Elai147:

I agree with you since it is cheaper to buy on the floor (except there is something else we're missing). However, if the right issue were to be a normal one unlike Oando's own, buying the equivalent units of your right from the floor @market price will not stop the dilution on your previous holding.

kotlass:

Master, you lost me here. Mathematically, it will.

Charlesnerd:

Mathematically,it will. Just that you would have to pay more than you would, if you had gone for the rights which normally trades at a discount to the market price.

My bad. Mathematically it will. What I really wanted to mention was that you cannot maintain the value of your holding without further expense if the rights were issued at the usual great discount hence, the bold phrase in my post above. Thanks

Agbalowomeri:


We are waiting at 5 naira

If FBNH (an indeed others) really believe their shares are selling well below book value, why can't they buy them back at ~N9 and sell back to the market (via rights/PO) after the allowable period?

Elai147:


The dilution means the percentage of your holdings in the company is now reduced. Assuming the company has 1 billion outstanding shares and you own 100 million shares of it, this means your holding in the company is 10%. If the company is issuing 500 million shares in the form of rights, the total outstanding shares will now be 1.5 billion meaning your holding has now reduced to 6.7% (assuming you didn't take up your right). But if you took your right at the given ratio, your holdings will not be diluted because you will still own 10% of the company. Rights are usually issued at a discount to current market price of the stock but I don't know what Oando is doing and cannot categorically tell you why the right is being issued above current market price. This should be a question for either the gods or our ogas in NSEMPA.

Please I am not saying you should take up your right or that you may be getting a bargain if you take up the right. I was only trying to describe the rationality behind taking up ones right as asked by Omoxonomy. The decision lies with you as the shareholder after your due diligence. You need to ask yourself why the company has decided to raise money by issuing more shares and diluting your holdings. There must be a reason (financial difficulties or expansion, perhaps) why the company needs money. If the shareholders decide to take up these rights, whether the company will use the money for the purpose it was meant for is another question for the gods. There is also a question of what the ex-right value of your shares will be as the share price is expected to drop after the right issue to reflect the newly issued shares at the "supposed" discount. These are part of the due diligence you do before deciding whether to take, abandon or sell your right.

Thanx my friend. Have a good weekend

The dilution means the percentage of your holdings in the company is now reduced. Assuming the company has 1 billion outstanding shares and you own 100 million shares of it, this means your holding in the company is 10%. If the company is issuing 500 million shares in the form of rights, the total outstanding shares will now be 1.5 billion meaning your holding has now reduced to 6.7% (assuming you didn't take up your right). But if you took your right at the given ratio, your holdings will not be diluted because you will still own 10% of the company. Rights are usually issued at a discount to current market price of the stock but I don't know what Oando is doing and cannot categorically tell you why the right is being issued above current market price. This should be a question for either the gods or our ogas in NSEMPA.

Please I am not saying d ta bargain if you take up the right. as i have 800 shares befor and i dont want to take the rights if they dis count my holding how many shares will i get?

It is a broad daylight robbery for Oando to sell their right issue above the market price, which I know that no body is ready to buy, unless the company categorically tell the investors that, there will be 1-1 bonus after the right issue base on the stated date for qualification of right issue.

Whether dilution or no dilution on your percentage, your number of unit holding remain the same. If you are holding 100,000 unit share of oando, and you refuse to buy your right issue, your 100,000 unit share still remain without reducing. The advantage of right issue is that its usually sale below the current price, at times 20% below. In a situation whereby you are not interested to buy, you can instruct your broker to sell your right issue with 10% gain, and your profit will be credited into your account. Right issue is allocation that rightfully belong to you from the company, only you have the right to buy it within a stated period of time.

ihedioramma:


The dilution means the percentage of your holdings in the company is now reduced. Assuming the company has 1 billion outstanding shares and you own 100 million shares of it, this means your holding in the company is 10%. If the company is issuing 500 million shares in the form of rights, the total outstanding shares will now be 1.5 billion meaning your holding has now reduced to 6.7% (assuming you didn't take up your right). But if you took your right at the given ratio, your holdings will not be diluted because you will still own 10% of the company. Rights are usually issued at a discount to current market price of the stock but I don't know what Oando is doing and cannot categorically tell you why the right is being issued above current market price. This should be a question for either the gods or our ogas in NSEMPA.

Please I am not saying d ta bargain if you take up the right. as i have 800 shares befor and i dont want to take the rights if they dis count my holding how many shares will i get?

This account has been hacked

Agbalowomeri:


This account has been hacked

no fear bro, na copy and past ..Elai147 = ihedioramma

ihedioramma:


The dilution means the percentage of your holdings in the company is now reduced. Assuming the company has 1 billion outstanding shares and you own 100 million shares of it, this means your holding in the company is 10%. If the company is issuing 500 million shares in the form of rights, the total outstanding shares will now be 1.5 billion meaning your holding has now reduced to 6.7% (assuming you didn't take up your right). But if you took your right at the given ratio, your holdings will not be diluted because you will still own 10% of the company. Rights are usually issued at a discount to current market price of the stock but I don't know what Oando is doing and cannot categorically tell you why the right is being issued above current market price. This should be a question for either the gods or our ogas in NSEMPA.

