Core Trust & Investment Ltd.

Download Abridge Prospectus Download Memorandum here

CORE TRUST & INVESTMENT LIMITED (“CORE TRUST”):           OFFER OF 323,656,125 ORDNARY SHARES OF 50K EACH @ N1.20K AND 1,197,375,499 ORDINARY SHARES OF 50K EACH @N1.50K

We hereby invite you to subscribe to the above mentioned capital issuance designed to bolster our operations and secure the enablement to become a leading Financing Services Firm with core competence in Structured Finance, Fund Management and Investment Banking Transactions.

The offering is structured and priced reasonably to secure the commitment and participation of the existing members and your good-selves to N1.20k and N1.50k per share respectively as detailed out in the attached Information Memorandum (IM).

Our distilled objective and mandate is to strengthen and build further – a Financial Institution that will straddle effectively between a full service banks and other financial services providers and thereby bridging the needed gap occasioned by the recent banking consolidation and economic realities.

As analyzed in the Information Memorandum, our operations are well diversified to withstand the current and future challenges that are usually systemic. We also have quality Managers of Men and Resources and our experience in Financial and Risk Management makes us a worthy candidate Investment in spite of the current challenges. Whatever happens, Financial Services Sector will be the cornerstone of other sector – “since money/value rendition answereth all things”.

We are open to discussion/negotiation as it relates to purchase consideration other than cash.

Should you require any questions, clarifications, concerns, and information, kindly contact the undersigned.

We trust and feel certain that you will give us the opportunity to further proof our mettle and we promise not to disappoint you.

Thank you as you INVEST.

Yours faithfully,

For: Core Trust

Fisayo Oyedeji

Managing Director/CEO

The review of previous week trading shows that a turnover of 1.75 billion shares worth N12.45 billion in 42,503 deals was recorded this week, in contrast to a total of 1.54 billion shares valued at N7.73 billion exchanged last week in 37,208 deals.

The Banking subsector was the most active during the week (measured by turnover volume), with 911.13 million shares worth N7.72 billion exchanged by investors in 23,146 deals. Volume in the Banking subsector was largely driven by activity in the shares of Guaranty Trust Bank Plc, First City Monument Bank Plc, Zenith Bank Plc and UBA Plc. Trading in the shares of the four banks accounted for 352.8 million shares, representing 38.72% of the subsector’s turnover.

The Insurance subsector, boosted by activity in the shares of Gold-link Insurance Plc and International Energy Insurance Plc, followed on the week’s activity chart with a turnover of 368.74 million shares valued at N469 million in 4,203 deals.

The All-Share Index rose by 2.93% to close on Friday at 23,377.14 attributed to price increases by the highly capitalized stocks while a total of 76,779,631 shares were added to the shares outstanding in the name of Intercontinental Bank Plc following the conversion of part of the bank’s Irredeemable Preference shares in the ratio of 1:1.

Meanwhile the turbulent market emerges today as the trading on the floor of Nigerian Stock Exchange opens the week on a dull note. The corporate market indices depreciated by a staggering 296 basis points. All- Share Index dropped 692.96 points to close at 22,684.18 as against 23,377.14 closed on last trading day while Market capitalization decline by a total of N155.086 billion to close at N5.077 trillion. The whopping loss occur in the market today may be as a result decline in the market activities and also the heavy selling pressure on the blue chips company which may not be unconnected to investors taking capital gains.

Only 15 companies added points to its valued today out of 118 actively traded companies. 64 equities recorded at the losers end while 39 stocks remain static. Banking sub-sector dominated the market today with total volume of 147.392 million out of 271.088 million volume recorded. Insurance sub-sector trailed behind with 70.232 million while Food/Bev. Sector follows with 16.473 million. Further analysis indicated that trading activities in the stock of UBA, Access Bank and FCMB boosted the banking sector as each recorded 23.657 million, 22.344 million and 17.692 million in that order. Investment and Allied Insurance move the trading activities in the insurance sector with 38.074 million volumes while Flourmill Nigeria Plc boosted the trading volume in Food/Beverage sector with 10.449 million units.

Meanwhile on the gainers chart, Julius Berger and Flourmill led the table with 80 kobo and 60 kobo to close at N31.20 and N12.72 respectively. Others were Intercontinental Bank, NASCON and NAHCO to close at N7.50, N5.32 and N7.56 from a previous close of N7.22, N5.07 and N7.31 in that order.

On the other hand, heavy losses of 5% were recorded in the share of Mobil Oil Nigeria Plc and Nestle Nigeria Plc to lead the pack of losers. AP Nigeria, Oando Oil and Nigerian Breweries dropped 5% each to close at N105.45, N71.25 and N34.60 respectively.

With the recent loss incurred in the market, the bear may rampage all through the week thereby causing the index to drop further at the end of the session. The money market instrument seems to be attractive to investors as the rate close on Friday at 18.833% as against 17.125% of the previous week. Therefore the declining trend in the stock market may not be unconnected to the improvement in the rate of money market as at last week Friday. Another factor connected to the decline is the dropped in the bail-out plan by the federal government. As part of the decision make concerning the economy of the country, FG as announce that there will not be any intervention on the capital market for now.

