Data from the Nigerian Stock exchange shows: the 4th trading week of the year and the last for the month of January, starting on a continued bearish note. The All Share Index (ALSI) closed at 23,306.87 basis points, as against last week Friday’s 24,000.09 basis points; indicating 2.88 percent down slide. A total of 6,407 deals were closed today involving a share volume of 216,034,644 units, worth N1.245 billion; as against last week Friday’s 6,072 deals involving a share volume of 216,057,242 units, worth N1.171 billion. The market capitalisation also closed at N5.191 trillion as against preceding trading day’s N5.345 trillion.
The top price gainers for today, listed in a descending order include: (1) COSTAIN which gained N0.39 to close at N8.21; (2) TANALIZER gained N0.06 to close at N1.37; (3) OMATEK gained N0.06 as well, to close at N1.32; (4) STDINSURE gained N0.05, to close at N1.11.
On the other hand, the top price losers includes: (1) NESTLE lost N7.79, to close at N148.16; (2) CHEVRON lost N6.22 to close at N118.33; (3) OANDO lost N3.32, to close at N63.14; while (4) JBERGER lost N2.50, to close at N47.68.
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Risk and stock investment
All investments as we very well know involves some kind of risk. It has also been said that the higher the risk the higher the returns. Risk is therefore a factor that cannot be pushed aside once embarking on any business investment of any sort. I once told a group of people that business can also be referred to as risk and the level to which you make progress depends on the level to which you reduce the risks.Similarly, stock investment is also risk and the level top which to grow your portfolio or make gains depends on the level to which you mitigate risks.
How you as an investor defines risk would be quite different from the definition of the man standing next to you. Your definition therefore is meant to give you an insight as to the kind of investor you are. This also implies that what might work for you might definitely not work for your neighbor or brother as the case may be and vice versa.
For some, risk is defined as owning only a few investments and as such they diversify. They buy a few of a lot instead of owning a lot of a few. I have been there before. For others, risk is determined by how much the value of an investment will swing. Consequently, they go for low volatility investment like bonds or treasury bills which give an appearance of low risk. The list goes on and on. Risk however as defined by world renowned Warren Buffet is “not knowing what you are doing”.
For most people that diversify, they do so out of ignorance. If you as an investor takes time to study and understand a business and consequently obtain their shares at attractive prices, then you would want to buy more of what you understand. One key factor that investors must have is a margin of safety with all investments. Reckless speculating with low probability of return is no different from going to casino and gambling.
Buying stocks because you feel you have the money is also risky. Holding your money without buying can be the best form of investment activity sometimes. Think about it.
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How you as an investor defines risk would be quite different from the definition of the man standing next to you. Your definition therefore is meant to give you an insight as to the kind of investor you are. This also implies that what might work for you might definitely not work for your neighbor or brother as the case may be and vice versa.
For some, risk is defined as owning only a few investments and as such they diversify. They buy a few of a lot instead of owning a lot of a few. I have been there before. For others, risk is determined by how much the value of an investment will swing. Consequently, they go for low volatility investment like bonds or treasury bills which give an appearance of low risk. The list goes on and on. Risk however as defined by world renowned Warren Buffet is “not knowing what you are doing”.
For most people that diversify, they do so out of ignorance. If you as an investor takes time to study and understand a business and consequently obtain their shares at attractive prices, then you would want to buy more of what you understand. One key factor that investors must have is a margin of safety with all investments. Reckless speculating with low probability of return is no different from going to casino and gambling.
Buying stocks because you feel you have the money is also risky. Holding your money without buying can be the best form of investment activity sometimes. Think about it.
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Nampak releases 2008 Audited results: explains declining fortunes
Nampak Nigeria Plc, a company quoted in the packaging sub –sector of the Nigerian Stock Exchange released its year ended, September 2008 audited results recently. The company was able to manage a marginal increase of 4 per cent in its turnover to N2.976 billion, over that of year 2007, which stood at N2.849 billion. It loss over the past one year however increased significantly from N136.4 million in 2007 to N238.6 million, representing about 75 per cent further decline in its fortunes in 2008.
In the release, the company’s board noted that “the material negative variances arising from system and control issues from the past that continue to impact on the business during the financial year have given rise to the reported loss”. The board however noted that the management had implemented a number of controls that began to have positive effects on the business in the last quarter of the year. They maintained that given a stable political and economic condition in the country, the business would return to profitability during the course of 2009.
The company would, according to its publication in the dailies, hold its 49th Annual General meeting on the 18th of February 2009 at the Banquet Hall, Excellence hotel, Ogba by 11 am. The closure of the register and transfer of books has been scheduled to be 11th to 12th February 2009 – both dates inclusive.
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In the release, the company’s board noted that “the material negative variances arising from system and control issues from the past that continue to impact on the business during the financial year have given rise to the reported loss”. The board however noted that the management had implemented a number of controls that began to have positive effects on the business in the last quarter of the year. They maintained that given a stable political and economic condition in the country, the business would return to profitability during the course of 2009.
The company would, according to its publication in the dailies, hold its 49th Annual General meeting on the 18th of February 2009 at the Banquet Hall, Excellence hotel, Ogba by 11 am. The closure of the register and transfer of books has been scheduled to be 11th to 12th February 2009 – both dates inclusive.
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Nigerian stock market update for 22 January 2009.
Data from the Nigerian Stock exchange indicates, a 2.49 percent downward sloping in its All Share Index (ALSI), closing at 24,762.50 basis points, as against yesterday’s 25,397.26 basis points. A total of 7,223 deals were closed today involving a share volume of 210,169,065 units, worth N1.356 billion; as against yesterday’s 7,270 deals involving a share volume of 280,639,775 units, worth N1.730 billion. The market capitalisation closed at N5.515 trillion, as against preceding day’s N5.656 trillion.
The top price gainers of the day in a descending order includes: (1) UNHOMES which gained N0.11 to close at N2.57; (2) DANGFLOUR gained N0.10 to close at N9.49; (3) VITAFOAM gained N0.08 to close at N4.40; while, (4) ASHAKA gained N0.06 to close at N11.40.
On the other hand, top price losers of the day includes: (1) CHEVRON which lost N6.55 to close at N124.55; (2) LONGMAN lost N1.25 to close at N23.82; (3) NB lost N1.20 to close at N33.00; while, (4) FLOURMILL lost N1.07 to close at N20.51.
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The top price gainers of the day in a descending order includes: (1) UNHOMES which gained N0.11 to close at N2.57; (2) DANGFLOUR gained N0.10 to close at N9.49; (3) VITAFOAM gained N0.08 to close at N4.40; while, (4) ASHAKA gained N0.06 to close at N11.40.
On the other hand, top price losers of the day includes: (1) CHEVRON which lost N6.55 to close at N124.55; (2) LONGMAN lost N1.25 to close at N23.82; (3) NB lost N1.20 to close at N33.00; while, (4) FLOURMILL lost N1.07 to close at N20.51.
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Power and Naira fluctuation menace, and the manufacturing sector of the Nigerian economy (1).
The financial reports especially the ‘Trading, Profit and Loss’ account of a typical manufacturing company or group is normally characterized by a huge fraction of the operating cost attributable to raw materials and power. Going by this fact, any significant fluctuation in the cost of these could make or mar any company that predominantly engages its resources in manufacturing activities. Most manufacturing industries in Nigeria, have the bulk of their raw materials imported from foreign countries. This shows that at the moment, the erratic depreciation of the Nigerian naira against the United State’s dollar, the dollar being the major currency for international transactions; and at such, threatening to the Nigerian secondary manufacturing sector.
