Best Banking Stock To Invest Into

[franklino]

Please Can Any One Tell Me The Date The Technical Suspension On Diamond Bank Shares Will Be Lifted Because I Have Been Keeping My Money To Buy It But I Am Runing Out Of Petience.if It Will Not Be Lifted Soon Please I Need Advice On The Best Banking Stock To Invest Into.

[alanbow]

I think the same question has been asked on other threads but no one is sure of the date TS will be lifted.

However, In my humble opinion GTB and Zenith will be the top banking stock for me. But if you can be a little more patient till Monday May 14th, then I will go for the first bank's IPO. This will give you 7.40 naira on each share as you will get it for 33 naira in the IPO and it is currently on TS for 40.40.

It is without a doubt a company with brilliant fundamentals so you can't go wrong I think

[dotunk]

my advice to savvy investers is to buy FBN on the secondary market and shun the Public offer/rights issue.

this is cos you will not be entitled to capital appreciation, dividend and/or bonus come august. you will have to wait till next year. your certificate wont be ready till 3 - 4 months later so you cant trade with it if you wanted to get capital appreciation.

but for those who dont understand the market, newbies on the NSE and conservatives, go for the IPO/PO.

"THERE IS MONEY TO BE MADE IN THE SHORT TERM"

[alanbow]

I have to diagaree with some of the comments above.

I don't see why there will be no capital appreciation for some buying the ipo. For a start the market price is 40.40 and you are buying at a discount. Look at some basic analysis of FBN, the EPS is 1.96 and the P/E ratio is 20.61 which compared to zenith the current the sector leader whose EPS is 1.9 and p/e ratio is 25.03, I will not say FBN is overpriced. so I don't expect a huge fall in price after close of books in August.

Secondly looking at dividends, the most that will be paid is 1 naira per share and even if one is conservative and say the price will drop to about 37 niara where it has had a very storng support over the last 4 months see graph http://www.firstglobalselect.com/scr...retype-id=5775

Then simple arithmetic will still suggest that the person buying at the ipo is still 3 naira better off per share.

I might be wrong but the only winning card for someone buying in the secondary market is if a good bonus is given and I doubt that happeing as a 1-1 was given last year during the split. Furthermore, they are givivg a rights issue at a discounted price of 31naira so where is the logic for the bonus in August.

[dotunk]

alanbow,

Nice analysis, but i still maintain that if you buy the IPO/Po, you will not be able to reep any capital gains that may come prior to closing the register.

My point is make money while you can. why wait till next year? buy now at 40.40 and buy august sell when the price rises. of course the rise in price may not be appreciable like last years (N70), but i think a rise of N10 is worth it in the short term... and you can always buy when the price is adjusted... most likely close to the IPO/PO price.

Well, am not sure we would get any bonus this year, but then you never know... FBN get as e be.

[alanbow]

Now, I see your point, but if you agree with me that there is going to be no bonus in August then the IPO looks more appealing for capital appreciation in October/Nov.

Say as you predict the price moves to 50naira then after close of books it will only fall to 49 naira , a whooping 16 naira per share for the not so rich investor. I think it is worth it.

But of course for the rich investor who can buy 50,000 shares now on the market and sell short term, your strategy might be appealing.

[dotunk]

thank you!

I finally seem to have your attention on the subject.

[alanbow]

Sorry dotunk,

I was distracted last night.

[dotunk]

hi, alanbow,

if you were distracted yesterday night, that figures!

hope to hear of more inteligent analysis from you.

meanwhile, when is Oceanic Bank pricecoming of TS?

what do you think of Nospecto, Uphenry, Insight etc?

[alanbow]

Hi Dotunk

what do you think of Nospecto, Uphenry, Insight etc?

I don't know anything about them and I have just read the other thread where you raised this initially, I would not touch this fast money making schemes if they were the last things available.

Something similar was operating in London a few years ago, more of the pyramid investment in the 80's and 90s. It works iniatially as all they do is redistribute money as many people come on board, no real investment. It crashed eventually and I think the same will happen with this nigerian versions

My adivse if it is worth anything and not too late, invest your 450k in Dangote flour mills when it comes up this month or next. It may be more magical.

[alanbow]

Hi Dotunk

Originally Posted by Dotunk

what do you think of Nospecto, Uphenry, Insight etc?

I don't know anything about them and I have just read the other thread where you raised this initially, I would not touch this fast money making schemes if they were the last things available.

Something similar was operating in London a few years ago, more of the pyramid investment in the 80's and 90s. It works iniatially as all they do is redistribute money as many people come on board, no real investment. It crashed eventually and I think the same will happen with this nigerian versions

My adivse if it is worth anything and not too late, invest your 450k in Dangote flour mills when it comes up this month or next. It may be more magical.

[sahaka]

Kudos to all on this thread. You guys are doing a great job.
I am just a newbie on this site and in stock market.

Hi Dotunk & Alanbow,
I would appreciate if u guys cld help me clarify a point i'm pondering over after reading ur posts.

If some1 buys FBN shares thru IPO and indicates his CSCS # on the application form, when will the shares be reflected in his CSCS account & when can he start trading them - is it when share certificates are issued?

I am considering buying some thru IPO @N33 and some through Secondary Market @N40.40 (to balance the points of views of both Dotunk & alanbow )

What do you think?

[olusolakemmy]

The share will appear on the cscs when they release it, that is when others are receiving their own, just that your own (cscs) is electronic.

