Many vigilante investors who are being pulled into the social media frenzy to buy stocks could end up “financially burned”, warns the CEO of one of the world’s largest financial advisory and fintech organizations.
The warning from Nigel Green, the chief executive and founder of deVere Group, comes after shares of AMC jumped almost 40% Thursday as investors on the popular Reddit WallStreetBets board were once again pushing the stock in a bid to hurt short-sellers who have bet against the theater operator.
It follows similar moves that started in January when activist investors on Reddit pumped other out-of-favor firms including GameStop and BlackBerry.
Mr Green says: “There’s a certain vigilante mindset amongst those traders being drawn into this social-media frenzy to pump certain stocks.
“They seem to believe they’re in a David and Goliath-style battle against Wall Street and, judging by some of the comments on the forum, it appears kind of personal.
“They’re behaving like activists, not investors. Frankly, those pushing these stocks don’t seem to care about it going up – instead they’re out to destroy the sellers.”
He continues: “Heightened emotions, hype and hysteria and investing are rarely good bedfellows. I can’t help but think this is likely to end in tears for many activist traders.”
These forums have tapped typically inexperienced, younger people who might not necessarily have “the financial resources to be resilient against usually highly speculative and volatile investments” says Mr Green.
“Extreme caution should be exercised before joining stock frenzies of this nature. The valuations can be expected to be wild – in both directions – and there’s a legitimate risk that novice investors could face a financial hit.”
Previously he has warned: “I would avoid piling into stocks pumped by social media influencers.
“If you do want the thrill or novelty of chasing big gains, you really should ensure that you have a sound, diversified, long-term plan beforehand.
“There’s a major difference between investing and gambling.”
The deVere CEO concludes: “This kind of speculative day trading is becoming a global phenomenon. I don’t think this is a fad.
“However, in order to create, grow and safeguard wealth consistently to reach your long-term goals – which for most people is financial security and freedom – there’s no substitute for independent, professional, personal advice.
“Balanced advice should be at the heart of the decision-making process – and then proceed as you wish.”
Nigerian Equities Market Establishes Bullish Trend
The equities market in Africa’s largest economy, Nigeria, extended its bullish trend on Thursday as the Exchange closed in the green amid rising renewed interest in the market.
Investors traded 158.366 million shares valued at N2.236 billion in 3,330 transactions during the trading hours of Thursday.
The Nigerian Exchange Limited All-Share Index gained 0.10 percent to close at 39,210.1 index points while the market value of all stocks grew to N20.437 trillion on Thursday.
The renewed interest followed weeks of bearish trends that trailed the market amid a broad-based profit-taking that encompasses the market after a prolonged bullish trend recorded in 2020 and Q1 2021 despite COVID-19.
Link Assurance led gainers with 9.09 percent to settle at N0.60 per share. This was followed by PZ’s 7.14 percent to close the day at N6 per share. See the details below.
|LINKASSURE||N 0.55||N 0.60||0.05||9.09 %|
|PZ||N 5.60||N 6.00||0.40||7.14 %|
|CHAMS||N 0.20||N 0.21||0.01||5.00 %|
|MAYBAKER||N 4.00||N 4.20||0.20||5.00 %|
|UNILEVER||N 12.10||N 12.70||0.60||4.96 %|
|CWG||N 1.25||N 1.13||-0.12||-9.60 %|
|CHIPLC||N 0.78||N 0.71||-0.07||-8.97 %|
|ABCTRANS||N 0.40||N 0.37||-0.03||-7.50 %|
|WAPIC||N 0.59||N 0.55||-0.04||-6.78 %|
|MBENEFIT||N 0.46||N 0.43||-0.03||-6.52 %|
Airtel Africa Announces Default Currency Exchange Rates for Final Dividend
Airtel Africa on Thursday announced the default currency and options on currency election for the proposed 2.5 cents per ordinary share final dividend recommended by the Board.
The leading telecommunications and mobile money services company said the currency exchange rates that will be applicable in determination of the final dividend payment to any shareholders that qualify for and have elected to receive the final dividend payment in U.S. dollars, GB pounds or Nigerian naira will be as follows:
Arrangements for Shareholders that hold their shares on the London Stock Exchange (LSE):
• Shareholders that hold their shares on the London Stock Exchange may elect to receive their entire dividend payment in GB pounds or U.S. dollars.