Somehow, the only companies that could be said to be relatively free from this heavy dependence on imported raw materials ‘threat’ are those in the cement industry, which includes the likes of West Africa Portland Cement Company Plc (WAPCO) and Benue Cement company Plc (BCC), having locally sourced ‘lime stone’ as their chief raw material. Also the agricultural and some agro-allied industry companies, in the likes of Okitipupa and Okomu oil, having oil palm seedling as their major raw material; while fertilizer is most times subsidized as an incentive from the government for investing in the agricultural sector. One could as well, add companies that fall into the primary production sector of the economy, that is to say industries that extract their products directly from land (nature), including: petroleum industry, mining and agriculture. These may not be heavily exposed to the fluctuating foreign exchange rate menace, with respect to imported raw material, cost items
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Somehow, the only companies that could be said to be relatively free from this heavy dependence on imported raw materials ‘threat’ are those in the cement industry, which includes the likes of West Africa Portland Cement Company Plc (WAPCO) and Benue Cement company Plc (BCC), having locally sourced ‘lime stone’ as their chief raw material. Also the agricultural and some agro-allied industry companies, in the likes of Okitipupa and Okomu oil, having oil palm seedling as their major raw material; while fertilizer is most times subsidized as an incentive from the government for investing in the agricultural sector. One could as well, add companies that fall into the primary production sector of the economy, that is to say industries that extract their products directly from land (nature), including: petroleum industry, mining and agriculture. These may not be heavily exposed to the fluctuating foreign exchange rate menace, with respect to imported raw material, cost items
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Power and Naira fluctuation menace and the manufacturing sector of the Nigerian economy (2).
With the current fluctuation of the Naira in the FOREX market especially since the beginning of the year, Nigerian companies especially those in the manufacturing sector will be facing some short term exposure, exchange rate risks.
Recently, the Central Bank of Nigeria, led by professor, Chukwuma Soludo, changed its regulated FOREX trading system, from the previous ‘Wholesale Dutch Exchange System’ to the re-introduced retail system, known as the ‘Retail Dutch Exchange system’ (RDES); whereby banks and other licensed foreign exchange dealers, are not allowed to bid for foreign currency on their own account, rather on behalf of clients who would have presented a documented evidence of items to be imported or other transactions in desired foreign currency . This recent development that went into operation on Monday, 19th of January 2009, saw dollar supply exceed its demand for the first time in a while, as only a few banks participated at all in the day one of this newly introduced trading system. This short term measure is aimed at curbing unhealthy speculative demands for the dollar and other foreign currencies at the detriment of the naira, as these foreign currencies naturally go up in price as demand for them exceeds supply. According to CBN’s letter, “GUIDELINES FOR THE OPERATION OF THE FOREIGN EXCHANGE MARKET: RETAIL DUTCH AUCTION SYSTEM (RDAS)” on January 15 2009, addressed to dealers and the public, it is an intervention measure in consideration of recent developments in the Foreign Exchange Market. The previously used ‘Wholesale Dutch Auction System’ (WDAS), is a system whereby authorized dealers bought foreign currency from CBN on wholesale based on anticipated foreign exchange needs of their customers, at such was a speculative market system.
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Recently, the Central Bank of Nigeria, led by professor, Chukwuma Soludo, changed its regulated FOREX trading system, from the previous ‘Wholesale Dutch Exchange System’ to the re-introduced retail system, known as the ‘Retail Dutch Exchange system’ (RDES); whereby banks and other licensed foreign exchange dealers, are not allowed to bid for foreign currency on their own account, rather on behalf of clients who would have presented a documented evidence of items to be imported or other transactions in desired foreign currency . This recent development that went into operation on Monday, 19th of January 2009, saw dollar supply exceed its demand for the first time in a while, as only a few banks participated at all in the day one of this newly introduced trading system. This short term measure is aimed at curbing unhealthy speculative demands for the dollar and other foreign currencies at the detriment of the naira, as these foreign currencies naturally go up in price as demand for them exceeds supply. According to CBN’s letter, “GUIDELINES FOR THE OPERATION OF THE FOREIGN EXCHANGE MARKET: RETAIL DUTCH AUCTION SYSTEM (RDAS)” on January 15 2009, addressed to dealers and the public, it is an intervention measure in consideration of recent developments in the Foreign Exchange Market. The previously used ‘Wholesale Dutch Auction System’ (WDAS), is a system whereby authorized dealers bought foreign currency from CBN on wholesale based on anticipated foreign exchange needs of their customers, at such was a speculative market system.
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Power and Naira fluctuation menace and the manufacturing sector of the Nigerian economy (3)
Whatever policy designed for rejuvenating the manufacturing sector, may never see the light of the day, unless the issue of power supply is properly addressed. Again, manufacturing companies may continue to see their efforts get eroded due to high cost of powering manufacturing plants. Nigerians have witnessed many of its past governments; make so many promises on creating a stable and sufficient power supply. Tax payers money had been sunk in various mega power generation projects, yet same tax payers have continued to spend excessively on alternative power supply that will only continually burn away their hard earned money by way of diesel or gasoline, and pollute the atmosphere.
However, what seems to be hope for the manufacturing sector is the stepping in of state governments into this urgent matter. The Lagos state government earlier went into an agreement, whereby, the state generates and contributes power to the national grid; other states are in the news for having plans for similar arrangement in near future. In turn, the Power Holding Company of Nigeria Plc will have to reciprocate by commensurately increasing the quantity of power supplied to the individual states through PHCN’s distribution system. It is indeed an urgent and welcomed measure considering the disadvantaged position of the Nigerian manufacturing sector, with regards to their huge expenditure in generating their own power. This same cost would at the end of the day be transferred to the individual companies share holders, making the manufacturing industry, quoted companies less attractive. The ugly power situation, has in recent times seen many Nigerian mega manufacturing companies produce and own brand products from their various plants located outside the country and import same from neighboring west African countries where they are sure of cutting cost on power; well that is due to the ‘absolute advantage’ of these other countries due to power, over Nigeria.
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However, what seems to be hope for the manufacturing sector is the stepping in of state governments into this urgent matter. The Lagos state government earlier went into an agreement, whereby, the state generates and contributes power to the national grid; other states are in the news for having plans for similar arrangement in near future. In turn, the Power Holding Company of Nigeria Plc will have to reciprocate by commensurately increasing the quantity of power supplied to the individual states through PHCN’s distribution system. It is indeed an urgent and welcomed measure considering the disadvantaged position of the Nigerian manufacturing sector, with regards to their huge expenditure in generating their own power. This same cost would at the end of the day be transferred to the individual companies share holders, making the manufacturing industry, quoted companies less attractive. The ugly power situation, has in recent times seen many Nigerian mega manufacturing companies produce and own brand products from their various plants located outside the country and import same from neighboring west African countries where they are sure of cutting cost on power; well that is due to the ‘absolute advantage’ of these other countries due to power, over Nigeria.
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Nigerian stock market update for 20 January,2009.
The Nigerian Stock Exchange continued on its current bearish trend, as data from the NSE trade engine indicated a 1.57 percent drop in its ‘All Share Index’ (ALSI) down to 26,247.84 basis points, from yesterday’s 26,667.09 basis points. There were a total of 8,495 stock transactions, involving a share volume of 467,391,389 units, worth N1.868 billion; as against yesterday’s 7,987 stock transactions, involving a share volume of 247,720,959 units, worth N1.714 billion.
