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  #1 (permalink)  
Old 3rd August 2007, 05:44 PM
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Default Skye Bank

Please is anybody aware of the number of SKYBank issue shares. I have interest in the Bank and have been trying to gather information about them. Did they carry out Share reconstruction recently? How did their EPS come to 53k? How many shares do they have listed now? How far have they gone in the payment of their Goodwill? any info will help.
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Old 3rd August 2007, 06:30 PM
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Skye from the record I have has issued shares of 7.5billion units.
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Old 3rd August 2007, 08:54 PM
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Originally Posted by Survival2006 View Post
Skye from the record I have has issued shares of 7.5billion units.
Thanks Survival, Do you know if they had Share reconstruction. I thought they have more than 10B units before now. What do you think about their current price?
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Old 8th January 2008, 01:08 PM
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Default Skye Bank

I read somewhere that skye bank will be coming for an IPO of 14.00 and it in currently 17.13 on the listing.....wat do u think?
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Old 8th January 2008, 01:34 PM
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Originally Posted by seunquadri View Post
I read somewhere that skye bank will be coming for an IPO of 14.00 and it in currently 17.13 on the listing.....wat do u think?
For more information, you may please wish to see the posting earlier in the day in the Thread on Firstinland Vs wema Vs skye banks po's.
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Old 9th January 2008, 10:51 AM
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For more information, you may please wish to see the posting earlier in the day in the Thread on Firstinland Vs wema Vs skye banks po's.
More information has now surfaced in respect of Skye Bank public offer. According to reports in the Guardian and Punch of today, the offer will now commence on 14 January and end on 20 February.

"Only" about 50 billion Naira will be raised by issuing 3.732 billion ordinary comprising 2.232 billion shares at 14.00 Naira each via offer for subscription and the balance of 1.5 billion shares at 12.50 Naira each via rights issue.

While still waiting for the details, the performance projections in the prospectus are reported to be very attractive. For instance, after-tax profit will increase by over 200% from 5.51 billion Naira in 2007 to 16.98 billion in 2008 year ending 30 September. This translate to 2008 EPS OF 1.51 Naira and P/E ratio of 9.26 times. However, further profit growth post 2008 is projected to be modest, viz: 16% and 11% profit growth in 2009 and 2010 respectively, implying that the low P/E ratio is front-loaded.
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Old 9th January 2008, 05:36 PM
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Default Skye Bank Better Buy Than Uba

From the Q1 result just released Skyebank has been given both a short and long term buy recommendation by IBTC researchers. They forecast a short term price of 20.9 (22% appreciation) and long term price of 26.12 (51% appreciation).

Factor in the effect of new funds injection in a 1 to 2 year window Skyebank should do more than UBA at current market prices.

For ver short term traders this info is useless as they have more time to watch the markets and cycle-in and out. But for those not blessed with such time / expertise this may be a good time to load Skyebank both on the floor and in the IPO.
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Old 9th January 2008, 06:21 PM
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Originally Posted by Babs_O View Post
From the Q1 result just released Skyebank has been given both a short and long term buy recommendation by IBTC researchers. They forecast a short term price of 20.9 (22% appreciation) and long term price of 26.12 (51% appreciation).

Factor in the effect of new funds injection in a 1 to 2 year window Skyebank should do more than UBA at current market prices.

For ver short term traders this info is useless as they have more time to watch the markets and cycle-in and out. But for those not blessed with such time / expertise this may be a good time to load Skyebank both on the floor and in the IPO.
Given the fact that the 14.00 Naira offer for subscription price is only 20% discount from the technical suspension price of 16.84 Naira (i.e., after the markdown of 35 kobo dividend on 14 January when the offer opens), an investor might be in a dilema as to whether to buy from only the secondary market, which does not entail having to wait for several months and risking substantial under-allotment and returned money - simply because of 20% discount (and, of course, about 2.5% transaction costs in the secondary market).

