Afribank shares - Forever on technical suspension

[anekwlc]

Members,

Who knows what's going on with Afribank? It belongs to 1st Generation bank

[ben0524]

My dear, Afribank is one of the Bank in nigeria and i know that they are doing well, just check out their last year full report and EPS, u will be able to tell, the technical suspention will soon be lifted and more gain is coming to their shareholders, u can ask more frim the GURU's in the house.

[Monwowo]

There has been too little or no discussion going on anywhere with regards to Afribank shares. I hope this is a good one sha! I will advice vigilance, checking out all the threads for when the discussion will eventually happen.

[Monwowo]

Read one analyst report from proshare

[c kenneths]

Calls and questions I recieve from many new investors seem to suggest that they feel the stock is expensive at N25. I try to cool their nerves by telling them that the stock is a good one even at the price they are selling.

this is because of a lot of underlying factors like the qty of their existing shares, profitability projections, etc.

Is anyone thinking on the same line with me or is Afribank expensive at N25?

[pumping]

Originally Posted by c kenneths

Calls and questions I recieve from many new investors seem to suggest that they feel the stock is expensive at N25. I try to cool their nerves by telling them that the stock is a good one even at the price they are selling.

this is because of a lot of underlying factors like the qty of their existing shares, profitability projections, etc.

Is anyone thinking on the same line with me or is Afribank expensive at N25?

I think Afribank PO price is expensive. Even at N25, the adjusted forward PE is around 25. FCMB and Platinum look better to me.

[ABALI]

I believe the price for a SHORT TERM INVESTOR is high not unless they borrow the Fidelity strategy by declaring before lift of TS, an earning that can keep the price above this value. You bet this will happen but dont be fooled by it .

[hispy99]

Originally Posted by c kenneths

Calls and questions I recieve from many new investors seem to suggest that they feel the stock is expensive at N25. I try to cool their nerves by telling them that the stock is a good one even at the price they are selling.

this is because of a lot of underlying factors like the qty of their existing shares, profitability projections, etc.

Is anyone thinking on the same line with me or is Afribank expensive at N25?

We need to look at stock investments in terms of "opportunity cost" or the alternative forgone. In the long run, the price of most stocks will go up (including Afribank) except the company goes bankrupt. In terms of resource allocation, you are better off putting your money in FCMB or Bank PHB (which both look like better offers currently; of course, Afribank may release an amazing result next week that will change this)

Afribank is expensive @ N25

[anekwlc]

Originally Posted by hispy99

We need to look at stock investments in terms of "opportunity cost" or the alternative forgone. In the long run, the price of most stocks will go up (including Afribank) except the company goes bankrupt. In terms of resource allocation, you are better off putting your money in FCMB or Bank PHB (which both look like better offers currently; of course, Afribank may release an amazing result next week that will change this)

Afribank is expensive @ N25

My own view is that all the Second (or third) Generation banks under n20 is a good buy for now. Banks like Wema, FCMB, Diamond and even SKY Bank. We notice that the big banks PO are placed at 37 - 40 Naira meaning that they will be working to maintain their share price at 40 and above

[hispy99]

Originally Posted by anekwlc

My own view is that all the Second (or third) Generation banks under n20 is a good buy for now. Banks like Wema, FCMB, Diamond and even SKY Bank. We notice that the big banks PO are placed at 37 - 40 Naira meaning that they will be working to maintain their share price at 40 and above

You cannot judge how good a company is from just the stock price! Because FBN, UBN, Zenith are above N40 does not mean that Unity Bank should be N40 too. Goldman Sachs in the U.S is over $200 while Citigroup (the largest bank in the world by assets) is less than $30. Does this mean that Citigroup will rise to $200 because it is "cheap" or Goldman is $200?


Compared to other banking stocks, Afribank is expensive, but it's obviously your money. You are free to spend it as you choose. Happy investing

[anekwlc]

Originally Posted by hispy99

You cannot judge how good a company is from just the stock price! Because FBN, UBN, Zenith are above N40 does not mean that Unity Bank should be N40 too. Goldman Sachs in the U.S is over $200 while Citigroup (the largest bank in the world by assets) is less than $30. Does this mean that Citigroup will rise to $200 because it is "cheap" or Goldman is $200?


Compared to other banking stocks, Afribank is expensive, but it's obviously your money. You are free to spend it as you choose. Happy investing

It is not the issue of price. It is more of the race and competition in the Banking industry today and that's why you are seeing all these Share reconstruction and PO. Most of the these banks have resorces it terms of Capital base but again there are alot to consider in making your decission. It is up to you.
Commenting on your example of Citigroup and Goldman Sachs, It depends on what Citigroup's goals are and their strategy. A share that is $30 does not mean that it is cheaper than a share of $200, In value it may be more expensive. I am just considering Nigerian current banking environment and their strategy as at today

[adebayo]

I really think that Afribank price is high considering the fact that it went up to over 30 naira within a few days. But being an old bank anything can happen.

[crtide]

The stock appears to be "expensive" at the price but I want to believe that they have something up their sleeve because they operate in thesame market as the other banks that have been mentioned FCMB, Platinum. They can not just pull figures especially when we are faced with a myriad of choices, they have to be conpetitive in their pricing and I am sure they are to some people who know more than the average Joe.