Investment & Allied Assurance Company PLC

[hispy99]

Originally Posted by SHERRY

Which way forward for me? I bought 2m shares of IAA from a stockbroker at N1.70k with borrowed funds!!. I do not have a share certificate to sell and the shares are not in my CSCS account also (only got a receipt). I'm watching the shares decline by the day and I'm begining to get very worried. Should I exit at a loss? Somebody help!!!

Well there is nothing you can do now since you don't even have the certificate. So just hold on. Hopefully, when you have access to the shares, the market will be in better shape. My advice is that you should sell immediately you break even...IAA in my opion is not a stock to be holding for the long term.

[billions]

Originally Posted by hispy99

Well there is nothing you can do now since you don't even have the certificate. So just hold on. Hopefully, when you have access to the shares, the market will be in better shape. My advice is that you should sell immediately you break even...IAA in my opion is not a stock to be holding for the long term.

Why do u think its not ideal for d long term investor?Cheers.

[hispy99]

Originally Posted by billions

[/b]



Why do u think its not ideal for d long term investor?Cheers.

The company has 28B shares, how are they going to feed all of them? Oceanic has 22B shares, but at least they generate enough "food" to feed the many mouths. I currently have a PE ~ 318 for IAA.

This is one of the last stocks I will look at in the insurance sector...in my opinion, there are better stocks in the sector.

[SHERRY]

Originally Posted by hispy99

Well there is nothing you can do now since you don't even have the certificate. So just hold on. Hopefully, when you have access to the shares, the market will be in better shape. My advice is that you should sell immediately you break even...IAA in my opion is not a stock to be holding for the long term.

Thanks hispy. I guess I can only pray and fast for now and hope I will have that opportunity to actually break even.

[pegheneji]

in as much as we know that 28b is a large vol, we should not condem IAA just b/c it has 28b units, it shd be accessed basically on how the mgt can manage the money they raised. with a shareholders fund of over 12b, they should be able to win large ticket which liliputians like NEM cannot win. in the finacial industry, size is might and that is why many ins. coy are going back to the mkt like the banks. Intercontinental bank 4 eg was not as attractive when it has just 5bn unit as at now when it has about 20bunits. the factor that will determine the price of iaa are
1. if they reconstruct then it will affect the present share holders expectially 4 sht term player though it is still of same value, but because the present pricing of ins. stock is based on setiment, investores will be comparing it with other and the money raised has not started bearing fruits espectially since it is not a strong brand now.

2. if they do not reconstruct, penny stock will always attract investors because people feel that zenth was once at penny so todays penny will get to N40 (Not always true b/c penny cay easily die or stagnate). so this will sustain the price and i do not see any ins stock in a flat mkt being under 1.73, in a bull being under N2.50 while the worst bear cannot take a stock below N1.

3. Management of Fund: This is the most important aspect to look at espectially 4 those that can wait 4 another 9month. ins stock today are still priced like nama (Meat) in the mkt and comparing equity ins. with just N3b and IAA or IEI with over N12b. if u an MD of Total will consider equity insur with just N3b or IAA with a wide chest of over N12. even in employment of best hand is a function of the size of your wallet.

Conclusion: Apart from using EPS and P/E to determine the pice of entering a stock now, Investors should invest on the projection of the 3rd/4th quarter result b/c it takes time for the money raised to be utilised and when the result start coming the price grouth becomes exponential.

Taking positions in ins stock: Investors willing to take position in ins stock should apart from considering the present P/E look at the size in term of shareholder's Fund b/c like what hapened in the bank small ins like lasaco,Nem, Guinea, equity may be harrased out of the mkt or to beg 4 marriage (see unity,sterling,ecobank 4 example).