Second, one should not beeasily carried away by the apparently robust Q1 results released today. Access Bank released in early July a Q1 profit figure of 3 billion Naira just before its public offer was about to start. Today (i.e., 6 months after), it released a combined Q1 and Q2 profit figure of just 4.8 billion, implying that it made only 1.8 billion Naira in the 2nd quarter! It promised in its offer prospectus over 13 billion Naira profit for the year ended 31 March 2008. One wonders how this can be attained by recording only 1.8 billion Naira in the last 3 months to 31 December 2007. In a similar vein, FCMB projected over 15 billion Naira for the year ending 30 April 2008. But, in November, it released profit figure of just over 5 billion Naira for the first half of the year. One wonders whether the remianing over 9 billion Naira can be made in only the 2nd half of the financial year. From indications, it appears these relatively small-size banks give misleading and bloated profit projections to lure investors to subscribe for their public offers. One can only hope that Skye Bank projections would not suffer from the same. The promptness and timeliness with which they release overly impressive quarterly profit figures just before commencement of public offers makes the releases to be suspect, particularly as such releases are not vetted by external auditors or any regulatory agencies but they are simply what the bankd claim them to be. The same banks are hardly known for prompt releases of results at other times apart from when they are just about to come to the market. Imagine Skye Bank releasing Q1 result within a week after end of the quarter! Had that ever happened before? The same thing Access Bank did in the first week of July 2007, and Bank PHB in the first week of October when it releases an overly fantastic profit figure.

I think we should mainly evaluate these small-cap banks other than on the basis of their very recent profit releases or projections. If we go beyond this, we would notice that the 14.00 Naira of Skye Bank offer approximates the price at which it was trading in the secondary market some weeks before it was placed on the technical suspension. We all know that technical suspension prices are typically manipulated, rather than being market-determined. So, the 16.84 Naira (or, 17.19 Naira until commencement of the offer on 14 January) technical suspension price must have been manipulated to reach there within the last few days before the suspension. The actual market-determined price was around 14.00 Naira. In effect, there is hardly any discount on the market-determined price vis-a-vis the 14.00 Naira offer price.

The above is not to suggest that the offer is not good. It is only to highlight possible risks involved. The same risks broadly characterise previous public offers by many other small-cap banks. But despite such risks, investors still get good returns and smile to the bank. So, I not only recommend subscribing for the offer, I too will find money to do the same. Afterall, risks are inherent in all investments and, indeed, all human endeavours.
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  #9 (permalink)  
Old 9th January 2008, 06:40 PM
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Quote:
Originally Posted by Babs_O View Post
From the Q1 result just released Skyebank has been given both a short and long term buy recommendation by IBTC researchers. They forecast a short term price of 20.9 (22% appreciation) and long term price of 26.12 (51% appreciation).

Factor in the effect of new funds injection in a 1 to 2 year window Skyebank should do more than UBA at current market prices.

For ver short term traders this info is useless as they have more time to watch the markets and cycle-in and out. But for those not blessed with such time / expertise this may be a good time to load Skyebank both on the floor and in the IPO.
I find it hard to agree with you here.

Based on provision for 25% oversubscription, the forward PE of Skye Bank based on the results announced today is around 21. I can make adjustments when I see the projected full year PAT for 2007/2008 in the prospectus.

However, the forward PE of UBA is currently around 16. With only 11.5B shares, I will expect dividends per share of at least N2 per share (I can't see Oceanic performing the same feat with over 20B shares outstanding) from UBA and bonus issue is looking more likely.
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  #10 (permalink)  
Old 9th January 2008, 07:48 PM
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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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Old 9th January 2008, 09:09 PM
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Quote:
Originally Posted by Babs_O View Post

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.
Interesting arguement. I very much see your point and I appreciate your logic.

The problem is that this theory is too simplistic. More relative cash injection or working assets is not the only competitive advantage in Banking. The brand name of UBA alone is sufficient to make that irrelevant. What I mean is that we cannot look at only one side of the coin. There are other factors involved. When a solid bank like UBA has better fundamentals than a bank like Skye, you should know where to put your money. It is UBA that should be trading at a premium PE and not Skye.

For instance using the arguement above, Sterling Bank, Unity Bank and Ecobank should be the hottest stocks in the banking industry since they are so lowly priced. Do you think these are the banking stocks that will give the highest return this year? As you earn, so will the market price you.

