FCB IPO

[snatman]

i still waiting on my statement from stock exchange from the first set of fcb ipo shares.

Im wondering if to buy now

only buy @ this price if you plan on holding on to the shares for a few years.
There's going to be some price instability over the next few months.

[ray d saint]

as low as 34.50....

[Redman]

It should be erratic as the shares move from speculators to long term holders and as people feel they have a chance to buy before it goes higher.

Once lth s get the stock the volume will dry up and the price will stabilize.

[crazychinee]

I got some more @ $38.45

Am I worried? Nope.

[Carnivalbaby29]

But when are we to get dividends? I got a statement recently.. But no deposits....

[desifemlove]

They still selling?

And frankly government has NO BUSINESS owning a commercial bank. It ent no public good, someting that government can run inherently better, and I ent seeing the US feds owning Citibank, Cameron and they owning HSBC, or Hollande owning BNP Paribas. If anything government is waaay to big in this country, too many things that government shouldn't run are run by it.

[Redman]

While I agree with Govt s foot print being as small as possible, we exist in a country where the financial system is an oligopoly.

there is obvious collusion-so I also see some merit in govt control of FCB to always be able to ensure that the banking cartel isnt more predatory than it already is.

The US is a competitive market and people have a wide variety of choices-we dont.

[Redman]

While I agree with Govt s foot print being as small as possible, we exist in a country where the financial system is an oligopoly.

there is obvious collusion-so I also see some merit in govt control of FCB to always be able to ensure that the banking cartel isnt more predatory than it already is.

The US is a competitive market and people have a wide variety of choices-we dont.

[desifemlove]

lol.. tell me a country where is it not an oligopoly? Also tell me that oligopoly is not the most common market form in the world? You mention the USA, well yeah, Citibank, Bank of America, etc. don't own most of the market, eh? In any industry, there are rules against collusion, so i ent see why selling off something the state shouldn't own is a big issue.

Our problem as a society (or at least one of several big problems) is that we expect government to do everyting. If people want such statism, go to North Korea or travel back in time to Stalinist USSR nah..

[desifemlove]

lol.. tell me a country where is it not an oligopoly? Also tell me that oligopoly is not the most common market form in the world? You mention the USA, well yeah, Citibank, Bank of America, etc. don't own most of the market, eh? In any industry, there are rules against collusion, so i ent see why selling off something the state shouldn't own is a big issue.

Our problem as a society (or at least one of several big problems) is that we expect government to do everyting. If people want such statism, go to North Korea or travel back in time to Stalinist USSR nah..

[desifemlove]

what is a decent amount of money to invest in this?

Depends on what risk/return you want.

If dey still selling shares, I'd buy $500 worth. I can easily afford it, and commercial banking is and always will be a growth sector, bar recessions, depressions, shocks and any potential end of capitalism of course lol..

[desifemlove]

what is a decent amount of money to invest in this?

Depends on what risk/return you want.

If dey still selling shares, I'd buy $500 worth. I can easily afford it, and commercial banking is and always will be a growth sector, bar recessions, depressions, shocks and any potential end of capitalism of course lol..

[Redman]

Well our regulatory bodies are a WFT

Numerically there are just under 7000 banks in the US-so a consumer has choice.Define oligopoly.

Regardless of the size of the dominant players you can move your business to another bank easily.

We have a cartel here in Trinidad-and most are foreign owned.-RBL and FCB are the only local

SBTT,RBC,IBL Baroda are foreign owned.
So again while I agree with you in general I still see the FCB ownership as a strategic necessity. a neccessary evil.

[desifemlove]

an industry dominated by a few firms? I didn't think this was UWI first year econ class.... there may be seven thousand, but most of those are small state/city-based firms, i'd bet of all sales the big multinationals have the largest shares. and regulations? you realise this is why the Great Recession happened in the USA right? Oligopoly doesn't denote collusion.

[Redman]

Oligopoly doesn't denote collusion.

true-but we have collusion here which equates to a cartel


Im all for a free market-but there is also an argument to be made for a Govt having a presence in certain key sectors.

UTC is a perfect success story.

GORTT should be divesting and shrinking,but we also must keep the focus on what the country needs in the future.

[desifemlove]

what is GORTT? and the state should only own things of the public interest/good. so de roads, hospitals, schools, etc. I'm reiterating my point, but it still stands.

Collusion is a product of poor laws/regulation. Does collusion exist in insurance? retailing? Aren't there jus a few dominant insurance firms, or a few dominant retailers?

[neilsingh100]

But when are we to get dividends? I got a statement recently.. But no deposits....

Good point, more than 3 months have passed since the IPO and no financials.

RBL released their year end audited financials since November and shareholders already got their dividends.