The market capitalisation closed downwards at approximately N5.840 trillion, as against yesterday’s closing valuation of N5.993 trillion.
The market would be watching to see how the new president of the United States of America, Barack Obama and his much talked about positive change would affect the rather ailing world’s largest economy (USA), and the after effect on the global economy, which is expected to in turn bring some relief to the currently dwindling fortunes of the Nigerian Stock Exchange, and other emerging capital markets.
Deap Capital, this morning presented to the market, its full year result for the accounting period ended 30th November, 2008; which showed an 11.44 percent appreciation in its ‘Profit After Tax’.
While, PZ’s yesterday release of a positive earnings result with an 8.61 percent ‘Profit After Tax’ growth, saw its price appreciate by 70 Kobo.
The top price gainers in a descending order includes: (1) OANDO gained N1.99 to close at N73.99; (2) GUINNESS gained N1.75 to close at N76.00; (3) PZ gained N0.70 to close at N14.70; (4) while UACN gained N0.68 to close at N27.98.
The top price losers in a descending order includes: (1) LONGMAN which lost N1.31 to close at N25.07; (2) FLOURMILL lost N1.19 to close at N22.71; (3) WAPCO lost N1.01 to close at N19.37; while (4) BCC lost N0.99 to close at N18.95.
Recent results, plus Longman’s 2 for 1 bonus proposal
Posted: 20 Jan 2009 08:26 AM PST
Deap Capital, this morning released its full year result for the accounting period ended 30th November, 2008. The ‘Turnover’ rose to N1.334 billion, as against a year 2007’s comparable periods posting of N739.450 million. A ‘Profit Before Tax’ figure of N396.07 million was recorded, as against preceding comparable period’s N331.130 million. While, the ‘Profit After tax’ rose to N343.847 million, as against a preceding comparable period’s loss position of N308.545, showing an 11.44 percent growth.
Meanwhile, the company directors have proposed a dividend of 15 Kobo payable on the 9th day of February, 2009. The closure of register is on the 19th of March, 2009.
Yesterday, PZ Plc listed under the conglomerate sector of the Nigerian Stock Exchange, made a presentation of its earnings result for the half year period ended 30th November 2008, to the market. It made a ‘Turnover’ of N35.860 billion, as against preceding comparable periods N29.953 billion. The ‘Profit Before Taxation’ rose to N2.340 billion, as against preceding N2.013 billion. While, ‘the Profit After Taxation’ also climbed to N1.476 billion as against, preceding comparable periods N1.359 billion, indicating an 8.6 percent growth in company’s net profit.
Also, Longman Nigeria Plc has declared a bonus issue of 2 for 1, for which the closure of register is on the 22nd of January, 2009. Meanwhile, the company’s annual General Meeting is scheduled for the 27th of same January, 2009.
Fidson healthcare plc releases results, pays 20 kobo dividend.
Posted: 20 Jan 2009 03:46 AM PST
Health care and pharmaceutical giant, Fidson plc showed significant improvement in its financial year end results just made available to the exchange. It released its full year results for the period ended June 30, 2008 and its first quarter for the period ended September 30, 2008.
Turnover for the full year grew from N3.3 billion in 2007 to N4.5 billion in 2008. After tax profit however experienced a decline due to payment of taxation which the company was exempted from in 2007 from N505.3 million in 2007 to N189.3 million in 2008. Paid up capital increased from N89.2 million in 2007 to N750 million in 2008, while shareholders’ fund moved from N1.43 billion to N4.965 billion.
The company has proposed a dividend payment of 20 kobo per share which is a 7 kobo difference over the 13 kobo it last paid.
For the first quarter ended 30th September, 2008 it posted a turnover of N1.15 billion over the N617 million recorded in the same period of 2007. Profit after tax grew from N35 million in 2007 to N138 million in 2008.
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The market capitalisation closed downwards at approximately N5.840 trillion, as against yesterday’s closing valuation of N5.993 trillion.
The market would be watching to see how the new president of the United States of America, Barack Obama and his much talked about positive change would affect the rather ailing world’s largest economy (USA), and the after effect on the global economy, which is expected to in turn bring some relief to the currently dwindling fortunes of the Nigerian Stock Exchange, and other emerging capital markets.
Deap Capital, this morning presented to the market, its full year result for the accounting period ended 30th November, 2008; which showed an 11.44 percent appreciation in its ‘Profit After Tax’.
While, PZ’s yesterday release of a positive earnings result with an 8.61 percent ‘Profit After Tax’ growth, saw its price appreciate by 70 Kobo.
The top price gainers in a descending order includes: (1) OANDO gained N1.99 to close at N73.99; (2) GUINNESS gained N1.75 to close at N76.00; (3) PZ gained N0.70 to close at N14.70; (4) while UACN gained N0.68 to close at N27.98.
The top price losers in a descending order includes: (1) LONGMAN which lost N1.31 to close at N25.07; (2) FLOURMILL lost N1.19 to close at N22.71; (3) WAPCO lost N1.01 to close at N19.37; while (4) BCC lost N0.99 to close at N18.95.
Recent results, plus Longman’s 2 for 1 bonus proposal
Posted: 20 Jan 2009 08:26 AM PST
Deap Capital, this morning released its full year result for the accounting period ended 30th November, 2008. The ‘Turnover’ rose to N1.334 billion, as against a year 2007’s comparable periods posting of N739.450 million. A ‘Profit Before Tax’ figure of N396.07 million was recorded, as against preceding comparable period’s N331.130 million. While, the ‘Profit After tax’ rose to N343.847 million, as against a preceding comparable period’s loss position of N308.545, showing an 11.44 percent growth.
Meanwhile, the company directors have proposed a dividend of 15 Kobo payable on the 9th day of February, 2009. The closure of register is on the 19th of March, 2009.
Yesterday, PZ Plc listed under the conglomerate sector of the Nigerian Stock Exchange, made a presentation of its earnings result for the half year period ended 30th November 2008, to the market. It made a ‘Turnover’ of N35.860 billion, as against preceding comparable periods N29.953 billion. The ‘Profit Before Taxation’ rose to N2.340 billion, as against preceding N2.013 billion. While, ‘the Profit After Taxation’ also climbed to N1.476 billion as against, preceding comparable periods N1.359 billion, indicating an 8.6 percent growth in company’s net profit.
Also, Longman Nigeria Plc has declared a bonus issue of 2 for 1, for which the closure of register is on the 22nd of January, 2009. Meanwhile, the company’s annual General Meeting is scheduled for the 27th of same January, 2009.
Fidson healthcare plc releases results, pays 20 kobo dividend.
Posted: 20 Jan 2009 03:46 AM PST
Health care and pharmaceutical giant, Fidson plc showed significant improvement in its financial year end results just made available to the exchange. It released its full year results for the period ended June 30, 2008 and its first quarter for the period ended September 30, 2008.
Turnover for the full year grew from N3.3 billion in 2007 to N4.5 billion in 2008. After tax profit however experienced a decline due to payment of taxation which the company was exempted from in 2007 from N505.3 million in 2007 to N189.3 million in 2008. Paid up capital increased from N89.2 million in 2007 to N750 million in 2008, while shareholders’ fund moved from N1.43 billion to N4.965 billion.
