Anyways, can everyone just chill on this bad news palava...if e fall to 50k i jump in the more sef...in fact, abeg make e crash sef.

PHIPEX: Dear experts in the house, Pls if I sell my stocks few days after the Book closure date but before the Payment date hope I will still qualify for the bonus or dividend declared when the payments are eventually made? Pls kindly advice, I don't want to make a costly mistake.

YES YOU WILL QUALIFY

Seun: Thanks. Do you feel that is good - or bad?

Its good. 22% improvement. Good revenue increase as well. Non performing loans are low. All in all, looks healthy going forward. Hence the positive response today.

9free: Ehmmmm......Oga B2bR, abeg buzz me when any or all of the following happens; 1Bank @ N12, Diamond @ N4, UBA @ N4, Presco @ N16, Dangsuger @ N3.5, Nascon @ N4, NEM and Transcorp @ N0.50k, Sterling @ N1,ETI @ N12
Abeg no forget ooooo......

Good luck on this!!!

feelamong: No worry we go still hammer them when time reach!

Meanwhile what they said is that they proposed to pay a dividend of N1 subject to a satisfactory audit of the Company’s 2013 interim results for the 4-month period ending April 2013.

So na to pray say the Audit of the Q1 result end up satisfactorily!

Which is basically a 15 month period for 5% dividend. When zenith declared at roughly 7%. Looks like the price for FBN has already been factored in. No further appreciation expected

Shebi una hammer diamond bank for no dividend. The elephant nko

ugodre: 2012 RESULTS SEES FCMB BACK TO PROFITABILITY - NO DIVIDEND BUT 1 FOR 25 BONUS

FCMB Bank released a double dose of full year audited accounts for 2012 and first quarter unaudited accounts for the period ending March 2013. During the year ended December 2012, Net Interest Income rose 17% to N43.3billion. This resulted in a net interest margin of 50% down from 60% the year before. The bank ended the year with a return to profitability as they made a post tax profit of N16billion (2011: (N9.2billion).



Result Overview

2011 was a tumultuous year for FCMB just as it was for many other banks. Despite posting strong Net Interest margins of about 60% that year it was not enough to absorb loan losses of over N27billion during the period. 2012 was no different, even though the N12.6billion in loan loss suffered was 54% lower 2011. The bank claims its non-performing loans (NPL) ratio fell year on year by 10.9% to 2.5% inching higher to 3.3% at the end of first quarter 2013. Operating profit margin though below industry average, may be due to its merger and acquisition cost.

The period ended March 2013 gives an insight as to what to expect for 2013. The bank seems to have learnt lessons during the period as loan and advances dropped by 8%. Pre-tax profits rose moderately by 10% to N4.8billion as the bank continues to contend with rising operational cost. Bank's this year will mostly declare profits however, it is those that are able to generate return on equity in excess of 20% that will have the competitive advantage. FCMB delivered ROE of 12% in 2012 and 3.2% at the first quarter of 2013, fairly flat in my opinion. The likes of Skye Bank, Diamond Bank and Sterling posted above 5% ROE for the first quarter.

Share Price/Dividend/Bonus

FCMB share price has had a negative return of 17.7% in the last year according to Bloomberg. Their share price also shaved off 8% in value to close at N4.30 today (29/4/2013). Their price earnings ratio is based on the current price is about 5x whilst price to book ratio is about 0.61x. Banking stocks are mostly undervalued and this indices shows just why. But for the price to take a beating after crawling back to profitability the market is probably punishing the bank for not issuing dividends even after issuing a 1 for 25 bonus shares (4 shares for every 100 held). But you can't blame the bank can you? The bank has distributable reserves of just N5billion. If it distributed all of that (a big IF) earnings, it will only amount to 26kobo per share, a yield of 6%...but even that will send a wrong signal. CBN will ask them to recapitalize..a worse proposition.

The better option for the bank was to therefore give out 4% of its 18.7billion outstanding shares as a bonus issue. Shareholders can then go to the market and sell to recoup investments. That will be about N3.2billion at todays price for shareholders. To the bank, the only cost is a share dilution and possibly a further devaluing of its already undervalued share price. Not sure they mind though!!





FCMB released its 2012 Audited Accounts on the website of the NSE

If diamond can trade at a pe of3.5, FCmb should find a support level at 4 naira. And even that is been a bit kind to them

Born 2be Rich: Corporate Action:

Dividend - Nil
Bonus - 1 for 25
Closure Date: June 5, 2013 - June 7, 2013
AGM Date: June 19, 2013.

Soucre: http://www.nse.com.ng/Financial_News...APRIL_2013.pdf

Currently FCMB is taking a big hit at the moment as investors are not pleased with the coporate action

Damn!!!
Not impressive at all