@diva-teva

Seller's Fee Buyer's Fee

IBTC Asset Management 2.22% 1.8850%
Zenith Securities 1.8250% 1.575%
BGL Limited 2.6475% 2.355%
Vetiva Not sure

@ Tmoni and others suggesting a fund managed by frankiriri et al
I dont think most people put their money where their mouth is. Frank iriri has an investment club and I am not sure many of those on this site have even subscribed to it talk less of making financial contributions.
Also the discussion on the non verba ( whatever) club has just been going round in circles.
Even if the fund were started how would you merge the styles of a frankiriri with a wanajo. Remember they had a little tiff onanother thread a while ago

@Bigboylary

[/quote]
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@ ALL
Can somebody shed more light on this info: Skye shelter fund goes public, offers 80 per cent dividend

Quote
SKYE Bank Plc has concluded arrangements for the public Offer of N2 billion Skye Shelter Fund (SSF) with a promise of 80 per cent of realised income to be paid out yearly as dividend.
   [quote]

Is there any news on this offer?

Found something about it today without a date stating that its opened. See link below.

http://www.nationalmirrornews.com/mirror/content.php?section=4&readnews=13&story=8092

Does anyone knows if its now open.

Amjiving:

@ Tmoni and others suggesting a fund managed by frankiriri et al
I don't think most people put their money where their mouth is. Frank iriri has an investment club and I am not sure many of those on this site have even subscribed to it talk less of making financial contributions.
Also the discussion on the non verba ( whatever) club has just been going round in circles.
Even if the fund were started how would you merge the styles of a frankiriri with a wanajo. Remember they had a little tiff onanother thread a while ago

I think you have the wrong thread. The comment was posted on the ' stock market tips for Nigerians'
That notwithsatnding you have a point there. A lot of people are all noise and no action.
I have however made up my mind to push ahead whether or not people join me in this race for the future.

frankiriri:

I think you have the wrong thread. The comment was posted on the ' stock market tips for Nigerians'
That notwithsatnding you have a point there. A lot of people are all noise and no action.
I have however made up my mind to push ahead whether or not people join me in this race for the future.

Frankiriri, be encouraged in your drive. I beleive it will work well.

I belong to anotehr investment club. We have only 7 members. We incorporated it as a company because of teh long procedure of incorporating a club. We contribute 50k monthly. Started almost two years ago. Missed only one months contribution since we started.

I joined the investment club basically to provide others opportunity to learn. It was a way of introducing people to investment.

Yes there are problems with manging temperament, risk profile etc. However, it is always good if it is made up of friends who will not allow money to destroy the friendship.

@Panadol

Does it mean the selling and buying price varies with each broker?
if yes, , why so?
my broker charges 2.36% for buying and 2.61% for selling, i would like to know if i am being short-changed. if there is a standard charge recommended by SEC, pls i would like to know.

ACCESS BANK PUBLIC OFFER (RECOMMENDATION)

This is a recommendation on the upcoming public offer of Access Bank Plc and some selected indices used for this recommendation.
Access Bank public offer will be out next week and will be raising about 70 billion naira.
Buying the shares at N14.90k will mean getting about 67.79% discount from it’s fair value of N25 (IBTC Research) and 29.67% from its Market Price.

Recommendation : BUY
Offer Price : N14.90
Market Price : 19.32
Fair Value : N25.00
Discount from fair value : 67.79%
Discount from Market price : 29.67%
Projected Price (2008) : N30.00

PE (2007) : 22.2 Industry Average: 37.7
Forward PE (2008) : 14.78 Industry Average: 22.51
Shares Outstanding : 6.978 billion
Market Capitalization : N134.818 billion
Stock Price Volatility : Medium (0.41)
Liquidity : High

Price to Book : 4.67 Industry Average: 5.73
PAT (2007) : N6.083 Billion
Projected PAT (2008) : N9.124 Billion
EPS (2007) : N0.87
Projected EPS (2008) : N1.30
Dividend Yield : 2.07% Industry Average: 2.38%
Projected Dividend Yield (2008) : 3.59%

@ EMMAACHILE,
no offense, but these numbers are biased toward encouraging people to participate in the PO. I must admit, I'm shocked by Access banks OUTSTANDING results, but I have issues with the numbers posted:

A forward EPS of N1.3? If they make N9.1B next year and they sell the 4.72 billion shares on offer, they'll have 11.7B outstanding shares and an EPS of 78k, less than the current EPS. They'll probably sell more than 4.72 billion shares (if the offer is successful) and the EPS will be even lower (than 78k). But then again, I think the forecast of N9.1B might be a little low, so maybe it's all a "wash".

