Sovereign Trust Insurance Plc

[cashrules]

Originally Posted by Picolena66

SOVRENINS forecasts N700.1m PAT

Wow!!! They actually met their forecast!!!!

SOVEREIGN TRUST INS. PLC
April 27th 2012

Audited Results (Dec, 2011)
Statement of Comprehensive Income
Gross Premium 31-12-11 N6.407b 31-12-10 N4.761b
Reinsurance Cost 11 (N1.941b) 10 (N938.945m)
Commission Received 11 N281.164m 10 N102.220m
Other Acquisition & Maintenance Costs 11 (N1.301b) 10 (N1.064b)
Investment & Other Income 11 N439.513m 10 N126.098m
Expense and Bad debt 11 (N1.756b) 10 (N1.506b)
Profit before Tax 11 N798.106m 10 N415.867m
Taxation 11 (N93.992m) 10 (N107.103m)
Profit after Tax 11 N704.114m 10 N308.764m

Statement of Financial Position
Fixed Assets 31-12-11 N583.310m 31-12-10 N517.123m
Long Term Investments 11 N512.159m 10 N585.120m
Short term Investment 11 N1.771b 10 N706.605m
Premium Debtors 11 N1.998b 10 N1.578b
Cash and Bank Balances 11 N259.284m 10 N200.457m
Other Debit Balances 11 N2.185b 10 N2.066b
Insurance Funds 11 N236.019m 10 N184.492m
Short term Borrowings 11 N24.925m 10 N23.522m
Other Credit Balances 11 N1.215b 10 N1.161b
Working Capital 11 Nil 10 Nil
Net Assets 11 N5.130b 10 N3.748b

Corporate Actions
Proposed Dividend 4kobo
Proposed Bonus
Qualification Date Nil
Nil
Closure Date Nil
AGM Date Nil
Payment Date Nil
AGM Venue Nil

Notes

[hispy99]

Ogbodu Now Sovereign Trust Insurance ED, Articles | THISDAY LIVE

[hispy99]

Originally Posted by cashrules

Wow!!! They actually met their forecast!!!!

SOVEREIGN TRUST INS. PLC
April 27th 2012

Audited Results (Dec, 2011)
Statement of Comprehensive Income
Gross Premium 31-12-11 N6.407b 31-12-10 N4.761b
Reinsurance Cost 11 (N1.941b) 10 (N938.945m)
Commission Received 11 N281.164m 10 N102.220m
Other Acquisition & Maintenance Costs 11 (N1.301b) 10 (N1.064b)
Investment & Other Income 11 N439.513m 10 N126.098m
Expense and Bad debt 11 (N1.756b) 10 (N1.506b)
Profit before Tax 11 N798.106m 10 N415.867m
Taxation 11 (N93.992m) 10 (N107.103m)
Profit after Tax 11 N704.114m 10 N308.764m

Statement of Financial Position
Fixed Assets 31-12-11 N583.310m 31-12-10 N517.123m
Long Term Investments 11 N512.159m 10 N585.120m
Short term Investment 11 N1.771b 10 N706.605m
Premium Debtors 11 N1.998b 10 N1.578b
Cash and Bank Balances 11 N259.284m 10 N200.457m
Other Debit Balances 11 N2.185b 10 N2.066b
Insurance Funds 11 N236.019m 10 N184.492m
Short term Borrowings 11 N24.925m 10 N23.522m
Other Credit Balances 11 N1.215b 10 N1.161b
Working Capital 11 Nil 10 Nil
Net Assets 11 N5.130b 10 N3.748b

Corporate Actions
Proposed Dividend 4kobo
Proposed Bonus
Qualification Date Nil
Nil
Closure Date Nil
AGM Date Nil
Payment Date Nil
AGM Venue Nil

Notes

I hope these "premium" debtors won't turn into "premium" bad debt

[hispy99]

SOVRENINS forecasts N980.1m PAT - Proshare

[Born 2be rich]

http://www.nse.com.ng/Financial%20Ne...BER%202012.pdf

[hispy99]

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[dr dowell]

Just saw the P/E ratio of this company at 3.3 and still at car pack . This appear cheap. House what do U think about this company

[afolabi27]

Originally Posted by dr dowell

Just saw the P/E ratio of this company at 3.3 and still at car pack . This appear cheap. House what do U think about this company

Are you kidding me doctor? When did you start taking investment decision based on PE alone?

