What Will Zenith Do?

[oseitutu]

As their year ends and books close, everyone is watching, and so am I. What will Zenith do? Will they give bonus? FBN gave 1 for 1 last year. What will Oga Jim Ovia do? I think he should go for the 1 for 1. Even rumours of 1 for 1 will shoot the share price to the stratosphere (it is in the sky already). The scarcity no go get part two. Even those that would normally want to exit at 400% would hang on as 400% would be about to change to 1000% in one year! The drive may be so much that the shares may hit 100 naira. Then after a few weeks following adjustment of price they will roll out one new product or get listed in one foreign exchange or the other. That will sort of get investors hooked, hoping for even greater returns in the following years.

[olusolakemmy]

Amennnnnnnnnnnn

[Survival2006]

Amen too because I too belong there. Anyways, with the feverish competition among the 1st tier banks, don't be surprised that Jim has not taken a decision yet. Zenith share drive is predicated on shareholders expectation that the bank will UNFAILINGLY give bonus this year as they have not given since there debut in the NSE. Jim may well be waiting to see what First Bank will do and how the GTB GDR is going to turn out. Don't tell me this guy is not interested in the happenings among its immediate peers - UBA, FBN, GTB and the recent eulogy around Inter'Continental Bank. But if Jim tries to be smart, with the rising profile of its peers, he may be surprised at the reaction of his fans. The share price may plummet just as InterContinental Bank shares has refused to climb any higher than N29 as shareholders including me dumped them for the 35k solo reward.

The expectation for Jim is high and the stake too is high. Shareholders are beginning not to dance to fame and brand but to what they can, and hope to get from the good performance of any particular stock. If a bank makes 100bn PAT and rewards his shareholders with 10K, the fact that it is profitable makes no difference as to how shareholders will react. Remember over 80% of ones who have recently embraced stock investment in Nigeria are less than investors, they want quick returns (Let us eat today, tomorrow will take care of itself syndrome). If Access bank was not wise to release their 2007 1st quarter result early before their cry for help now, many would by now be looking at another direction as their long time shareholders are beginning to get tired of waiting for good returns after all the construction and reconstruction.

I have told someone, anything less than 1 for 1 or 1 for 2 will leave many Zenith fans disappointed including me. These days I wake up thinking we are already in September when we will all hear from Jim, hahahaha!

[olusolakemmy]

Originally Posted by olusolakemmy

Amennnnnnnnnnnn

i said amen, not because i am a shareholder, infact i missed the two previous offers and didnt buy on the floor.

i just pray that jim do something, lots of sentiment is attached to zenith, atleast in my opinion.

if any new generation bank shld be price that high i will give it to GTB, (am not with gtb either) interms of returns to investors, gtb has done very well, am using history now and not performnance, but i must say that, even the period that zenith refuse to declare div or bonus, they were not making losses but are reaping buntifuly and declearing good result, the management is not just thinking in that direction of giving back to investor, i said it sometime in may on another thread, i wish zenith proof me wrong by giving something to their shareholders from what they have made as profit, afterall, they are shareholders,they shld partake in profit and losses, isnt that correct.

so if u are expecting too much from zenith, please also make adequate arrangement for a shock absorber,, incase they didnt meet your expectation or even half of it.

[oseitutu]

Well, the stock market environment is so active now that companies have to run to stay where they are. Any 'mescaforming' by Zenith may have significant consequences on its share price.