46 replies to this topic

[gamma]

Hey Abil,

If you need some advice on how to run a bank....

 

NEDBANK GROUP LIMITED

Reviewed financial results for the six months ended 30 June 2013

-   Headline earnings increased 13,3% to R3 914m(1)
-   Diluted headline earnings per share up 12,6% to 831 cents(1)
-   Strong NIR growth of 15,4% to R9 535m(1)
-   ROE (excluding goodwill) increased to 16,1%
-   Common-equity Tier 1 ratio increased to 11,8% (December 2012: 11,6%)
-   Interim dividend per share up 14,7% to 390 cents

 

[soutie]

Definition of 'Value Trap' A stock that appears to be cheap because the stock has been trading at low multiples of earnings, cash flow or book value for an extended time period. Stock traps attract investors who are looking for a bargain because these stocks are inexpensive. The trap springs when investors buy into the company at low prices and the stock never improves. Trading that occurs at low multiples of earnings, cash flow or book value for long periods of time might indicate that the company or the entire sector is in trouble, and that stock prices may not move higher. Investopedia explains 'Value Trap'

Companies, and even sectors, can be doomed, because of situations such as the inability to survive competition, the inability to generate substantial and consistent profits, the lack of new products or earnings growth, or ineffective management. Often, a value trap appears to be such a good deal that investors become confused when the stock fails to perform. As with any investment decision, thorough research and evaluation is recommended before investing in any company that appears cheap when reviewing its relevant performance metrics.

 

Please read carefully for those considering getting in.

[HendrikB]

Non performing loans increased to above 30%...

That's quite scary for a bank if you really think about it.

 

But not to worry, management states that "We are confident that the benefits from our initiatives will materialise in the short to medium term." 

 

Oh and by the way our balance sheet is shot and we need to raise 4B..

 

I have to say the latest update doesn't exude confidence.  How much are they gonna get for Ellerines after they bought it for 10 billion? Probably a 1/10 of what they bought it for.  And the CEO didn't fool me either when he said business conditions are improving.  That's what he said 3 months ago and look where we are. Its a pity because there's so much potential here and I really like the brand.  Still holding.

[gamma]

Non performing loans increased to above 30%...

That's quite scary for a bank if you really think about it.

 

But not to worry, management states that "We are confident that the benefits from our initiatives will materialise in the short to medium term." 

 

Oh and by the way our balance sheet is shot and we need to raise 4B..

 

 

[gamma]

Although not mentioned in the sens today, I read an article today saying they are going to dispose of Ellerines, maybe this is the impetus needed!!

 

Shouldnt these clowns be announcing something that important in a SENS?

 

I recommend you call up the CEO HDB

[orca]

Half listening to Business News today and heard the analyst saying something about some extra cash increasing their balance sheet and the sale of Ellerines that is a burden on them due to large loss.

[HDB]

Although not mentioned in the sens today, I read an article today saying they are going to dispose of Ellerines, maybe this is the impetus needed!!

 

I don't really understand how the share goes up after they announce the rights issue.

Could someone explain this to me?

Edited by HDB, 05 August 2013 - 12:37 PM.

[Beorn]

I don't really understand how the share goes up after they announce the rights issue.

Could someone explain this to me?

[soutie]

Any thoughts on who is buying it up this morning?

Cant see why though, any thoughts?

Now Goldman Sachs is involved could be anybody..?

 

Biggest crooks in the investment area IMO

 

Previous clients range from Pablo Escobar through to Bono.

[gamma]

No

4B rights issue just announced this morning...ouch!

get ready for the long drop this morning.

Traders with a strong stomach may want to pick up the short bounce on the probable overreaction.

 

 

Picked up some at 1280...expected a 5% bounce but not this!

closed at 1530

 

KA CHING!

[HDB]

Got to be CML 

 

 

Any thoughts on who is buying it up this morning?

Cant see why though, any thoughts?

[OceanWalz]

up 4%. this is really weird.

I'm with IG  - seems I cannot short ABL - unborrowable they say!!

[Beorn]

Any thoughts on who is buying it up this morning?

Cant see why though, any thoughts?

[Shortboy]

Shi someone is supporting the share to keep the price up!!

Wont last long though...

Had an ABL buy order in for the last month at R12.26 (my calc of tangible net asset value after their last poor results). I just hate it when the company managers keep springing nasty surprises on both investors and traders alike.

 

Thankfully, the drop this morning didn't quite trigger it. I am still interested but will have to redo my offer price to take all this negativity and nasty shocks into account, just in case there is more to come in the coming months which seems extremely likely.

 

I do div scalping on certain types of stocks and got suckered by the unethical way in which Hudaco hid their little tax problem at the bottom of their financial results released earlier this year while at the same time highlighting a juicy dividend bait at the top of the report, which I took on the spur of the moment. Like I said, I just hate it when the people I should be able to trust keep springing nasty shocks on me. 

[HendrikB]

up 4%. this is really weird.

[HDB]

Shi someone is supporting the share to keep the price up!!

Wont last long though...

 

Wow, that was a quick recovery, above 1400c again.

[Shi]

Wow, that was a quick recovery, above 1400c again.

[Shi]

recovery in sight?

 

not anymore

[HendrikB]

more heartbreak.  Abil down 8.6 % in opening auction.  Where's the nearest bridge?

[gamma]

recovery in sight?

 

No

4B rights issue just announced this morning...ouch!

get ready for the long drop this morning.

Traders with a strong stomach may want to pick up the short bounce on the probable overreaction.