[Redman]

Government
Of the
Republic
Trinidad and
Tobago.

I'm agreeing with you.
I also see the issues in having a key sector in the hands of foreign owners.
Retailers and insurance cos are locally owned.Banks are not.
Keep in mind that the interest rates are correlated to currencies, and their exchange rates.

Also FCB was an amalgamation of three local banks that failed.the government stepped in to avoid the systemic crisis.

[desifemlove]

i jus saying it more complex than that. crises ent caused alone by foreign ownership, it regulations or even corporate culture like Enron that cause it.

[Redman]

So let me ask then
How is it more complex than that?-expand on that.

In Trinidad how has GORTT's ownership of FCB impacted the market in a negative way???
If you can indicate real examples.

[Redman]

So let me ask then
How is it more complex than that?-expand on that.

In Trinidad how has GORTT's ownership of FCB impacted the market in a negative way???
If you can indicate real examples.

[desifemlove]

Er... I said state ownership of banks ent making no sense. What more expansion.yuh does want? To me government should be as lean as possible.

[desifemlove]

Er... I said state ownership of banks ent making no sense. What more expansion.yuh does want? To me government should be as lean as possible.

[Country_Bookie]

Govt does not have a policy of owning banks. The state ownership of FCB was a result of several failed banks in the early 90s. Rather than let these banks go under and cause a loss of confidence in the financial system, govt took ownership of these banks so as to guarantee all their obligations. The govt being able to sell FCB shares now shows that they were able to transform several failed banks into a viable profitable entity that citizens wish to invest in.

Btw, the dividend for 2013 is $1.09 per share…..which is just about 5% on the $22 if u bought into the IPO.
Their financials are on their website.

[Trinbagoviews]

I personally would be very weary as an investor to be unequally yoked to the government. Simply because; the state and the private sector's motives are diametrically opposed.

The private investor on one hand has a genuine profit motive whereas politicians and bureaucrats are interested in expanding their control and their respective budgets at the expense of efficiency and profitability. This is not a marriage that will end well for at least one of the parties.

You cannot expect to get into bed with the government and not expect to pick up the government's diseases. The symptoms of these diseases which are already well entrenched in FCB's culture include inefficiency, corruption, nepotism , poor service and mismanagement. These symptoms do not auger well for profitability and stability in the long run.



Although investors may feel frustrated by the limited investment vehicles available in T&T, they should not settle for the tallest midget in the room but rather opt for a totally different sphere in their quest for investment options.

Remember .... TCL .... NFM .... Caribbean Airlines ..... etc

[Redman]

It would make sense to have opinions that are backed up by fact-which clearly didnt happen in this case:

You cannot expect to get into bed with the government and not expect to pick up the government's diseases. The symptoms of these diseases which are already well entrenched in FCB's culture include inefficiency, corruption, nepotism , poor service and mismanagement. These symptoms do not auger well for profitability and stability in the long run.

^^^^ is in direct contradiction to the below facts on FCBs performance (taken off their website)

First Citizens is the highest-rated indigenous financial institution in the English-speaking Caribbean, with long term foreign currency counterparty credit ratings of Baa1 from Moody’s and BBB+ from Standard and Poor’s. The Group has successfully issued fixed income paper, which was over-subscribed in the international financial market, with the most recent being a US$175 million placement in February 2011.

In the year under review, the Bank won Bank Of The Year – Trinidad & Tobago and was named one of the Top 1,000 Banks In The World (The Banker Magazine). Other awards bestowed on the Bank over the years include: “the safest bank in the English-speaking Caribbean” in 2011 and 2010 (Global Finance Magazine); Best Bank In Trinidad & Tobago 2010 (World Finance); Bank Of The Year 2009 (The Banker Magazine, Latin Finance and World Finance).

Trinbago -I would like you to correlate the two please.

[Redman]

Duplicate

[Country_Bookie]

Every investment has risks. You have to assess whether you’re being adequately compensated for those risks.
IPO investors have realized a 70% appreciation in share price (from $22 to $37.44) and are about to get a 5% dividend payout. I think 75% return is fair enough for whatever risks you feel the company is subject to.

[neilsingh100]

Every investment has risks. You have to assess whether you’re being adequately compensated for those risks.
IPO investors have realized a 70% appreciation in share price (from $22 to $37.44) and are about to get a 5% dividend payout. I think 75% return is fair enough for whatever risks you feel the company is subject to.

When will the dividend be paid.

[neilsingh100]

Every investment has risks. You have to assess whether you’re being adequately compensated for those risks.
IPO investors have realized a 70% appreciation in share price (from $22 to $37.44) and are about to get a 5% dividend payout. I think 75% return is fair enough for whatever risks you feel the company is subject to.

When will the dividend be paid?