Now that I see the results, it looks like Access PO may be a buy (that sound you hear is me eating crow ) because you'd be buying at a forward PE of ~19.5 which is much lower than most of the banks out there. But I still say no to POs.

It's good to be back. 1 week of training followed by one week of travel!

Does DSR has the potential of giving 1:1 bonus at its end year?

Companies are in the habit of using media blitz and other tactics to "hype" their offers so people can rush to buy.

Case in point: The First Bank Offer.

One of the strong points used in the media campaign was the 1 for 1 bonus.

A layman will simply rush in to buy just on hearing this. Not knowing that such hefty bonuses increase the no.of outstanding shares and makes it harder for the company to produce good earnings per share. (a key point for those seeking capital appreciation).

So as Easimoni has said, it is better to look well before you leap into that stock. Sometimes public offers are not the best when seeking good returns on a particular stock.

To all the gurus in the house. I think I made a mistake when placing orders for some shares. I bought some shares in Dangote sugar @ N55, Crusader @ N6.5 and RTBriscoe @ N29.5 but since when I bought the shares, the price has done nothing but surge downwards. do you think I should place a sell and count my losses or I should wait it out in hope that it is a good stock on the long run. I don't want to lose money and I also don't want to lose more money. So I would like an advise on the best thing to do now with this shares. Your opinion counts. Thanks

Of the three companies you mentioned , i only could say something about Dangote sugar . I think its not a mistake for u to buy dangote sugar , but if u would have need for that money for some immediate needs , then it may be better for you to sell, if not , i suggest you leave it for now as the fundamentals of the company are still very much there .

Hello all,

im new about shares and stocks although i've heard about it from my friends,i need to know from you guys doing it,how it works and when is the best time to buy shares,the procesure and how can i buy shares because im not in Nigeria?

ur advice will be very appreciated,
Thanks,
Evept

@ ALL

The following companies will be coming to the market very soon can we digest and made comments on which one to put our money in and why:

Diamond Bank, Access Bank, Fidelity Bank, GT Bank,

Obajana Cement, Dangote Flour, NAHCO, CCNN,

Capital Hotel, IGI, Nigeria Reinsurance, Nitel, Ecobank, ETI,

Kaduna Refinery, Port Harcourt Refinery, Japaul Oil & Maritime Services, Guaranty Trust Assurance,

Morison Industries, Skye Bank, FCMB, Continental Reinsurance, Wema Bank, Spring Bank,

Design Union Developing Limited (a key player in the real estate sector)

Costain West Africa Plc are expected to come to the market through initial public offers or public offers.

BIGBOYLARY:

@ ALL

The following companies will be coming to the market very soon can we digest and made comments on which one to put our money in and why:

Diamond Bank, Access Bank, Fidelity Bank, GT Bank,

Obajana Cement, Dangote Flour, NAHCO, CCNN,

Capital Hotel, IGI, Nigeria Reinsurance, Nitel, Ecobank, ETI,

Kaduna Refinery, Port Harcourt Refinery, Japaul Oil & Maritime Services, Guaranty Trust Assurance,

Morison Industries, Skye Bank, FCMB, Continental Reinsurance, Wema Bank, Spring Bank,

Design Union Developing Limited (a key player in the real estate sector)

Costain West Africa Plc are expected to come to the market through initial public offers or public offers.

You forgot to include PHP Platinum bank and Wema bank is facing the prospect of a foreign partner having a substantial if not controlling equity so watch the space!

Hi All,
I say we make our posts inclusive. For instance the post by EMMAACHILE on Access bank's data had me staring without understanding, the reason for this is the deluge of acronyms. I'm new here (the forum as well as stock trading), I would like posters to aid understanding of their posts by putting full words of their acronyms in brackets.
While reading EMMAACHILE's Post, acronyms such as PE, PAT & EPS flew completely past my head. Please help!

wel actually gtb is already out as of this morning. they are selling global depository receipts. am not sure where they can be purchased .minimum of 80,000 for investment and ends on 19th july 2007.
personally, i think wema ,obajana, japaul are my picks

Is it just me or is anyone else fed up of IPOs especially when it takes them months to get my allocations.

How about giving me some interest for the 6-12 months they keep my money.