The company has proposed a dividend payment of 20 kobo per share which is a 7 kobo difference over the 13 kobo it last paid.
For the first quarter ended 30th September, 2008 it posted a turnover of N1.15 billion over the N617 million recorded in the same period of 2007. Profit after tax grew from N35 million in 2007 to N138 million in 2008.
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Stock market update for 19-01-2009.
At the close of market today key market index plunged further. The all share index dropped from 27,108.54 points which was recorded on Friday last week to 26,667 points. 7,987 deals were carried out involving a volume of 247,720,959 share valued at N1,714,330,115. Market capitalization closed lower from N6 trillion on Friday to N5.93 trillion.
On the gainers side Guinness led the chart as it gained N1.25 kobo to close at N74.25 kobo, BOCGAS added N0.90 kobo to close at N19.05, AIRSERVICE gained N0.68 kobo to close at N13.72 while UNIONDICON gained N0.44 kobo to close at N8.81 kobo.
Nestle led the losers chart lossing N9.09 kobo to close at N172.78 kobo, followed by Oando which lost N2.91 kobo to close at N72.00 kobo, NBC lost N1.40 kobo to close at N26.68 kobo while UACN closed at N8.81 kobo losing N1.35 kobo.
Investment myths to avoid in 2009 and beyond
Posted: 19 Jan 2009 05:48 AM PST
Few people living today base and live their lives on facts and the truth. A greater number however live their lives based on myths, thereby achieving very little tangible results. This is also prevalent in the investment world. Investors in the majority take decisions based on ideas and philosophies that have not stood the test of time. As expected, the result is always known ahead of time-LOSS OF CAPITAL.
Below are some myths about investment that should be avoided if your fortune in the stock market is to change in 2009 and beyond.
1.Anyone that invests in the stock market is bound to make a killing. Contrary to what most people believe which has pushed them into making stock investments, the market does not guaranty a bountiful harvest for everyone. People who invest based on this myth end up staring at the screen every day to see if stocks are in the green or the red. They don’t get a good night sleep because their anticipated profit comes by the action or inaction of other market participants. They don’t look inside a business before investing.
2. Stock investment is too complicated. Investing is simple and can be easy. Simple only if you play based on time tested rules and principles. Always research companies before you invest in them. Read annual reports of companies and understand what is being detailed out. Ask questions from those close to or directly involved in the business.
3. Initial public offers are the best. Always remember that new public offers come out at the most favorable time for the promoters of the stock. Instead of going for IPO’s, why not go for the already traded stocks that have being in circulation over the years. According to Warren Buffet, “great wealth does not flow to those who were early in an investment, but rather to those who saw the long term value of their investment.
4.When stocks decline, they will always move back up. This is what some people base their investment decisions on. They think and convince themselves that even though the price of the stock is declining, it will eventually return to its previous high. Instead, why not buy stocks that have had and will continue to have an increase in value.
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On the gainers side Guinness led the chart as it gained N1.25 kobo to close at N74.25 kobo, BOCGAS added N0.90 kobo to close at N19.05, AIRSERVICE gained N0.68 kobo to close at N13.72 while UNIONDICON gained N0.44 kobo to close at N8.81 kobo.
Nestle led the losers chart lossing N9.09 kobo to close at N172.78 kobo, followed by Oando which lost N2.91 kobo to close at N72.00 kobo, NBC lost N1.40 kobo to close at N26.68 kobo while UACN closed at N8.81 kobo losing N1.35 kobo.
Investment myths to avoid in 2009 and beyond
Posted: 19 Jan 2009 05:48 AM PST
Few people living today base and live their lives on facts and the truth. A greater number however live their lives based on myths, thereby achieving very little tangible results. This is also prevalent in the investment world. Investors in the majority take decisions based on ideas and philosophies that have not stood the test of time. As expected, the result is always known ahead of time-LOSS OF CAPITAL.
Below are some myths about investment that should be avoided if your fortune in the stock market is to change in 2009 and beyond.
1.Anyone that invests in the stock market is bound to make a killing. Contrary to what most people believe which has pushed them into making stock investments, the market does not guaranty a bountiful harvest for everyone. People who invest based on this myth end up staring at the screen every day to see if stocks are in the green or the red. They don’t get a good night sleep because their anticipated profit comes by the action or inaction of other market participants. They don’t look inside a business before investing.
2. Stock investment is too complicated. Investing is simple and can be easy. Simple only if you play based on time tested rules and principles. Always research companies before you invest in them. Read annual reports of companies and understand what is being detailed out. Ask questions from those close to or directly involved in the business.
3. Initial public offers are the best. Always remember that new public offers come out at the most favorable time for the promoters of the stock. Instead of going for IPO’s, why not go for the already traded stocks that have being in circulation over the years. According to Warren Buffet, “great wealth does not flow to those who were early in an investment, but rather to those who saw the long term value of their investment.
4.When stocks decline, they will always move back up. This is what some people base their investment decisions on. They think and convince themselves that even though the price of the stock is declining, it will eventually return to its previous high. Instead, why not buy stocks that have had and will continue to have an increase in value.
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Nigerian Stock Exchange: recently released results.
Today some companies made available their financial results to dealing members of the exchange. Among results released were those of Unic insurance plc, Guinea insurance and Aso savings and loans plc.
Unic insurance plc.
The results of the insurance company for its third quarter ended 30th September 2008 showed an increase in its gross premium from N1.4 billion in comparative period of 2007 to N1.84 billion in 2008. It also grew its after tax profit to N365.25 million as against N281.85 recorded in 2007.
Guinea insurance plc.
Results of the company for the third quarter ended 30th September shows great improvement in key financial index. It recorded a turnover of N711.4 million compared to N202.21 recorded in the same period in 2007, this indicates a growth of 251.81 percent. Profit after tax saw an increase of 222.69 percent from N55.8 million in 2007 to n180.025 million in 2008. Profit before tax also increased in like manner to N228.78 million showing an increase of 228.07 percent.
Aso savings and loans plc.
The unaudited third quarter results of the company for the period ended 31st December 2008 shows an increase in its turnover from N6.2 billion in same period of 2007 to N7.9 billion in 2008. Profit after tax inched up by 78.37 percent from N680.596 million in 2007 to N1.214 billion in 2008.
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Unic insurance plc.
The results of the insurance company for its third quarter ended 30th September 2008 showed an increase in its gross premium from N1.4 billion in comparative period of 2007 to N1.84 billion in 2008. It also grew its after tax profit to N365.25 million as against N281.85 recorded in 2007.
Guinea insurance plc.
Results of the company for the third quarter ended 30th September shows great improvement in key financial index. It recorded a turnover of N711.4 million compared to N202.21 recorded in the same period in 2007, this indicates a growth of 251.81 percent. Profit after tax saw an increase of 222.69 percent from N55.8 million in 2007 to n180.025 million in 2008. Profit before tax also increased in like manner to N228.78 million showing an increase of 228.07 percent.
Aso savings and loans plc.
The unaudited third quarter results of the company for the period ended 31st December 2008 shows an increase in its turnover from N6.2 billion in same period of 2007 to N7.9 billion in 2008. Profit after tax inched up by 78.37 percent from N680.596 million in 2007 to N1.214 billion in 2008.
