From CFI.

Free cash flow equity should be less than free cash flow to the firm

emmanuelewumi:




What is the free cash flow (firm)?

In Free Cash Flow to Firm (FCFF), borrowing is not added because this represents cash flow available to both equity holders and lenders. In fact, interest paid is added back (after adjusting for tax effects).

Formula for FCFF:
A basic formula for FCFF is:
FCFF = Net Income + Depreciation & Amortization + Interest Expense (1 - Tax Rate) - Capital Expenditures - Change in Working Capital
Copied...

I usually subtract the finance cost from the free cash flow firm to get my free cash flow equity.


By so doing I get a conservative figure for the FCF equity

FCFE = Net Income + Depreciation & Amortization - Changes in Working Capital - Capital Expenditures + (New Debt Issued - Debt Repayments) Copied...

I compare PAT with free cash flow equity


I compare NOPAT with Free cash flow firm

I compare operating profit with cash flow operation.

PAT is usually higher than FCFe

NOPAT is usually higher than FCFf

Operating profit is usually higher than cash flow operations

The way you are adding new loans, one can have free cash flow equity that might be higher than the EPS and give unnecessary optimism about the stock.

Better to err by being cautious

eziokwunwoko:
But Japaul closed at 2.20. Explain how come a buy @ 2.10. Do I wait for it to retest 2.10 before I buy or I buy at current price. Appreciate your response

You can buy at current price if you so wish, but you could be a bit conservative (Ijebu ) and wait for price to retest 2.10 and buy at that level. However, sometimes if you're too conservative, you may miss the big move which may cause FOMO (Fear Of Missing Out)

emmanuelewumi:
The way you are adding new loans, one can have free cash flow equity that might be higher than the EPS and give unnecessary optimism about the stock.

Better to err by being cautious

Good point.

Based on the new Buy Signal, what is the New Resistance level or Price . I think 3.35. Correct me

BullBearMkt:

You can buy at current price if you so wish, but you could be a bit conservative (Ijebu ) and wait for price to retest 2.10 and buy at that level. However, sometimes if you're too conservative, you may miss the big move which may cause FOMO (Fear Of Missing Out)

eziokwunwoko:
Based on the new Buy Signal, what is the New Resistance level or Price . I think 3.35. Correct me

...the first one is at 2.60

Hello everyone. Pls I need your input with something. Is there any stockbroker in Nigeria that offers limit buy order. For example if I expect a stock to rise from #50 to #55 and then I place a buy order with the stock broker to buy the stock only if it rises upto #55 or even above #50 and if it doesn't rises the trade is not executed. Your prompt responses would be gratefully appreciated.

Roarke:
Hello everyone. Pls I need your input with something. Is there any stockbroker in Nigeria that offers limit buy order. For example if I expect a stock to rise from #50 to #55 and then I place a buy order with the stock broker to buy the stock only if it rises upto #55 or even above #50 and if it doesn't rises the trade is not executed. Your prompt responses would be gratefully appreciated.

What you describe is a BUY STOP ORDER and not LIMIT BUY ORDER.

I have been observing NAHCO plc, one of my portfolio holdings. Insiders are still buying NAHCO, which has outstanding shares of 1.95 billion units.
Another bonus may be possible in the foreseeable future. I don't think they are buying for capital appreciation and dividends; NAHCO insiders are buying rather than selling.
"From 2022 till date, insiders keep buying , 50 purchase transactions "



*******100% my opinion********

emmanuelewumi:
The way you are adding new loans, one can have free cash flow equity that might be higher than the EPS and give unnecessary optimism about the stock.

Better to err by being cautious

I recall emphasizing that some loan rates are occasionally fixed over longer periods and not frequently reviewed. While examining Fidson's Q2 financials, specifically on page 37 under "Interest-bearing loans and borrowings," I noticed they have ongoing loans primarily with FCMB and Fidelity. One loan, in particular, caught my attention: it has a 9% interest rate and will last 84 months from its issuance. Here's the relevant extract:

"23c FCMB loan is a ₦2.5 billion Central Bank of Nigeria (CBN) Real Sector Support Facility-Differentiated Cash Reserve Requirement granted to Fidson Healthcare PLC for 84 months. ₦2 billion is for acquisition, while ₦500 million is for working capital. The working capital portion has been fully repaid. The principal and interest shall be repaid in twenty equal installments, and the interest shall be 9% per annum. However, the CBN concessionary rate of 5% elapsed on February 28, 2021. Additionally, the moratorium period for principal repayment was further extended by another year until 2022."

emmanuelewumi:




Apart from corporate bonds, bank loans are reviewed based on the prevailing interest rates.

Dangotes debt are commercial papers which are cheaper than bank loans.

It is almost impossible to get bank loans at 25%

Union Bank records 138% profit growth for 2023 as restructuring plans continue

https://nairametrics.com/2024/08/17/union-bank-records-138-profit-growth-for-2023-as-restructuring-plans-continue/

Oando Oando Oando 😻

Bagwa:
Oando Oando Oando 😻

Our oga, any other new thing in the pipeline?

Good day everyone. Please who can help me with links,books or videos to watch on understand the corporate laws in Nigeria i.e. building companies, taxation, corporate accounting, understanding the Nigerian market, investing, etc.

Good morning ...Please does anyone know when UCAP bonus is gonna be added to the shareholder's trading account?

Cc. Kaesyrn

Following

megawealth01:
Union Bank records 138% profit growth for 2023 as restructuring plans continue

https://nairametrics.com/2024/08/17/union-bank-records-138-profit-growth-for-2023-as-restructuring-plans-continue/

Please is Union bank delisted? I cant find them on NGX website

Aquilapriscilla:
Good day everyone. Please who can help me with links,books or videos to watch on understand the corporate laws in Nigeria i.e. building companies, taxation, corporate accounting, understanding the Nigerian market, investing, etc.

Websites and Articles
Federal Inland Revenue Service (FIRS)
Website: https://www.firs.gov.ng
Provides comprehensive information on Nigerian taxation, including guides and updates.

Corporate Affairs Commission (CAC)
Website: https://www.cac.gov.ng
The official site for company registration and compliance in Nigeria, with resources on corporate governance.

PwC Nigeria, KPMG Nigeria, and Deloitte Nigeria
These firms regularly publish articles and reports on corporate law, taxation, and the business environment in Nigeria.

Nigeria Investment Promotion Commission (NIPC)
Website: https://www.nipc.gov.ng
Offers resources on investing in Nigeria, including sector-specific guides.

I know say you want to float company, make the company good o, we go invest. Also treat us minimum shareholders well o.

nosa2:


Please is Union bank delisted? I cant find them on NGX website

Yes na

SonofElElyonRet:


Yes na

Btw. What happened to all that noise about Union Bank acquisition by Emefile through fronts. Who is running the bank and taking the money?

Gbagaun!

Dingg

Oando full bid at 39.40

;

Raider76:
Oando full bid at 39.40

Am I the only one not able to find Morgan Capital login this morning? What exactly is happening?

CUTIX marked down to 2.40 now up to 2.60

Deadlytruth:
Am I the only one not being able to find Morgan Capital login this morning? What exactly is happening?

It's working. Maybe refresh