₦airaland Forum

Naijadr,

I spoke with someone at Vetiva this afternoon and she said that if you don't want to collect a letter from your bank or from an existing customer, that you can get a letter from your employer.

She also mentioned photocopy of utility bill and drivers licence. It looks very easy. I will scan and send all these to them tomorrow and my application form will be sent to me.

Peace.

Naijadr:
@bigjay, I completely understand your anger, and that was why once I got enough money in hand to meet the minimum of the bigger companies now, I'm switching, more than likely signing up with either Vetiva, FSDH or BGL within the next week or so! UBA is good for those who just want to start of, not traders now that u and I have become, you only lose money. No point emailing the brokers, I did and all i got in response to a purchase mandate I sent to them was "Received", nothing else o, not even a complete 1 line! LOL at least the rep officer will give me better response, even ifg its to say I havent heard from the brokers I'm still signing my younger sister with them because her stuff will be long term and the N250k minimum is good, but I'm jumping ship with my larger portfolio.

@tonyjon they havent responded to my 2 emails just yet, I hear they don't respond to emails at that general email address that its best to call them, I'm about to just go ahead and call them. I wanted to contact my cousin at BGL who's a manager there for years but I don't like that they take 10% off your profits, pumping or any using them abeg can u confirm that?

I have a large portfolio with them(UBA) that is why am a bit disturbed. I have made up my mind to go with Vetiva  and then try to transfer my portfolio later. I was about injecting #1.2m today for First bank but with all these their nonsense, I decided to stop. I will use the money to open a new account with Vetiva.

Just keep me posted if there is any new development.

Peace.

@Naijadr,
Have you got in touch with vetiva?.

bigjay01:
Whoever knows the contact details of UBAS MD should please send them to me.

I did ask my relationship officer if I could transfer money to the stockbrokers directly and she said is not possible. Of course I know it is bulls**t (what if I am in nigeria and using another bank, would I not be able to do business with UBAS. I know they want to keep milking the COT)

NBA has UBA STOCKBROKERS LTD ACCOUNT NUMBER. I think he should post it on this thread so that people can send their money and mandates to them straight.

As per e-mail address, you can send the mail  through
Ubastockbrokers at ubagroup dot com and make sure you copy moradeke.ajayi at ubagroup dot com and charles.egbunonwo at ubagroup dot com.

Peace.

bigjay01:
@Naijadr

I wish i didnt register and moved a large amount of money (millions) to them. I thought they would be any good. They don't execute mandates until about 4 days (if at all). I don't know how they operate, I thought being a big bank they would be up to any good. Least impressed!!! I have even fallen out with my fairly good old stock broker because I was trying to move all my stock to them (UBAS).
If I know then what I know now, i wouldnt have gone with the, I would have gone with ZenSec or any other broker of that quality. At best, they should be used for for long term investments only. In a trading game you need a broker that executes a mandate same day tops. In the time is takes UBAS to execute a mandate, other folks using an efficient broker would have bought and got ready ready for another one. Time is of massive essence, one day is this game means a lot (how much more 4 days - 1 week). Profit is made on the purchase price.

I am f*****g raging. the only good thing I am getting from UBA is their UBA NRN account

I guess i have to get on with it, or I am getting what I pay for (250K opening bal.) I am ready to move to a good broker even if they ask for N5m

Would it help complaining to their MD or would I be shooting myself in the foot?. If anyone has anything good to say about UBAS, please say. this is my opinion

I will advice you to complain to their MD. I sent a mail to them today telling them how I feel about their services and  what we (NRN) expect from them.

The idea of going through a rep. is time consuming and a form rip-off because you have to pay into you current account and pay COT charges instead of paying straight to the stockbroking dept.

I think everybody using UBA STOCKBROKERS LTD should send mail to them to let them know that we(NRN) are not happy with their services.

Peace.

@ Father of 2,

What is your take on the folowing and If you have 1.1m to invest this week how will you distribute it.

1. Oceanic Bank Plc
2. First Bank Plc
3. FCMB
4. Fidelity Bank
5. Deap Capital.

Peace.

Naijadr,

What is the problem with UBA STOCKBROKER LTD?.

