Welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market.
The newsletter is divided into two parts:
Green White Green is focused on the Nigerian stock market.
Star-Spangled Banner is focused on the US stock market
Green White Green Last Week
FBN Holdings (parent company of First Bank of Nigeria) notified the stock exchange that Segun Alebiosu has been appointed Acting CEO of First Bank of Nigeria.
Prior to this appointment, Alebiosu was the Executive Director/Chief Risk Officer.
His appointment follows the resignation of Adesola Adeduntan and is subject to the approval of the CBN.
Still on FBN Holdings (and before the announcement of a change of guards at First Bank), an extraordinary general meeting (EGM) initially scheduled for April 30 (to obtain approval for a ₦300 billion capital raise and other matters) was canceled.
Aborted
The proposed merger of Dangote Sugar Refinery Plc, Nascon (Dangote Salt) and Dangote Rice Limited, has been suspended. The suspension is due to the comments and recommendations of the Securities and Exchange Commission (SEC) centered around the current non-operational status of Dangote Rice Limited.
Nestle Nigeria’s balance sheet fix
Nestle Nigeria has released explanatory notes for a shareholders meeting scheduled for next month. It will be seeking shareholder approval to value PPE using the current market model (moving away from the historical model). This will help the firm bounce back from its negative assets state which occurred following the devaluation of the naira.
Nigerian Breweries
The brewer shared details of its recovery plan which included a rights issue, a review of the company’s current organisational structure and size; the temporary suspension of operations in two of its nine breweries; and an optimisation of production capacity in the other seven breweries.
It plans to raise capital of up to ₦600 billion (six hundred billion naira) by way of a Rights Issue, as a means of restoring the company’s balance sheet to a healthy position following the devaluation of the naira.
Green White Green This Week
Several companies will meet this week to consider their Q1 2024 numbers. They include Jaiz Bank, BUA Foods and BUA Cement.
Zenith Bank will hold a virtual EGM this Friday, April 26. The agenda is to obtain shareholders’ approval for a capital raise.
Star-Spangled Banner Last Week
Is Netflix still a growth stock?
Netflix dropped its results for the last quarter and they came in better than expected.
The focus was on management’s decision to stop reporting subscriber numbers from Q1, 2025. Why?
Co-CEO Greg Peters stated during the earnings call that the firm had evolved:
“The number of members times the monthly price is “increasingly less accurate in capturing the state of the business. We’ve evolved, and we’re going to continue to evolve, developing our revenue model and adding things like advertising and our ‘extra member’ feature, things that aren’t directly connected to number of members. We’ve also evolved our pricing and plans with multiple tiers and different price points across different countries. So, this change is really motivated by wanting to focus on what we see are the key metrics we think matter most to the business.”
That has left some analysts a bit worried. If they don’t report subscriber numbers, is it still a growth stock? There is a precedence to this, which turned out fine. Apple, for a few years, stopped reporting iPhone sales numbers. The stock tanked and has since quadrupled.
Star-Spangled Banner This Week
This week is an extremely key one in terms of earnings. Microsoft, Alphabet, Meta, and Tesla will drop their earnings. Other key names include Pepsico, Verizon, ExxonMobil, Chevron, and Boeing.
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