The most confused ratio of the investor is the PE, it is a double edge sword particularly when it's lower than peers.

Low PE ratio could signal an undervalued stock relative to its peers which is what you want, and you say you have a valued stock in your hand.

It could unfortunately represent a company tending towards extinction from lack of good returns to its shareholders. Such companies are punished as investors continue to dump their shares as their prices tend towards the car park.

Low PEs could be a bear trap, so you want to look at additional parameters before you pull the trigger.

The market may be efficient after all as we like to say sometimes, current valuation (prices) may well reveal the true worth of a stock. Consider why some stocks such as Guinness, Cadbury, Nestle, NB are characterised with higher PEs?

[dr dowell]

Originally Posted by afolabi27

Are you kidding me doctor? When did you start taking investment decision based on PE alone?

The most confused ratio of the investor is the PE, it is a double edge sword particularly when it's lower than peers.

Low PE ratio could signal an undervalued stock relative to its peers which is what you want, and you say you have a valued stock in your hand.

It could unfortunately represent a company tending towards extinction from lack of good returns to its shareholders. Such companies are punished as investors continue to dump their shares as their prices tend towards the car park.

Low PEs could be a bear trap, so you want to look at additional parameters before you pull the trigger.

The market may be efficient after all as we like to say sometimes, current valuation (prices) may well reveal the true worth of a stock. Consider why some stocks such as Guinness, Cadbury, Nestle, NB are characterised with higher PEs?

Thanks for the answer.
I toke a holistic approach. The p/e is 3.3 The earning/share for 3rd quarter is 16k. They have being a dividend paying stock for at least 2yrs.continusly . Their forecast for 4th quarter is. N980million My only problem with it is average daily volume traded. Comparing 2010 audited result to that of 2011 it looks as if the company is coming out of the wood.

[afolabi27]

Originally Posted by dr dowell

Thanks for the answer.
I toke a holistic approach. The p/e is 3.3 The earning/share for 3rd quarter is 16k. They have being a dividend paying stock for at least 2yrs.continusly . Their forecast for 4th quarter is. N980million My only problem with it is average daily volume traded. Comparing 2010 audited result to that of 2011 it looks as if the company is coming out of the wood.

Yeah, liquidity is a major concern for most of the insurance stocks except for 1 or 2. The antidote to liquidity risk may be to hold long term fund

[dr dowell]

Originally Posted by afolabi27

Yeah, liquidity is a major concern for most of the insurance stocks except for 1 or 2. The antidote to liquidity risk may be to hold long term fund

I wouldn't mind holding for long since they pay dividend at least I go de chop that until it appreciate.

[wanaj0]

Originally Posted by dr dowell

I wouldn't mind holding for long since they pay dividend at least I go de chop that until it appreciate.

The dividend small though. How successful was their rights issue? Any idea of the issued shares? Looking for the 2011 annual report.

[dr dowell]

Originally Posted by wanaj0

The dividend small though. How successful was their rights issue? Any idea of the issued shares? Looking for the 2011 annual report.

Yes it is small but appreciate every year. 2yrs ago was 3k. Last year was 4k. This year b/cos of the eps may fall b/w 5k and 10k

[hispy99]

Originally Posted by wanaj0

The dividend small though. How successful was their rights issue? Any idea of the issued shares? Looking for the 2011 annual report.

I have 7.82B

[hispy99]

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[wanaj0]

Seems they are trying to push start this stock now!

[wanaj0]

Originally Posted by wanaj0

Seems they are trying to push start this stock now!

The forces strong oooo. Over 32m units traded today. Hmmmmmm.

[Oracle]

Originally Posted by wanaj0

The forces strong oooo. Over 32m units traded today. Hmmmmmm.

Men at work!

[wanaj0]

Originally Posted by Oracle

Men at work!

Could only get 80% of my orders before the stock was pushed from the car park!

[dr dowell]

Originally Posted by wanaj0

Could only get 80% of my orders before the stock was pushed from the car park!

I see this stock touching at least 70K it may go more than that. It has small fundamental.