Peace.

@K2,

Please, let me have the contact information of your account rep at Cashcraft and I will want you to shed more light on how effective and efficient they are in terms of their services.

Because on this forum, a lot of people have criticized their activities. I think you're the only person that have a good report as per their operations.

Peace.

palemoon:
@all
I bought unity bank at 6.70 last year and I am considering selling it off this week. Is that a good idea?
Thanks

If you need money now you can sell but if your risk appetite is still high, you can hold on because there is this info going around that they will have their PO in March.

If it's true, there is tendency for them to whip-up the price before the PO. You can then sale at a higher price. But na wa for u, u bought unity bank without looking at the fundamental. Thank God u don make some money on it.

Peace.

@ All. Read this:

We’ll take control of NITEL’s destiny— CEO

By Aaron Ukodie, Deputy Business Editor

The management and staff of NITEL whose operating license is under threat of withdrawal by the Nigerian Communications Commission (NCC), have vowed to take control of the destiny of the ailing company.

They appear to be resolved to move ahead in efforts to wake up the dormant capacity and capability of the national carrier irrespective of what owners, Transcorp and the Federal Government do.


Transcorp, which owns 51 per cent and the Bureau for Public Enterprise (BPE), which holds 49 per cent on behalf of the Federal Government are about to shed their shares to accommodate a technical partner that may bring in the needed fund and expertise to revive NITEL.


NCC said on Tuesday that it will withdraw the operating license of NITEL if it fails within six months to revive its network to an appreciable level where it can now play effectively its role of a backbone to other last mile service providers.


In what appears to be a reaction to the NCC threat, the company’s Managing Director and Chief Executive Officer Abubakar Nahuche said that the Company must take control of its destiny to enable it meet the challenges of the telecommunications industry.


Nahuche who gave this charge in his New Year’s message to staff of the company, said NITEL is potentially wealthy and it has a lot of opportunities waiting to be recognised, appreciated, tapped and converted to wealth.


He identified the staff of the company as the first of such potentials whom he said are capable of lifting the "Company from its present state of hardship." He said it is a fact that other operators in the telecommunications industry poach staff from "NITEL’s pool of experienced staff".


The Chief Executive Officer said with the stabilisation of the national trunks and reconciliation of all interconnect issues in 2007, the Company shall in early 2008 concentrate efforts in mobilizing revenue from the top 20 per cent of the Company’s customers.


He said the billing systems are being overhauled to ensure timely and accurate bills, which he noted are fundamental to improved revenue collection. A basic fact in this process Engr. Nahuche said is that greater attention shall be placed on the prime status of customers as the reason for doing business.


Reviewing the activities of the company in the past year, Nahuche said the company had increased its capacity on the international undersea high capacity cable system usually referred to as SAT-3.


Also, during the past year he said, contracts were awarded for new retail billing servers to be installed in Abuja, Lagos, Enugu, Ibadan, Kaduna and Bauchi. He said work on the billing servers will be completed by the end of the first quarter of 2008.


Nahuche listed other major milestones in the past year to include the stabilisation of the national trunks adding that the feats were acknowledged and appreciated by even other operators in the industry.


He also identified the restored trunks at the Lagos-Ijebu Ode-Benin-Enugu-Abuja route, Abuja-Kaduna-Kano route and the Abuja-Makurdi-Enugu-Port Harcourt route.

oxfordkid:
@ololufemi

do you think i should swap my 50k access bought @ 2day's value for uba and re enter access later?i still be your little just got furtunate to dey oxford !my grammar self no suppose bring me here just been lucky! you be my ololufe 2!!!

Don't sell your Access now;hold on to it. It is a good stock and it will definitely rise again. There are some stocks you don't just do away with because they drop some steps downward. Let patient be one of your watch words and don't always follow the crowd.

Peace.

Shibrino:
@ all

This spring bank IPO, is it a good buy? I have some cash and I want to go for those shares that have 50% prospects in the nearest future. Your advice please

Sorry where did you get the information that Springbank is doing IPO or you're  talking about Spring Mortgage ltd?.

bigjay01:
@Wanaj0

When you say "wait for months result of First Bank and enter" what exactly do you mean? If the results come out and is good, would it not send the price northbound and may get out of reach? when exactly around the 9 months results is the best time?

