mutual alliance pp

[andico26]

Another stockbroking firm pp but restricted to a minimum units of 1 million

[creflo]

looks like a good offer because it has a respectable board of directors.the only thing i want us to help us out do is this they said their branches are at , please our people if anybody is in these cities please help us go there and see what is going in these places. thanks

MUTUAL ALLIANCE HOUSE
REGISTERED OFFICE
207, IKORODU ROAD
ILUPEJU, LAGOS TEL – +234-1-2798251 - 5

ABUJA REGIONAL OFFICE 1ST FLOOR,
AKINTOLA WILLIAMS HOUSE PLOT 2048 MICHEAL OPARA
ROAD
P O BOX 9547
GARKI, ABUJA
TEL - +234-9-5239010
abuja@mutualalliancesec.com

EASTERN REGIONAL OFFICE 1B, FENIMA STREET,
OFF ABA ROAD, OLD GRA
PORT HARCOURT
RIVERS STATE
TEL - +234 – 844-87934
ph@mutualalliancesec.com


WARRI OFFICE 4, OGUGU ROAD
EKUREDE URHOBO JUNCTION
WARRI, DELTA STATE
TEL - +234-803-5631081
warri@mutualalliancesec.com


IBADAN OFFICE TRUST HOUSE
1, AKINYEMI ROAD
RING ROAD
IBADAN
TEL - +234-803-0752621
ibadan@mutualalliancesec.com

[Ladi Jay]

Originally Posted by andico26

Another stockbroking firm pp but restricted to a minimum units of 1 million

We should be very careful in buying any pp done by stockbroking firms for now.

On the floor of the Exchange yesterday,the DG, NSE directed stockbrokers not to collect money from the public via private placements. She insisted that the public should also not patronise any pp from stockbroking firms.

Furthermore, she said the issue of listing of stockbroking firms will be disccused on the floor by all stock broking firms at the appropriate time.


THEREFORE, I SAY ''CAVEAT EMPTOR'' ---BUYERS BEWARE TO ALL FORUM MEMEBERS.

Alternatively, you can buy if you are long time and valued investors as most of the stockbroking firms are well managed and profitable.

For short time players, put your money elsewhere.

[ttoladele]

Originally Posted by andico26

Another stockbroking firm pp but restricted to a minimum units of 1 million

This looks very good except for the caveat from the NSE management on issue of recapitalisation of Stock brocking Firms. Can anyone please enlighten
us on this forum on issues raised by Ladi Jay above, how do we proceed?
As for Alliance, the offer looks too good to resist: PE of 2.4 at offer price, stong management and reasonably good future plans including listing on NSE ( See Ladi Jay entry above though).

[ttoladele]

Originally Posted by andico26

Another stockbroking firm pp but restricted to a minimum units of 1 million

Andico, thanks for this post, very appreciated.

[andico26]

thanks very much ttoladele. I like to contribute to the forum and i will continue to contribute my own quota for i have gained alot from the forum. I will keep the forum posted for i am walking at multiverse pp @ 95kobo per share, geofluids @ N5, Resource pp, Interswitch @ N2.00 per share and reltel. As soon as I get the forms I will post.
My own contribution on stockbroking pps is that one should go for those that have issuing houses. If you had noticed,most of the credible ones are creating subsidiaries to enable them list later. If deap capital can list, I dont forsee any prolem on bgl, valueline etc listing.
Just my own two kobo

[lekmak]

When u are through with ur researches pls send me a private mail at lekmak@yahoo.ca. Im a new comer into the investor's world and i try to make enough good friends from great investors.I want personal mentors that can help me build my asset from the meagre i have now.Pls all the guru in the house that might want to help build younger ones pls contact me.ill be very willing and ready to be ur protege

[BLUEMONEY]

Originally Posted by Ladi Jay

We should be very careful in buying any pp done by stockbroking firms for now.

On the floor of the Exchange yesterday,the DG, NSE directed stockbrokers not to collect money from the public via private placements. She insisted that the public should also not patronise any pp from stockbroking firms.

Furthermore, she said the issue of listing of stockbroking firms will be disccused on the floor by all stock broking firms at the appropriate time.


THEREFORE, I SAY ''CAVEAT EMPTOR'' ---BUYERS BEWARE TO ALL FORUM MEMEBERS.

Alternatively, you can buy if you are long time and valued investors as most of the stockbroking firms are well managed and profitable.

For short time players, put your money elsewhere.

it seems like the DG is contradicting herself. how can she tell stockbroking firms not to do PP and then say the listing of these firms will be discussed later.
if you will discuss thier listing with all stockbroking firms, then you are indirectly telling them to do PP & come later to discuss your listing. this is how most of them will interprete her statement considering the fact that the DECEMBER DEADLINE is not far.
if you are telling them not to do PP, then there should be nothing to discuss on a later date.

