₦airaland Forum

The banks are poor when it comes to capital appreciation.

Guinness Nigeria & East African Breweries: Same Ownership, Differing Loyalties...

Details at:

http://judefejokwu..com

Lafarge Africa (Wapco): Did you know?

Outstanding shares tripled in fourteen months...

Details available at;

http://judefejokwu..com

khiaa:
Stop talking like all Nigerians think the same and are the same. *Nigerians are driven to succeed* if that were true then why all the poverty in Nigeria, what about the Nigerians in the US and other foreign countries who have been living in squalor for years?

You appear to not have the intellectual rigor to discuss this issue. I will take my leave.

I pray your hate does not CONSUME you.

No poverty in America especially in the AA community? No living in squalor? Delusion does not build self esteem...

khiaa:
I see you didn't understand my post, I said we aren't in any competition with you because there is no competition, we wish you success, it's your people skills that needs improvement.

Your first sentence in your initial response belies the "we aren't in any competition." To thyself be true.

People hate what they can't conquer. Your responses ooze of hate, malcontent and antagonism. Love conquers hate...

Nigerians want to succeed and are fixated on this. This leaves no time to even attempt to conquer anybody. Shalom!

Drenimarcus:
i dont live in Nigeria myself, this topic is one of the interesting ones i have always wanted to learn about. This is/was an avenue for most to learn but alas! they win again as they have always done.

A topic on Nigeria seems to pop up on
Www.lipstickalley.com almost everyday. This site is an AA forum mainly frequented by AA women.

AAs keep telling themselves that Nigerians think they are superior and this drives the hateful discourse that follows as evident in some AA replies.

Nigerians stand out wherever they go (fortunately and unfortunately) and it is easy for this to be seen as threatening by others. Nigerians are driven to succeed and not to conquer.

The minute AAs stop seeing Nigerians as some form of THREAT, this will become a non-issue.

Drenimarcus:
omo nawa, these people sow a seed of discord and they won shaa. But Khiaa no suppose deh vex tho, educate people who know nothing, that is how we all grow na.

Not every Nigerian posting here lives in Nigeria and/or is ignorant of this topic.

khiaa:
That would be great if what you posted was the truth. The truth is black Americans success outweigh Nigerian success in America. There is no way the few Africans in America can outweigh the success of over 40 million black Americans, lets be realistic here, you aren't a threat to anyone as a matter of fact we wish you success. It's the arrogance, false pride and COONING for whites that we hate about you. Please work on that.

That's the discord in a nutshell. Nigerians are not in competition with African Americans. African Americans appear to think so and continually complain, abuse and denigrate Nigerians to prove superiority. This is also evident in your write up that I quoted.

Nigerians are frankly only in competition with themselves. There are over 220m Nigerians in Nigeria and over 3 million in the USA to bother about across over 100 ethnic groups.

Nigerians are not fixated on AAs and do not see AAs as a threat to anything they are trying to achieve. Nigerians are overly fixated (to an unhealthy level) on themselves.

Evidence abounds across the internet reflecting AAs negative concern about Nigerians.

LIve and Let Live will end this debate. There is enough room for everyone to coexist and pursue their dreams. If Nigerians fail, it's on them and not AAs or other Africans. If AAs fail, please do not point fingers at Nigerians or other Africans.

Best wishes

khiaa:
I have repeated my self many times about this topic and I'm not doing it again. The truth is, everything the op posted can be applied to Nigerians in America as well as the home based ones. What did the bible say about that plank in your eye?

The reality of the matter is everyone is looking for whom they can dominate. It is easier to look down for an extended time than to look up.

African Americans see themselves as the head honcho of black people in America and understandably so.

Suddenly, Africans (Nigerians especially as the most populous black nation in the world and 7th overall) in America act in a way to challenge that notion. The seed of discord is sown as African Americans refuse to allow another ethnicity to challenge them in their homeland.

The seed of discord is sown as AAs try to put Nigerians in their place and Nigerians are wired not to stay put in one place even when in a foreign country.

In reality, everyone is just going about their business. Success is noisy and Nigerians never come last in anything they set their mind to!

Insults are not needed to debate this issue. When anyone resorts to insults, they have already lost!

African Stock Markets and the Executive Branch: Who GETS it and who LOST it?

Stock Markets are a reflection of investors' near-term perception of the country's economy and business environment. The business environment encompasses holistic corporate health and availability of tangible, viable business opportunities across multiple sectors in the country. A stock market can be equated to the 'pulse' of a human being.

More available at:


http://judefejokwu..com

Those of you that keep looking at foreign investors to bail out your stock market need to look INWARD!

Locals are avoiding their own market but, foreign investors will not?

Ask Nigerian companies to BUY BACK their shares since the shares are apparently cheap. Return money into the hands of investors...

No policies are being taken to support the stock market. MPR needs to drop down to at least 11% to discourage idling of funds.