Although Wanaj0 has spoken, I will like to tell you to enter now if u can wait for something to make some profit. I have entered already and am ready to wait and then make my profit. It is not going to easy chasing First bank stock when it starts to run. According to Father of 2, it not easy catching a moving train.

Peace.

@Father of 2,

What is your take on FBN and Oceanic bank?. Do you think it's wise to buy their shares now?.

Peace.

@Father of 2,

What is your take on FBN and Oceanic bank?. Do you think it's wise to buy their shares now?.

Peace.

@All,   Read this:
     




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Sunday, January 6, 2008  Printer Friendly Version

Secrets behind banks’ huge profits

By Chijama Ogbu


For Nigeria’s banking sector, it is beginning to feel like the good days are here. The capital market has become an easy recourse where they rush to raise money cheaply. Their performance indicators are pushing upwards as never before and their share prices have jumped to the ceiling. In many instances have burst through to the sky.

But just as the general outlook appears good, the bankers are beginning to tread dangerous paths again. Some of the practices that led to the banking distress in the early 1990s are inching back into the system.

Suddenly, we are back to the era of stupendous figures. If key performance indicators are not doubling or tripling, it is quadrupling. And just as one bank is rolling out astounding figures for one period, another is announcing some out-of-the-world results for the same or other periods. And these are usually heralded by a blitz of advertisements to properly situate and highlight the waltz up the performance chain.

These days, growth indexes are hardly supported by performance history or financial fundamentals. Figures just keep leaping to your face, as each bank tries to portray itself as a bank of prodigious abilities.

Most folks, who were of age in the late 1980s through the 1990s, when Nigeria experienced an unprecedented

rise in bogey banking, may not be exactly surprised. It was not difficult then to dress bad books to appear wonderful, most times beating even the eagle-eyed regulators. The same thing by varying degrees still happens now.

The big question: How do the banks come by these profits when other sectors are not doing well? The surprising thing is that you hardly see much activity in some of these banks reeling out these mind-boggling figures. Where then lies their secret?

I recently spoke with a banker, who was until recently a managing director of one of the new generation banks in the country. What he told me are the odd things banks do to make huge profits were quite revealing.

He told me that some of the profits being declared by the banks were mere paper profits, meant to deceive their shareholders. According to him, one of the ways they jack up their profit profile is to suspend major capital expenditure till they are captured in their financial report, only for it to be spent immediately after. That way it reflects on the account as part of the banks’ worth, when in actual sense the money is no longer there.

The former bank managing director said that he often wondered how financially gullible many Nigerians were. He said that it was difficult to understand how banks, which claimed to have made huge profits, could not declare dividends to the shareholders. He advised investors to always measure the liquidity of a bank by what it was able to pay out to the shareholders.

The truth, he said, was that many of them were not as liquid as they claimed. According to him, some of them made the N25bn minimum capital by simply giving loans to some directors and prized customers, who in turn bought their shares with the funds.

The bank chief said this exposed many of them dangerously, forcing them to rush back to the capital market shortly after to fill the holes created in their finances. He said that even some banks perceived by the people as very strong were affected.

But he admits that some of them actually rake in real cash from money laundering. According to him, some bank managers and the public office holders still collude to disguise slush funds as clean through an intricate web of transactions.

Many banks, he adds, are surviving largely on government-related businesses. He says such banks usually serve as a conduit for corrupt public officials to siphon illicit money, thereby making huge money for the bank and for top managers in the process.

There are many projects in the country today suspected to be owned by politicians through their proxies, who were helped by the banks in hiding the identities of the real owners. Take as an example the cases of the alleged corrupt governors. All of them were said to have siphoned money which they hid in or through the banks.

According to the bank chief, they also make some good money from different facilities, which they obtain from

multilateral development finance institutions and international import finance banks, which they usually borrow at London Inter Bank Official Rate (about three per cent) plus one per cent. This, they on-lend to their customers at above 12 per cent. The huge difference of about eight per cent they earn as profit and these are usually foreign currency-denominated transactions.

