@ Temmie10,

Crusader Ins 3.257B shares , PE = 32
Cornerstone Ins  5.06 B shares, PE = 48

Not so impressive now eh? These are from FSDH, I'll be sure to do my own and let you know if it's different.

And "The Warren Buffet Way" is a GREAT BOOK. Must read. Helped me realize that diversification = mediocrity. I now focus 60-70% my holdings in 2 stocks and the rest in 3-4 additional stocks.

I have found this site to be very enlightening. I have a question and I have utmost faith that I will get an answer here:

If I open an account with a stockbroker and ask them to buy stocks for companies going to the market to raise funds such as JaPaul and Access Bank, will I be able to sell the stocks once the stock offer closes? Or will I have to wait till I get the stock certificate?

Thanks

easimoni:

@ Temmie10,

Crusader Ins 3.257B shares , PE = 32
Cornerstone Ins 5.06 B shares, PE = 48

Not so impressive now eh? These are from FSDH, I'll be sure to do my own and let you know if it's different.

And "The Warren Buffet Way" is a GREAT BOOK. Must read. Helped me realize that diversification = mediocrity. I now focus 60-70% my holdings in 2 stocks and the rest in 3-4 additional stocks.

Thanks for checking for me,
when will naija companies realise that bonus and new public offers drain and reduce the value of existing shareholders seriously, as well increases cost of capital significantly?
Seeing that you have read the book, i understand why our analysis sees agreement many times.
If all stockbrokers in naija would just read the book, they will stop punishing the common man by allocating an alphabet soup of every stock on the nse to the average joe with 200k.

Quote from my Lead Capital report of Today

Afribank, which emerged for the umpteenth times as the most traded stock, also gained maximum points, fueled by expectation that the stock would soon be placed on technical suspension, in anticipation of its public offer.

Are these people crazy? You place a stock on suspension for 6 months because of a planned PO that never materialized, cancel your plans so your stock can rise and then go right back and do a PO? Might be gist anyways, but still

whitelexi:

I've noticed that NAHCO shares are on a downward plunge, I've always wanted to invest in that share especially when it was around N36 but my broker advised to wait until the price drops below N20. I never thought the day will come when the price would drop, but i've watched in surprise as it has been dropping all week!
Its the first broker that has actually said something reasonable about shares to me, and i'm pleased with his judgement, but i'm wondering what the guarantee is that it wont continue dropping even after i invest!

Can someone please explain what is wrong with NAHCO?

The shares of Nigerian Aviation Handling Company Plc (NAHCO) was today placed on technical suspension following the receipt of an application for an Offer for Sale at N17.50 and Rights Issue at N16.50 per share

Additional 108,428,571 Ordinary Shares were added to the shares outstanding in the name of United Bank for Africa Plc (UBA), following the conversion of US$18 million convertible loan stock granted to the bank by PAID-PCAP SUB2 Limited.

donne4real,

You would have to wait for the share certificate to be issued first, before you can trade.

To All,

I just spoke to my stock broker and i was told fidelity is still very much avaliable on the floor even though it's on TS.

The problem is, i don't know why people are selling now, when they can sell after the Technical suspension OR is there something going on we don't know about

History shows that after TS, price always rise to the roof apart from Transcorp case.


PEOPLE PLS RESPONSE WITH SOLID FACTS AND FIGURES

EMMAACHILE:

The shares of Nigerian Aviation Handling Company Plc (NAHCO) was today placed on technical suspension following the receipt of an application for an Offer for Sale at N17.50 and Rights Issue at N16.50 per share

Additional 108,428,571 Ordinary Shares were added to the shares outstanding in the name of United Bank for Africa Plc (UBA), following the conversion of US$18 million convertible loan stock granted to the bank by PAID-PCAP SUB2 Limited.

EMMACHILE,
Would you advise a brother who is already losing on NAHCO to cut his losses and bail out? Or would you advise a hold for the time being?

So Right now, I have stocks like crusader, nem, nahco, mbenefit, vitafoam, e.t.c all at very small rates each. I plan on selling all of them just to get access bank in large quantity. please I would like your honest opinion on what to do.

Also would it be wise to buy stocks such as gtb, fcmb now? what about oceanic and afribank?

I believe Access bank is a good buy. January next year it should be selling for at N29 at least. My only concern is how long it'll take them to release share certificate. For some inexplicable reason, they seem to the the type of company that'll hold on to share certificates forever.

I think Afribank is currently overpriced. Oceanic I think is a good buy long and short term. FCMB is also solid, with their ipo approaching, should be a good buy.

EASIMONI, FRANKRIRI, TEMMIE10 and others,

I just spoke to my stock broker and i was told fidelity is still very much avaliable on the floor even though it's on TS.

The problem is, i don't know why people are selling now, when they can sell after the Technical suspension OR is there something going on we don't know about

History shows that after TS, price always rise to the roof apart from Transcorp case.

ty_ademolu,

I would like to buy your mbenefit, pls let me know when you want to sell. Thanks

slay kay, people are selling their fidelity cos theyve made profit and dont want to wait for another three months before the ts is lifted, just give it some time, the net offer will soon turn to net bid(in a month or so)

@ oshkosh, thanks for your help the other day on oceanic. what price do u see fcmb acheiving b4 its placed on technical suspension cos i think its currently overpriced(p/e ratio of about 34).

shigidi:

slay kay, people are selling their fidelity because theyve made profit and don't want to wait for another three months before the ts is lifted, just give it some time, the net offer will soon turn to net bid(in a month or so)

Fidelity is selling at a PE of 42! The full year to June 07 results had better be fantastic, otherwise both the PO and the price after the suspension is lifted will fall flat. My advice, wait till the results are released (or as long as possible) before buying the PO or buy on the floor if you have faith in the bank (I don't).

ty_ademolu:

So Right now, I have stocks like crusader, nem, nahco, mbenefit, vitafoam, e.t.c all at very small rates each. I plan on selling all of them just to get access bank in large quantity. please I would like your honest opinion on what to do.

