Ecobank Transnational plc (ETI)

[nwoyearoh]

" ETI reduces nominal share value, to offer 1 for 5 bonus" .........BUSINESSDAY, Monday, April 28, 2008.

I understand that the bank would be reducing the nominal value of its shares and would in effect increase the holdings of current shareholders by a factor of 6!

I have some questions which I hope the senior members of this group can assist in providing necessary answers.

(1) Despite the initial dilution, with attendant increase in liquidity, any significant scope for recharging and to what (approximate) value?

(2) If it is a good deal, is it too late to get in now and qualify - when will the books be closed?.

Grateful for further clarity.

[gbam]

it is a good buy now, if you consider the total number of shares, which is over 1 billion shares and the same time their investment sphere cut across west african countries

[riskreturn]

Originally Posted by nwoyearoh

" ETI reduces nominal share value, to offer 1 for 5 bonus" .........BUSINESSDAY, Monday, April 28, 2008.

I understand that the bank would be reducing the nominal value of its shares and would in effect increase the holdings of current shareholders by a factor of 6!

I have some questions which I hope the senior members of this group can assist in providing necessary answers.

(1) Despite the initial dilution, with attendant increase in liquidity, any significant scope for recharging and to what (approximate) value?

(2) If it is a good deal, is it too late to get in now and qualify - when will the books be closed?.

Grateful for further clarity.

I think it is just a bookeeping exercise, a reverse share consolidation that some Nigerian banks have embarked upon. In the main, it is like a reverse form of Naira re-basement that CBN planned to embark upon some months ago which the Finance Minister described as cosmetic surgery that does not affect fundamentals of the economy.

However, such cosmetic surgery exercises can have some psychological effects and it can also have signalling effect of the new disposition of the administarators of the economy (or, in the present case, of the company management). For the pschological reasons, the share price may receive a short-term boost. As such boosts are not sustainable, I think only smart short-term speculators can benefit from the exercise because, sooner or later, water must find its own level.

[tonidol]

Originally Posted by riskreturn

I think it is just a bookeeping exercise, a reverse share consolidation that some Nigerian banks have embarked upon. In the main, it is like a reverse form of Naira re-basement that CBN planned to embark upon some months ago which the Finance Minister described as cosmetic surgery that does not affect fundamentals of the economy.

However, such cosmetic surgery exercises can have some psychological effects and it can also have signalling effect of the new disposition of the administarators of the economy (or, in the present case, of the company management). For the pschological reasons, the share price may receive a short-term boost. As such boosts are not sustainable, I think only smart short-term speculators can benefit from the exercise because, sooner or later, water must find its own level.

Subsequent to the bonus adjustment, the maximum level of rebound is a bit difficult to ascertain and that is the biggest challenge here. No other stocks to benchmark it against. We know little about how their business success in the west african sub region will impact on its stock on the NSE. Going by the little l know about their Nigerian business wing (Ecobank Nigeria), they are not an aggressive bank though l am considering taking the risk of buying but my mind is not made up yet.

[tonidol]

Originally Posted by tonidol

Subsequent to the bonus adjustment, the maximum level of rebound is a bit difficult to ascertain and that is the biggest challenge here. No other stocks to benchmark it against. We know little about how their business success in the west african sub region will impact on its stock on the NSE. Going by the little l know about their Nigerian business wing (Ecobank Nigeria), they are not an aggressive bank though l am considering taking the risk of buying but my mind is not made up yet.

Anyone with the closure of Register date for 5 for 1 bonus of ETI?

[pumping]

Originally Posted by tonidol

Anyone with the closure of Register date for 5 for 1 bonus of ETI?

This is not a bonus na. It is a reverse stock split.

[tonidol]

Originally Posted by pumping

This is not a bonus na. It is a reverse stock split.

That is fine. They can use any grammer they like. Do you know the cut off date for the split. I strongly speculate that the stock will definitely rally back though it may not reach the present N250 for some time to come but will still be profitable in the long run. This is my own opinion.

Guys, what do you feel? l intend given a buy mandate for tomorrow.

[tonidol]

Originally Posted by tonidol

That is fine. They can use any grammer they like. Do you know the cut off date for the split. I strongly speculate that the stock will definitely rally back though it may not reach the present N250 for some time to come but will still be profitable in the long run. This is my own opinion.

Guys, what do you feel? l intend given a buy mandate for tomorrow.

Still expecting responses please!!!

[hispy99]

Originally Posted by tonidol

Still expecting responses please!!!

ETI looks like a solid bank, I just prefer some other banks currently - SKYE, Diamond UBA...even Zenith looks like a good bargain with the release of their results 2 days ago.

[tonidol]

Originally Posted by hispy99

ETI looks like a solid bank, I just prefer some other banks currently - SKYE, Diamond UBA...even Zenith looks like a good bargain with the release of their results 2 days ago.

Guys, does anyone know cut off date for this 5 for 1 bonus or 5 for 1 split please

[tonidol]

Originally Posted by tonidol

Guys, does anyone know cut off date for this 5 for 1 bonus or 5 for 1 split please

Guys, still expecting responses please!!!

[tonidol]

Originally Posted by tonidol

Guys, still expecting responses please!!!

Anyone very sure of the cut off date for the ETI stock split or 5 for 1 please?

[en_y]

The closure date for dividend as reported on www.cscsnigerialtd.com - The Clearing House of The Nigerian Stock Exchange is 16 May. It doesnt say what the closure date for the bonus is.

[hispy99]

Originally Posted by en_y

The closure date for dividend as reported on www.cscsnigerialtd.com - The Clearing House of The Nigerian Stock Exchange is 16 May. It doesnt say what the closure date for the bonus is.

This should also be the closure date for the stock split..or is it possible to have different closure dates for dividend and split?

[tonidol]

Originally Posted by hispy99

This should also be the closure date for the stock split..or is it possible to have different closure dates for dividend and split?

Thanks my guys. I also picked up May 16 for dividend somewhere and wasn't sure if there was a different date for the split. I think l will just stay by 16 May. I even tried calling ESL securities (which is part of their group l believe) but it seems the lines never get picked up. Anyway, thanks.

[hispy99]

Q & A with CEO Ecobank Transnational Inc Plc (you may need to log-in to read the interview)

Proshare Nigeria - Sign In to Proshare

[tonidol]

Originally Posted by hispy99

Q & A with CEO Ecobank Transnational Inc Plc (you may need to log-in to read the interview)

Proshare Nigeria - Sign In to Proshare

Thanks Hispy99. I read it on proshare already. I took position for the long term before the 16 May close of Register.

Can you imagine that ETI appreciated by over N10 yesterday despite the fact the register closed last week friday?

At times , dis our market dey shame convention. Guys, what could be responsible?

[tonidol]

Anyone with reliable info on when the ETI stock split will be effected?

[tonidol]

Ecobank Transnational
Proposed Bonus Issue 5 For 1
Share Split Closure Of Register June 2-4 2008

[XXCASH]

Why didn't i buy ETI. I feel like crying oooooh
Some calculation. It closed at 230 but today the price would close at 48.3
48.3*6= 290. I bet you it will go all the way to 55.
That would have been an easy 40% in these hard times.