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Analyzing periodic financials (2)
As a follow–up to the Growth in Turnover/Sales/Gross Earnings, one must equally consider the Earnings Growth. As a matter of fact, while the company’s level of activities is discernable in Turnover growth, its efficiency can be revealed in its earnings growth. Comparing the percentage growth in Turnover to the percentage growth in earnings shows how well cost has been managed or controlled in the periods compared. Cost control is crucial to profitability because it remains the only factor that can be controlled by the management of the company. Sales may be affected by recession or temporary unfavorable market conditions. Hence, reaching the optimal earnings for an increase in Turnover/Gross Earnings is a sign that the company’s board and management are on top of things.
Another very useful tip is to take a look at the dividend. Dividend is usually paid out of earnings, and the dividend payout ratio (dividend per share/earning per share) tells how much of the company’s earnings are retained for re-investment. It must be noted that the dividend policy of companies vary with the peculiarities in their industries. But then, a company paying above 75 per cent of its earnings may signal a warning, which could mean that the company may not be retaining enough for re-investment – talk about the long term vision of the company. Some players have also held that a high pay-out ratio may mean that the company’s earnings may be declining, or that the company is trying to entice investors. By and large, these figures must be interpreted with other qualitative factors taken into consideration as inferences would make more sense that way.
Analyzing periodic financials (1)
Posted: 17 Jan 2009 06:17 PM PST
Fundamental Analysis remains a vital tool in making investment decisions that are meant to stand the test of time – all other things being equal. The truth of this cannot be over–emphasized, particularly for that investor who has his eyes on the benefits that may accrue on his investment on the long run. For avoidance of doubt, Fundamental Analysis, according to the Financial Market Glossary authored by Mr. Remi Bakare, refers to “a method of securities analysis that tries to evaluate the intrinsic value of a particular stock…” which involves “…a study of the overall economy, industry condition(external factors), financial condition and management(internal factors) of a particular company”.
While this type of analysis would require expert appraisal in majority of its ramifications, the purpose of this piece is to educate investors on some basic comparisons (drawing from the internal factors, while holding external factors constant) that could be made to establish a basis for investing in a company’s future as it were. Some of the ways to derive data for the methods/techniques to be discussed later is through the annual report of the company. Better still, the published financials which could include the Income Statement and the Balance Sheet is helpful.
One of the things to look out for is the growth in the company’s Sales/Turnover or Gross Earnings as the case may be. It is important to consider this parameter because it is a portion of the Sales/Turnover that translates into the Net Profit or Income also known as the bottom line. An increasing turnover provides a higher probability for increased earnings. A decline may largely signify ineffective strategies, declining quality of company’s product or services, etc. As a matter of fact, it shows that the comparative level of activities between the past and current period have not been justified by the passage of time, experience and additional funds re-ploughed in terms of retained earnings. Analysts have recommended that an investor should not just seek growth, but have a benchmark of at least 10 per cent, from most recent historic figures, either quarterly or annually.
Read more...
Another very useful tip is to take a look at the dividend. Dividend is usually paid out of earnings, and the dividend payout ratio (dividend per share/earning per share) tells how much of the company’s earnings are retained for re-investment. It must be noted that the dividend policy of companies vary with the peculiarities in their industries. But then, a company paying above 75 per cent of its earnings may signal a warning, which could mean that the company may not be retaining enough for re-investment – talk about the long term vision of the company. Some players have also held that a high pay-out ratio may mean that the company’s earnings may be declining, or that the company is trying to entice investors. By and large, these figures must be interpreted with other qualitative factors taken into consideration as inferences would make more sense that way.
Analyzing periodic financials (1)
Posted: 17 Jan 2009 06:17 PM PST
Fundamental Analysis remains a vital tool in making investment decisions that are meant to stand the test of time – all other things being equal. The truth of this cannot be over–emphasized, particularly for that investor who has his eyes on the benefits that may accrue on his investment on the long run. For avoidance of doubt, Fundamental Analysis, according to the Financial Market Glossary authored by Mr. Remi Bakare, refers to “a method of securities analysis that tries to evaluate the intrinsic value of a particular stock…” which involves “…a study of the overall economy, industry condition(external factors), financial condition and management(internal factors) of a particular company”.
While this type of analysis would require expert appraisal in majority of its ramifications, the purpose of this piece is to educate investors on some basic comparisons (drawing from the internal factors, while holding external factors constant) that could be made to establish a basis for investing in a company’s future as it were. Some of the ways to derive data for the methods/techniques to be discussed later is through the annual report of the company. Better still, the published financials which could include the Income Statement and the Balance Sheet is helpful.
One of the things to look out for is the growth in the company’s Sales/Turnover or Gross Earnings as the case may be. It is important to consider this parameter because it is a portion of the Sales/Turnover that translates into the Net Profit or Income also known as the bottom line. An increasing turnover provides a higher probability for increased earnings. A decline may largely signify ineffective strategies, declining quality of company’s product or services, etc. As a matter of fact, it shows that the comparative level of activities between the past and current period have not been justified by the passage of time, experience and additional funds re-ploughed in terms of retained earnings. Analysts have recommended that an investor should not just seek growth, but have a benchmark of at least 10 per cent, from most recent historic figures, either quarterly or annually.
Read more...
Analyzing periodic financials (20
As a follow–up to the Growth in Turnover/Sales/Gross Earnings, one must equally consider the Earnings Growth. As a matter of fact, while the company’s level of activities is discernable in Turnover growth, its efficiency can be revealed in its earnings growth. Comparing the percentage growth in Turnover to the percentage growth in earnings shows how well cost has been managed or controlled in the periods compared. Cost control is crucial to profitability because it remains the only factor that can be controlled by the management of the company. Sales may be affected by recession or temporary unfavorable market conditions. Hence, reaching the optimal earnings for an increase in Turnover/Gross Earnings is a sign that the company’s board and management are on top of things.
Another very useful tip is to take a look at the dividend. Dividend is usually paid out of earnings, and the dividend payout ratio (dividend per share/earning per share) tells how much of the company’s earnings are retained for re-investment. It must be noted that the dividend policy of companies vary with the peculiarities in their industries. But then, a company paying above 75 per cent of its earnings may signal a warning, which could mean that the company may not be retaining enough for re-investment – talk about the long term vision of the company. Some players have also held that a high pay-out ratio may mean that the company’s earnings may be declining, or that the company is trying to entice investors. By and large, these figures must be interpreted with other qualitative factors taken into consideration as inferences would make more sense that way.
Analyzing periodic financials (1)
Posted: 17 Jan 2009 06:17 PM PST
Fundamental Analysis remains a vital tool in making investment decisions that are meant to stand the test of time – all other things being equal. The truth of this cannot be over–emphasized, particularly for that investor who has his eyes on the benefits that may accrue on his investment on the long run. For avoidance of doubt, Fundamental Analysis, according to the Financial Market Glossary authored by Mr. Remi Bakare, refers to “a method of securities analysis that tries to evaluate the intrinsic value of a particular stock…” which involves “…a study of the overall economy, industry condition(external factors), financial condition and management(internal factors) of a particular company”.
While this type of analysis would require expert appraisal in majority of its ramifications, the purpose of this piece is to educate investors on some basic comparisons (drawing from the internal factors, while holding external factors constant) that could be made to establish a basis for investing in a company’s future as it were. Some of the ways to derive data for the methods/techniques to be discussed later is through the annual report of the company. Better still, the published financials which could include the Income Statement and the Balance Sheet is helpful.
