@ Oracle of SMN
Thank you for sporting the Bear/ Retracement ahead of the pack! That was great.

Sure that is all the truth. OPEC is stuck with the Shale guys. There is no easy way out.


@ Valuefront of SMN, thank you for saving me on my momentum rode of FCMB, it could have been an accident.

Am presently on my sofa, I may get a mattress.
Thank you everyone.

Chibuking81:


Point of correction, I didn't say that they are the same. I compared them in number of outstanding shares increase.

Note, in both bonus giving and right issue offer, the number of outstanding shares increases, and number that will share the annual earning rises, and this reduces the EPS, as larger number share the total earning.

And of recent years, companies hardly give bonus, but what we mostly see is right issue, or have you see any company that go for right issue and also give bonus. ( both increases the number of outstanding shares)

You are mixing thing up.

With right issues, the company is expected to get funds to be used in the business either to offset loans, for business expansion or to be used as working capital.

For bonuses, that is not the same. Bonus is issued by the company to shareholders not as a way of raising capital but as a way of making the stock more liquid (kind of). Just like give you a full pizza or 8 slices of pizza. 8 slices will look more but looking at the big picture, it is the same full pizza you have.

Though both increase the outstanding shares.

This is where you don't understand:

If you give bonuses, capitalisation of the company remains the same. Whereas if you issue rights, capitalisation of the company increases provided that the price remains constant (neither rise nor fall).

While bonuses decrease EPS like you have said , if rights monies are properly channelled, it may not lead to decrease in EPS. Reason is that the rights monies are used to generate more profit which cancels out the dilution.

GB2G:
@ Oracle of SMN
Thank you for sporting the Bear/ Retracement ahead of the pack! That was great.

Sure that is all the truth. OPEC is stuck with the Shale guys. There is no easy way out.


@ Valuefront of SMN, thank you for saving me on my momentum rode of FCMB, it could have been an accident.

Am presently on my sofa, I may get a mattress.
Thank you everyone.

You are welcome.

Just be eating popcorn and watching with your 3D glasses.

There seems to be a sign of market crash. Quote me market will not crash, NSE will close on positive note this new week

RabbiDoracle:


You are mixing thing up.

With right issues, the company is expected to get funds to be used in the business either to offset loans, for business expansion or to be used as working capital.

For bonuses, that is not the same. Bonus is issued by the company to shareholders not as a way of raising capital but as a way of making the stock more liquid (kind of). Just like give you a full pizza or 8 slices of pizza. 8 slices will look more but looking at the big picture, it is the same full pizza you have.

Though both increase the outstanding shares.

This is where you don't understand:

If you give bonuses, capitalisation of the company remains the same. Whereas if you issue rights, capitalisation of the company increases provided that the price remains constant (neither rise nor fall).

While bonuses decrease EPS like you have said , if rights monies are properly channelled, it may not lead to decrease in EPS. Reason is that the rights monies are used to generate more profit which cancels out the dilution.

Let reason like friends, keep argument aside.
In bonus you paid nothing, EPS decreases but in other way round still the same because your bonus will turn to your main share and still get part of earning.

In right issue you buy with your money, it will take you some years to recover the money used in buying it, and it will take the company year/years to add value to that stock.

When one refuses to buy his right, another person will buy the right and in this case your original share remain the same without increase in the number of your share unit (but faces dilution), but companies share rises and also affect your original share earning, with nothing to add.

Sometimes most of the money realized are not properly manage. After the right issue, they will still go for borrowing. Some will use that opportunity to allocate/covet other peoples right issue to themselves ( the administrators) without paying any money. But in bonus everyone get his/her own share. No one covet another person bonus shares to his/her own.

White men have just discovered through the DNA of their ancient ancestors that they were formally black !
If Africans were in the shoes of Europeans, don't you think they would have concealed such finding?

Let reason like friends, keep argument aside.
In bonus you paid nothing, EPS decreases but in other way round still the same because your bonus will turn to your main share and still get part of earning.

I agree.

In right issue you buy with your money, [b]it will take you some year to recover the money used in buying it, [/b]and it will take the company year/years to add value to that stock.

I agree to the part in bold.

Though some value can be added after completion of the rights .... maybe after 2 quarters. Example is the offset of loans which will help reduce or eliminate finance cost and this in turn will make PAT turn positive or get more positive. Examples are rights from Guinness, Flourmill is doing one now.

When one refuses to buy his right, another person will buy the right and in this case your original share remain the same without increase in the number of your share unit (but faces dilution), but companies share rises and also affect your original share earning, with nothing to add.

Ok...I understand your point here. Unlike bonus where you mandatorily have those units, for rights, if you don't take up, you don't get it.