Oceanic is yet to digest in my stomach and I have not finished chewing First Bank, now fidelity, guaranty, FCMB, Dangote (some have not even got their DSR certs yet o) and they are all claiming to be good buys.

I will go with easimoni and enolase my belly is fool of IPOs let me buy and sell on floor. I mean in the time my money has been locked away in Oceanic's recent offer I have made good profit on floor shares which I can sell anytime if I need the money.

enolase:

Companies are in the habit of using media blitz and other tactics to "hype" their offers so people can rush to buy.

So as Easimoni has said, it is better to look well before you leap into that stock. Sometimes public offers are not the best when seeking good returns on a particular stock.

shigidi:

wel actually gtb is already out as of this morning. they are selling global depository receipts. am not sure where they can be purchased .minimum of 80,000 for investment and ends on 19th july 2007.
personally, i think wema ,obajana, japaul are my picks

Not quite correct as per the local portion of the GDR $250M dollars the pricing range will be given on 11.07.07 and exact pricing by 20.07.07. Quoted on the LSE(London stock exchange) and dividends paid in dollars.

For the details of GDR please visit --------------->http://www.proshareng.com/myproshare/portal_articles.php?id=1157

Iwerebor:

Hi All,
I say we make our posts inclusive. For instance the post by EMMAACHILE on Access bank's data had me staring without understanding, the reason for this is the deluge of acronyms. I'm new here (the forum as well as stock trading), I would like posters to aid understanding of their posts by putting full words of their acronyms in brackets.
While reading EMMAACHILE's Post, acronyms such as PE, PAT & EPS flew completely past my head. Please help!

@Iwerebor
PE = Price Earnings

PAT = Profit After Tax

EPS = Earnings Per Share

If you are bothered about reading financial statement you will need to spend time to educate yourself.
Okay so what you know that the acronym EPS = Earnings Per Share what good does that do to you if you don't know it is comparative within a sector

You get my flow, if you want to bother about numbers then you really need to be bothered, there are a few sites that you can get info on just google up.

RoughCut:

Not quite correct as per the local portion of the GDR $250M dollars the pricing range will be given on 11.07.07 and exact pricing by 20.07.07. Quoted on the LSE(London stock exchange) and dividends paid in dollars.

For the details of GDR please visit --------------->http://www.proshareng.com/myproshare/portal_articles.php?id=1157

I read the article and found it tough to follow. I think I understand what a GDR is (and kudos to GTB for thinking out-of-the-box) but how many additional shares will be listed and when? I think someone who is knowledgeable should start a new thread to address this and keep us posted as things develop.

Iwerebor:

Hi All,
I say we make our posts inclusive. For instance the post by EMMAACHILE on Access bank's data had me staring without understanding, the reason for this is the deluge of acronyms. I'm new here (the forum as well as stock trading), I would like posters to aid understanding of their posts by putting full words of their acronyms in brackets.
While reading EMMAACHILE's Post, acronyms such as PE, PAT & EPS flew completely past my head. Please help!

Go to www.investopedia.com 

Look under "dictionary" and and read up on the definition of each of those terms. You need to make that site a good friend. People on this site and others in the financial world will not explain every acronym each time they use one

easimoni:

I read the article and found it tough to follow. I think I understand what a GDR is (and kudos to GTB for thinking out-of-the-box) but how many additional shares will be listed and when? I think someone who is knowledgeable should start a new thread to address this and keep us posted as things develop.

Nice to have to have you back easimoni missed your precise and articulate analysis.
There is a phone number i can call regarding this GDR and hopefully i can make some sense out of them @GTB so we will start a new thread under www.investopedia.com I found it hard going myself!

This is a MUST read for everyone:

, Regrettably, the reality on ground in Nigeria does not exactly tally with the above sanctimonious pontifications. The real life experiences that exude from any interface with Nigeria's post consolidation banks is to say the least, less than laudatory and still way below the mark of acceptable global banking standards. It is appalling, indeed lamentably appalling that three years after the consolidation gong was sounded in the Nigerian banking sector and with a preponderance of branches, endless queues and needless suffocation in the banking halls are still common sights in Nigeria's major banks. A recent experience of a crowd that far exceeded the capacity of the hall of one of Nigeria's top banks and the attendant risk of losing consciousness in the milieu, confirmed to me in the very clearest terms, the possibility of an early return to the culture of bringing sleeping mats to the banking halls for transactions.