One of the things to look out for is the growth in the company’s Sales/Turnover or Gross Earnings as the case may be. It is important to consider this parameter because it is a portion of the Sales/Turnover that translates into the Net Profit or Income also known as the bottom line. An increasing turnover provides a higher probability for increased earnings. A decline may largely signify ineffective strategies, declining quality of company’s product or services, etc. As a matter of fact, it shows that the comparative level of activities between the past and current period have not been justified by the passage of time, experience and additional funds re-ploughed in terms of retained earnings. Analysts have recommended that an investor should not just seek growth, but have a benchmark of at least 10 per cent, from most recent historic figures, either quarterly or annually.
Read more...
Another very useful tip is to take a look at the dividend. Dividend is usually paid out of earnings, and the dividend payout ratio (dividend per share/earning per share) tells how much of the company’s earnings are retained for re-investment. It must be noted that the dividend policy of companies vary with the peculiarities in their industries. But then, a company paying above 75 per cent of its earnings may signal a warning, which could mean that the company may not be retaining enough for re-investment – talk about the long term vision of the company. Some players have also held that a high pay-out ratio may mean that the company’s earnings may be declining, or that the company is trying to entice investors. By and large, these figures must be interpreted with other qualitative factors taken into consideration as inferences would make more sense that way.
Analyzing periodic financials (1)
Posted: 17 Jan 2009 06:17 PM PST
Fundamental Analysis remains a vital tool in making investment decisions that are meant to stand the test of time – all other things being equal. The truth of this cannot be over–emphasized, particularly for that investor who has his eyes on the benefits that may accrue on his investment on the long run. For avoidance of doubt, Fundamental Analysis, according to the Financial Market Glossary authored by Mr. Remi Bakare, refers to “a method of securities analysis that tries to evaluate the intrinsic value of a particular stock…” which involves “…a study of the overall economy, industry condition(external factors), financial condition and management(internal factors) of a particular company”.
While this type of analysis would require expert appraisal in majority of its ramifications, the purpose of this piece is to educate investors on some basic comparisons (drawing from the internal factors, while holding external factors constant) that could be made to establish a basis for investing in a company’s future as it were. Some of the ways to derive data for the methods/techniques to be discussed later is through the annual report of the company. Better still, the published financials which could include the Income Statement and the Balance Sheet is helpful.
One of the things to look out for is the growth in the company’s Sales/Turnover or Gross Earnings as the case may be. It is important to consider this parameter because it is a portion of the Sales/Turnover that translates into the Net Profit or Income also known as the bottom line. An increasing turnover provides a higher probability for increased earnings. A decline may largely signify ineffective strategies, declining quality of company’s product or services, etc. As a matter of fact, it shows that the comparative level of activities between the past and current period have not been justified by the passage of time, experience and additional funds re-ploughed in terms of retained earnings. Analysts have recommended that an investor should not just seek growth, but have a benchmark of at least 10 per cent, from most recent historic figures, either quarterly or annually.
Read more...
How to avoid investing mistakes
Every genius we see today has undoubtedly made mistakes at one time in their lives. Mistakes most times are learning experiences for people. Some people would say “Learn from your mistakes” but i say “Why make mistakes when you can learn from other peoples mistakes?”. It is based on this that we would be taking a look at some investing mistakes that every would be successful investor should avoid. You may have heard some of these before, but lets remember that its not whether you have heard them - it’s a question of whether you have actually put them into practice.
1. Develop a philosophy
Every investor should have a philosophy or set of beliefs and values before going into the investment world. This would define the kind of stock bought and how available funds are allocated. An investor that believes in value stocks and companies that are shareholder friendly would most like allocate more if not all of the available capital to buy a stock like First Bank plc or UBA plc as against Japaul Oil plc or ABC Transport.
2. Avoid too much information
Information is definitely the oxygen required to make the right choices in stock investment. Too much of it however is not good as the investor ends up having challenges sifting out what is required to move ahead. The investor should seek out the basic information from trusted sources and not always pay attention to rumors. For what its worth, an investor should endeavor to always have the financial reports sent to shareholders at the end of each financial year. This piece of info gives a detailed description as to the general state of the business.
3. Concentrate.
Some investors believe that they spread their risk and are better off when they buy into many stocks. I would say they buy a few of a lot. This is very risky as it becomes difficult for the investor to accurately know whats happening in all the companies at one. Successful investors like Warren Buffet has always said that investors should buy a lot of a few. It helps them stay focused and a focused investor is potentially a successful one.
4. Understand your investments.
Always remember to read and do a thorough research before you send your broker the cheque. Always invest in businesses in which you understand their financials, products, services and people. CEOs are expected to make their activities open and simple for the average investor to comprehend. If that is not present in a business, then do not put in your money. Simply put, invest in companies that are TRANSPARENT.
5.Don’t sell too soon.
Jumping in and out of stocks is certainly not the best way to make it big in investment. The only time the investor should sell is when you realise that a mistake has been made. Understand that the falling price of a stock does not mean that that particular investment is a mistake. Allow time to run its course. After all, if indeed you believe that you picked right, why wake up one morning and think otherwise.
We can go on and on but the bottom line remains that the level of your rise or fall as an investor depends on the level to which you play by time tested rules. Invest wisely and live happily.
Academy Press release first and second quarter results for 2008
Posted: 16 Jan 2009 10:38 PM PST
Academy press yesterday made available two of its quarterly results to the Nigerian Stock Exchange. The first being its Profit and Loss accounts information for the first quarter ended 30th of June 2008. It recorded a Turnover of N376.052 million, as against preceding year comparable periods N425.556 million. The Profit Before Taxation was N6.935 million, as against preceding comparable periods N54.869 million. While, the Profit After Taxation also declined by 87.36 percent to N4.855 million, lower than preceding comparable year 2007’s N38.408 million.
The second quarter ended 30th of September 2008’s accounts information showed a declining earnings report too. The Turnover figure declined to N773.581 million, as against preceding year comparable periods N754.420 million. The Profit Before Taxation showed a figure of N11.133 million, as against preceding year’s comparable periods N62.535 million. While, the Profit After Taxation figure also declined to N7.793 million, as against preceding comparable periods N43.77 million, indicating an approximately 82.2 percent cut, in the net profit made for the share holders of Academy Press.
Nigerian stock market update for 16 January, 2009.
Posted: 16 Jan 2009 10:36 PM PST
Data from the Nigerian stock Exchange show’s a further declining market as the All Share Index (ALSI) dropped to 27,108.54 basis points, as against yesterday’s closing of 27,421.05 basis points. There were a total of 6,064 stock transactions involving a share volume of 150,470,106 units, worth N1.253 billion; as against yesterday’s 7,747 deals involving a volume of 255,346,864 unit shares, valued at N1.495 billion.The market capitalisation closed for the last trading day of the week at N6.032 trillion, as against yesterday’s N6.101 trillion.
The most traded stocks (volume wise), in a descending order: (1) FIDELITYBK led the activity chart by trading with 20,267,144 units, valued at N85,245,712.11; (2) PZ traded with 14,047,127 units, valued at N203,615,616.78; (3) BCC traded with 9,153,387 units, valued at N183,101,645.80; (4) FIRSTBANK traded with 8,397,027 units, valued at N159,167,525.41; while (5) ACCESS traded with 8,256,223 share units, valued at N48,033,009.56.
