Riskreturn I wonder sometimes the movements. I remember how Intercontinental went up sharply before its 2006 offer from about N6 or N8 to N15 something and public offer price of N13.5. I nearly refused to buy. But I cautioned myself that that is how I have been missing out that I should just join the party. Now with the certificate at hand and nearly 200% return I am still trying to understand all the mechanics. However the explanation I rest on is the economy is expanding and we are in a growth phase. The banker magazine (FT) said Sub-saharan Africa has a massive shortfall in funding and is an huge area for growth and if you compare South African Banks, Nigerian Banks are still small. I just hope there is not too much cooking of data by companies on the NSE like cadbury. However for truthful banks the growth is there and this growth is not happening only in Nigeria. So lets keep investing
Senior member Pumping. I do not have enough statistics at hand but my feeling is it is faster for a smaller capitalised company to grow than for a big capitalised company. UBA IPO was sold at N35 and current price is N51. If you buy with a medium to long term view Skyebank should do better at N17 on the market or even better at N14 at IPO price than UBA at N51 at this moment. The pre-IPO P/B of UBA was about 7.x and Post IPO 3.x While for Skyebank simillar numbers are 4.4 /1.55. That is Skyebank will relatively have more cash injection and hence potentially more working assets than UBA at current price and more chances at doubling the N17 price in the next 1 year than UBA has capacity to double N51. Thats my reasoning sha. Perhaps you have some other thoughts that make you take your position.
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