Thread by @quansimodo

Good Evening and welcome to this week’s edition of Bulls and Bears powered by @Nairametrics

Bulls and Bears is a weekly newsletter where we look at happenings at the @nsecontact in the past week.

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Thread starts here.

First stop is how the markets fared last week. If you guessed badly, youre right.

The @nsenigeria All Share index declined by 2.27% to close the week at 27,919.50 basis points.

Year to date, the index is down 11.17%.

LASACO Assurance Plc was the best performing stock this week.

The stock gained 13.79%, opening at N0.29 and closing at N0.33, up N0.04.

McNichols Plc was the worst performing stock this week.

The stock declined by 18.18% opening at N0.55 and closing at N0.45, down N0.10.

Two stocks were marked down this week.

C and I Leasing Plc was marked down by 7.5 kobo this week.
Ex dividend price was N5.45.

Red Star Express Plc was marked down by 43 kobo this week.

Ex dividend price was N5.28.

A mark down means a dividend is subtracted from a stock's share price.

A technical suspension placed on LASACO Assurance Plc was lifted, following the release of overdue results.

A full suspension placed on Continental Reinsurance was lifted, as the firm will hold another court ordered meeting.

The suspension was placed in December last year at the instance of the company's broker, Chapel Hill Denham Securities.

The company's majority shareholders had offered to buy out the minority shareholders, but there were a few irregularities at the last court ordered meeting.

@SECNigeria thus cancelled the meeting.

Stock was on full offer this week. I guess investors dont expect much upside.

@SECNigeria Moving onto appointments

May and Baker Plc announced the appointment of Senator Daisy Danjuma as a Non Executive Director.

The appointment was part of the resolutions following the AGM, which was held in May. Wonder why its been disclosed now.

@SECNigeria No word on if she would serve as alternate director to her husband, TY Danjuma, or both of them will serve on the board.

TY, as his fondly known is retired general, is Chairman of the board.

@SECNigeria Meyer Plc has appointed Rotimi Alashe as the Chief Financial Officer, effective 1st of July, 2019.

@SECNigeria Transcorp Hotels Plc announced the appointment of Alexander Adeyemi as a non Executive Director effective 15th of July, 2019.

Dr Wadinga Bakari also retired from the board effective same date.

@SECNigeria A ew key announcements were made this week.

Fidson Healthcare Plc announced a strategic alliance with Ohara Pharmaceutical Co. Ltd, a Japanese Healthcare company.

Following Fidson’s recent rights issue, Ohara’s shareholding in the company has increased to 21.75%.

@SECNigeria Shareholders of Abbey Mortgage Bank have given the company's board of directors approval to issue 2,261,538,462 ordinary shares at the rate of N1.05 to VFD Group Plc. through a private placement.

@SECNigeria The deal is however subject to regulatory approval.

Following the announcement, the bank's shares were on full bid and the stock was one of the best performing this week.

@SECNigeria Lafarge Africa Plc’s Facts Behind the Figures session, which was to hold on Thursday, was postponed.

The company also released a notice pertaining to a Court Ordered meeting scheduled for Monday July 22, 2019.

@SECNigeria The firm will seek the approval of shareholders for the merger of Lafarge Ready Mix Plc with Lafarge Africa Plc.

@SECNigeria Seplat Petroleum Development Company will release its H1 2019 results on July 30, 2019, and hold a conference call immediately after the results are released.

These guys make my job as an analyst easy.

@SECNigeria Royal Exchange Plc announced that InsurResilience Investment Fund had acquired a 39.25% stake in its general insurance arm, Royal Exchange General Insurance Limited

@SECNigeria InsurResilience was set up by Kfw on behalf of the German government and is managed by BlueOrchard Finance, a Swiss-based impact investment manager.

@SECNigeria A few half year 2019 results came in this week.

United Capital released its half year results for the 2018 financial year.

Gross earnings declined slightly by 15.7% from N3.8 billion in 2018 to N3.2 billion in 2019.

@SECNigeria Profit before tax rose slightly by 9.09% from N1.1 billion in 2018 to N1.2 billion in 2019.

This was largely due a sharp fall in finance costs, which fell by 76.3% from N427 million in 2018 to N101 million in 2019.

@SECNigeria Profit after tax also rose marginally by 4.3% from N985 million in 2018 to N1 billion in 2019.

Earnings per share rose marginally by 4% from 49 kobo in 2018 to 51 kobo in 2019.

@SECNigeria Africa Prudential Plc released its results for the half year ended June 2019.

Gross earnings fell by 4.7% from N2.1 billion in 2018 to N2 billion in 2019.

Profit before tax rose slightly by 9.09% from N1.1 billion in 2018 to N1.2 billion in 2019.