The top price gainers of the day in a descending order includes: (1) BCC appreciated by N0.99 to close at N20.98; (2) UBN gained N0.67 to close at N14.17; (3) DANGSUGAR gained N0.66 to close at N14.03; while (4) WAPIC gained N0.19 to close at N3.99.
On the other hand, the top price losers for the day in a descending order includes: (1) UACN which lost N1.50 to close at N28.65; (2) WAPCO lost N1.12 to close at N21.45; (3) GUINNESS lost N1.11 to close at N73.00; while (4) UAC-PROP lost N0.89 to close at N20.00
Read more...
1. Develop a philosophy
Every investor should have a philosophy or set of beliefs and values before going into the investment world. This would define the kind of stock bought and how available funds are allocated. An investor that believes in value stocks and companies that are shareholder friendly would most like allocate more if not all of the available capital to buy a stock like First Bank plc or UBA plc as against Japaul Oil plc or ABC Transport.
2. Avoid too much information
Information is definitely the oxygen required to make the right choices in stock investment. Too much of it however is not good as the investor ends up having challenges sifting out what is required to move ahead. The investor should seek out the basic information from trusted sources and not always pay attention to rumors. For what its worth, an investor should endeavor to always have the financial reports sent to shareholders at the end of each financial year. This piece of info gives a detailed description as to the general state of the business.
3. Concentrate.
Some investors believe that they spread their risk and are better off when they buy into many stocks. I would say they buy a few of a lot. This is very risky as it becomes difficult for the investor to accurately know whats happening in all the companies at one. Successful investors like Warren Buffet has always said that investors should buy a lot of a few. It helps them stay focused and a focused investor is potentially a successful one.
4. Understand your investments.
Always remember to read and do a thorough research before you send your broker the cheque. Always invest in businesses in which you understand their financials, products, services and people. CEOs are expected to make their activities open and simple for the average investor to comprehend. If that is not present in a business, then do not put in your money. Simply put, invest in companies that are TRANSPARENT.
5.Don’t sell too soon.
Jumping in and out of stocks is certainly not the best way to make it big in investment. The only time the investor should sell is when you realise that a mistake has been made. Understand that the falling price of a stock does not mean that that particular investment is a mistake. Allow time to run its course. After all, if indeed you believe that you picked right, why wake up one morning and think otherwise.
We can go on and on but the bottom line remains that the level of your rise or fall as an investor depends on the level to which you play by time tested rules. Invest wisely and live happily.
Academy Press release first and second quarter results for 2008
Posted: 16 Jan 2009 10:38 PM PST
Academy press yesterday made available two of its quarterly results to the Nigerian Stock Exchange. The first being its Profit and Loss accounts information for the first quarter ended 30th of June 2008. It recorded a Turnover of N376.052 million, as against preceding year comparable periods N425.556 million. The Profit Before Taxation was N6.935 million, as against preceding comparable periods N54.869 million. While, the Profit After Taxation also declined by 87.36 percent to N4.855 million, lower than preceding comparable year 2007’s N38.408 million.
The second quarter ended 30th of September 2008’s accounts information showed a declining earnings report too. The Turnover figure declined to N773.581 million, as against preceding year comparable periods N754.420 million. The Profit Before Taxation showed a figure of N11.133 million, as against preceding year’s comparable periods N62.535 million. While, the Profit After Taxation figure also declined to N7.793 million, as against preceding comparable periods N43.77 million, indicating an approximately 82.2 percent cut, in the net profit made for the share holders of Academy Press.
Nigerian stock market update for 16 January, 2009.
Posted: 16 Jan 2009 10:36 PM PST
Data from the Nigerian stock Exchange show’s a further declining market as the All Share Index (ALSI) dropped to 27,108.54 basis points, as against yesterday’s closing of 27,421.05 basis points. There were a total of 6,064 stock transactions involving a share volume of 150,470,106 units, worth N1.253 billion; as against yesterday’s 7,747 deals involving a volume of 255,346,864 unit shares, valued at N1.495 billion.The market capitalisation closed for the last trading day of the week at N6.032 trillion, as against yesterday’s N6.101 trillion.
The most traded stocks (volume wise), in a descending order: (1) FIDELITYBK led the activity chart by trading with 20,267,144 units, valued at N85,245,712.11; (2) PZ traded with 14,047,127 units, valued at N203,615,616.78; (3) BCC traded with 9,153,387 units, valued at N183,101,645.80; (4) FIRSTBANK traded with 8,397,027 units, valued at N159,167,525.41; while (5) ACCESS traded with 8,256,223 share units, valued at N48,033,009.56.
The top price gainers of the day in a descending order includes: (1) BCC appreciated by N0.99 to close at N20.98; (2) UBN gained N0.67 to close at N14.17; (3) DANGSUGAR gained N0.66 to close at N14.03; while (4) WAPIC gained N0.19 to close at N3.99.
On the other hand, the top price losers for the day in a descending order includes: (1) UACN which lost N1.50 to close at N28.65; (2) WAPCO lost N1.12 to close at N21.45; (3) GUINNESS lost N1.11 to close at N73.00; while (4) UAC-PROP lost N0.89 to close at N20.00
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FTN Cocoa to benefit from rising cocoa prices
What most investors have been terming as a hunch is beginning to become concrete signals of increased earnings for FTN cocoa plc. This is due to the rising cost of cocoa prices in the international market.
Information from international sources at at January 13, 2009 clearly indicated that cocoa futures have hit its highest price in 23 years. It is reported that the commodity is on high demand compared to a lapse in supply. Africa which is known to be one of the largest producers of the commodity is said to be experiencing a fall in production currently.
FTN Cocoa plc is therefore positioned to benefit from the rising price of cocoa as it is a major exporter of the commodity amongst other Nigerian players. Some of its international customers include:
Unicom International Bv, Zaamdam, Amsterdam
All Trade International, Paris
Theobroma International Bv, Amsterdam/ED & FMAN COCOA.
Armajaro International, UK
Union Chocolate, Poland Delfi Nord Cacao, France/Amsterdam
Indcresa, Barcelona, Spain.
It would be recalled that the company had a private placement last year and was listed on listed on the exchange in the same year. According to the earnings forecast in the offer prospectus, profit after tax for 2008, 2009 and 2010 was pegged at N596,400,000, N735,000,000 and N870,100,000 respectively. Earnings per share was pegged at N0.30, N0.37 and N0.44 for 2008, 2009 and 2010. Consequently, dividend forecast has been pegged at N0.10, N0.15 and N0.20 for the next 3 years effective 2008.
Read more...
Information from international sources at at January 13, 2009 clearly indicated that cocoa futures have hit its highest price in 23 years. It is reported that the commodity is on high demand compared to a lapse in supply. Africa which is known to be one of the largest producers of the commodity is said to be experiencing a fall in production currently.
FTN Cocoa plc is therefore positioned to benefit from the rising price of cocoa as it is a major exporter of the commodity amongst other Nigerian players. Some of its international customers include:
Unicom International Bv, Zaamdam, Amsterdam
All Trade International, Paris
Theobroma International Bv, Amsterdam/ED & FMAN COCOA.
Armajaro International, UK
Union Chocolate, Poland Delfi Nord Cacao, France/Amsterdam
Indcresa, Barcelona, Spain.
It would be recalled that the company had a private placement last year and was listed on listed on the exchange in the same year. According to the earnings forecast in the offer prospectus, profit after tax for 2008, 2009 and 2010 was pegged at N596,400,000, N735,000,000 and N870,100,000 respectively. Earnings per share was pegged at N0.30, N0.37 and N0.44 for 2008, 2009 and 2010. Consequently, dividend forecast has been pegged at N0.10, N0.15 and N0.20 for the next 3 years effective 2008.
