NoMoney:


I see the share price getting to N3 or (N12 post construction) before the rights issue.

C&I Leasing is a company valued at N2.5 billion at the moment on track to make N1b full year PAT. How low can it really go? It has the fundamentals to more than support the current share price. The management seems to be preparing the company for the second stage of its growth trajectory given its asset base and deal pipeline.

You value the company at N2.5billion. You say it is on track to make ONLY 1billion in PAT, and you still think it will sell at N3 after increasing its outstanding shares to 25billion units. I no dey plan go village any time soon sha.

NoMoney:


I see the share price getting to N3 or (N12 post construction) before the rights issue.

C&I Leasing is a company valued at N2.5 billion at the moment on track to make N1b full year PAT. How low can it really go? It has the fundamentals to more than support the current share price. The management seems to be preparing the company for the second stage of its growth trajectory given its asset base and deal pipeline.

Conclusions like this can lead to "NoMoney"

Na joke o

Mpeace:
You value the company at N2.5billion. You say it is on track to make ONLY 1billion in PAT, and you still thing it will sell at N3 after increasing its outstanding shares to 25billion units. I no dey plan go village any time soon sha.

Please argue constructively and with figures. I find wise cracks about going to the village lame.

I did not value the company at N2.5billion the market values it at N2.5billion (1.8billion shares * N1.30k per share)

Its share holder's funds is around N8billion which is closer to its intrinsic value.

At PAT of N1billion it has a PE ratio of 2.5 which is fantastic in any market very few shares beat that in any market and if you find such jump on them especially if you expect the profits to continue to increase into the future.

Total number of shares at the moment is 1.8 billion shares which will be reduced to 400m shares via reconstruction

After reconstruction, the company will sell 2.6billion share to raise N25billion naira and will now have 3billion shares at about N10 each giving a total market capitalization of about N30billion

To sell rights at N10 the market price might have to get to N12 (which is N3 pre construction)

I never said they are selling 25billion shares at N3, where did you get that from?

NoMoney:



Please argue constructively and with figures. I find wise cracks about going to the village lame.

I did not value the company at N2.5billion the market values it at N2.5billion (1.8billion shares * N1.30k per share)

Its share holder's funds is around N8billion which is closer to its intrinsic value.

At PAT of N1billion it has a PE ratio of 2.5 which is fantastic in any market very few shares beat that in any market and if you find such jump on them especially if you expect the profits to continue to increase into the future.

Total number of shares at the moment is 1.8 billion shares which will be reduced to 400m shares via reconstruction

After reconstruction, the company will sell 2.6billion share to raise N25billion naira and will now have 3billion shares at about N10 each giving a total market capitalization of about N30billion

To sell rights at N10 the market price might have to get to N12 (which is N3 pre construction)

I never said they are selling 25billion shares at N3, where did you get that from?

There is no harm in being optimistic. I wish economic growth prospects are sustainable in Nigeria and a measure of economic/political stability can be guaranteed Invariably most projections are based on these realities.

NoMoney:



Please argue constructively and with figures. I find wise cracks about going to the village lame.

I did not value the company at N2.5billion the market values it at N2.5billion (1.8billion shares * N1.30k per share)

Its share holder's funds is around N8billion which is closer to its intrinsic value.

At PAT of N1billion it has a PE ratio of 2.5 which is fantastic in any market very few shares beat that in any market and if you find such jump on them especially if you expect the profits to continue to increase into the future.

Total number of shares at the moment is 1.8 billion shares which will be reduced to 400m shares via reconstruction

After reconstruction, the company will sell 2.6billion share to raise N25billion naira and will now have 3billion shares at about N10 each giving a total market capitalization of about N30billion

To sell rights at N10 the market price might have to get to N12 (which is N3 pre construction)

I never said they are selling 25billion shares at N3, where did you get that from?

