Is FBN offer a "definite" buy

[adeniyia]

Hi guys,
Does anyone think this first bank hybrid offer is a "definite" buy?

[olusolakemmy]

Well, in my own opinion, it is a definite buy, infact, i am presently talking to a bank for a possible loan for the offer
1st bank look good on the medium and long term because of consistent bonus issue, despite price variation and price adjustment after bonus, the recovery rate of 1st bank is very fast.
I am a share holder in 1st bank, i bought it at N32 in may 2005, they r selling their offer at
N33 in may 2007, so to say, no capital appreciation, but the quantity am holding has quadriple after 1for4 twice, 1for 70 once and then 1for1. if this continue, even without capital appreciation, on the long run, you have more than a good bargain.
so, y not?

[alhakeem]

Hi,
You already had a more than 60% capital appreciation in the 3 splits !

[Avocado]

You're about right with the rough estimation; the scrip shares issued coupled with the price bounce-back confirm that there's been money earned from buying shares. This elastic behaviour after stock splits is an enticing feature of fundamentally strong stocks like that of FBN. The gains can be precisely computed to give an idea of exactly how much has been reaped: factor in the dividends issued (which is usually forgotten), the investments (including the cost of the shares and any commissions paid), the scrip shares, price bounce-back and inflation (this puts everything in good context); this can be implemented in a simple spreadsheet.

.

[Tayo]

I agree with the First bank's elastic bounce back abilities. NBPLC tried the same thing way back and have been unable to bounce back. I also think first bank is a BUY BUY BUY!!!

[Geeman]

Originally Posted by adeniyia

Hi guys,
Does anyone think this first bank hybrid offer is a "definite" buy?

It is a definite buy for me. I will encourage you to delay no more: Just do it!

[adeniyia]

Thanks guys for your insight. From the various analysis here, I think its going to be a good buy. One thing though, I am not very keen on dividend payment. I beleieve more in capital appreciation, so all these stock price dilution just makes me wonder what the real intentions of these companies are.
Like someone mentioned, its been bad news for NB since their stock devaluation exercise.

Any thoughts

[c kenneths]

Originally Posted by adeniyia

Thanks guys for your insight. From the various analysis here, I think its going to be a good buy. One thing though, I am not very keen on dividend payment. I beleieve more in capital appreciation, so all these stock price dilution just makes me wonder what the real intentions of these companies are.
Like someone mentioned, its been bad news for NB since their stock devaluation exercise.

Any thoughts

I have already paid for the first bank offer this teusday, the offer is very good for both medium and long term players but for short timers, there is this nagging feeling I have after somebody who should be in the know told me that the offer will be electronically credited to cscs.

This means that some investors would have started trading theirs thereby reducing the rate of capital appreciation.

[windywendy]

Are you sure this electronic crediting thing is real? That's what DSR said they would do, only for the registrars to come out later and tell us that they changed their minds at the last minute. I ended up having to chase certificates all over the place and wait for what seemed like forever to get them verified and dematerialized into my cscs account.

[dotunk]

hi,

i think FBn is a good buy anyday even if it is overpriced.

like has been said, FBN has a good history of div pay out and bonus.

i have been with FBN for 4years now and have never regreted it except for when i bought it at its highest price in 2004,but since then, its been cool.

i recomend FBN anyday to anyone who plans for his/her future.

pss. am even taking a loan to buy some units... tells you how much it is important.

[chinos]

I am afraid of what happens to FirstBank shares price when the certificates are issued (or when directly credited to CSCS as some hinted);
When that time comes in a few months from now, virtually every body would be having enough of it ( FBN shares) that the demand will be too low for it to make any appreciable price increase.

[Avocado]

That's a possibility. But as an exercise: just how low do you expect FBN to be and in how many months? A "fair" comparison could be made with realistic scenarios.

.

[fntekim]

FBN is a definite buy. All investors have different risk aversion, so they are those that'll sell for quick profit, and they are those that'll ride the stock for much longer.

[dotunk]

if anyone has read my posts on FBN, you would see that i advocate that short term investors should buy FBN through the secondary market, that way you can take profit those that bought the IPO/PO. although there are risks... if the price drops too low (which i dont expect), if the suspension is not lifted before the end of year (which shouldn't be).

[omoregie]

I think so. The bank has so much prospects. I see it dominating the Nigerian banking environment for a very long time to come. The current price of the offer is okay.

[omoregie]

I think so. The bank has so much prospects. I see it dominating the Nigerian banking environment for a very long time to come. The current price of the offer is okay.

[olusolakemmy]

The electronic credting is real, the last bonus was credited eletronicaly.

[dotunk]

you are right electronic crediting is really cool. i didnt even know when it was credited for FBN and Prestige Assurance. i hope intercontinental, oceanic do that. it was a shame Dangote didnt.