feelamong:


Oga show am ur cash flow statement na

Na Godwin

Reddit:
SEC Approves Stocks Can Now Trade At One Kobo Per Share. Here Is What It Means

Do you remember what 1 kobo looked like?

The Security and Exchange Company has finally approved for the Nigerian Stock Exchange to move the 50 kobo floor a stock can trade at to as low as 1 kobo.

The Rule states that “notwithstanding its par value, the price of every share listed on The Exchange shall be determined by the market, save that no share shall trade below a price floor of one Kobo per unit (N0.01)”.

The NSE had announced plans for shifting the floor price and was merely awaiting SEC approval to begin. However, SEC did not disclose details of how NSE is expected to proceed. We will have to wait for NSE to provide details as to when it plans for the new floor price to become effective.

What it means?

Currently, the lowest Nigerian stocks can trade for is 50kobo. That is no matter how much a share price drops it can never drop below 50 kobo. It is unclear how 50 kobo was selected as a floor price but it perhaps explains why most quoted stocks have a nominal price of 50 kobo per share.

With the floor set to be moved to 1kobo (N 0.01) stocks can now drop to as low as One kobo per share if the markets deems the price to be so.

Why the change?

There are several reasons why it makes sense to move the floor from 50 kobo to 1 kobo however one stands out to us. A share price of 50 kobo per share can be artificial and thus means some stocks are expensive. Imagine you hold a stock that trades at 50 kobo per share and no one is willing to buy at that price. The market probably feels it is worth lower. With the stock trading at 50 kobo per share no one is interested in buying even if the seller is willing to sell for much lower. Now that the floor is reduced by 98% to 1 kobo per share, there is room for buyers and sellers to bargain more thus creating more liquidity for the market.

What are the implications?

The implications are far-reaching and in fact could trigger a massive sell-off in the early days and weeks of its implementation. Lets explore what could happen

Penny Stocks – Investors with a lot of penny stocks in their portfolio could be among the first to be hit by a sell off. Stocks between 50 kobo per share and N1 per share could be in the firing line as investors reassess their values.

Illiquid stocks – Stocks that have remained stuck at 50 kobo per share could also begin to see some movement as investors who have held these stocks for months or even years may have their stockbrokers place a sell mandate. Some mandate could even be at any price further depressing value.

Nominal Values – It is very likely that some company could decide to reduce the nominal value of their shares to 1 kobo per share via a scheme of share reconstruction. That way they could escape the wrath of a massive value accretion. Whether that will be possible will depend on the regulation that SEC proposes around this.

Fund raising activities – Fund raising activities could also be significantly affected by this move. For example companies looking to embark on IPOs or Public Offers may have to list at a much lower price per share meaning that they will have to increase their shares outstanding to accommodate the value that they seek. This leads to the next point

Registrars – these guys may also need to re price the fees they charge for their registrar business. For example, if a company needs to raise N10 billion at 50 kobo per share, it will need to sell 20 billion units. At 1 kobo per share it will be 1 trillion shares. That is astronomical and could create a reconciliation headache for most registrars.

Your Portfolio – Those who have portfolios dominated by penny stocks may have to reconsider their portfolio mix as they might be the first to be hit. If penny stocks get pummeled like we suggest, then portfolios that have a large constituents of penny stocks will decline massively in returns.

Source

so guys with the above rule..is it safe to buy penny stocks now or after the rule has taken effect?

Yes am through with today business, it is very ok for Jijo group, not like the previous days.

pythondjango:
chibu! chibu!! chibu!!! chibubear!!!!!!!! hmmm you dey make me laff so tey i mistaken skirt for trouser!

Ha ha ha... nsempa no go kee pesin.

Moneysage:
@Aloaye: With all humility and utmost respect for the person of Masiyiwa, I find some of these quotes that surface during the Bears amazing (I won't say amusing)

Except he is talking about buying IPOs, then being an OWNER has never been less risky than being a TRADER. Does he have investments in Nigeria, where OWNERS can wake up one day and see a 100 for 1 share reconstruction?

Capital market investment has never been more than basic principles: WHY do you want to buy a stock? WHEN do you plan to quit the stock? WHAT will you do if situations turn out contrary to your plan?

These questions apply to TRADERS, INVESTORS, OWNERS, BORROWERS, LENDERS, COWBOYS, MEN IN BLACK, FUND MANAGERS... name it.

True talk, I thought so too, na him and Warren Buffet suppose dey talk those kind talk .....Tho, Masiyiwa's perspective I think helps reduce some tension that could come with bears,considering also @MyJoy's perspective on Dividends and bonus..all the same DD and Balance is what counts on all trading.

angelo82:
http://www.proshareng.com/news/27366/NSE-Clarifies-the-Effective-Date-of-SEC-Approved-Rules-Proshare

INTERPRETATION = Application of New Rule still a long tortuous way off.

Learn Africa don pay o!

Registrar: First Registrars

carpenter:
Learn Africa don pay o!

Registrar: First Registrars

Same here.

Is anything happening in wema? Have gain 2 days in a role

9free:


My Prophet, that money high for myjoy08 nah. I no go mind Mercylicious Mercy for that amount sha...

