Zenith Bank

[Stockbear]

It seems investors are in line for some good dividends, come June when their full financial year is up.

BusinessDay
April 16th, 2007
Zenith Bank rakes in N17bn profit in three quarters

Zenith Bank plc has recorded a profit after tax of N15 billion for its third quarter which ended March 31. This shows a growth of 69 percent relative to N8.86 billion recorded in the corresponding period of 2006.
Chinedu Dike

The unaudited result shows that pre-tax profit shot up by 59 per cent to N17.64 billion, from the previous year’s N11.08 billion. Gross earnings rose by 49 percent to N62.66 from the N42.12 billion achieved in the same period of the previous year.

The performance is an indication that investors in the bank are in for another year of good dividend harvest, in addition to significant capital appreciation.

http://www.businessdayonline.com/?c=45&a=12714

[stevak]

Keep watching the daily price list. When the price starts to slide from its current value, watch out! Personally, I will sell when the stock has lost 8-10 per cent of its present value.

[c kenneths]

Stevak, why the negative talk, anyway we will be waiting for you to sell so we can increase our holdings in the bank. Right now its looking good, and the problem will be if you can buy it back after you have sold out, maybe you will buy at 80 naira.

[richestowealth]

I bought 20,000 shares at 10.90. I am forever long on this one.

[Stockbear]

Zenith Bank emerges bank with highest capitalisation
Will there be a stampede for bonus shares? May be, just may be they decide to make investors truly happy with more than capital appreciation!

The Punch
Zenith Bank emerges bank with highest capitalisation
By Goddy Egene
Published: Monday, 23 Apr 2007

Zenith Bank Plc has emerged as the bank with the highest market capitalisation at the stock market with N435bn. Market capitalisation is a product of the market price of a company and its paid up shares.

With a paid up shares of 9.3billion shares at a market price of N46.80, Zenith Bank has become the bank with the highest market capitalisation.

First Bank of Nigeria used to lead the market in this regard before its price was frozen at N40.40 due to its application to raise about N99.3bn from the market via a hybrid issue.

Increased demand for Zenith Bank’s shares pushed the bank to become the highest priced bank stock at N42 on April 11.

Consistent demand, induced by an impressive nine months result, further lifted the equity to close at N46.80 on Thursday with some market operators saying it would rise above N50 before its year end June 30, 2007.

http://www.punchontheweb.com/Articl....00704231325098

[eriksbmw]

I bought 50,000 units @ 10.90 and have been smiling ever since.......personally my strategy is to wait for the stock to hit N100 ( which I think it will) before I consider selling.

The fundamentals of the bank and there are no immediate/short-term indicators of a slide in the share price.

To all who have ears.......HOLD ON TO A GOOD THING !

[Stockbear]

Who gets the number one crown? Zenith, UBA or First Bank?

Daily Sun
Zenith Bank inches near N50 per share
By OMODELE ADIGUN
Wednesday, April 25, 2007



Zenith Bank Tuesday emerged the highest priced banking stock on the Nigerian Stock Exchange (NSE) as it was up by 235 kobo to wrap up its price at N49.38.
With this, the bank upstaged First Bank which is presently pegged at N40.40 as it is set to raise fresh funds from the market.

[c kenneths]

Somebody just bet his this month salary on Zenith bank hitting 60 before the end of june this year, do you think this my friend stands any chance or do you think Zenith will never make it to 60 before the end of june 2007.

What do you think?

[dotunk]

Hi, eriksbmw

i can imagine how wide you smile is. am sure you even smile without knowing. Zenith hitting N100? well possible with a lot of waiting. but i think the bank will give bonous to bring down the price of the stock, which we expect at the end of this financial year.

[c kenneths]

Supposing they give the bonus and the price continues to climb, maybe because of better earnings?

[eriksbmw]

Some very valid statements here...what are your various strategies for this stock ?

[c kenneths]

My strategy on this one is - buy and sit tight- like Abach..... sorry pls.

[Stockbear]

If we choose to be active informed investors, then it means we are willing to pay the price required for good gains and not just fluke gains.

It's quite obvious (to me at least) that the guru's that I have so far encountered use a combination of fundamental (which stock to buy) and technical analysis (when to buy it and possibly sell). Let no body fool you otherwise!

I like you all would like to know when a stock is about to peak, but having the info is one thing and knowing when to use it is another. Like the revered Specnomics has pointed out, when the herd mentality starts to show itself, know its time to make your exit.

The best exists (I've been made to understand) are made while the stock is progressing towards a ceiling or climax. But then again as C kenneths pointed out, there is a possibility somewhat that the stock could still continue to rise after said bonus issues, therefore as all wise gurus have continued to say, have an entry and an exist point.

Once you have these in place, its hard to go wrong.

[alanbow]

I am in agrement with most things said by stockbearer, except I will lke to add an advice I got from an expensive investment course I attended which has helped me greatly.

you don't get on a bus when it is going in the wrong direction and you don' get off the bus if it is still going in your direction.

In order words, even if you have a firm entry and exit point say 50%, if the stock is still increasing in price and gone past your target , you sit tight until it reverses then you sell before it fall to your exit point.

Again, never buy a stock if the price is falling until it reverses and gets to your entry point.

No one knows the climax exactly no matter what the chart pattern says and environmental factors or news may even change things suddendly.

[dotunk]

i think alanbow is a bit greedy in his last analysis. why?

well i agree withh all what he said until he said "even if you have a firm entry and exit point say 50%, if the stock is still increasing in price and gone past your target , you sit tight until it reverses then you sell before it fall to your exit point."

being an asute investor means you dont bring in sentiments into making a decision. once you have mapped out an exit strategy (ex. 50%) then you stick to it and look for other things. i agrre this can be hard especially when the pice keep going up... at this time it is greed that has taken over. please dont get me wrong, am also greedy, but i have learnt that greed does not pay.

Now if you want to wait until the price peaks and start falling before you sell then you run the risk of loosing a lot if you have a free fall or as it happened to me a lot of time, the stock goes under tech suspension and you stock is trapped or register is closed, bonus given and price is adjusted down?

just as stockbear has said "Fundamentals + Analysis x News = Exit Point"

Staying longer than this on a stock is another thing.

[alanbow]

Hi Dotunk,

I won't necessarily call it greed, I will call it maximising your returns.

This I leant from Darren Winters , one of the leading investors in the uk.

When and If I use this strategy, I do not get sentimental I strictly follow the golden rule and more so on daily basis (Fundamentals + Analysis x News = Exit Point")

And if you follow this rigorously, you will know when things are about to happen not necessarily when they will happen and take the approriate course of action.


I rest my case........

[dotunk]

alanbow my man,... even me rest my case.

you know what i think i wish there were a chat section on this blog where we can talk live.

moderator what do you think?

[olusolakemmy]

Well, am new on this site but with very little knowledge in stock investment, since zenith has appreciated from 10.9 to about 48naira, that is about 400%, it is wise, to sell about 30%of your present holding in order to effectively get back your investment, which you can put in other company and at the same time have substantial unit in zenith . it is a case of eating and having your cake at the same time.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!