₦airaland Forum

Diamond has good fundamentals and will come good. But we shld not overstate the actis funds. its not a lot. FBN just raised more than 25 times what actis put in diamond.
Wema's business model is so different from the others. the others are more flashy, have seemingly good business models.
But Wema's business model is very diff. This is a bank that the odua states invested 8 billion naira during consolidation.
Why is Wema's turnover consistently higher than most ignoring the fbns, zeniths and top tiers?
And i disagree with the line of thot that wema wants to raise 10 bn shares. Its not definite. The ceo said they are not raising a lot.

But thats the beauty of the market. Everybody puts their money where their mouth is.

Japaul's result was very good.
They are on course to meet their projections easily at this rate.

@ Roughcut
Wema bank's turnover for this current year will be close to 40 billion naira (even without po).
People underestimate the potential of this bank.

wanaj0:
On WEMA, if you are in by the technical suspension is placed, then you will wait for a long time. They will have to issue a lot of shares to be able to compete. Nothing less than 5bn shares which is still small!!!! Don't expect the rally after the lifting of technical suspension. Check out what happened to Access bank. Note also that money from the PO will likely not add to the March 2008 FY result. So, to me, not an option.

The po buyers will most likely not partake of march 2008 earnings which suggests better things for current holders.
At that rate, wema could come up with a PAT very similar to diamond's.
To me, def an option. Its the cheapest bank out there currently.

@shigidi
Thing is FBN is crediting it straight to cscs.
heard oceanic will start posting this week or sth. nothing definitive tho.

@ capuchi
ubn's profit after tax was actually lower than expected.
So if you buy tomoro, you should not expect too much.

jehosaphat:
Re. First Bank Allotment

Applicants with CSCS number (indicated on the application form) would be credited with shares alloted not later than 20 Nov 2007, So be on the look out, guys!

Hello Gurus,
I noticed that this news caused some excitement on the thread. Could anyone explain what it means and why it is good news??
Thanks

case in point: Fbn's po was in august, oceanic was in march, we might actually be recievin fbn's first.
thats laudable by me

capuchi:
hi, everyone i want to instruct my stockbroler to buy union bank shares tomorrow, do u think the price will appreciate to 20% before the register closes on the 22nd thanks

NO, i wouldnt think so

wanaj0:
was in the punch newspapers as part of the announcement. First Bank showed that it is in a separate class.

Close to 1million applicants applying for over 10bn shares!!! That na serious record! Na real elephant don come to market offer

20 Nov sounds just fantastic!

[quote author=no_shaking link=topic=31554.msg1657258#msg1657258 date=1194431145]Re. First Bank Allotment

Applicants with CSCS number (indicated on the application form) would be credited with shares alloted not later than 20 Nov 2007, So be on the look out, guys![/quote]thats very positive.
where did u get this info?

interesting comments from wema's head of communications, i would not be surprised if a bonus is given at full year or at least a substantial dividend.
http://www.guardiannewsngr.com/capital_market/article01

@pumping
you're quite right abt Nascon not adding up.
But you have to look back. Its a similar case to the insurance companies.
Before merging with dangote salt, Nascon's half year PAT was 4m naira or so. Now its 500m.
The restructure is what has been priced into the stock price.

@easi
noticed your signature has changed lol.
My sources at NSE tell me that demand for Wema is currently so hot it literally opens at a 5% premium in the morning. (at least for the last few days).
The interesting thing is folks that bought Wema early enuf may just have bought wema at a forward pe of btw 2-6. Beat that!

Lets remember that Dangote did not offer to sell Nascon.
It was NSE that approached him to offload some of his units because Nascon was extremely illiquid and demand was high
Give the man some breathing space

Nascon is undergoing restructuring.
I expect the full year result to show considerable improvement over the half year.
the half year itself was a giant leap from previous earnings.
If that doesn't happen, then one can conclude that it's a disappointment.
I dint buy the sale tho, my greedy stockbrokers bought for themselves and now they're winging

Anybody watching ikeja hotels?
Here's the problem i have with new and illiquid companies on the nse.
Its been on a freefall for a few days.
Only 3 deals worth less than 100,000 naira today and it lost maximum 5%.

FirstInland's also moving very interestingly, closed at 13.14 today

Ulamaster:
To all the investment savvy pros in the house :

Whats the best form of long term investment of say 10 years and above ? I am trying to have a low or no risk investment as an endowment for my kids educational future. Thanks for your time.

Investment plans with insurance companies are about the lowest risk ones in this case. Try Mutual benefits or wapic. A rate is guaranteed typically about 12% annually so u know how much u'll get after the 7 or 10 years.

wanaj0:
Look at UNIC, year 2006 result is yet to be released!!!!!