Bruv,

These are the parameters I look out for before I consider investing in any company,

1. Liabilities (debt profile)

2. The shareholding structure (if you have an individual or institutional investor with more than 30% stake)

3. visibility of the company's products/services in the market

4. Reserve accumulated as a result of consistent profits/disposal

If I weigh all any company on these scales and it fails,its a NO No No No No for me.

Guy think twice before you start defending what can not be defended so that you will save yourself the unnecessary headaches and endless posts on nairaland.

loco where are you now,say something bow. when you see correct snail and you prefer well cooked monkey meat.

Agbalowomeri:


suppose the buyer was paid to buy the stocks by the seller

In that case, the main TARGET is you and I, the retail investors. THAT IS THE POINT, I THINK AGBA IS INSINUATING. And that is where the danger lies. During the past (or do I say ongoing) episode of PONZI schemes, a few guys arranged to scam the larger society by Providing Help (PH) and Getting Help (PH) among themselves to make it appear as if the scheme is genuine and working. Any unsuspecting non-member who ventures into the scheme ultimately suffers the guaranteed consequence, and before a large number gets to know the tricks, the bad market had been oversold to a sizeable cream of anxious victims. And to cushion the emotional distress, a good number resort to miracle churches and before you know it church attendance starts swelling. And meanwhile majority of these never consulted 'God' before throwing in their money.

Pump and Dump still exist, that is why many still having fingers yet unburnt are playing extremely safe in the NSE.

My decision is clear: C.I Leasing, please construct first, once the dust settles, I will join you to celebrate, even if it's a plate of jollof rice without meat reach me, I will be happy at least for being alive to witness your survival and hear your testiMONY

NoMoney:

Please argue constructively and with figures. I find wise cracks about going to the village lame.
I did not value the company at N2.5billion the market values it at N2.5billion (1.8billion shares * N1.30k per share)
Its share holder's funds is around N8billion which is closer to its intrinsic value.
At PAT of N1billion it has a PE ratio of 2.5 which is fantastic in any market very few shares beat that in any market and if you find such jump on them especially if you expect the profits to continue to increase into the future.
Total number of shares at the moment is 1.8 billion shares which will be reduced to 400m shares via reconstruction
After reconstruction, the company will sell 2.6billion share to raise N25billion naira and will now have 3billion shares at about N10 each giving a total market capitalization of about N30billion
To sell rights at N10 the market price might have to get to N12 (which is N3 pre construction)
I never said they are selling 25billion shares at N3, where did you get that from?

That a company is making projections or calculations doesn't mean the market will rubber-stamp it. The reconstruction is 4 to 1 i.e one share for every four previously held.
The reconstructed shares have to be relisted and left to the market forces to price. The management can't tell where the pendulum will swing from post-consolidation price. Capitalization could drop or increase depending on market perception of the stock.
Equity Capital raising is likely a mix of rights, PP and Depository receipts. Nothing is certain yet.

Also note that the company is planning to borrow N20B in addition through issuance of bonds.

Closure date: 20th to 24th Nov. ( I guess ref price for the reconstruction will be closing price on the 20th)

Good luck to everyone embarking on this journey with C&I

Disclaimer: This is a personal opinion. My assumptions could be wrong too.

samguru:



Bruv,

These are the parameters I look out for before I consider investing in any company,

1. Liabilities (debt profile)

2. The shareholding structure (if you have an individual or institutional investor with more than 30% stake)

3. visibility of the company's products/services in the market

4. Reserve accumulated as a result of consistent profits/disposal

If I weigh all any company on these scales and it fails,its a NO No No No No for me.

Guy think twice before you start defending what can not be defended so that you will save yourself the unnecessary headaches and endless posts on nairaland.

How far with that manager that gave you insider information on ci leasing?

samguru:



Bruv,

These are the parameters I look out for before I consider investing in any company,

1. Liabilities (debt profile)

2. The shareholding structure (if you have an individual or institutional investor with more than 30% stake)

3. visibility of the company's products/services in the market

4. Reserve accumulated as a result of consistent profits/disposal

If I weigh all any company on these scales and it fails,its a NO No No No No for me.