However, the most brazen of them, he further said, could go further. These ones will simply locate some accounts to which they clandestinely post charges. Usually, they study the pattern of transactions on such accounts to determine which one to exploit. This is why sometimes, for the few Nigerians that care to monitor transactions on their accounts carefully, you just see charges with nondescript headings posted to your account. Imagine what N5,000 posted in N50,000 accounts in one month can amount to in a year.

Besides, they also juggle figures and statistics to support the image they prefer to project. Sometimes you see three to five banks reeling out figures to justify their claims to one position or the other. A bank might emphasize the balance sheet size, another the assets size, another the deposit base, and yet another the profit size – to justify one thing: their being the largest bank in the country or being the most efficient or other claims that suit their whims.

In their corporate goal and strategy, more than 10 of the 25 banks say they want to be among the top five

banks by 2010. It is not bad to have high aspirations, but there is no way 10 banks will all be within the top five, unless some of them decide to coalesce in the form of mergers and or acquisitions.

The Managing Director of the Nigerian Deposit Insurance Corporation, Mr. Ganiyu Ogunleye, only about a fortnight ago, made it clear that some of the figures being bandied about by the banks were at variance with data in its possession. Meaning: the figures are spurious.

Although banking consolidation has boosted banks’ ability to perform, it is important that they focus more on core banking activities for their profit. Any bank that builds its future on tricks and fraudulent activities may discover one day that the game will be up. Banking is a serious economic activity, which the sector regulators must guard strictly.


FROM PUNCH NEWSPAPER.

@Pumping 777,

What is your take on Eterna Oil. I have done some reseach on it but I need second opinion.

Peace.

@ Wanaj0,

We gave you a good name to place you where you belong. You can see now that your level has changed and that is what every reasonable human being is praying for.

Always remember this thread where ever you maybe. You're a great asset to this forum and I pray that your level will continue to change for the better AMEN.

Peace.

@ ALL,

Where is STOCK FIELD MARSHAL WANAJ0?.

Peace.

@ naijadr,

NIG. GERMANY CHEMICAL don make u billionaire now oo. I envy u big time. I can still remember when u dey shout say make people buy when the price drop to #21.00k. Some listen to you and some nor listen o. The result don come o o.

I wish u good luck.

Peace.

@All, Read this.

Dangote Flour IPO oversubscribed by 520 per cent
By Emmanuel Onyeche

Published: Sunday, 6 Jan 2008

The Dangote Flour Initial Public Offer, which closed on October 8 last year, was oversubscribed by 520 per cent, the management of the bluechip firm has confirmed.

Consequently, investors whose request for shares in the company could not be totally accommodated would have the balance of their offer money returned with interest.

The Media Relations Manager of Dangote Group, Mr Joseph Okonmah, who disclosed this to Sunday Punch, said the rate at which the Group borrowed money from the banks as well as the final approval of the Securities And Exchange Commission would determine the interest to be paid on returned money.

”We are returning money with interest at a rate between five and seven per cent, and this depends on the rate we took money from the banks. Of course, all these things must get the approval of SEC,” he told our correspondent on Friday.

On the percentage of the excess funds from the oversubscription that the company is prepared to absorb as well as the pattern of allotment to successful subscribers, Okonmah said all that would also depend on the approval of SEC.

”We are not taking any position until SEC approves the allotment pattern, but I can assure all successful subscribers to the offer that Dangote will apply the principles of fairness and equity in all it does concerning the offer,” he said.

According to him, the company is expecting the approval of SEC next week, and it is thereafter that people will start receiving their allotment offers.

Between September 6 and October 8, Dangote flour, preparatory to its listing on the NSE, offered 1.2 billion shares to the public at N15 per share to raise N18.75bn.

In the offer prospectus, it was stated that 60 per cent of the offer would be preferentially allotted to identified investors.

This was reduced to 20 per cent by the company, which stated that investors demand had, within the first week of the offer, overwhelmed initial projections.

This increased the share on offer to the public to 1 billion ordinary shares out of the total share offering of 1.250bn, while the preferential allotment was reduced to 250 million

The company, which sought to raise N18.75bn may have, by the oversubscription, pooled about N116.25bn.