Most of these small companies that blow up their prices becuase of POs will soon get to the point where they cannot maintain those prices. You just saw Access Bank. When I was selling Access this week folks were screaming about the results coming out. After declaring 3.1B PAT Q-1, they now come out with N4.81B in Q-2.

Yes, UBA's appreciation has been low since the PO but note that their PAT was hit with extraordinary items and the fact that there was no bonus issues turned investors off.

This is not an arguement though. I appreciate your point of view. I'm just making mine clearer.
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Old 10th January 2008, 05:06 AM
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I must say that I am impressed with Skybank strategy and it shows that they have direction. If you look at it, they had a share reconstruction and reduced their share to about 6.?B, Managed the price to about N17 and built a value at the price. They released their 1st quater result with PAT of about 242% change and their PE ratio as at today is 17.24 (cheapest in banking)
They are out to raise only N50B with only 3.7B shares and out of this 1.5B will go for right at N12.5 and 2.?B for public at N14.
I started monitoring this bank when its share price was n9 and bought little and I think it is becoming interesting.
Anyway I ordered for more on the floor today because i will like to buy more of the right and also have 35k dividend. I am sure that after this offer which will be oversubscribed,they will push up the price and come back to market at a higher rate (say n20 - n25) to raise bigger money and that is exactly what UBA will do. They will build their PE up and push up the price and come back to market at N4?
It is actual better to sell less shares at high price than to selling more at lower price. Anyway SKYBANK is a short and medium term buy.
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Old 10th January 2008, 09:52 AM
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Skye Bank denies acquisition of Gambian bank
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Old 12th January 2008, 08:58 PM
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Default Skye Bank Looking Good

Quote:
Originally Posted by pumping View Post
Interesting arguement. I very much see your point and I appreciate your logic.

The problem is that this theory is too simplistic. More relative cash injection or working assets is not the only competitive advantage in Banking. The brand name of UBA alone is sufficient to make that irrelevant. What I mean is that we cannot look at only one side of the coin. There are other factors involved. When a solid bank like UBA has better fundamentals than a bank like Skye, you should know where to put your money. It is UBA that should be trading at a premium PE and not Skye.

For instance using the arguement above, Sterling Bank, Unity Bank and Ecobank should be the hottest stocks in the banking industry since they are so lowly priced. Do you think these are the banking stocks that will give the highest return this year? As you earn, so will the market price you.

Most of these small companies that blow up their prices becuase of POs will soon get to the point where they cannot maintain those prices. You just saw Access Bank. When I was selling Access this week folks were screaming about the results coming out. After declaring 3.1B PAT Q-1, they now come out with N4.81B in Q-2.

Yes, UBA's appreciation has been low since the PO but note that their PAT was hit with extraordinary items and the fact that there was no bonus issues turned investors off.

This is not an arguement though. I appreciate your point of view. I'm just making mine clearer.
Senior member Pumping: I very much appreciate gentlemen debate as they say iron sharpen iron. As I now be member I need to sharpen up to become senior member too.

Simplistic Theory: That's how most great things get built up like the way Isaac Newton started the laws of Mechanics. Most Banks Raise more money to make them more profitable as this is the easiest path to growth especially if the money is deployed in such a way that it attracts more Money. You can see how it works from the following illustration. [If Bank A has 100 shares of N4 each, and Net Assets per share of N2. Its capitalization = N400 and Net Assets (or Shareholder Funds) =N200. Assuming average performance of net assets after Tax is 10% then PAT = N20, PE = 20 and P/B =2. Assuming instantly at beginning of its next year it pays all PAT as dividend and raises 50 more shares via a PO. And the performance of this new year remains same in utilization of assets then, this new year end performance will be Capitalization N 600, Net Assets N400, PAT N40, PE 15, P/B 1.5. The more the new capital injection relative to current capitalization, the more the improvement of PE and P/B assuming efficiency levels remain same.