The market is quite volatile thereby discerning investors are to trade, with caution, on stocks with good fundamentals and improved earnings.

In other related report, strong indication has emerged that Cappa & D’ Alberto Plc, a construction company on the floor of Nigerian Stock Exchange, may soon be approaching the NSE for the delisting of its shares from the trading floor. The construction company finds the annual fees charged by the NSE to be burdensome on its finance, more so, now that the stock prices have crashed and the unattractive state of the stock market. The plan to delist has got to an advance stage and the company would soon call for an extra – ordinary meeting of its shareholder. The last traded price of the share of the company is N24.10 per share.

www.coretrustinvestment.com/download/coreflash020309.pdf

Click on the link below to view the market price for today www.coretrustinvestment.com/pricelist.php

When you fill the form and duely submitted, it takes 3-5 days for CSCS to activate your account. Generally an SMS is sent to the phone number you specified, but in some cases, SMS is not sent.

But when you enquire, we shall get your CSCS detail for you. You can contact our account opening department to know the status of your CSCS opening. Email: accountopening@coretrustng.com

We answer various question that are commonly asked by Investors and Investor to be.

How much Charges do i pay when i buy or sell share?

Commission:  Purchase

SEC Fee: 0.6%
Stamp Duty: 0.075%
Broker Fee: 1.5%
VAT: 5% of Commision (Broker Fee)
CSCS Fee: 0.1%
CSCS VAT: 5% of CSCS Fee

Total: 2.4%

Sale

Stamp Duty: 0.075%

Broker Fee: 1.5%

Commission VAT: 5% of Broker Fee

NSE Fee: 0.5%

CSCS Fee: 0.45%

NSE VAT:  5% of NSE Fee

CSCS VAT: 5% of CSCS Fee

Total: 2.6%

If you ask some investors in the Nigerian stock market today, they will tell you that they got their inspiration from Warren Buffett, who is an American investor.
Buffett is not just an investor but his net worth was put around $62 billion and was ranked as the richest person in the World last February by Forbes.
Given the fact that he made his fortunes by investing in stocks, investors looking up to him as their role model may not be wrong. Buffet adopted an investment strategy for eight years that prevented him from realising higher returns.
It may sound unbelievable but the strategy is technical analysis, which is one of the tools financial experts always recommend for investors to use in their investment decisions. Technical analysis is the practice of predicting where stocks will trade based on charts of historical pricing and volume information. The strategy maintains that all information is reflected already in the stock price, so others such as fundamental analysis are a waste of time.
This is why Buffet tried to master that strategy for good eight years. But an American investment expert and writer, Richard Gibbons, disclosed in one of his articles that the popular investor discovered that the strategy was not working for him and decided to change it.
According to Gibbons, Buffett discovered technical analysis did not work.
“I realised that technical analysis didn’t work when I turned the chart upside down and didn’t get a different answer,” Buffet was quoted as saying.
After eight years of trying he concluded that it was the wrong way to invest. Then he focused on the teachings of Ben Graham, which stressed business fundamentals, finding a strategy that both made sense and, more importantly, worked. Graham is known as the father of value investing. Value investors quietly seek out bargains among under priced companies, buy into them, and then patiently wait for their fair value to be realised.
When Buffet was recently asked how to avoid the crowd mid-set, he said simply followed Graham’s important lessons.

Buy stocks with a margin of safety
The market is there to serve you, not instruct you. The first lesson usually makes the headlines. It means that you should buy stocks for less than they’re worth. The Nigerian stock market, with its current state, offers the opportunity to buy some of the stocks at their under priced value.

Buying a Business
Buffett explained that thinking about a stock as part of a business is the opposite of what technical analysis is all about. Technical analysis focuses on trading securities.
“It doesn’t matter whether the security is a share of General Electric, with its jet engines, turbines, national television network, nuclear imaging, and financial arm; or whether that security is a derivative promising the delivery of three tons of Italian meatballs. It’s all the same because technical analysis doesn’t care about the business or the fundamentals,” he said.
He added that stocks are far more than just pieces of paper or lines on graphs, and to understand them, you need to understand the business.
“If you are looking at Apple, ignore whether the stock has been up three days in a row, and focus on how many iPods, iPhones, iTunes songs, and iBackhoes the company will sell today and in the future.”

Taking Advantage
so, instead of listening to the market, Buffett seeks to take advantage of it. Sometimes, the market will offer to buy a stock for far more than it’s actually worth.
“Other times, it’ll offer you the chance to buy shares of a great company for far less than its fair value. An investor who understands the true value of a business will be able to profit when the market offers great companies on sale,” he said.
You can learn from Buffett’s error by not focusing on charts alone. Instead, understand businesses and seek excellent stocks the market offers at low prices. It is very common these days to understand the market. Some stocks that seem cheap will turn out to be very expensive. Others that have suffered price losses due to negative perception may post amazing returns.