Sometimes most of the money realized are not properly manage. After the right issue, they will still go for borrowing. Some will use that opportunity to allocate/convert other peoples right issue to themselves ( the administrators) without paying any money. But in bonus everyone get his/her own share. No one convert another person bonus shares to his/her own.

But giving a bonus doesn't mean the company will be well managed after that. Just like rights issues can be mismanaged.

In the past , FBN and lots of banks had given bonuses. If you compare then and now, you will see effect of erosion of value.

Chibuking81:
There seems to be a sign of market crash. Quote me market will not crash, NSE will close on positive note this new week

Fully agree. A brief respite though. Sideways trading underway

Toluway:
White men have just discovered through the DNA of their ancient ancestors that they were formally black !
If Africans were in the shoes of Europeans, don't you think they would have concealed such finding?

That research is bullshit and just playing to the gallery

but where is megainvest self.by now my money would have been growing like grass ooo.

RabbiDoracle:
I have been accused of all sorts here today they will say I'm the cause of the bear in NSE. Tomorrow they will say that using foreign indices to compare Nigerian market. Next they will say it is because I have sold.

Markets are closely configured somehow. Before one finishes trading, another one has started. Asia markets start midnight while we are sleeping. It runs till we wake and while it is about closing European markets start. NSE starts after EU markets. These trades continue till afternoon. NSE closes butt EU markets still stay open till US market starts. Remember that with technology, news reach faster than before.

If Asia markets are green, EU markets willl likely be green. Before close of EU markets and US markets open with Dow losing 1,000 points for example, immediately all EU markets will become bearish at close. If US market continues its redness till closure , remember that Asia markets will open our midnight, investors will fret and want to go for safety. So the domino continue.

People have not studies these, instead they attack the messenger who predicts an outcome that will certainly happen. Why will it certainly happen? Because we are all humans....we fear losing our lives, we fear losing properties, we fear losing money. So human (inexperienced ones) will naturally fret and take off. If he does that, he tells others. The others come in as a herd and the rest is what we see now.

As for those events affecting NSE, who are these FPIs? They are foreigners. They will want to sell or stop buying stocks in your country. Why? They need to understand what is the cause of the events in their country. Indirectly, it affects NSE because they are no longer buying like they used to or they had started selling.

I have pieced all these together and extrapolated them and advised. Instead what I get is names. Continue

I'm L King at una on my mattress.

Typical Oracle. Analysis appreciated

RabbiDoracle:



I agree.



I agree to the part in bold.

Though some value can be added after completion of the rights .... maybe after 2 quarters. Example is the offset of loans which will help reduce or eliminate finance cost and this in turn will make PAT turn positive or get more positive. Examples are rights from Guinness, Flourmill is doing one now.




Ok...I understand your point here. Unlike bonus where you mandatorily have those units, for rights, if you don't take up, you don't get it.




But giving a bonus doesn't mean the company will be well managed after that. Just like rights issues can be mismanaged.

In the past , FBN and lots of banks had given bonuses. If you compare then and now, you will see effect of erosion of value.

That's is true, I totally agreed with you. Bad managers mismanaged companies, whether bonus or right issue, they will still mismanage.
But Flour mill seems to have good management, their right issue will turn their company to more positive note.

DOLLARTEX:
but where is megainvest self.by now my money would have been growing like grass ooo.

His shitcoins growing like grass

Agbalowomeri:

His shitcoins growing like grass

Agba!which one is shitcoin again.

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Agbalowomeri:

That research is bullshit and just playing to the gallery

What would they gain by that?

the all knowing rabbi biko continua, what do we know sef

RabbiDoracle:


I tell una say na my world receiver I go dey take dey listen to una. Ngwanu see am na.

[quote author=RabbiDoracle post=64932854]

I dey tell you.

The guy throw Olumo rock.

That is why we don stop to talk. Yet market still dey fall. Meaning that it is not our talk.

Some people believed that the bull will last forever. While I was writing "jaaaaaaaaaaa", some were urging them to stay. Now they are pointing fingers around for their loss.

I repeat .... jaaaaaaaaaaa!

Max respect Oga Oracle for calling a spade a spade and your sincere analysis. For newbies, I would like to add the following

The main fundamental issue causing the sell off is Brexit!!! coupled with cost of borrowing going up in Europe and the US. Why?
Because markets don’t rise or fall in isolation and hardly decouple.The Bristish had a point to prove after the referendum. Therefore, FTSE was pumped up and US market followed, claiming the Donald Trump effect

Secondly, most of the hot funds are borrowed from Europe and American where interest rate is almost zero. Any interest rate increase would mean an end to cheap credit

I’m also partly trapped in the market due to greed �‍♂️but the truth is, it has peaked and can only go down from.....