@SECNigeria This was largely due a sharp fall in finance costs, which fell by 76.3% from N427 million in 2018 to N101 million in 2019.

@SECNigeria Profit after tax also rose marginally by 4.3% from N985 million in 2018 to N1 billion in 2019.

Earnings per share rose marginally by 4% from 49 kobo in 2018 to 51 kobo in 2019.

@SECNigeria Financial service firms have had it a bit tough this year.

The elections meant that many things slowed down, especially debt raises.

@SECNigeria Transcorp Plc released its results for the half year ended June 2019.

Revenue fell from N54 billion in 2018 to N37.7 billion in 2019, down 30.1% year on year.

Profit before tax dropped sharply by 57.9% from N11.9 billion in 2018 to N5 billion in 2019.

@SECNigeria Profit after tax also declined by 57.4% from N10.8 billion in 2018 to N4.6 billion in 2019.

@SECNigeria Cadbury Nigeria Plc released its results for the half year ended June 2019.

Revenue increased by 11% from N17.5 billion in 2018 to N19.4 billion in 2019.

The firm made a N957 million profit in 2019, as against a N423 million loss before tax recorded in 2018.

@SECNigeria Deap Capital Management and Trust Plc released several results and a series of notices after Friday's trading hours.

The firm has just completed a 5 year suspension from the capital market and is re positioning to resume normal operations.

@SECNigeria Under the special items contained in its AGM notice, are the following resolutions:

That the directors be authorized to convert N1.6 billion owed to creditors of the company into 1.5 billion ordinary shares.

@SECNigeria That the name of the company be changed from Deap Capital Management and Trust Plc to Deap Plc.

The firm also intends to sign a 5 year agreement with Collaboration and Consulting Company (management consultants) to undertake the turn-around of the firm.

@SECNigeria The duration of the proposed agreement will be from October 2019 to September 2024.

The AGM is scheduled for the 22nd of August, 2019.

@SECNigeria The company also announced a series of board changes, following a board meeting held on the 7th of June, 2019.

Mr Joe Idudu and Mr Emmanuel Ugboh re-joined the board after a 5-year suspension placed on the firm came to an end on the 27th of March, 2019.

@SECNigeria Dr. Kenneth Olise, Edmond Ani, and Joel Omole were appointed to the board as part of the turnaround team that had made a proposal to the board to manage the firm for 5 years.

@SECNigeria Elder Williams Odudu resigned from the board due to the new structure which comprises 2 persons from the current board, 2 from the old board which was suspended by @secnigeria and 3 from the turn around team.

@SECNigeria So whats happening next week ? Lots of board meetings with the approval of H1 2019 results as a key agenda.

@SECNigeria A few companies also have their annual general meetings coming up this week.

@SECNigeria Zenith Bank, MTN Nigeria, The Initiates and UPDC will hold board meetings this week to consider H1 2019 results.

@SECNigeria Ikeja Hotels will be holding its AGM on the 22nd of July, 2019. Lafarge Africa has an EGM on the same date.

Presco Plc will hold its AGM on the 24th of July, 2019

@SECNigeria CCNN, Studio Press Nigeria, Sovereign Trust Insurance and NPF Microfinance Bank will hold their Annual General Meetings on the 25th of July, 2019.

Nigerian Aviation Handling Company Plc and John Holt Plc, will hold their Annual General Meetings on the 26th of July, 2019.

@SECNigeria Further hearing on the suit between the Securities and Exchange Commission (SEC) and the duo of Wale Tinubu and Mofe Boyo continues this week.

@SECNigeria Last, stocks to keep an eye on this week.

Cutix Plc and Unilever Plc have a joint place, as the firms could release their half year 2019 results anytime soon.

The two firms have held board meetings approving them.

@SECNigeria Oando Plc has the second spot, as further hearing continues in the case filed against the SEC by its Group CEO and Deputy Group CEO.

@SECNigeria Deap Capital takes the third spot due to the impending lifting of a suspension placed on the stock, following the release of a backlog of results.

@SECNigeria Zenith Bank, MTN Nigeria, The Initiates and UPDC also make this week's watch list, as their boards will meet to consider H1 2019 results.

@SECNigeria All the companies having AGMs this week have a joint spot on this week’s watch list.

@SECNigeria That's it for this week. If you would like to get this thread as a newsletter, please send an email to [e-mail]

@SECNigeria If you have any questions feel free to tweet at me or @Nairametrics

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Thank you for taking the time to go through this

@SECNigeria @Nairametrics Have a blessed week ahead.

*End*

@SECNigeria @Nairametrics PS: On a technical level, several stocks hit multi year lows last week. Notably CAP Plc and NAHCO.

Both would be worth watching in the coming week. Indeed many fundamentally sound stocks are trading at low PE ratios.