The usual facile mantras readily mouthed by bank officials are "our systems are down", "there is network failure", "the ATMs are faulty", or worst still, "our UPS is down as a result of prolonged power failure". In an age where technology-enhanced bank halls across the world have become synonymous with serenity and swiftness coupled with highly effective automated teller machines facilitating the creation of a cashless society, Nigeria's mega banks still wallow in the cesspit of inexplicable network failure which automatically leads to congested bank halls and decrepit and docile ATMs. In most banks where insignias of ATM 24/7 are boldly inscribed, the machines have become defective monuments, swallowing cards without vomiting cash while at the same time deducting the amount requested. One of Nigeria's big banks has an intimidating register of trapped cards written in three voluminous notebooks all in a single branch! A top-flight banker with one of Nigeria's big banks recently confided in me that Nigerian banks are yet to fully come to terms with the requisite sophistication for efficient ATM services and as a result, he personally avoids the use of ATM while in the country.

Nigeria: Of Local Banks And Their Phoney World-Class Status

http://allafrica.com/stories/200707090072.html

, Yes I did, because in spite of Okereke-Onyuike’s rosy outlook, the Nigerian stock market is bound to bottom out in the months ahead because the fundamentals just do not add up. First and foremost, a capital market cannot be isolated from the environment in which it operates. The market, according to Financial Derivatives Company, an investment and economic and financial advisory firm based in Lagos, was by June ending trading at 43.67 times earnings, which when factored against real or nominal GDP forecasts for the year of some 6 per cent, does not justify the stock market rally. Second, dividend yields on actively traded sectors like banking are on average falling because their earnings relative to share capital are weak. In fact, with dividends yields in the market falling to an estimated 3 per cent (as against bond yields of 14 per cent), this should make a stock market plunge inevitable as investors will begin to look for more attractive avenues in which they can invest their funds.

http://odili.net/news/source/2007/jul/9/209.html

@ Omoba3,
Here is my pet peeve again; people using stats in a misleading way. Stocks don't have a yield of 3%. stock yields are dividends + capital gains. As long as a bank (or any other stock) continues to grow it's earnings at 50+% p.a., it'll remain the most attractive investment vehicle in Naija. That a correction is coming is not news. You can see the market slowing down already. The rash of mega offers (each one larger than the last one) may precipitate a slight correction but I don't see anything else that could cause a crash.

@ Easimoni - I like the fact that you think outside the box. I quite agree with your take.

While I beleive that most stocks are over valued, I still agree that the stock market remains the best investment vehicle available.

frankiriri:

While I beleive that most stocks are over valued, I still agree that the stock market remains the best investment vehicle available.

I agree. We need to get back to the purpose of this thread: advising on what to buy. Will consult the oracles (actually my excel files ) and get back to y'all v soon.

BTW, here is something I found on Proshare that may be useful to you IPO/PO junkies

"Diamond Bank, Access Bank, Fidelity Bank, GT Bank, Obajana Cement, Dangote Flour, NAHCO, CCNN, Capital Hotel, IGI, Nigeria Reinsurance, Nitel, Ecobank, ETI, Kaduna Refinery, Port Harcourt Refinery, Japaul Oil & Maritime Services, Guaranty Trust Assurance, Morison Industries, Skye Bank, FCMB, Continental Reinsurance, Wema Bank, Spring Bank, Design Union Developing Limited (a key player in the real estate sector) and Costain West Africa Plc are expected to come to the market through initial public offers or public offers."

http://www.proshareng.com/myproshare/portal_articles.php?id=1159

All I can say is WOW!

@ Oseitutu,
wise, v wise. The problem is human nature. Do you want to pull out and see your (ex-)portfolio climb another 50%? Case in point; I sold Japaul at N3. I think knowing the right time to pull out will be the challenge. As per land, you need to be v careful there, esp. in Lagos.

@easimoni

is this to say we should divest from the banking sector and move into other areas



my parents(case in point) have got lots of shares in banks and are still buying
though they are looking to longterm returns

@ Salsera,
I wouldn't advise pulling out of banks; just be careful about which banks and account for shares yet to be listed when doing your math (if you are speculating). Banks are mostly solid and are growing at a v good pace. But the PEs are v high so diversification is a good idea.

I have been reading and enjoying expertise investment analysis from this wonderful forum. This is just a synopsis of Nigeria potential and what we came become. Kudos to you all!
I puchased Wapic Insurance and Intercontinental Bank stocks sometime in September 2006. I have not received my stock certificate. Does any one know about the certificate whereabout?