Actually unic's results are out 2day

gist is that Union bank is giving dividend of 1 naira and a bonus of 1 for 5.
Not bad at all.

jehosaphat:
One more thing,
Instead of buying 10 units a chicken+egg combo worth 80 bucks each ( 10x 80= 800), with potential to rise to 90 or even hundred bucks ( 20 x 10 =200), why not buy the eggs only worth 4 bucks each? Same 800 bucks gives you 200 units, then the potential to rise to maybe 8 bucks or 10 bucks gives you ( 200x6=1200). Isnt Bagco alone worth more in the long run than Flour Mills?
Pardon the parable of the poultry farmer,

Bro, do u write folklores?
This parable na wah o, but your point is evident and definitely has weight.
cheers

@all
FCMB's offer looks probably (not absolutely) better than most, afribank, fidelity et al, but even then, FCMB are not magicians.
Anybody buying fcmb should keep their expectations realistic. AT the current size of banks, exponential returns in the short term may not be possible again. You can only grow so big. Same goes for zenith.

I got the same email.
It comes as gtbplc but when you click its gtbqlc.com,
takes you to a look-alike version of gtb online banking website asking you to log-in your details.
Its sad,

Sweet T:
Can you imagine telling over 60% citizens that is struggling with basic neccessities of life to go buy a bank stock?? That is why some banks and companies kept extending their closing date because there are not enough takers! I even heard that some people that bought last year has yet to recieve their certificate !!

Public offers are voluntary!
There have been so many public offers before now and there will be many more after.
You don't have to invest, there is no compulsion.
Evidence also suggests that investors love public offers. I have a friend who only buys public offers and has been doing so for the last 5 years participating in 90% of all offers and he is not complaining because the returns have been too good to be true.

First Bank, Oceanic, Dangote Sugar, UBA have all raised many times more than they wanted this year. Investors are still willing to buy so the claim that there are not many takers is largely unfounded and incorrect. FBN wanted 100BN, they got 470BN, INtercontinental got 700% what they wanted, the list goes on.
If there are no takers, there'll be no pos.

@all

Wema is still a Buy for me!
I dun think TS is as fast approaching as has been trumpeted.
The loans that were written off are still recoverable.
Even a conservative estimate should place wema at 16 naira at full year.

@ all
Wema's result is just too good to be true!
That 1st quarter result was more than 2006 full year PAT.

@Tmoni,
i will be waiting for my bottle of champaigne

HNIC:
My brother, We are passing the ball around and not scoring glaring chances, yet we have scored 22 so far in the league(the highest) and have banged in 11 goals in 3 champions league matches, Men, u can imagine when we start to convert those glaring chances, Who knows Senderos may finish the season in double figures

Senderos on doubles.
Dream on!!!!
Afterall dreams dun cost a dime

Hi all

i know its been a while. Work no dey gree me again.

On Wema, the result was BAD.
Obviously the results the bank management wanted to release was not approved by CBN.
I have not sold any (simply because i have learned not to make buy/sell decisions thru panic and or hype)
the loss from Wema is limited except you bought at 11 or 12.
There is no need to hold fire, if wema won't let you sleep, sell asap. However, If you can sleep with wema like me, then hold. The fact that there were almost 1200 deals on it today tells you how many diff versions of the wema story are in the market. Its going to be interesting to see how this plays out eventually.

ON Zenith, this is one bank where the management understands the dynamics of what it takes to keep their share prices high. I like such a bank. Sweet result released in a bear atmosphere. HOLD for sure.

For speculative purposes, try taking position in UNIC before it stabilizes. Keep intenegins on your radar too.

Looking for shares being mopped up? look no further than Access bank, only 250 deals and it had a turnover of over 2 billion naira today.

Look at what the devils are doing in someone else's backyard.
This is a real away massacre

United are Tooooo Hot!!!!!!!

@pumping
That result get as it be .
I dunno much abt the company but those results def raise an eye brow

Ijem:
Helo fellow Niaga people,

I am yet to receive the recent First bank public offer shares certificate. Does any one have an idea of when it will be released.

One Nigeria

Relax. certs will be released next year, more like March onwards
the bank is yet to finalize absorbing 250Bn from the 470Billion raised.

@shigidi
you definitely have a point there.
Looking back, fcmb is obviously ahead.

FCMB's offer is good but its not all that.
Still trading at a trailing pe close to 30.
And if you look at forecast eps for 2008 and prices that stocks shld trade on rationally, then there is not too much between fcmb and fidelity.
Its obvious all the firms are going for forecasts that will double the share price in 1 yr since that is what appeals to the Nigerian investor.
So all their foreward PEs are very similar, all within the same range, all of them.
BUt having said that, the banks have a way of meeting their forecasts more often than not.

If what we considered the forecasts alone, Access would stand miles ahead of all these other offers but we know better .

easimoni:
All,
hope you saw Law Union & rock's 9 mos results. 537M over 9 months. With 3.437B shares, that's an annualized EPS of 21k. Not bad for a N3 stock. Hope other insurance companies will release similar results.

must have missed the results but this is definitely a welcome development.

easimoni:
. I hope ALL the companies I own give a bonus at the FY so I can watch the rally and then DUMP them.

100% with you on that one