UBA Brand Name / Solid Bank: See this thread.
Beware Of UBA: The Worst Bank In Nigeria? - Nairaland

Sterling Bank, Ecobank, Unity Bank cannot be the hottest primarily on a price consideration. You need to look at full picture. P/E and PB will help you see better. I will quote these numbers according to IBTC research.
Bank #Shares PE P/B
Skyebank 7503044788 20 3.6
UBA 11290279980 17 2.6
Sterling 10552847632 76 ???
Ecobank 21654226926 48 5.9
Unity Bank 14736894670 39.6 4.4

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Old 14th January 2008, 12:46 AM
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Quote:
Originally Posted by anekwlc View Post
I must say that I am impressed with Skybank strategy and it shows that they have direction. If you look at it, they had a share reconstruction and reduced their share to about 6.?B, Managed the price to about N17 and built a value at the price. They released their 1st quater result with PAT of about 242% change and their PE ratio as at today is 17.24 (cheapest in banking)
They are out to raise only N50B with only 3.7B shares and out of this 1.5B will go for right at N12.5 and 2.?B for public at N14.
I started monitoring this bank when its share price was n9 and bought little and I think it is becoming interesting.
Anyway I ordered for more on the floor today because i will like to buy more of the right and also have 35k dividend. I am sure that after this offer which will be oversubscribed,they will push up the price and come back to market at a higher rate (say n20 - n25) to raise bigger money and that is exactly what UBA will do. They will build their PE up and push up the price and come back to market at N4?
It is actual better to sell less shares at high price than to selling more at lower price. Anyway SKYBANK is a short and medium term buy.
I hate to burst your bubble but just to state the facts.

The forward PE for UBA (16.14), Oceanic (17.97) and Wema bank (15.35)are lower than that of Skye Bank (20.98) even after factoring in dilution of shares from the respective POs.

I diluted Wema Bank by 30% and included the listed PO shares for Oceanic and UBA.
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Old 14th January 2008, 01:15 AM
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Originally Posted by Babs_O View Post
Senior member Pumping: I very much appreciate gentlemen debate as they say iron sharpen iron. As I now be member I need to sharpen up to become senior member too.

Simplistic Theory: That's how most great things get built up like the way Isaac Newton started the laws of Mechanics. Most Banks Raise more money to make them more profitable as this is the easiest path to growth especially if the money is deployed in such a way that it attracts more Money. You can see how it works from the following illustration. [If Bank A has 100 shares of N4 each, and Net Assets per share of N2. Its capitalization = N400 and Net Assets (or Shareholder Funds) =N200. Assuming average performance of net assets after Tax is 10% then PAT = N20, PE = 20 and P/B =2. Assuming instantly at beginning of its next year it pays all PAT as dividend and raises 50 more shares via a PO. And the performance of this new year remains same in utilization of assets then, this new year end performance will be Capitalization N 600, Net Assets N400, PAT N40, PE 15, P/B 1.5. The more the new capital injection relative to current capitalization, the more the improvement of PE and P/B assuming efficiency levels remain same.

UBA Brand Name / Solid Bank: See this thread.
[URL="http://http://www.nairaland.com/nigeria/topic-104490.0.html"]

Sterling Bank, Ecobank, Unity Bank cannot be the hottest primarily on a price consideration. You need to look at full picture. P/E and PB will help you see better. I will quote these numbers according to IBTC research.
Bank #Shares PE P/B
Skyebank 7503044788 20 3.6
UBA 11290279980 17 2.6
Sterling 10552847632 76 ???
Ecobank 21654226926 48 5.9
Unity Bank 14736894670 39.6 4.4
No senior member here jare. All we na d same.

Ha, you have gone in a dangerous direction o . In case you don't know, I got my first degree in Mechanical Engineering and Isaac Newton is a popular bloke in my dictionary. I sabi theorerize well well.

You are still doing the same thing which is not applicable in science or mathematics. Removing the assumptions without making any allowace for that and making a simplistic arguement.

I don't quote figures from IBTC or the like. I use my own and believe me, often this investment houses have wrong figures because they are not up to date. Did you read about the major investment house that listed the PE ratio of Crusader as 5 last December??

The PE ratio of Sterling Bank or Ecobank that you have listed above are definitely not correct.

Let me use Sterling Bank as an example.