MTN Nigeria Listing: Let's do the dance; the drama can wait. Details available

www.judefejokwu..com

The New Access Bank? Not so Fast!

Details at.

http://judefejokwu..com

The deal equating price for Access Bank is N7.45 relative to the 3.13 acquisition price for Diamond bank. Anything below that Diamond needs to rise to maintain purchase price equilibrium. Access is also rising, so expect Diamond Bank to fall at some point next week once Access hits N7.45 - N7.50

onegentleguy:
U my dear are a wise fellow !!
'A measure of relativity is the way to go'
This is exactly part of what we've been saying on touring the DIAMOND route pre merger. ...that way u use one stone to kill 2 birds.(U get to enjoy a likely cap appreciation and also indirectly join the access route)
Only difference is that u'll be joining the ACCESS route for less, unlike keying in directly now for more.
Those who could read btw the line when I 1st put up that post could've checked into DIAMOND at the slight pull back to N1.86.
Herein lies the key to what i've been saying. ...those who don't understand might think we are talking down on ACCESS.
U can NOT see where u can get more of a thing by paying for less and decide to go for less of it(qty) by paying for more !!
For as long as the terms of this deal is concerned, Mr DIAMOND is the clear winner and the best route to play pre merger !! ...until of course an equibruim is achieved in their relative price measured against their merger valuation price.(I have since dymisified this part in my previous posts)

But then again, due diligence should still remain ur 1st priority.

Regards.

Access Bank acquires Diamond Bank: Is bigger actually better?

The CEO of Diamond is finally leaving...

Details available: http://judefejokwu..com

MARKET NOISE is volatility and not the rantings of people under the cover of anonymity on the internet. Be advised accordingly.

Infinitisi:
Negative news or negative innuendo should not affect you to the extent you are lashing out. Successful investors and/or traders do their analysis and make their decisions without allowing the "noise" of the market distract them.

If you know what you are doing, "noise" from other market participants should not bother you. You can listen to it, take what you want and discard the rest.

THE LION NEVER CONCERNS ITSELF WITH THE OPINIONS OF THE SHEEP.

There is a difference between negative news and negative INNUENDOS. The latter is the case in the Diamond Bank matter and this is typically driven by people who were wrong on Diamond's outcome and are finding it hard to come to terms with this. Continually raising alarm until H2 2019 is their way to deal with this as they look for a way to finally be Right as it relates to their Wrong on Diamond Bank.

The deal will go through. Nigerian companies rarely ever back down from deals that have been announced between each other publicly. All concerns have been addressed.

Cheers

Infinitisi:
You cannot succeed in the financial markets if you cannot control your emotions. You have no business in the stock market if you cannot bear to see negative news or hear negative opinions on a stock you are invested in.

The stock market is not for the faint hearted or thin skinned.

Wrong! It is a share and cash acquisition. Don't mislead others.

MonkeyHunter:
I am not a financial expert but I am of the opinion that the share exchange will be treated using the fundamental principle that on the stock exchange you cannot manufacture or destroy value so if you pay dividend or bonus shares your shares must be marked down.

1) The cash payment to diamond bank share holders will be treated as a dividend payment so Access Bank shares will be market down for the dividend payment.

2) Shares issue to Diamond bank share holders will be treated as a bonus issue by Access Bank and the Acess Bank shares will also be marked down for the issue of these shares.

3)Diamond banks shares (Diamond banks market cap) that are cancelled will be treated as a reconstruction and Access Bank shares will be marked up for the cancellation of these shares.



Access Banks Market Cap post-Merger = (Market Cap of Access bank at cut-off date + Market Cap of Access bank at cut-off date) - Cash payment to diamnd bank share holders

Access Bank Market Cap Post Merger = Adjusted Access Bank Shares (i.e marked down or up) * shares in issue post merger

Shares in issue post merger = Issued Access bank shares pre-merger + (2 *Issued diamond bank /7)

In effect the sharing formula (shares to be given to each shareholders) is already know but the value to be shared (combined market Cap of each party) is not know.

The adjusted share price of Access Bank post merger will be a function of the final share price of Diamond and Access on the cutoff date.The increase in the share price of diamond bank works in Access Bank share holders favour as it implies that there will be less reduction in the value of the shares by virtue of a markdown.

For Example if Access stays at N7.85 and Diamond rises to N5

Access pre merger market Cap = 28,927,971,631 * 7.85 = N 227,084,577,303.35

Diamond pre merger market Cap = 23,160,388,968 * 5 =N 227,084,577,303.35

Combined Market Cap = N 227,084,577,303.35 +N 227,084,577,303.35 - N23,160,388,968.00 (cash payment) = 319,726,133,175.35

Shares issued to Diamond bank = 2 * 23,160,388,968.00 / 7 = 6,617,253,990.86

Post Merger Shares in Issue = 6,617,253,990.86 + 28,927,971,631 = 35,545,225,621.86

Adjusted Share price post merger = 319,726,133,175.35 / 35,545,225,621.86 = N8.99

In summary, till share prices of both parties are frozen things are still fluid as per but Access gets 81% of the combined party while diamond gets 19% plus N23b cash

Apologies for my long posts

A lot of people here now have EGG on their face believing that Diamond did not have any reasonable value left.