The Bottom-line
Most investors lose in the stock market because of their greed and the fear of incurring loss. Some of them keep waiting for the highest price and refuse to sell if even they have witnessed significant appreciation in their investments.
In a similar vein, investors are afraid to book losses that they have already suffered and in process are forced to sell at still higher losses. This often happens when after enduring a bear run, you decide to sell a stock only for the stock to begin to appreciate immediately after. Using the two basic analyses to decide your investment pattern would be of great help.
However, before you choose any strategy, be it technical or fundamental analysis, try and understand them well.
Technical analysis is the practice of predicting where stocks will trade based on charts of historical pricing and volume information, while fundamental analysis of a business involves analysing its financial statements and health, its management and competitive advantages, and its competitors and markets.
Fundamental analysis maintains that markets may misprice a security in the short run but that the “correct” price will eventually be reached. Profits can be made by trading the mispriced security and then waiting for the market to recognise its “mistake” and re-price the security.
On the other hand, technical analysis maintains that all information is reflected already in the stock price, so fundamental analysis is a waste of time. However, investors can use both differently but somewhat complementary methods for stock picking. Many fundamental investors use technicals for deciding entry and exit points just as many technical investors use fundamentals to limit their select of ’good’ companies.

*Culled from Thisday.

Chukwuma Soludo, governor, Central Bank of Nigeria (CBN), affirmed (as quoted on the pages of businessday newspapers of July 10) that Nigerian stock market is one for the leading five globally. Also, recent analysts report from two globally acclaimed offshore investment banking firms, Renaissance capital and JPMorgan also supports the view that the market is healthy and there is no cause for panic in view of present bearish trend and price volatility.

It is worthy to note that volatility in stock market is a usual phenomenon in all other jurisdictions all over the world hence there is a need for the Nigerian investors to understand and learn to adjust to global patterns. It is expected that after the on-going market driven regulatory corrections, the Nigerian stock market would have easily recognizable global benchmarks and ROIs that are easily correlated with financial statements or forecasted based on published financial statement of public companies (and its thorough analysis).

Definitions of investment gestations would also need to be adjusted as investors must accept the fact that short–term or current investments are for a minimum period of one year and medium-term investments are required to mature within two to three years while long-term investments may take three to five years. This is a sharp contrast to the liquidity propelled situation of Q1, 2008 that herald the market correction in Q3, 2008 2008. Then, short term investments could be as short as one month with ROI of 100% from a stock whose financials have not be updated in the last four years!

In view of the above, and in recognition of the fact that timing is very essential in equity trading; it is expected that the months in which we expect the greatest number of financial statements to be published would retain their status as profit taking months in the years ahead. The major reason why stock prices rally in those months are expectation of corporate actions (that may include declaration of bonuses and/or dividend) and increased sectoral band wagon effect. Although the market is not responding positively to good corporate actions in Q3 and the situation may persist till Q4, 2008, however, it is expected that both ROI and market momentum would be driven by corporate actions and their expectations in Q1 to Q2, 2009 in line with previously established patterns.

Also, it is expected that the uniform year ends for banks would strengthen March as a corporate declaration month as 21 other banks would adjust their year end to December 2008 bringing the number of companies with December as their year end to atleast 145. It is expected that most newly listed companies, (especially Microfiance Banks/non-banking financial institutions) on the exchange are expected to also adopt December for the year end.

A survey of 200 actively traded stocks on the exchange reflects that 63% of listed stocks have their year end in December, 19% March while the others months have 18%.

Idleness
A business on it’s own
Nothing is being done
A thousand things in thought
Yet the brain is not dumb.

Ideas trip in one after one
But none is deemed fit
Till considerable time is gone
Before the brain will tilt
And something next is done
In the hurry-hurry way.

Since the time meant for it
Was used to bow the head,
Chin placed on palm
While the brain travels far beyond
To get the next job on plan.

Even this poem you read,
Idleness made it to be.

Absent- Minded Man 
An absent-minded man went to see a psychiatrist.
‘My trouble is,’ he said, ‘that I keep forgetting things.’
‘How long has this been going on?’ asked the psychiatrist.
‘ How long has what been going on?’ said the man.
~~~~~~~~~~

Undying Love

Girl    :  Do you love me?
Boy   :  Yes Dear.
Girl    : Would you die for me?
Boy   :  No, mine is undying love.

   
 ”Fish can turn to meat with patience and processing depending on the stock!”

Stockfish …

The patient woman’s fish
Buy … hold… then sell as meat.

Don’t mind those scary jargons:
Verification, suspension cum IPO
Dematerialization, mandate or PO
They all mean “food processing”
Better still “stockbroker’s headache”.

Buy low … sell high …
That alone would break you even.
Always remember …
Every kobo counts every casual second
In stockfish business!

August 2007