Outstanding shares - 10.55B
Q-3 PAT - 2.46B

How can the PE ratio be 76? For the records, it is around 23.42 and that of Ecobank is around 25.32.

Finally you have come full circle. What I am contesting is that the fact that a stock's nominal price is lower than that of another stock does not imply it has a better chance at capital appreciation. As you have said you need to look at the whole picture.

With reference to your thread on UBA, if you search well on nairaland, there is one for Zenith and another one for Oceanic as well complaining about their customer service or how they treat their staff. Junk.

I like to keep things very short and simple. Utilization of assets, net assets , shareholders funds etc, don't interest me so much though I am well versed in the implication of each item. Instead I deal with the end result of everything. Profit, Growth and corporate Governance.

I'm not going to let one spectucular Q-1 result for PO purchases cloud my eyes. This is a bank that grew PAT by 123% last year but in this quarter they have grown PAT by 242%. So we should expect a growth of 500% after their PO funds are applied by end of fiscal year 2008? Let's watch and see.
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Enjoy.

Pumping.

Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well.

-Warren Buffet-

Last edited by pumping; 14th January 2008 at 01:38 AM.
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  #17 (permalink)  
Old 14th January 2008, 08:57 AM
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Pumping and Babs, u have done justice to skye bank issue. i AGREE WITH pUMPING ON THE DEBATE btw Skye and Uba. We should not be fooled by this small caps Banks that come for offer. Babs, u will be surprise what Weba bank will post before they start their offer. Look at Access, 1st quarter 3b, 2nd quarter 1.8 what could said to be the reason and another thing about Access is that this same thing happened when they came to the market in 2004. I bought the public offer then and they posted a bad result only telling us that it was as a result of their public offer that made them lose up in the PAT war as if banks like Zenith, Uba, etc doesn't have offer. Yes, u might say that I am basing my view on Access but remeber that skye is also posting incredible result sincerely because of the public offer. Pumping and Babs, the PE and PB of skye is more than what u have quoted after the PO as I gathered from a reliable person in skye that they are actuakky raising 100b as 50b as already been raised from core investors. maybe the prospectus will show that but surely i will post the ling as the guy promised me to forward me the link.
Pls, I am not saying that skye offer is not good but I think we should exercise some restrain on how we structured our investment plan. I think UBA will give one better return this FY than Skye considering a robust dividend and likely bonus from UBA.
Cheers .
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Old 14th January 2008, 09:11 AM
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Quote:
Originally Posted by pumping View Post
No senior member here jare. All we na d same.

Ha, you have gone in a dangerous direction o . In case you don't know, I got my first degree in Mechanical Engineering and Isaac Newton is a popular bloke in my dictionary. I sabi theorerize well well.

You are still doing the same thing which is not applicable in science or mathematics. Removing the assumptions without making any allowace for that and making a simplistic arguement.

I don't quote figures from IBTC or the like. I use my own and believe me, often this investment houses have wrong figures because they are not up to date. Did you read about the major investment house that listed the PE ratio of Crusader as 5 last December??

The PE ratio of Sterling Bank or Ecobank that you have listed above are definitely not correct.

Let me use Sterling Bank as an example.

Outstanding shares - 10.55B
Q-3 PAT - 2.46B

How can the PE ratio be 76? For the records, it is around 23.42 and that of Ecobank is around 25.32.

Finally you have come full circle. What I am contesting is that the fact that a stock's nominal price is lower than that of another stock does not imply it has a better chance at capital appreciation. As you have said you need to look at the whole picture.

With reference to your thread on UBA, if you search well on nairaland, there is one for Zenith and another one for Oceanic as well complaining about their customer service or how they treat their staff. Junk.

I like to keep things very short and simple. Utilization of assets, net assets , shareholders funds etc, don't interest me so much though I am well versed in the implication of each item. Instead I deal with the end result of everything. Profit, Growth and corporate Governance.

I'm not going to let one spectucular Q-1 result for PO purchases cloud my eyes. This is a bank that grew PAT by 123% last year but in this quarter they have grown PAT by 242%. So we should expect a growth of 500% after their PO funds are applied by end of fiscal year 2008? Let's watch and see.