Access is a tight fisted negotiator; for the terms to.be this appealing for Diamond investors' is a reflection that Diamond Bank is a gem with a wrong leader at the helm who is now on his way out.

Yayira:
100% for diamond na bean! I’m talking about 200% and above

People refuse to read and understand the underlying issues surrounding companies regardless of profit rising or falling. Stock prices (all things being equal) are an immediate reflection of people's future perception of the company.

This is why people are wondering why FCMB did not budge much on the upside and why Diamond is rebounding strongly in a bear market. For those that enjoy reading; you may get some insight here reading the two most recent articles. Cheers

http://judefejokwu..com

We need to read to get a better grasp of why things happen.

The price movement of FCMB and Diamond has nothing to do with market makers (the argument over whether they really exist is another debate). Stock price movements (excluding manipulation) are based on investors' future perception of the company's performance relative to the PRESENT

Too many people keep getting carried away with Profit without looking to understand how the profit or loss came about. Diamond Bank's future has more potential than that of FCMB at this time. The last missing piece for Diamond is to get the under-performing CEO out.
FCMB declared a Q3 profit based on a fictitious revaluation of assets that generated N10B that was wrongly included on the income statement.

I will always cape for him that is down and acknowledges that he is down than him that says he is up but is in reality down in the dumps.

Diamond Bank is a gem; the current CEO is not.

Details available at: http://judefejokwu..com

Diamond Bank: The bank is a gem; the current CEO is not.

More available at: http://judefejokwu..com

Agbalowomeri:
Which part of the hole for diamond this one fit fill

Diamond Bank's issue is more of perception. Once the power struggle struggle to get the incompetent (my father owns the bank) Uzoma to resign, the bank will be fine. The announcement alone will give the stock a strong boost in Q1 2019. Let us see whether common sense or power sense will eventually prevail.

swilo:
Question please...

Which is a more favorable strategy from experience...?

a.) Use of stop loss or b.) averaging down

Secondly, what is a good stop loss percentage?


(the question may look naive but I ask to get honest responses based on experience)

The reality is

1. What is your investment horizon?

2. Is the market overall bullish or bearish?

3. What is the fair value (many people fail here; many people can throw out values, few can do proper valuation)? Entry and exit is beyond quarterly performances.

Your answers to these questions will lead you to the appropriate action to take.

mendes911:
The stock is currently doing Initial Gara Gara. Give it a little more time.

The worst of stock movements based on unexpected price performances is immediate and that's globally and this did not happen with DF because the performance had been priced in for this stock. My reference is specific to Dangote Flour for idiosyncratic reasons. Regardless of what happens here on out, on the downward side, there has to be some FRESH negative news pertaining to the company or to a lesser extent the Nigerian flour industry for there to be a freefall.

The cookie cutter belief that positive performances lead to price spikes and everyone should jump in and negative performances lead to freefalls and everyone should exit relies more on behavioral finance than logic. Proper valuation remains the live wire of investment decision making.

Cheers

Chibuking81:
Are you inside the bus? If you are inside first thing tomorrow try to bail out, because market will react negatively towards their q2 result.

I was the one that started advertising and promoting Dangoteflour when they started performing, before they over speed and pass their fair junction after they sell out their noodle subsidiary, with inclusion of the proceeds from the sale, their EPS moved times two of the expected result, and their price went more than times two of their expected fair price.

But now, they will still revise back to their fair price. I believed #5/#6 is not bad.

I told you the result had already been priced into the current stock price... We live and learn.

swilo:
Sir did you factor in crowd perception effect and August effect....

I told you the Dangote Flour result had already been priced in...

pluto09:
There is nothing in diamond bank again at this point in time .
If you are not a trader, you shouldn't touch that stock and I doubt if any professional trader will buy at today price.

Investors will be interested, traders should not be interested until the overall market becomes bullish.

Remember when Forte Oil was N7 a few years ago and rose to over N100?

Chibuking81:
Are you inside the bus? If you are inside first thing tomorrow try to bail out, because market will react negatively towards their q2 result.

I was the one that started advertising and promoting Dangoteflour when they started performing, before they over speed and pass their fair junction after they sell out their noodle subsidiary, with inclusion of the proceeds from the sale, their EPS moved times two of the expected result, and their price went more than times two of their expected fair price.

But now, they will still revise back to their fair price. I believed #5/#6 is not bad.

Position in a stock is always relative to entry point. Entering diamond at N3 and entering at N1.60 are two different things. Both parties are not supposed to act the same way to a negative performance. Valuation rules over the rudimentary basics of an earnings release. Too much emphasis on feel good and feel bad factor. Deeper dives are necessary.