Please I am not saying d ta bargain if you take up the right. as i have 800 shares befor and i dont want to take the rights if they dis count my holding how many shares will i get?

Sir, taken your rights is a voluntary responsibilities not a compulsory one. Take your time to read this news or stories and decide for yourself...

http://www.thisdaylive.com/articles/oandos-new-growth-trajectory/195630/

Agbalowomeri:


This account has been hacked

more than one person is using this account.

chukyjones:


no fear bro, na copy and past ..Elai147 = ihedioramma

ok. so no discount?

Chibuking81:
Whether dilution or no dilution on your percentage, your number of unit holding remain the same. If you are holding 100,000 unit share of oando, and you refuse to buy your right issue, your 100,000 unit share still remain without reducing. The advantage of right issue is that its usually sale below the current price, at times 20% below. In a situation whereby you are not interested to buy, you can instruct your broker to sell your right issue with 10% gain, and your profit will be credited into your account. Right issue is allocation that rightfully belong to you from the company, only you have the right to buy it within a stated period of time.

Ok thank's. one love, if you start buying let me know and what you are buying .

@Chibuking, Point of correction, Oando is not the only company on NSE selling their right issues above market price. Check the banks as well i.e. Diamond, Access and co

@AKS, thanks for adding Diamond bank and Access bank, if any sales above current price, that mean it will not work with current situation.

Hello y'all, im a newbie nd wuld lyk to knw hw tins r done. Registration nd all dat stuff. (dnt refer me to page 1 of d thread ) jst help wit info if u wanna help. I hav small idle fund I wanna work wit. Tnxs in adv.

Agbalowomeri:


We are waiting at 5 naira

Nigeria will cease to exist the day FBNH touches N5

Born2berich:


Ikeja Hotel is a perfect example of a manipulated stock..Even bear market no gree let am fall. Haba!!

@feelamong, u go share your ikeja hotel loot for us ooh

Ikeja hotel is a monkey hunting expedition that spun out of control.

Oga dumi my persona observation is dat stock dont av any intrinsic value.! It can go for 50kobo as long as d economy keep sinking.dats y I hate nse

bigjay01:


If FBNH (an indeed others) really believe their shares are selling well below book value, why can't they buy them back at ~N9 and sell back to the market (via rights/PO) after the allowable period?

It is possible they are probably using their spare cash to speculate in the FX markets, this has even been reduced further via the increment in private sector CRR by the CBN.

duni04:

Nigeria will cease to exist the day FBNH touches N5

Hey dont put ur believe around that expression of urs, maybe by then a new order might hv be in place,even though i understand ur staunchy stance for oozing out that which u spoke. But pls dont marry to any stock or coy, set ur goals right b4 buying and once u achieve ur aim and exit at d right time.

During the 2008 market crash , FBNH did not get to 5 Naira
Is it possible this time ?

lancee:
During the 2008 market crash , FBNH did not get to 5 Naira
Is it possible this time ?

If we're going to think in that line, In 2008, it crashed from 42naira. Between then and the time it slightly stabilized, it had lost some 75% in value.
The 2014 downtrend started at about 15naira, it's has lost about 40% of it's value so far; so technically, we still have about another 35% depreciation to go.

#5Naira in view

lancee:
During the 2008 market crash , FBNH did not get to 5 Naira
Is it possible this time ?

KNOW.

Good day brother's and sister's in the LORD. wellcome to the week of wonders in NSE .

Ratioinvestment is an investment portal which is private in nature and are managed by a group of forex traders who came together in 2013 for the sole purpose of maximizing profit... Our company opens its doors for everyone who desires to visit us from the whole world.We are always open for accepting payments, as well as for making payments and working on referral operations. The mission of our company is to provide opportunities for investment for everyone wishing. We are confident that we will be able to provide a high quality investment product and delivering it to your home.Our principle is simple;we don't promise huge returns and then not deliver. We promise low returns and delivers big over time.Earn slowly but continously!

@ all --- FBNH, TRANSCORP and others will gain today

Comparing 2008 with 2014. We need to know that stocks were way overpriced. Now its not overpriced. You may not experience 2008 crash now.

bigass:
Comparing 2008 with 2014. We need to know that stocks were way overpriced. Now its not overpriced. You may not experience 2008 crash now.

Sure, do you still trade or U'r on sabatical like Mercilicious

Aks:
Sure, do you still trade or U'r on sabatical like Mercilicious

i still trade but now i must first dream about the stock then go for pastors revelation and calling my dad. finally receive my husband blessing before buying a stock.

Aks:
Sure, do you still trade or U'r on sabatical like Mercilicious

hahahah.

primed:


If we're going to think in that line, In 2008, it crashed from 42naira. Between then and the time it slightly stabilized, it had lost some 75% in value.
The 2014 downtrend started at about 15naira, it's has lost about 40% of it's value so far; so technically, we still have about another 35% depreciation to go.

#5Naira in view

, Well anything is possible on NSE
Then what will be the priceof uba and skye ?

hi bnsitl
when does trade for ppl like us start? am trying to sell sum stuff via morgan and its givibg me the message dt it was rejected. reason- only mkter makers permitted. By 10:20am?