Guy think twice before you start defending what can not be defended so that you will save yourself the unnecessary headaches and endless posts on nairaland.

Dear Samguru,

I will try to address your concerns

1.Liability: C&I Leasing has a lot of debt which is very sustainable. I will try to explain sustainable. If I can lend money at 13% from a bank and fix in treasury bills at 15% that debt is sustainable and the more debt I collect from the bank the better. If they are willing to lend me N100billion, I will collect. C&I leasing major debts are used to finance the purchase of vessels that are put on operating leases to the major IOCs such as shell, Chevron etc on fixed term contracts of 5-8 years. The cashflow from these contracts can pay off the loans while the vessels have a 50 years life span. Once the loans are paid off the remaining cashflow less operational costs translates to profit.

In lay man terms, If you are asked to take a N1billion loan to build a house and chevron is ready to rent the house for 5 years at N250ma year. In five years the rent pays the loan and interest whilst form the sixth year all the rent is mine once the loan has been paid off and the house is fully yours. Will you be willing to take this loan?

2. Abraaj, Custodian and Allied Assurance Leadway Assurance are major shareholders in the company. The Executive Vice Chairman also represents a major share holder in the company


3. The company offer the following services
a: Leasing of ships to IOCs. Revenue is in dollars
b: Provision of contract staff to major companies including Diamond Bank
c: Sale of Suzuki cars in nigeria (loss making at the moment)
d: Operator of the Hertz franchise in Nigera
e: diversifying into the power industry and other sectors
f: provision of car tracking services

4:Profits have been consistently growing but they need to raise additional equity given the volume of business to be tapped due to the cabotage law which favours Nigerian companies for the provision of shipping services in nigeria. they have previously relied on bank loans to finance the business and paid 2billion interest in 2016.

I am NOT a C&I leasing insider but yes I have shares in the company and I have done my research and the company is a resounding BUY.

NoMoney:


Dear Samguru,

I will try to address your concerns

1.Liability: C&I Leasing has a lot of debt which is very sustainable. I will try to explain sustainable. If I can lend money at 13% from a bank and fix in treasury bills at 15% that debt is sustainable and the more debt I collect from the bank the better. If they are willing to lend me N100billion, I will collect. C&I leasing major debts are used to finance the purchase of vessels that are put on operating leases to the major IOCs such as shell, Chevron etc on fixed term contracts of 5-8 years. The cashflow from these contracts can pay off the loans while the vessels have a 50 years life span. Once the loans are paid off the remaining cashflow less operational costs translates to profit.

In lay man terms, If you are asked to take a N1billion loan to build a house and chevron is ready to rent the house for 5 years at N250ma year. In five years the rent pays the loan and interest whilst form the sixth year all the rent is mine once the loan has been paid off and the house is fully yours. Will you be willing to take this loan?

2. Abraaj, Custodian and Allied Assurance Leadway Assurance are major shareholders in the company. The Executive Vice Chairman also represents a major share holder in the company


3. The company offer the following services
a: Leasing of ships to IOCs. Revenue is in dollars
b: Provision of contract staff to major companies including Diamond Bank
c: Sale of Suzuki cars in nigeria (loss making at the moment)
d: Operator of the Hertz franchise in Nigera
e: diversifying into the power industry and other sectors
f: provision of car tracking services

4:Profits have been consistently growing but they need to raise additional equity given the volume of business to be tapped due to the cabotage law which favours Nigerian companies for the provision of shipping services in nigeria. they have previously relied on bank loans to finance the business and paid 2billion interest in 2016.

I am NOT a C&I leasing insider but yes I have shares in the company and I have done my research and the company is a resounding BUY.

Hmm!

NoMoney:



Please argue constructively and with figures. I find wise cracks about going to the village lame.