[zainabusman]

Originally Posted by BLUEMONEY

it seems like the DG is contradicting herself. how can she tell stockbroking firms not to do PP and then say the listing of these firms will be discussed later.
if you will discuss thier listing with all stockbroking firms, then you are indirectly telling them to do PP & come later to discuss your listing. this is how most of them will interprete her statement considering the fact that the DECEMBER DEADLINE is not far.
if you are telling them not to do PP, then there should be nothing to discuss on a later date.

I think there is a lot of confusion here. I have checked the prospectus of BGL, Valueline and Partnership Inv and one thing they have in common is that they intend to go into other businesses apart from stockbroking. So it looks like a pure stockbroking firm might not be able to list. However, a group of various subsidiaries which includes a stockbroking firm can list. Just like Deap Capital.

I also spoke to a stockbroker today and he says a pure stockbroking firm might not get listed.

So to be on the safe side lets only invest in those with diverse operations. In addition, i will advice members to have at least 12-18 months horizon for their investments in stockbroking firms to be listed. This way they wont be disappointed if the firms delay the listing. Some claim to list a few months after offer (Valueline, Partnership etc).

It will also help this forum if we can dig for listing requiremnets and post on this site.

[maxiakala]

First Tier Securities:

-Company must be registered as a Public Limited Liability Co. under the provisions of the Companies & Allied Matters decree 1990.
-Must submit to The Exchange financial statements/business record of past 5 years.
-Date of last audited accounts must not be more than 9 months
.-Amount of money that can be raised is unlimited depending
-Annual quotation fees based on market capitalization.
-At least 25% of share capital must be offered to the public.
-Number of shareholders must not be less than 300.
-After listing, company must submit quarterly, half-yearly and Annual accounts.
-Securities must be fully paid up at time of allotment.
-Un-allotted Securities must be sold on NSE Trading floors.
-Provision for issue of mergers, acquisitions, unit trust and mutual funds.

[Babs_O]

The dividend yield is too high 17.65% for 2008. Is this business that profitabe. Where are they going to generate the 2.4 PE

[BLUEMONEY]

thank you for posting these listing requirement.
it speaks for itself. the NSE or SEC cannot lawfully deny firms that meets all these requirements from listing.
yes it is true these firms are diversifying, but i believe it was one of the reasons for this recapitalization exercise. the SEC is tired of seeing mushroom stockbroking firms that are capable of running away with investors billions thus given the capital market a bad image.
just as banks are no longer comfortable with the #25 billion benchmark, A forward looking stockbroking firm must not be looking for just #1 billion.

[DEEINVESTOR]

Originally Posted by Babs_O

The dividend yield is too high 17.65% for 2008. Is this business that profitabe. Where are they going to generate the 2.4 PE

I equally wonder if they can generate P.E of 2.4

[maxiakala]

Check out the list and lets avoid transactions conducted by them i.e. PP, PO.

Proshare News

[ttoladele]

Originally Posted by Babs_O

The dividend yield is too high 17.65% for 2008. Is this business that profitabe. Where are they going to generate the 2.4 PE

Taking a second look at their finacial data, the PE of 2.46 is for the unaudited result of 2007, but calculated using the offer price of 170kobo, for 2006 PE was 6.36 at this offer price. Now for 2008, i am not sure, we need experts in the house to help. Though the 2008 earning will be diluted by the new shares to be issued-568,103,880 + 215,948,060.Presently they have issued 215,984060 ordinary shares, the 2007 PE 0f 2.4 is based on this number.
They seem to be doing well in this business compared to all their peers that i have seen their financial history recently on this forum. Check out the sub heading on business growth on page 8, there turnover has increased from 989million in 2003 to 5.8billion naira in 2007. Profit has grown from 108 to 184.6 million over same period. Now the earning per share and PE are looking very good because of this, and because of the 215,984,060 shares presently issued. This earnings will be diluted by the new 568,103,880 plus 215,984,060 shares /?plus excess subscription and any possible, but undeclared bonus share issue in 2007, the PE will fall for 2008. If they succeed with the placement, and growth plan, then their fundermentals will likely improve, but wil it meet the projected earning yields? One thing is sure, their financial history/investor return is commendable for the size of business they have done so far. They seem to have applied to become an Issuing House as well.
Could this be another CHAMS going unnoticed by us in the house. Please gurus what do you think? I wonder if Profund private placement will be more promising, we are still waiting for theirs to come out.
Let us discuss more critically, i know the market has been gloomy for some time, let us make it more lively here, it will definitely recover.

[Babs_O]

Their projection implies 2008 PE = 170/39.91 = 4.3

is this doable ?.

2007 was a good year for the stock market doesn't mean 2008 will be. And comapring 2007 Q1 with 2008 Q1 All Share Index indicates they may not be able to repeat last year performance as the capital market this year is not that bullish.

Please anyone that has clues on how doable the forecast is should please let us know so that we can be better informed.