Zenith Bank

[austine42007]

Originally Posted by cashrules

Bros... this shows you how much our mouth don wide reach for this market especially for banking stocks....

If the yield no reach 10%....Then no deal!

But with more than 30Million units already exchanged this morning.....am beggining to smell a rat!!! (but why would someone want to sell his Zenith Now?)

Oga cashrules, thanks jare.

After waiting for 5 days, my broker was able to sell this stock today.
I have peacefully exit the banking sector and my money is now look for better deal.

[BigJay01]

Originally Posted by faithgonuel

Bros, I have already started looking elsewhere and I can see Dangote Sugar at more than
14percent Dividend Yield
.....

14% DY??? using what as the dividend? Wont it be a bit misleading to assume that they'd continue to pay the same dividend as last year?

The fortunes of this company has taken a hit ooo. I saw a presentation where it was posited that there is excess sugar capacity in the country ...

[goldsun]

Originally Posted by faithgonuel

Bros, I have already started looking elsewhere and I can see Dangote Sugar at more than
14percent Dividend Yield
.....

with a forward EPS 0.49, dangote sugar cannot pay the N0.6 it paid last year

[horlads]

Originally Posted by faithgonuel

Bros, I have already started looking elsewhere and I can see Dangote Sugar at more than
14percent Dividend Yield
.....

Going by last year's dividend, yes. But they might not be able pay d same dis year. Their margins have been hurt by commodity prices...raw sugar to be precise.

[1himself]

as for me...no need to rush...am on d sidline waitin...money with my stockbroker...

its at least 15%div yeild or nothing...
Stocks are too cheap n getting cheaper to be in haste...

[Salida]

Originally Posted by BigSeun

2011 2010
N'm N'm
Gross Earning 244,070.00 192,488.00
Operating Expenses 118,262.00 97,769.00
Dimultion in Assets 24,304.00 4,353.00
Profit before tax 60,698.00 50,026.00
Taxation 16,509.00 12,612.00
Profit after tax 44,189.00 37,414.00

Balance Sheet
Fixed Asset 68,838.00 66,318.00
Investment in Securities 309,459.00 210,345.00
Treasury Bills 516,142.00 298,869.00
Loans & Advances 832,828.00 713,285.00
Cash & Bank Balances 223,688.00 141,724.00
Other debit balances 358,472.00 464,486.00
Deposits 1,653,000.00 1,318,000.00
Other creditors balances 275,522.00 213,395.00
Net Asset 380,335.00 363,561.00


Dividend 95k
Closure date 26th - 30th March 2012
Payment date 5th April 2012

Zenith bank reports full year results ahead of performance targets

[citizen]

Zenith Bank posts N60bn profit

[oforitseno]

Why am i not impressed with this dividend declaration?

[cashrules]

Originally Posted by oforitseno

Why am i not impressed with this dividend declaration?

Meanwhile PFAs are falling over themselves to pick this up ......Well....dats life for U!!

With the level of write offs done and with this 'good' PAT declared.....am beggining to think like this stock might not be cheaper than this anymore in the near future!

[nosa2]

Originally Posted by cashrules

Meanwhile PFAs are falling over themselves to pick this up ......Well....dats life for U!!

With the level of write offs done and with this 'good' PAT declared.....am beggining to think like this stock might not be cheaper than this anymore in the near future!

Did you notice the amount they've invested in fixed income securities? Over N500b! What happens when interest rates fall? Anyway their PAT is impressive so you may just be right but it seems like the bulk is from treasury bills and in my opinion the PFA's are better off buying treasury bills

[cashrules]

Originally Posted by nosa2

Did you notice the amount they've invested in fixed income securities? Over N500b! What happens when interest rates fall? Anyway their PAT is impressive so you may just be right but it seems like the bulk is from treasury bills and in my opinion the PFA's are better off buying treasury bills

Do you think there are any indicators pointing a drop in interest rates in the near future? For me I dont see any yet! Our FGn has not shown any balls in tackling our high fiscal wastefulness...

Why would the PFAs spend all their monies buying Treasuries bills when they could spread some in Equities with 7% yield and potential for upside by the time the Half year results are out....Moreover am aware most of them are mopping up Zenith to average down their cost on it...

Spoke to a friend with a PFA and he said they needed to buy about 50M units to average down their cost to about 13.50k....