• Partial elections are not permissible.
• Holders electing to receive a dividend should specify a choice of currency by completing the Currency Election Form and return to Computershare Investor Services plc.
• Shareholders holding their shares on the LSE who do not indicate their currency of choice before 12 July 2021 will receive their dividends in U.S. dollars.
• The closing date for the dividend currency election to the Company’s Registrars Computershare Investor Services plc in the UK is 12 July 2021.
• Currency election forms can be obtained by contacting the Company’s Registrars, Computershare Investor Services plc, on the Company’s dedicated telephone line: +44 (0)370 7030027.
Arrangements for Shareholders that hold their shares on the Nigerian Exchange Limited (NGX):
• Shareholders that hold their shares on the Nigerian Exchange Limited may elect to receive their entire dividend payment in Nigerian naira or U.S. dollars.
• Partial elections are not permissible.
• Holders electing to receive a dividend in U.S. dollars should complete the Currency Election Form and return to Coronation Registrars Limited or email to firstname.lastname@example.org.
• Shareholders holding their shares on the NGX who do not indicate their currency of choice before 12 July 2021 will receive their dividends in Nigerian naira.
• The closing date for the dividend currency election to the Company’s Registrars Coronation Registrars Limited in Nigeria is 12 July 2021.
• Currency election forms can found on the website of the Company’s Registrar www.coronationregistrars.com or this direct link: https://coronationregistrars.com/currencyelection-form/
The following currency exchange rate will be applicable in the determination of the final dividend payment to any shareholders that qualify for and have elected to receive the final dividend payment:
1 USD = 410.95 Nigerian naira
1 USD = 0.7068 GB pounds
The exchange rate for the Nigerian naira or GB pounds amounts payable was determined by reference to the exchange rates applicable to the U.S. dollar available on 9 June 2021.
MTN Shareholders to Receive N9.40k Dividend Per Share, 18.7% YoY Increase From 2019
Nigeria’s largest mobile telecommunications operator, MTN Nigeria Communications Plc, has announced the payment of N9.40k as final dividend for the year ended December 31st, 2020. This year’s dividend witnessed an 18.7% increase from 2019.
MTN Nigeria’s Chairman, Dr. Ernest Ndukwe said “Despite the challenging operating conditions during the year, I am happy to report that our company recorded improved performance across all key metrics, creating the shareholder value achieved. This performance demonstrates the success of cost optimisation measures initiated during the year, the strong operational execution of our people and resilience in our business.”
“Following from our good operating results and in line with our dividend policy, the Board has recommended a final dividend of N5.90 kobo per share to be paid out of distributable net income. This brings the total dividend for the year to N9.40 kobo per share, representing an increase of 18.7%,” he added.
The dividend would be paid on Tuesday, 8th of June 2021 at the rate of N5.90 per every 2 Kobo ordinary shares and subject to appropriate withholding tax to shareholders whose names appear in the Company’s Register of Members at the close of business on Tuesday, 4th of May 2021.
Earlier in the fiscal year, the firm which joined the Nigerian Stock Exchange (NSE) in May, 2019, had paid an interim dividend of N3.50k, which now brings the total dividend for the year ended 31st December 2020 to N9.40k. The approval was obtained at the Annual General Meeting (AGM) that was held on June 7, 2021 at MTN Plaza, Ikoyi.
In the 2020 FY, MTN Nigeria grew its earnings before interest, tax, depreciation, and amortisation by 9.7% to N685.7 billion, while the pre-tax profit rose by 2.6% to N298.9 billion and profit after tax rose by 0.9% to N205.2 billion.
Its mobile subscribers increased by 12.2million to 76.5 million, while its active data users grew by 7.4 million to 32.6 million.
Karl Toriola, Chief Executive Officer, MTN Nigeria stated that “It’s a great starting point and we will continue to be dynamic and agile to deliver value for the future for our stakeholders, whilst aligning our priorities with national interests.”
Shareholders commended MTN Nigeria for the profit margin despite COVID-19 pandemic that characterized 2020
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