Prospects For Unitybank On The Short Term

[endyjc]

Hi all,
Just read an article on Proshare Nigeria - Sign In to Proshare tagged "Investor confidential" suggesting the probability of foreign investment [by Bank of Ireland] in the bank. Now judging by past trends, if this materializes, could be percieved as a harbinger of good things to come.
How much potential does an investment in Unitybank hold for the investor[/speculator] willing to take position right now considering the prevailing price of N6.50 [as at close of trading y/day]?
Will the fact this stock is one of the few whose share price still lies below the nominal N10 mark for stocks in the banking sector act as a propellent for price appreciation?

Recent observations indicate an upward thrust in the price of the stock. Am I a tad bit late to the tea party already?

[c kenneths]

There are times in this business when I will start thinking all we try to do as analysis for stock selection will be rendered useless by one happening that will tend to give undue advantage to a set of hitherto unprepared people to reap hansome rewards more than those that have been working so hard to follow fundamental reasoning.

Who would have given Unity of all banks a chance for interest from the bank of Ireland? and we were condemning this bank when compared to other stronger banks!

I wonder.

[babatunde akinyemi]

Originally Posted by c kenneths

There are times in this business when I will start thinking all we try to do as analysis for stock selection will be rendered useless by one happening that will tend to give undue advantage to a set of hitherto unprepared people to reap hansome rewards more than those that have been working so hard to follow fundamental reasoning.

Who would have given Unity of all banks a chance for interest from the bank of Ireland? and we were condemning this bank when compared to other stronger banks!

I wonder.

This is philosophical. I share your point. Remember that it it not by might but by his grace that legitimate fortunes are made. Yet, reward exists also for those that are prepared- for a man that is diligent in his works shall dine with kings.

[oseitutu]

To put it in a language many N igerians will understand. While Unity Bank is just getting Bank of Ireland, awon boys don conclude alliances with foreign patners since(tipe tipe)! They have simply promised to buy petrol, while others have full tank and are on their way. If you look at Nigerian Banks, more than half are already in alliance with foreign patners so this no be jist at all. If the new cooperation will push their share price up, then the older alliances will hit the roof. I do not argue with the fact that there is a great room for advancement, but I simply do not see it as enough reason to change the winning teams. Taking position is good o, but remember that winners win more than they lose and losers lose more than they win.

c kenneths, fundamental reasoning as you put it would be to assume that the lesser banks will one day get foreign patners too. Hence one could take position and wait. Not all that glitters is gold yet some glitters are gold!

[c kenneths]

@Oseitutu, you know what amuses me, I bought a lot of Unity bank with some cash which I did not want to leave idle, no research, no considerations except the bank was the cheapest in the country, but few days later, now this news.

Thats why I was beginning to feel that even with all my preparedness and the whole info I use, I could'nt have timed any stock purchase like this one.

All the same, research and analysis is still the best way to pick stocks, this is a one off thing.

[c kenneths]

But the bank lost another .32k today what is happening ?

[balaliyu]

...Remember ...its still only rumours.

Thats the risk you take when you stake funds on a stock based on "market hearsay". But if it turns out to be true - then in the end you win, else......

Anyway, here is something that is true about Unity bank as of August 1:

" Five new directors have been appointed to serve on the board of Unity Bank Plc, a statement from the bank said in Abuja yesterday.The directors are Mr. Felix Ohiwerei, former Chairman of NNB International Bank, Chief Raymond Ihyembe, former MD/CEO of Afribank, Alhaji Abubakar Sadauki, former Chairman of Bank of the North, Engr. Ahmed Ibrahim, former MD/CEO of Bank of the North, and Mr. Ado Wanka, former Executive Director of First Bank. The appointments have been approved by the regulators, Central Bank of Nigeria (CBN). "The new directors are expected to further enrich the bank with their collective wealth of experience, wisdom and leadership skills," the statement, which was signed by Abba Dandago, the bank's Head of Corporate Affairs said " (allAfrica.com: Nigeria: Unity Bank Appoints Five New Directors (Page 1 of 1))

If its any comfort to anyone ...I bought some too......so I hope the rumours turn out true....

Bala

[c kenneths]

This is cheering news Balaliyu, of all the directors named, I single out Mr Felix Ohiwerei, if he is the one I think he is, the chaiman of Unilever and NB.