Also would it be wise to buy stocks such as gtb, fcmb now? what about oceanic and afribank?

You know, i honestly support your idea.
i think thats your best bet, sell all and buy access

Why do i support your plan?
Buying Access will force you to think long term. If you buy Access, for at least 6 to 9 months, i dun think u can touch your money as certificates will be on hold. That will be good for you because you won't be able to change your mind when stocks are not performing at the moment.
You have mbenefit, what price do u think it will trade in the next 6-9months? Don't u think there is a chance mbenefit will rise within that period and you have the advantage of cashing out immediately unlike Access?
But stll u shld buy Access because when you do cash out, you will begin to appreciate having a long term horizon.

While there might be a slight case for buying Oceanic or FCMB, why do you want to buy Afribank at 30 naira (a stock that has jumped almost 200% xtra in the last 3 weeks)? what price will u exit if you buy at 30?

just my 2 cents sha,

@ temmie 10, why do people keep raving bout fcmb, its p.e ratio is quite high right now and its projected full year eps is expected to be about 0.5 so it really cant go much higher now can it.
whats ur opinion

@ Shigidi
Naija is an amazing place.
About 40 % of FCMB's shareholders are outside the country.
George Soros, the hedge fund king who literally broke the bank of Englang is also a major shareholder
So firstly, there is a lot of sentiment/expectation on that side.
I bought early this year, made a decent sum but i am out now.
Its not a bad stock but i have not seen anything overly attractive to go in again.

I can you supply anyone intrested with a spreed-sheet that will monitor the performance of your stocks. My stocks are doing great, I use to have a savings account in london, 3 months ago I closed it down, and started investing in stocks, I must say, I am very impressed so far.

Whats the difference between buying from the floor or buying the IPO?
My understanding is that when u buy an IPO, there is the tendency that you'll buy cheaper and for long term, you'll also be included in dividends and bonuses, do u get dividends and bonuses if you buy on the floor?

KnowAll:

I can you supply anyone intrested with a spreed-sheet that will monitor the performance of your stocks. My stocks are doing great, I use to have a savings account in london, 3 months ago I closed it down, and started investing in stocks, I must say,  I am very impressed so far.

please can u send me the spreed-sheet so i can better monitor my stocks performance. thanks

whitelexi:

Whats the difference between buying from the floor or buying the IPO?
My understanding is that when u buy an IPO, there is the tendency that you'll buy cheaper and for long term, you'll also be included in dividends and bonuses, do u get dividends and bonuses if you buy on the floor?

Can someone help me with this query pls? I have a non-believer right here and he's also a doubting thomas

@ whitelexi

You are quite right in many ways.

An ipo is an initial public offering. It means you buy from issuing houses when a stock is listed newly. IN the case of our banks raising new offers recently, what we have is a public offer (not intial) because they are only listing additional shares.

In such a case, public offers are usually at a disount to trading price but you are entitled to all shareholder's rights too.
Of course there are some slight variations, like ppl who bought the latest FBN public offer have not been partakers of the dividends and bonus issues BUT that is only for this financial year ended august. so as from next year all bonuses and dividends will get to them too

If you buy on the floor, there is no discounted price but liquidity is enhanced i.e u can sell the shares at the prevailing price and take out your money whenever you want. IN po's or ipo's, you cannot sell until u recieve your certificate which could take anywhere from 6 months.

If you buy on the floor and are still holding on when the register closes for that company, you will recieve whatever bonuses and dividends too. All are shareholders, whether they bought po or on the floor and all benefit from dividends.

I hope i have answered you


@ Oneshola1
Wetin dey now? this one wey u dey flash dollar abi na naira?
is there something u want to tell us?

Temmie10: Thanks for the reply on LASACO! You are definitely doing a good job here.

goldenson:


please can u send me the spreed-sheet so i can better monitor my stocks performance. thanks

have you tried www.investordelight.com and there is karakata

Many thanks @Temmie10

It couldnt be better said.

Dis Guy:

have you tried www.investordelight.com and there is karakata

Thanks for looking out bro.

@Atam-Man

I think you should sell your shares and buy the primary offer through a rights offer or better opt for Japaul Oil at N3.95.
Japaul for the past two days is on bid at the stock exchange.

knowall, please can you send the spreadsheet to me as well?

Isn't it ironic that Access Bank's web site would become so totally unavailable while they have a public offer open? Or am I expecting too much?

I have 500k since last month waiting for Dangote flour. Those that said it will come out by ending of July, where is it. Any useful info. on when it is coming out. Considering future value of money where can I put it or should I still wait. Afribank would have generated 1m plus since last month. Still considering Acess PO. Please advise!

@kingzy
The dangote ipo was supposed to come out earlier but they had some problems with the the SEC (authorities) over the details of their offer, hence the delay
It can be out any moment from now.
i hope you are aware of the details, company is valued at 75BN naira, po price is supposed to be 15 naira per share.