Read more...
NSE Weekly Market Report (Jan 9 2009)
A turnover of 1.045 billion shares worth N7.25 billion in 34,103 deals was recorded last week, in contrast to a total of 991.8 million shares valued at N6.42 billion exchanged the week before in 23,733 deals.
There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.
The Banking subsector was the most active during the week (measured by turnover volume), with 492.6 million shares worth N4.72 billion exchanged by investors in 18,265 deals. Volume in the Banking subsector was largely driven by activity in the shares of Fidelity Bank Plc, Guaranty Trust Bank Plc and Oceanic Bank International Plc. Trading in the shares of the three banks accounted for 199.13 million shares, representing 40.43% of the subsector’s turnover.
The Insurance subsector, boosted by activity in the shares of Continental Reinsurance Plc, followed on the week’s activity chart with a turnover of 251.15 million shares valued at N392.8 million in 3,342 deals.
Last week, the Banking subsector led on the activity chart and was followed by the Insurance subsector.
Price Movement:
The All-Share Index dropped by 7.94% to close on Friday at 28,866.80. The market capitalization of the 198 First -Tier equities closed lower at N6.4 trillion.
Nine (9) stocks appreciated in price during the week, lower than the fifty - six (56) in the preceding week. Oando Plc led on the gainers’ table with a gain of N4.17 to close at N82.18 per share while PZ Cussons Nigeria Plc followed with N2.05 to close at N13.85 per share. Other price gainers in the Top 10 category include:
Cement Co. of Northern Nigeria Plc N1.50
International Breweries Plc N0.78
Big Treat Plc N0.15
Regency Alliance Insurance Plc N0.14
Neimeth International Pharmaceutical Plc - N0.11
Multiverse Resources Plc N0.07
Intercontinental WAPIC Insurance Plc N0.02
Eighty - Five (85) stocks depreciated in price during the week, higher than the thirty – nine (39) in the preceding week. Also, as in the preceding week, Chevron Oil Nigeria Plc led on the price losers’ table, dropping by N15.41 to close at N144.50 per share while Guinness Nigeria Plc followed with a loss of N15.11 to close at N82.90 per share. Other price losers in the Top 10 category include:
Total Nigeria Plc N10.18
Nestle Nigeria Plc N9.57
Nigerian Bottling Company Plc N5.25
UACN Property Dev. Co. Plc N4.63
Flour Mills of Nigeria Plc N4.50
Cadbury Nigeria Plc N3.22
Intercontinental Bank Plc N3.01
Nigerian Breweries Plc N2.60
COMPANY NEWS
SKYE BANK PLC: Unaudited result for the first quarter ended 31st December 2008 shows Gross Earnings of N27.9 billion, as against N12.55 billion in the comparable period of 2007. Profit after tax stood at N5.9 billion compared with N2.85 billion in 2007.
NAMPAK NIGERIA PLC: Audited result for the year ended 30th September 2008 shows Turnover of N3 billion as against N2.85 billion in 2007. Loss after tax and exceptional items stood at N231.02 million compared with N145.92 million in 2007.
CADBURY NIGERIA PLC: Audited result for the year ended 31st December 2007 shows Turnover of N19.94 billion as against N19.21 billion in 2006. Loss after tax stood at N727 million compared with loss after tax and exceptional items N4.7 billion in 2006.
STANBIC IBTC NIGERIAN EQUITY FUND: Audited result for the year ended 31st December 2008. The Fund Managers are recommending a distribution of N110.00 per Unit. The Fund Register of Unitholders would be closed on January 27, 2009 while payment date would be advised later.
COMPANY FORECASTS
ASSOCIATED BUS COMPANY PLC: The Company forecasts a Turnover of N1.25 billion and profit after tax of N99.82 million during the first quarter ending March 31, 2009.
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There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.
The Banking subsector was the most active during the week (measured by turnover volume), with 492.6 million shares worth N4.72 billion exchanged by investors in 18,265 deals. Volume in the Banking subsector was largely driven by activity in the shares of Fidelity Bank Plc, Guaranty Trust Bank Plc and Oceanic Bank International Plc. Trading in the shares of the three banks accounted for 199.13 million shares, representing 40.43% of the subsector’s turnover.
The Insurance subsector, boosted by activity in the shares of Continental Reinsurance Plc, followed on the week’s activity chart with a turnover of 251.15 million shares valued at N392.8 million in 3,342 deals.
Last week, the Banking subsector led on the activity chart and was followed by the Insurance subsector.
Price Movement:
The All-Share Index dropped by 7.94% to close on Friday at 28,866.80. The market capitalization of the 198 First -Tier equities closed lower at N6.4 trillion.
Nine (9) stocks appreciated in price during the week, lower than the fifty - six (56) in the preceding week. Oando Plc led on the gainers’ table with a gain of N4.17 to close at N82.18 per share while PZ Cussons Nigeria Plc followed with N2.05 to close at N13.85 per share. Other price gainers in the Top 10 category include:
Cement Co. of Northern Nigeria Plc N1.50
International Breweries Plc N0.78
Big Treat Plc N0.15
Regency Alliance Insurance Plc N0.14
Neimeth International Pharmaceutical Plc - N0.11
Multiverse Resources Plc N0.07
Intercontinental WAPIC Insurance Plc N0.02
Eighty - Five (85) stocks depreciated in price during the week, higher than the thirty – nine (39) in the preceding week. Also, as in the preceding week, Chevron Oil Nigeria Plc led on the price losers’ table, dropping by N15.41 to close at N144.50 per share while Guinness Nigeria Plc followed with a loss of N15.11 to close at N82.90 per share. Other price losers in the Top 10 category include:
Total Nigeria Plc N10.18
Nestle Nigeria Plc N9.57
Nigerian Bottling Company Plc N5.25
UACN Property Dev. Co. Plc N4.63
Flour Mills of Nigeria Plc N4.50
Cadbury Nigeria Plc N3.22
Intercontinental Bank Plc N3.01
Nigerian Breweries Plc N2.60
COMPANY NEWS
SKYE BANK PLC: Unaudited result for the first quarter ended 31st December 2008 shows Gross Earnings of N27.9 billion, as against N12.55 billion in the comparable period of 2007. Profit after tax stood at N5.9 billion compared with N2.85 billion in 2007.
NAMPAK NIGERIA PLC: Audited result for the year ended 30th September 2008 shows Turnover of N3 billion as against N2.85 billion in 2007. Loss after tax and exceptional items stood at N231.02 million compared with N145.92 million in 2007.
CADBURY NIGERIA PLC: Audited result for the year ended 31st December 2007 shows Turnover of N19.94 billion as against N19.21 billion in 2006. Loss after tax stood at N727 million compared with loss after tax and exceptional items N4.7 billion in 2006.
STANBIC IBTC NIGERIAN EQUITY FUND: Audited result for the year ended 31st December 2008. The Fund Managers are recommending a distribution of N110.00 per Unit. The Fund Register of Unitholders would be closed on January 27, 2009 while payment date would be advised later.
COMPANY FORECASTS
ASSOCIATED BUS COMPANY PLC: The Company forecasts a Turnover of N1.25 billion and profit after tax of N99.82 million during the first quarter ending March 31, 2009.
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