Stocks to look at: Starndrad alliance (about N20b)
IAA (over 13b)
IEI(over 11b)
Uni. Ins
and the octopus ''IGI'' {over N25b(e don buy bank self, who say money no the talk, see universal thuogh with 16b unit don buy AA, make equity or Nem with e sugar cane money of N3b buy anything if dem no crumble)}

BEST INS TO BUY NOW: IEI (this result just released is a tip on the iceberge and expect something like that from IAA in the 3rd qtr)

In my opinion stocks like IAA is very good 4 long term though entering a N.55k stock at N1.73 in the hope of listing by introduction to me is a bad investment espectially since d one u bought is not liquid and at best get your certificate d same time as those that bought it at N.55k. nest time if you miss a hot pp only accept to buy it at little premium let say not more that 50% or come and "walay" it at the mkt during listing so that what ever u buy will be liquid.

[billions]

Originally Posted by pegheneji

in as much as we know that 28b is a large vol, we should not condem IAA just b/c it has 28b units, it shd be accessed basically on how the mgt can manage the money they raised. with a shareholders fund of over 12b, they should be able to win large ticket which liliputians like NEM cannot win. in the finacial industry, size is might and that is why many ins. coy are going back to the mkt like the banks. Intercontinental bank 4 eg was not as attractive when it has just 5bn unit as at now when it has about 20bunits. the factor that will determine the price of iaa are
1. if they reconstruct then it will affect the present share holders expectially 4 sht term player though it is still of same value, but because the present pricing of ins. stock is based on setiment, investores will be comparing it with other and the money raised has not started bearing fruits espectially since it is not a strong brand now.

2. if they do not reconstruct, penny stock will always attract investors because people feel that zenth was once at penny so todays penny will get to N40 (Not always true b/c penny cay easily die or stagnate). so this will sustain the price and i do not see any ins stock in a flat mkt being under 1.73, in a bull being under N2.50 while the worst bear cannot take a stock below N1.

3. Management of Fund: This is the most important aspect to look at espectially 4 those that can wait 4 another 9month. ins stock today are still priced like nama (Meat) in the mkt and comparing equity ins. with just N3b and IAA or IEI with over N12b. if u an MD of Total will consider equity insur with just N3b or IAA with a wide chest of over N12. even in employment of best hand is a function of the size of your wallet.

Conclusion: Apart from using EPS and P/E to determine the pice of entering a stock now, Investors should invest on the projection of the 3rd/4th quarter result b/c it takes time for the money raised to be utilised and when the result start coming the price grouth becomes exponential.

Taking positions in ins stock: Investors willing to take position in ins stock should apart from considering the present P/E look at the size in term of shareholder's Fund b/c like what hapened in the bank small ins like lasaco,Nem, Guinea, equity may be harrased out of the mkt or to beg 4 marriage (see unity,sterling,ecobank 4 example).

Stocks to look at: Starndrad alliance (about N20b)
IAA (over 13b)
IEI(over 11b)
Uni. Ins
and the octopus ''IGI'' {over N25b(e don buy bank self, who say money no the talk, see universal thuogh with 16b unit don buy AA, make equity or Nem with e sugar cane money of N3b buy anything if dem no crumble)}

BEST INS TO BUY NOW: IEI (this result just released is a tip on the iceberge and expect something like that from IAA in the 3rd qtr)

In my opinion stocks like IAA is very good 4 long term though entering a N.55k stock at N1.73 in the hope of listing by introduction to me is a bad investment espectially since d one u bought is not liquid and at best get your certificate d same time as those that bought it at N.55k. nest time if you miss a hot pp only accept to buy it at little premium let say not more that 50% or come and "walay" it at the mkt during listing so that what ever u buy will be liquid.

My brother, a PE of 318 no be small thing.

[hispy99]

Originally Posted by billions

My brother, a PE of 318 no be small thing.

When Unic has a PE ~ 20; IEI's PE ~ 17; Mutual Benefit's ~ 20

[zainabusman]

Originally Posted by pegheneji

in as much as we know that 28b is a large vol, we should not condem IAA just b/c it has 28b units, it shd be accessed basically on how the mgt can manage the money they raised. with a shareholders fund of over 12b, they should be able to win large ticket which liliputians like NEM cannot win..............