That guy comes well recommended, he is one of the best in the country and has a pretty track record, if he is the one, I better buy more units of this bank, sounds like they are beginning to get a few fundamentals, what do we think ?

[olusolakemmy]

i tell you one thing, i mgiht not be right, after naming the directors, they will try and push up the share price and later come to the public to raise funds.

now sterling bank is under performing interms of their share price because people are taking their money after they confirmed they will be coming to the bank.

the best thing unity bank can do for us now is to release thier financial report, lets know how healthy they were before the coming in of the new sets of directors, then also tell the public what their plan is, otherwise investing in unity bank might be as bad as that of spring bank

[Stacks]

QUOTE: now sterling bank is under performing interms of their share price because people are taking their money after they confirmed they will be coming to the bank.

Which is why this is the best time to buy sterling bank shares!! Anyone disagree?

[c kenneths]

I will only buy sterling bank now if am trying to Naira cost average my costs, supposing I bought mine costly, but if not I rather wait for things to clear up a bit.

[oseitutu]

Unity Bank is soon to be acquired. Has anyone seen the details?

[c kenneths]

@Oseitutu, I wish details of the acquisition will be known, they seemed to have wanted to merge with F/inland and it seems like the merger will not work now.

The only inkling I have is the one about Bank of ireland wanting some interest in the bank, as reported by Proshare, but everything is still hazy.

[oseitutu]

Originally Posted by c kenneths

@Oseitutu, I wish details of the acquisition will be known, they seemed to have wanted to merge with F/inland and it seems like the merger will not work now.

The only inkling I have is the one about Bank of ireland wanting some interest in the bank, as reported by Proshare, but everything is still hazy.

"Ecobank, following the collapse of its planned
merger with First Bank has gone ahead to acquire some of the
assets and liabilities of the defunct All States Trust Bank and has
recently signed a memorandum of understanding to merge with
Unity Bank".
This is from Yemi Kale, IBTC Head of Research on a review of the Banking Industry in Nigeria. I recieved the mail on 13th August 2007.

[Bigboy]

It is interesting to hear that Bank of Irland is interested in taking over Unity bank. I am resident here in Ireland, happen to have 2 accounts and a mortgage with bank of Ireland. It si no doubt a reputable instituition here in ireland. the second largest bank in Ireland and definitaely one of he strongest in Europe. I have a lot of insiders in Bank of ireland and there appears to be nothing (either from official source or on the grapevine) as such as acquiring a nigerian bank on the ground here. If there is, The top Chief of bank of Ireland are keeping it close to their chest.
In anycase, it will be my joy to see an Irish investor coming ointo the Nigerian banking sector. The Irish are meticulous Bussiness people. 'Dont believe me? Check out Guiness.

Here is the link to the bank of ireland official news portal
Latest News

[olusolakemmy]

Originally Posted by Bigboy

It is interesting to hear that Bank of Irland is interested in taking over Unity bank. I am resident here in Ireland, happen to have 2 accounts and a mortgage with bank of Ireland. It si no doubt a reputable instituition here in ireland. the second largest bank in Ireland and definitaely one of he strongest in Europe. I have a lot of insiders in Bank of ireland and there appears to be nothing (either from official source or on the grapevine) as such as acquiring a nigerian bank on the ground here. If there is, The top Chief of bank of Ireland are keeping it close to their chest.
In anycase, it will be my joy to see an Irish investor coming ointo the Nigerian banking sector. The Irish are meticulous Bussiness people. 'Dont believe me? Check out Guiness.

Here is the link to the bank of ireland official news portal
Latest News

bigboy, if any merger will take place, until they reach a very advance stage, i doubt they will like to disclose the gist to the public.
sometime secrecy is a strategy used in the business world to bypass competitors. unity bank will be a very cheap bank for them to buy, by making it public without signing some MOU, it can trigger BID WAR FROM SOME OTHER EUROPEAN firms that are interested in having banks in nig.

i REMMEBER the word of stanbic bank during the capitalisation, they said N25n IS A VERY CHEAP MONEY TO HAVE A BANK nig!!!!!!!!!!!!!!!!!!
Although, i dont have any info about the merger, but i think the fact that there is no news out there in ireland, might not neccesarily mean that no such plan is going on.
i agree with you that they are keeping it to their chest!!!!!!!!!!!!1