IBTC-Chartered Bank
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"The one absolute requirement of a money manager is emotional maturity. If you don’t know who you are, the stock market is an expensive place to find out." - Adam Smith
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Old 14th January 2008, 07:20 PM
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Quote:
Originally Posted by juliusdudu View Post
Pumping and Babs, u have done justice to skye bank issue. i AGREE WITH pUMPING ON THE DEBATE btw Skye and Uba. We should not be fooled by this small caps Banks that come for offer. Babs, u will be surprise what Weba bank will post before they start their offer. Look at Access, 1st quarter 3b, 2nd quarter 1.8 what could said to be the reason and another thing about Access is that this same thing happened when they came to the market in 2004. I bought the public offer then and they posted a bad result only telling us that it was as a result of their public offer that made them lose up in the PAT war as if banks like Zenith, Uba, etc doesn't have offer. Yes, u might say that I am basing my view on Access but remeber that skye is also posting incredible result sincerely because of the public offer. Pumping and Babs, the PE and PB of skye is more than what u have quoted after the PO as I gathered from a reliable person in skye that they are actuakky raising 100b as 50b as already been raised from core investors. maybe the prospectus will show that but surely i will post the ling as the guy promised me to forward me the link.
Pls, I am not saying that skye offer is not good but I think we should exercise some restrain on how we structured our investment plan. I think UBA will give one better return this FY than Skye considering a robust dividend and likely bonus from UBA.
Cheers .
I do not think it is issue of fooling rather it is more of Capital and what it can do for you. There is nothing UBA is doing today that these growing banks cannot do with enough Capital and you can see that from the Likes of Oceanic and Intercontinental. Can you believe that I cannot get Bank PHB to buy at N25. This same bank I was relunctant to buy the PO at N17 two weeks ago. I will tell that I prefer growing Banks for Short and Medium Thank Grown banks. The only concern I have with SKYBANK is returning my money because of oversubscription because I am tired of this money return.
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Old 14th January 2008, 07:34 PM
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Quote:
Originally Posted by pumping View Post
No senior member here jare. All we na d same.

Ha, you have gone in a dangerous direction o . In case you don't know, I got my first degree in Mechanical Engineering and Isaac Newton is a popular bloke in my dictionary. I sabi theorerize well well.

You are still doing the same thing which is not applicable in science or mathematics. Removing the assumptions without making any allowace for that and making a simplistic arguement.

I don't quote figures from IBTC or the like. I use my own and believe me, often this investment houses have wrong figures because they are not up to date. Did you read about the major investment house that listed the PE ratio of Crusader as 5 last December??

The PE ratio of Sterling Bank or Ecobank that you have listed above are definitely not correct.

Let me use Sterling Bank as an example.

Outstanding shares - 10.55B
Q-3 PAT - 2.46B

How can the PE ratio be 76? For the records, it is around 23.42 and that of Ecobank is around 25.32.

Finally you have come full circle. What I am contesting is that the fact that a stock's nominal price is lower than that of another stock does not imply it has a better chance at capital appreciation. As you have said you need to look at the whole picture.

With reference to your thread on UBA, if you search well on nairaland, there is one for Zenith and another one for Oceanic as well complaining about their customer service or how they treat their staff. Junk.

I like to keep things very short and simple. Utilization of assets, net assets , shareholders funds etc, don't interest me so much though I am well versed in the implication of each item. Instead I deal with the end result of everything. Profit, Growth and corporate Governance.

I'm not going to let one spectucular Q-1 result for PO purchases cloud my eyes. This is a bank that grew PAT by 123% last year but in this quarter they have grown PAT by 242%. So we should expect a growth of 500% after their PO funds are applied by end of fiscal year 2008? Let's watch and see.
I use IBTC spreadsheet free on the web for my reference and decisions. And from their professional advice they project the PE's of UBA / SKYE as 19.7/17.6 and price to book of 3.2 / 1.5. For medium to long term investing I will put my money in Skye Bank. They are currently involved in more capaital market activities than many of their peers. In time we will watch which one will double before the other.

Your second paragraph sounded more like that of lawyer or ? I will leave the mathematical arguments till later.
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