In my opinion stocks like IAA is very good 4 long term though entering a N.55k stock at N1.73 in the hope of listing by introduction to me is a bad investment espectially since d one u bought is not liquid and at best get your certificate d same time as those that bought it at N.55k. nest time if you miss a hot pp only accept to buy it at little premium let say not more that 50% or come and "walay" it at the mkt during listing so that what ever u buy will be liquid.

To the fundamentalist, volume might not matter while to the Technician volume is key. We have seen the direction of IAA in the last few days and we have also seen how Oceanic has been batterred.

If IAA is actualling selling at a PE of 318 i will not go near it. With all the bargains to be had in the banking sector why on earth will anyone buy a company with little reputation as IAA at a PE of 318?

I think one lesson we should all take away from the destruction of this week is to avoid over priced stocks on a PE basis. They tend to suffer more in a correction.

[pegheneji]

a P/E of 318 is quite embarassing, but if u recall the p/e of banks like FCMB was very large even when the price was about N6, that was b/c the have not started using the money raised. what was the P/E of IEI about 2wks ago b/4 the release their result? i know it was over 30yrs but with its new result, it is now 17yrs. as late as early jan, iaa was still selling so you are using the profit made with a shareholders Fund of probably less that 500m. The impact of the newcomers may not rearly be felt until 3rd quater or so b/c it takes time to get constumers. Personally, i will not buy iaa at N1.40 in a bearish market, but i will equally not sell below N1.30. if it goes below N1 i will buy more even when i am still especting 2m units from the pp. when we buy property we give it a gestation period of 2yrs but we want to sell stock the nest day we shd be forecasting result b4 it comes out 4 us to makie judgment not only on the present but on the future.

[solomonikem]

Originally Posted by edwardaigbokhan

I don't see the share moving like universal because IAAA would be listing 28billion units compare to 16 billion units of Universal. i think the price would rise after listing but would come down big time, except they reconstruct. I have be wrong many times

i think your prediction was right. the price is sliding downward unlike wen it was first introduced into the market... wat is really going on

[olusolakemmy]

Originally Posted by solomonikem

i think your prediction was right. the price is sliding downward unlike wen it was first introduced into the market... wat is really going on

you cant use the ongoing scenario in the market judge, every stock is sliding and so IAA will not be spare, although the volume of shares is simply too high, but if the market was bullish, the technical effect of high volume and high P/E ratio will not be seen this much.

[hispy99]

Originally Posted by pegheneji

a P/E of 318 is quite embarassing, but if u recall the p/e of banks like FCMB was very large even when the price was about N6, that was b/c the have not started using the money raised. what was the P/E of IEI about 2wks ago b/4 the release their result? i know it was over 30yrs but with its new result, it is now 17yrs. as late as early jan, iaa was still selling so you are using the profit made with a shareholders Fund of probably less that 500m. The impact of the newcomers may not rearly be felt until 3rd quater or so b/c it takes time to get constumers. Personally, i will not buy iaa at N1.40 in a bearish market, but i will equally not sell below N1.30. if it goes below N1 i will buy more even when i am still especting 2m units from the pp. when we buy property we give it a gestation period of 2yrs but we want to sell stock the nest day we shd be forecasting result b4 it comes out 4 us to makie judgment not only on the present but on the future.

At the end of the day, our resources are finite. As an investor, I need to ask myself which stocks in the insurance sector will perform the best? I do not see IAA as one of them. Granted, they have a lager shareholders funds than a lot of other insurance companies, but they also have 28B mouths to feed. On a "per mouth" basis, do you think that IAA will do better than other insurance companies? I would rather put my money in IEI, Custodian & Allied and STACO.

[pegheneji]

my brother, 28b is quite a large mouth to feed, but i feel with the kind of money they have they should be able to churn out good profit huge profit and grow.

[hispy99]

Originally Posted by pegheneji

my brother, 28b is quite a large mouth to feed, but i feel with the kind of money they have they should be able to churn out good profit huge profit and grow.

time will tell.