[knightofdelta]

Originally Posted by nosa2

Did you notice the amount they've invested in fixed income securities? Over N500b! What happens when interest rates fall? Anyway their PAT is impressive so you may just be right but it seems like the bulk is from treasury bills and in my opinion the PFA's are better off buying treasury bills

If interest rates fall the prices of the bonds and treasury bills will rise while the yields drop and they will sell them at a profit. They are in a win-win situation. If interest rates go up, they buy more and get higher coupon payments and if interest rates go down, they sell at profits and buy equities.

[goldsun]

Originally Posted by knightofdelta

If interest rates fall the prices of the bonds and treasury bills will rise while the yields drop and they will sell them at a profit. They are in a win-win situation. If interest rates go up, they buy more and get higher coupon payments and if interest rates go down, they sell at profits and buy equities.

that is if they would get someone to.. Which money would they used. Just look at half a trillion that could have gone to the productive sector being used to play kalo-kalo

[eniyanman]

Originally Posted by knightofdelta

If interest rates fall the prices of the bonds and treasury bills will rise while the yields drop and they will sell them at a profit. They are in a win-win situation. If interest rates go up, they buy more and get higher coupon payments and if interest rates go down, they sell at profits and buy equities.

Exactly!!. These guys have taken a call option of the naivety of policy makers/our banks/PFAs etc. They are in a win-win situation which was further enhanced by subsidy removal. Can't wait to see (non-oil) economic indicators for Q1 2012.

[knightofdelta]

Originally Posted by goldsun

that is if they would get someone to.. Which money would they used. Just look at half a trillion that could have gone to the productive sector being used to play kalo-kalo

Okay. Total pension funds in Nigeria is currently N2.23 trillion with about N500 billion in FGN bonds. I don't think FGN bond is kalokalo given the liability structure of the funds that require safety. What is the balance sheet of First bank alone? Over N1 trillion and you think they won't get anybody to buy the bonds? Anyway, no hope is lost, the pension funds are currently being unlocked to invest in infrastructural funds in Nigeria. And it looks like Pencom will allow them to invest 25% of funds earmarked for infrastructure to be invested in other sub-Sahara African markets, so Ghana should get ready also. We are brothers, anyway...

[nosa2]

Originally Posted by knightofdelta

If interest rates fall the prices of the bonds and treasury bills will rise while the yields drop and they will sell them at a profit. They are in a win-win situation. If interest rates go up, they buy more and get higher coupon payments and if interest rates go down, they sell at profits and buy equities.

Seems like it's time to look at banking stocks

[knightofdelta]

Originally Posted by nosa2

Seems like it's time to look at banking stocks

Welcome. I guess you have seen the light.

[eniyanman]

Originally Posted by nosa2

Seems like it's time to look at banking stocks

Historically, March is not the best time to buy stocks.

A bet on banking stocks is a bet that banks would recognise when to sell down on their bond portfolios when rates (inevitably) start falling. Sell too early and miss out on gains, wait too long and be stuck with 'illiquid' paper. It would also be a bet that they will hold the right mixture of tenures.

I don't see a sustained rally in the stock market anytime soon. I may be wrong, very wrong!

[Picolena66]

Nigeria: Zenith Bank - Breaking the Ice With Impressive Results *
Since the Central Bank of Nigeria (CBN) harmonised the financial years
of banks to December 31, effective 2010, the completion among the
banks has been heightened. Given the reforms the banking sector has
gone through and the stiff competition, operators endeavour to guard
their winning strategies jealously.
allAfrica.com: Nigeria: Zenith Bank - Breaking the Ice With Impressive Results

[knightofdelta]

Originally Posted by Picolena66

Nigeria: Zenith Bank - Breaking the Ice With Impressive Results *
Since the Central Bank of Nigeria (CBN) harmonised the financial years
of banks to December 31, effective 2010, the completion among the
banks has been heightened. Given the reforms the banking sector has
gone through and the stiff competition, operators endeavour to guard
their winning strategies jealously.
allAfrica.com: Nigeria: Zenith Bank - Breaking the Ice With Impressive Results

Zenith bank, interestingly is now better priced than GTB... I guess investors have fully priced in the high ROE of GTB. If you have to make a choice between Zenith and GTB, go for Zenith. Yet to look into FBN.