9free:


My Prophet, that money high for myjoy08 nah. I no go mind Mercylicious Mercy for that amount sha...

zendi:
Even if skye should end up with 24b OS as you suggested, it will still be minimal relative to other tier 1 banks, all of which have 30b and above OS. Dilution from last capital raising took accessbank's OS to 30b if I'm not mistaken. But knowing the skye management-they don't like outsized OS from time-and if they are lucky with market condition, they will find a way to wrap it up at sub 20b OS, making skye(+mainstreet) a monstrously cheap mega bank.

Do we really think Skye+Mainstreet = Tier 1 bank?
I don't know much about Mainstreet bank after the fall of Afribank but I have a feeling it wouldn't have what it takes to perpetrate this transformation on the back of the acquisition.

If anyone has a clearer picture of Mainstreet bank, please let the house in.
Thanks.

edwardaigb:
Is anything happening in wema? Have gain 2 days in a role

Conspiracy theory.
Maybe it wants to meet up with d best friend-unity bank. U know both are apc- sw factor. Or d fear of 1k has made some owners stir up a rally to jump out as stipulated by d sage himself- moneysage.

[quote author=myjoy08 post=34455469]The moment we see NSEMPA forum muted, it means BNSITL are taken positions .

Sir, Please kindly advise if one has N20M to invest in the capital Market and with a time frame of 6 months to 1 year to with an ROI expectation of minimum of 60 per cent.

How best should one invest it.

What Strategy(ies) should the person employed.

Which stocks should one look at and at what times, prices (in and out) and for what levels of return expectations.

What other factors should the person also consider for overall success.

I will appreciate your invaluable guide.

Also comment of my other Gurus in the house is welcome.

Thank you all as we all embark on making Interesting Real Money this year.

ceeteed:


Sir, Please kindly advise if one has N20M to invest in the capital Market and with a time frame of 6 months to 1 year to with an
ROI expectation of minimum of 60 per cent.

How best should one invest it.

What Strategy(ies) should the person employed.

Which stocks should one look at and at what times, prices (in and out) and for what levels of return expectations.

What other factors should the person also consider for overall success.

I will appreciate your invaluable guide.

Also comment of my other Gurus in the house is welcome.

Thank you all as we all embark on making Interesting Real Money this year.

I'm sorry to tell you that's not going to happen in the nearest future. No strategy can give you such ROI expectation in NSE within that timeframe.

Bros carry that give Mercy and reach an agreement on how many kiss she go give u per day. I think you will be more happier than when you lose it trying to make a fast money in a short time. LOL..............

anyanwu58:
Bros carry that give Mercy and reach an agreement on how many kiss she go give u per day. I think you will be more happier than when you lose it trying to make a fast money in a short time. LOL..............

Bros, welcome from your sabbatical leave. Hope you did get married last year.

While I share the fun in your post, permit me to mention that I was expecting you to link Mercy with JIJO. She's a jolly good fellow (discount the stalking by Agbalowomeri ) and shouldnt be linked with such service, without proper caveat.

I haf tayered.

mercylicious:
I haf tayered.

SITL, when is Nascon dividend dropping?

What God has joined together ..............

Mercylicius tnx

angelo82:
I just received the document in my mail from UBA capital....................I want you to tell me of what benefit will this stock be to you except if you are aiming at benefiting from the misfortune of others?............

Sir, I have some units of stocks parked. I would want to sell but I can't. As long as the market feels #0.50k is too expensive for them to buy my shares, I can't sell.
So, what this new rule does is to allow market forces determine prices of stocks, those who want their money not minding a loss can have it while those who want to sell at nothing less than #0.50k can wait for the market to price it up. They don't lose anything because if it had remained at #0.50k, they wouldn't have been able to sell either. In any case, they don't lose any value until they "voluntarily" press the sell button.

Viewing this topic: soloniger(m)

soloniger:
Viewing this topic: soloniger(m)

U are very funny. Money never sleeps.

DeRuggedProf:


SITL, when is Nascon dividend dropping?

I didn't do nascon this year.
Check d payment date.

@house, has Skye bonus been credited?

Summer vacation loading ...........

Bros, welcome from your sabbatical leave. Hope you did get married last year.

While I share the fun in your post, permit me to mention that I was expecting you to link Mercy with JIJO. She's a jolly good fellow (discount the stalking by Agbalowomeri ) and shouldnt be linked with such service, without proper caveat.



Bros OANDO and Morgan no let my Honeymoon sweet last year. Is very painful loosing half of ones fund that is why am advising this bros.

Reddit:


I'm sorry to tell you that's not going to happen in the nearest future. No strategy can give you such ROI expectation in NSE within that timeframe.

Shuu


I wonder when NSE turn to blood money.

Guys are eager to use basket to fetch money.

question:
NSE All Share Index -Monthly Candlestick, 2006 to 2013. The cycle is about to repeat.

Please, where did you get this chart from?

I need a chart that uses customised indicators, that I can use my own indicator on. Help a bitl.

Let's get ready to roll this week...Costain.