Tuesday, February 28, 2012

Building the Economy: Middle Class of Ghana Unconcerned

Are we really sleeping? Then it is time to wake up.
The Middle Class in Ghana, simply don't care. They find means to solve public problems in personal ways and just remain unconcerned, very quiet!! It's a culture problem, people say. Others say Ghanaians just think about their families and not the Public. Scholars blame it on education, stating that, "you can't teach an old dog new tricks". But is this helping the nation? Would it ever? How can we develop with this? Why won't us remain poor? Failed government or State, Failed Top Class, Now failing Middle class & educated elites, and the Voiceless/uneducated poor (which are the most populated).

We have the platforms, we don't use them. We have the knowledge, we don't apply it to help our nation, the worst of all, we sell them cheap to other nations. We have the energy, we misuse it. Oh Mother Ghana!!! How long would the Middle Class decide to be silent. It's pathetic they understand the problems better than anyone but decide to stay away.

Typical Middle Class (educated elites) Behaviors:

Power outage:- Put on the generator (For the family alone) and shut up.
Water Problem:- Get enough Poly-tanks to store water for the family. Don't care about the community or person next door (who's probably voiceless).
Education:- Send children to schools abroad. (No Teachers' strike).
Health:- Go to private hospitals. Don't care if doctors are on strike.

Ehhhhh!!!! My people. Are we safe? When the Voiceless or low class decide to talk or fight back, can we stand them? Ghana, we can't afford to fail God and the next Generation. Let's act NOW in all sectors of the economy. Let's be responsible and not think about our families alone. Let's build the economy of Ghana.

Oh Ghana!!!!. God Help us. Long Live Ghana

Monday, February 20, 2012

Is CAL Bank undervalued on the Ghana Stock Exchange?

The debate continues everywhere among investors as they keep wondering whether CAL Bank shares on the Ghana Stock Exchange are undervalued. My earlier post on the 2011 year review of CAL bank on GSE has shown clear analysis of CAL as at last year. It showed the potential of CAL's share price rising this year as the bank plans to recapitalize to meet the required capital as proposed by the Bank of Ghana. Meanwhile, some investors and market analysts argue that, the share price is undervalued to the extent of stating that there could be a rally on the exchange for these stocks very soon.
Let us look at some figures of the Bank; (courtesy: Bloomberg)

Valuation and Earnings as at 20.02.12.

The Banking stock shows a relative P/E to the GSE Composite Index of 0.2628 and a P/E ratio (ttm) of 3.6220 as reported by market analysts.

With a current market capitalization of about GHC 64.48 million, the Bank would recapitalize this year to meet the requirement.

Dividends figures & Other Market figures

Chart: Share Price Movement from December 2011 to Date on GSE.

Monday, February 13, 2012

Bank of Ghana vs. Onward Investment Limited, Power vs. Fraud?

 With a vision ‘to achieve a comparative advantage among leading investment companies…’ and a mission ‘to become an outstanding provider of legitimate investment services…’ Onward Investment Limited, an indigenous Ghanaian company with registration number CA-75,073 is experiencing the sanction of Bank of Ghana (BOG) as they operate without a license in the financial market.
BOG is making a relentless effort to protect ordinary investors in the system hence would stop any organization that flouts its regulations.
Onward Investment Limited has an aim to contribute to the economy by developing the Forex market through the offering of Forex training services and online forex trading for individuals in the country and even foreigners. But it’s very unfortunate on their part that the BOG had to put a hold on their operations and warn the public about them, on the basis of not having a license to receive deposits from the public. What is the point in trying to achieve those great visions without passing through the right processes?
How many of these unlicensed financial service providers are in the system? What is the Securities and Exchange Commission doing to protect investors? Why do companies refuse to get a license if that could boost their businesses? Are the licensing processes too rigid or demanding? These are questions the average investor is asking.  
On the part of Onward Investment ltd.; who are the owners? , what is their expertise? , what are their records and what are the clear benefits for the investment community. If potential partners and investors find it difficult to answer these questions then there is something wrong.
The only 'known' Board of Directors of this company includes; Lawrence Mensah, Mohammed B. Saleh , Kwesi T. Ababio and Simon Y. Nyarko.
We hope to know more about this company and the progress of their restriction by the Bank of Ghana.


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