Get thinking my people

locodemy:
Na so them go dey talk say i go soon go exile for RSA.
Person wey carry money for hand dey go exile?
-una no see 9free wey wan fbn @16 is now looking for it at 3.
-oracle wey dey support market move don run comot adding terror to the market.
-Agba wey say bull go run rich December don leave u people confused.
-Deruggedproof is no where to be found .
-Even currentprice don turn to a bell ringer for bears.

FOLLOW FOLLOW NO BE FOR LOCO & COMPANY.


MAKE UNA GO BUY UNION BANK B4 UNA BEGIN CRUCIFY ME FOR NOTHING.
SOMETHING GOOD DEY HERE.

Instead of UBN go for ETI.
First and foremost they are the only stock listed in NSE with Nominal value of N32naira.

Above all some Arab money bags and other international banks held alot of stake here.

Thank me later.

https://www.ecobank.com/group/investor-relations

*ThE OcToPuS*

9free:

FBNH @ N3.61 biko oooo

I bailed out 50% of my FBN few days ago @#13.70... I bought @#3.05+. I still have the remaining 50% in case they enter #15. This market is both technical and fundamental... You can't predict THE ELEPHANT always...

THE BIG SMART GUY

godlyguy:


I bailed out 50% of my FBN few days ago @#13.70... I bought @#3.05+. I still have the remaining 50% in case they enter #15. This market is both technical and fundamental... You can't predict THE ELEPHANT always...

THE BIG SMART GUY

The bear lies

RabbiDoracle:


(The part in bold) This reminds me of a story.

A husband in Nigeria called his wife in the UK and told her that her cat is dead. The wife cried and later explained to him that he should stop breaking sad news like that. Instead of breaking such sudden news, that he should first call and say that her cat is on the roof. After some days, he call and say her cat fell from the roof and broker its leg. After some days, call again and say that the cat was taken to the hospital and died in the process.
The husband apologized and told her it will not repeat again.

After one week, the husband called her and said : YOUR MUM IS ON THE ROOF!

Opari

ONE LOVE .

9free:

FBNH @ N3.61 biko oooo

I dey for #3 bustop .

[quote author=Chibuking81 post=64940559]

Let reason like friends, keep argument aside.
In bonus you paid nothing, EPS decreases but in other way round still the same because your bonus will turn to your main share and still get part of earning.

In right issue you buy with your money, it will take you some years to recover the money used in buying it, and it will take the company year/years to add value to that stock.

When one refuses to buy his right, another person will buy the right and in this case your original share remain the same without increase in the number of your share unit (but faces dilution), but companies share rises and also affect your original share earning, with nothing to add.

Sometimes most of the money realized are not properly manage. After the right issue, they will still go for borrowing. Some will use that opportunity to allocate/covet other peoples right issue to themselves ( the administrators) without paying any money. But in bonus everyone . Get FMN first brother .

godlyguy:


I bailed out 50% of my FBN few days ago @#13.70... I bought @#3.05+. I still have the remaining 50% in case they enter #15. This market is both technical and fundamental... You can't predict THE ELEPHANT always...

THE BIG SMART GUY

Why can't you tell the truth ? have you forgot the time i was telling people to buy FBNH @2.98 and #3.10 you are buying skye bank then ? why locodemy is buying fcmb .

In FLOUR MILLS, Greatness is a mindset Poverty is a mindset Adopt One . Happy weekend brother's and sister's in the LORD . ONE LOVE .

ihedioramma:
In FLOUR MILLS, Greatness is a mindset Poverty is a mindset Adopt One . Happy weekend brother's and sister's in the LORD . ONE LOVE .

May your sales job for FMN pay off in the end.

Onuokwu:


May your sales job for FMN pay off in the end.

Onuokwu:


May your sales job for FMN pay off in the end.

People are doing sales jobs about FMN yet the price fell. Whereas some dudes here feel that when you talk down a stock and coincidentally prices drop, that it is as a result of the badmouthing done on NL.

People sha.

When losing money, people can blame anything including the colour of clothe they wore ( as in: ahhh....I wear Red today, no be this thing cause make market fall)

ihedioramma:
In FLOUR MILLS, Greatness is a mindset Poverty is a mindset Adopt One . Happy weekend brother's and sister's in the LORD . ONE LOVE .

Monkey hunter!!!

ihedioramma:
Why can't you tell the truth ? have you forgot the time i was telling people to buy FBNH @2.98 and #3.10 you are buying skye bank then ? why locodemy is buying fcmb .

Bros you try ooo.... You advised people to buy at 3. Now look at the price. So much gain.

ihedioramma:
I dey for #3 bustop D) .