I want to disagree with people that contributed earlier about the prospoect of FBN at the short and long term, i believe strongly that they will keep to their tradition of giving bonus, as far as the performance did not drop, and profit is intact, their is no reason why they will not deliver good returns.

I knew how many unit of FBN i bought two years ago n i know how many i have presently.

I am buying further IPO cause it gives me premium of about N7.7, my right is not up to the quantity i intended to buy, thats why am ignoring it.

So it depends on what we are looking at, short or long term?

[alanbow]

Hi Sahaka and olusolakemmy,

Let me answer Sahaka first,

[QUOTE Sahaka wrote ]

If some1 buys FBN shares thru IPO and indicates his CSCS # on the application form, when will the shares be reflected in his CSCS account & when can he start trading them - is it when share certificates are issued?[\QUOTE]

As stated by olusolakemmy, the units will go on your CSCS statement just as certificates are being issued, the advantage of this is that you can sell quicker than people with certificate.


[QUOTE Sahaka wrote..]
I am considering buying some thru IPO @N33 and some through Secondary Market @N40.40 (to balance the points of views of both Dotunk & alanbow )

What do you think?
[\QUOTE]

I think it is a matter of preference, I am a medium to long term investor and will only go for short term if the chances of gaining is >80%. So I will prefer the IPO as FBN is a very good stock and I think I will make more money in the medium term as I will be buying at a discounted rate.


[QUOTE olusolakemmy wrote... ]

I want to disagree with people that contributed earlier about the prospoect of FBN at the short and long term, i believe strongly that they will keep to their tradition of giving bonus, as far as the performance did not drop, and profit is intact, their is no reason why they will not deliver good returns.

I knew how many unit of FBN i bought two years ago n i know how many i have presently.

I am buying further IPO cause it gives me premium of about N7.7, my right is not up to the quantity i intended to buy, thats why am ignoring it.
[\QUOTE]

I suppose at this stage we are basing our arguements on the fact that a 1 for 1 was done last year and they are already giving a discount for rights issue so a bonus might not be imminent but that is an opinion. I would love more bonuses myself.

Did I get you wrong?, you said you will ignore the rights and buy in the IPO as you can get enough from the rights. As far as I am aware you can buy the rights and also buy the IPO, so save your self some naira, do both

[alanbow]

Hi Sahaka and olusolakemmy,

Let me answer Sahaka first,

As stated by olusolakemmy, the units will go on your CSCS statement just as certificates are being issued, the advantage of this is that you can sell quicker than people with certificate.


I think it is a matter of preference, I am a medium to long term investor and will only go for short term if the chances of gaining is >80%. So I will prefer the IPO as FBN is a very good stock and I think I will make more money in the medium term as I will be buying at a discounted rate.


For olusolakemmy,

I suppose at this stage we are basing our arguements on the fact that a 1 for 1 was done last year and they are already giving a discount for rights issue so a bonus might not be imminent but that is an opinion. I would love more bonuses myself.

Did I get you wrong?, you said you will ignore the rights and buy in the IPO as you can get enough from the rights. As far as I am aware you can buy the rights and also buy the IPO, so save your self some naira, do both

[paragon]

hi all,
this is some of the most recent quaterly reports. You can use them to make investment decisions.

Nigerian Stock Market. Recent quarterly reports

Just recently, some quarterly results of Nigerian companies were released into the market. As expected, some of them have already started causing ripples in both the southward and northward direction.

CAP Plc
In its first quarter result for its 2007 financial year, the company had a turnover of N577 million as against N403.6 million in 2006. This represents an increase of 38 percent. Profit after tax improved by 69 percent, as this figure rose from N45.9 million in 2006 to N77.67 million in the first quarter of 2007.Its current EPS stands at 37 kobo and is expected to hit N1.50 at the end of this present financial year.

Nestle
Nestle did not really do impressively well in its first quarter. Turnover increased from N8.4 billion in 2006 to N10.2 billion in 2007, while profit after tax increased from Nn.2 billion in 2006 to N1.5 billion in 2007, representing an increase of 21 percent and 19.4 percent respectively.

The EPS for the first quarter stands at N1.91 for an equity of about N220. This makes it overpriced, as full year EPOS is expected to be around N8.00.

RT Briscoe
. The company in its first quarter increased turnover from NN2.28 billion in 2006 to N3.83 billion in 2007, an increase of 67.5 percent. Similarly, profit after tax increased from N75.7 million in 2006 to N149 million in 2007, an increase of 97 percent. The current EPS for the quarter stands at 27 kobo, and is expected to hit N1.10 by the end of its current financial year. This has already started pushing the demand for it shares on the floor of the exchange.

Fidelity Bank Plc
For a bank that started trading this year at N2.15 and currently sells for N8.71, things are indeed looking bright for Fidelity Bank Plc. In its third quarter results, the bank increased turnover by 52.4 percent, from N11.5 billion in 2006 to N17.5 billion in 2007. Profit after tax soared by a whooping 219.9 percent, from N969 million to N3.1 billion in its current year.

The stock is one that many people never gave a chance, but it has finally proved its critics wrong. The EPS for the quarter stands at 16 kobo and is expected to hit 25 kobo at the end of its yearly cycle.

[sahaka]

Hi olusolakemmy & alanbow,

Thanks for clearing things up 4 me.

I've decided to dive head-long into the IPO/PO.

What do you guys think of the Shareholder's Approval for Access Bank's N100 Billion public offer. I think it will be an