Private Placement

[ttoladele]

Originally Posted by wanaj0

PP's are meant for high networth investor who are willing to stay long enough to see capital appreciation. Unfortunately, we are a nation of TRADERS who also want quick money hence the bastardisation of PP's. In 2002 or thereabout, I got an offer of a PP from ETI. Entry level then was $100,000 and you knew that you are locked in. You know what your money will be used for. PP's are meant for selected few.

It is only in Nigeria that every Tom, Dick and Harry want to partake in a PP.

You know why? Well, like everything else, we Nigerians are economically inactive/ unproductive in Nigeria. We want quick ''everything'' eg quick profit /reward etc. PP has become the latest ''investment opportunity'' in town after the fiasco of money pyramid organisations. Now the party for pp has also ended, what next? We do not learn, or do we?

[threecrown]

Originally Posted by wanaj0

PP's are meant for high networth investor who are willing to stay long enough to see capital appreciation. Unfortunately, we are a nation of TRADERS who also want quick money hence the bastardisation of PP's. In 2002 or thereabout, I got an offer of a PP from ETI. Entry level then was $100,000 and you knew that you are locked in. You know what your money will be used for. PP's are meant for selected few.

It is only in Nigeria that every Tom, Dick and Harry want to partake in a PP.

That is the way it should be, you are made an offer privately and you respond if you are interested or not. But this days, the offers are made to everybody in the newspapers. so it is a public offer and not private offer so dont blame every Tom, Dick and Harry for showing their interest (who no won make money). In nigeria there will always come another after another wave of this money spinning ventures which are and will always be good in the begining until the fake and insincere ones come on board. from computer school to pure water to private schools to community banks to finance houses to wonder banks and now to pp's. The early staters are always genuine but u no, when it becomes common it becomes normal and those opportunist comes in.

I dont do pp's but i believe they have there good sides but the image has now be tarnished.

[Apache]

Originally Posted by threecrown

That is the way it should be, you are made an offer privately and you respond if you are interested or not. But this days, the offers are made to everybody in the newspapers. so it is a public offer and not private offer so dont blame every Tom, Dick and Harry for showing their interest (who no won make money). In nigeria there will always come another after another wave of this money spinning ventures which are and will always be good in the begining until the fake and insincere ones come on board. from computer school to pure water to private schools to community banks to finance houses to wonder banks and now to pp's. The early staters are always genuine but u no, when it becomes common it becomes normal and those opportunist comes in.

I dont do pp's but i believe they have there good sides but the image has now be tarnished.

Congrats on your Senior Member status. Oya join kenebobo in declaring drinks for the boys

[threecrown]

Originally Posted by Apache

Congrats on your Senior Member status. Oya join kenebobo in declaring drinks for the boys

My brother, i be won keep quiet but u done expose me now o, but u know say na bearish market we dey, when the bull arrives we go declare red bull for eveybody. Thanks anyway.

[wanaj0]

Originally Posted by threecrown

That is the way it should be, you are made an offer privately and you respond if you are interested or not. But this days, the offers are made to everybody in the newspapers. so it is a public offer and not private offer so dont blame every Tom, Dick and Harry for showing their interest (who no won make money). In nigeria there will always come another after another wave of this money spinning ventures which are and will always be good in the begining until the fake and insincere ones come on board. from computer school to pure water to private schools to community banks to finance houses to wonder banks and now to pp's. The early staters are always genuine but u no, when it becomes common it becomes normal and those opportunist comes in.

I dont do pp's but i believe they have there good sides but the image has now be tarnished.

Even though there is subtle advertisement of PP, they still state that it is a PP. By the very nature of PP, it is meant for sophisticated investors who are not new to investment. Hence they have the knowledge and capability to analyse the figures. But now, in the urge to make money people apply for PP without even seeing the prospectus.

Good thing about the current bearish trend is that it is allowing reality to set in. People now know that prices don't always go up. People now know that a loss can be made in the capital market. People can now see that you may be locked in for a long time in a stock. Take a look at those that did the IGI PP.

A sales man can try to SELL you anything. But you are the one to select what you buy. I mean people buy PP of companies that they don't know what they do or how they will make money!!! PP's with forward PE's of 50!!!

[threecrown]

Originally Posted by wanaj0

Even though there is subtle advertisement of PP, they still state that it is a PP. By the very nature of PP, it is meant for sophisticated investors who are not new to investment. Hence they have the knowledge and capability to analyse the figures. But now, in the urge to make money people apply for PP without even seeing the prospectus.

Good thing about the current bearish trend is that it is allowing reality to set in. People now know that prices don't always go up. People now know that a loss can be made in the capital market. People can now see that you may be locked in for a long time in a stock. Take a look at those that did the IGI PP.

A sales man can try to SELL you anything. But you are the one to select what you buy. I mean people buy PP of companies that they don't know what they do or how they will make money!!! PP's with forward PE's of 50!!!

Thats because the sales men are capitalizing on the high level of ignorance that we have around but thanks to a forum like this where people can be educated on such investments. But if the offers have been made private as it ought to be then we will not be experiencing the publicity we are experiencing on pp's.

Good observation u have there, thats one of the lessons of this over bearish period.

[creflo]

brothers, I have noticed the vibrancy in this PP corner is diminishing. anyone pls lets continue to look for any PPs that are out. The only thing that happened for me is that these most companies started jumping in and taking advantage of peoples ignorance and started selling PPs are ridiculous prices, it was as if its a previlege for them to sell to you and I always contended thats nonsense. thats why i never bought such PPs as encon and co. even geofluids that doesnt have any big contract signed was selling @ N5 and there was alot of cajoling going on. I never bought those shares.I always knew the bubble will bust. the market will notice at some point even If the NSE didnt issue all those warnings.i always knew with time people will regret all those over priced PPs. even some of those insurance was heavily over priced except for a few. the lesson should be review these documents whether PP or not and make sure ur factoring alll the risks.
anyway brothers there are still some chance that some credible PP will come out. there was one Bua group PP rumoured in the past, Dbl marine, Profund, If anyone hears anything am interested in these ones and any other good long term PPs that are appropriately priced.
Trust me I am a more conservative yet agreesive investor thats why i have never lost money either in the primary or secondary market.
You have to do ur studies and dont join the frenzy,. the market is not a peper market its amedium/ long term investment market.
so pls lets bring the enthusiasm back