Due to regulatory requirements, it cannot absorb all the excess funds and may have to refund as much as N48.75bn if it absorbs 50 per cent of the excess funds.

A subsidiary of the Dangote Group, Dangote Sugar Refinery, had made history in 2006 as the only company to have paid interest on returned money following an oversubscription.

Then, it offered 3 billion ordinary shares of 50 kobo each at N18 per share in what was described as the largest Initial Public Offering in the history of Nigeria as it sought to raise N54bn.

It was oversubscribed by over 300 per cent and the company returned money to its subscribers at the rate of 10 per cent, an action that earned it commendation from the Nigerian Stock Exchange.

Besides the Dangotes, other companies that have returned money to subscribers as a result of Oversubscriptions, though with no interest attached, include May and Baker, in 2006, when it raised N1.5 billion by way of offer of subscription of 375 million ordinary shares of 50 kobo each at N4 per share.

A reoccurring decimal which worries investors in the Nigerian Capital market is the issue of oversubscriptions and the returning of unabsorbed excess funds.

Investors also worry about the delay in the release of share certificates by issuers, some of whom use them as a ploy to tie down people‘s money.

Printer Friendly Version

@ all,

As regards FCMB, I think one should start preparing to sell and re-enter later. It's good to lock-in profits and re-invest.

I sold 40,000 units today and I will keep the remaining till next week.

I think the name of this business is make money no matter how small but don't lose money.

Peace.

@Ololufemi,

Did you receive my e-mail. If not, check your yahoo box, I sent a mail to you today.

Peace.

Hello Everyone,

Happy New Year to all the members of this great forum. I pray that the Most High God in HIS infinite mercy will lead each and everyone of us to our CANAAN LAND this year, AMEN.

@ FATHER OF TWO, I can see that you have great confidence in CCNN, please could you shed more light on why you think one can still join the train at the present price(#23.00K).

And as per UBA, how far do you think it can go between now and February before it starts to drop again.

Peace.

Hello Everyone,

Happy New Year to all the members of this great forum. I pray that the Most High God in HIS infinite mercy will lead each and everyone of us to our CANAAN LAND this year, AMEN.

@ FATHER OF TWO, I can see that you have great confidence in CCNN, please could you shed more light on why you think one can still join the train at the present price(#23.00K).

And as per UBA, how far do you think it can go between now and February before it starts to drop again.

Peace.

FatherOF2:
http://www.cscsnigerialtd.com/forms/good_to_subscribe.pdf

What is the Clearing House number?

It is a unique code that consists of numbers and alphabets generated by the CSCS to uniquely identify a client

http://www.nse-cscstradealert.com/FAQ.htm

The explanation above does not mean that it is your CSCS account number.

Peace.

@FATHEROF2,

I beg to disagree with you as regards which number to write on IPO/PO application forms. The correct number to use is the NUMERIC and not the ALPHANUMERIC as you mentioned in one of your posts to Ololufemi. The NUMERIC is your personal account where the share goes into,while the ALPHANUMERIC is your clearing house number.

Peace.

Pumping 777,

If you are to buy stock from the insurance sector now,which of them will you choose and why?.

Peace.

Hi Wanaj0,

Please, quickly finish up and come back. We don miss you seriously.

Peace.

Aktopgun,

Congratulations!

For it's written: Lo, children are an heritage of the Lord: and the fruit of the womb is his reward. As arrows are in the hand of a mighty man; so are children of the youth. Happy is the man that hath his quiver full of them: they shall not be ashamed, but they shall speak with the enemies at the gate.

Based on these eternal words of GOD, I pray that OLUWATAMILORE TOBECHUKWU will be a great source of blessing, strength and courage to you, your family and the entire human race.

WELCOME TO THE CLUB.

Peace.

Hi,

Manage it yourself;It is your money. You have a lot to learn within a very short period if you handle it by yourself and it's usually a worthwhile experience.

Peace.

@Lawalidowu,

Try this website-www.ubagroup.com/stockbrokers/docs/stockrecommendation.pdf

Peace.