I did not value the company at N2.5billion the market values it at N2.5billion (1.8billion shares * N1.30k per share)

Its share holder's funds is around N8billion which is closer to its intrinsic value.

At PAT of N1billion it has a PE ratio of 2.5 which is fantastic in any market very few shares beat that in any market and if you find such jump on them especially if you expect the profits to continue to increase into the future.

Total number of shares at the moment is 1.8 billion shares which will be reduced to 400m shares via reconstruction

After reconstruction, the company will sell 2.6billion share to raise N25billion naira and will now have 3billion shares at about N10 each giving a total market capitalization of about N30billion

To sell rights at N10 the market price might have to get to N12 (which is N3 pre construction)

I never said they are selling 25billion shares at N3, where did you get that from?

Are they (board members) the only one playing this game ?

This is not pure mathematics sir.

Market will have its say.

Interesting read on C&I.. nice1 guys...previous experience on reconstruction has been very bitter same with IPOs ... No matter how juicy the numbers look I have learnt to always look away especially when they are other opportunities in the market to key into..

One can always buy C&I when the dust setlles if the maths still add up

Intendy:


Are they (board members) the only one playing this game ?

This is not pure mathematics sir.

Market will have its say.

At least the expectations are very clear the board/management expects the share price to increase and has no intention in crashing the share price. They intend to raise the funds at a better valuation than the current market valuation.

there is more to this cileasing issue that one can see,just less than 10months ago,I told my analog broker to sell few units I mistakenly have,he said there was no buyer.suddenly we started seeing volumes trading even without result,then the result came and they pushed it from 0.5 to 2,I guess the coy is getting over confident on its market maker (current price), the NSE is averse to reconstruction go time.

Please House, rejoice with me. One of my moribund stocks have just been liberated. A wise man just bought my wapic insurance at the current price! Infact the sell order was implemented within 10 minutes! !

uba

NoMoney:


At least the expectations are very clear the board/management expects the share price to increase and has no intention in crashing the share price. They intend to raise the funds at a better valuation than the current market valuation.

If you are able to convince us, we will surely buy, but not before reconstruction. No company will tell you that its share price will fall, or that you stand to lose from its reconstruction.

leo1234:


How far with that manager that gave you insider information on ci leasing?

The man no dey gree pick my calls again

NoMoney:


Dear Samguru,

I will try to address your concerns

1.Liability: C&I Leasing has a lot of debt which is very sustainable. I will try to explain sustainable. If I can lend money at 13% from a bank and fix in treasury bills at 15% that debt is sustainable and the more debt I collect from the bank the better. If they are willing to lend me N100billion, I will collect. C&I leasing major debts are used to finance the purchase of vessels that are put on operating leases to the major IOCs such as shell, Chevron etc on fixed term contracts of 5-8 years. The cashflow from these contracts can pay off the loans while the vessels have a 50 years life span. Once the loans are paid off the remaining cashflow less operational costs translates to profit.

In lay man terms, If you are asked to take a N1billion loan to build a house and chevron is ready to rent the house for 5 years at N250ma year. In five years the rent pays the loan and interest whilst form the sixth year all the rent is mine once the loan has been paid off and the house is fully yours. Will you be willing to take this loan?

2. Abraaj, Custodian and Allied Assurance Leadway Assurance are major shareholders in the company. The Executive Vice Chairman also represents a major share holder in the company


3. The company offer the following services
a: Leasing of ships to IOCs. Revenue is in dollars
b: Provision of contract staff to major companies including Diamond Bank
c: Sale of Suzuki cars in nigeria (loss making at the moment)
d: Operator of the Hertz franchise in Nigera
e: diversifying into the power industry and other sectors
f: provision of car tracking services

4:Profits have been consistently growing but they need to raise additional equity given the volume of business to be tapped due to the cabotage law which favours Nigerian companies for the provision of shipping services in nigeria. they have previously relied on bank loans to finance the business and paid 2billion interest in 2016.

I am NOT a C&I leasing insider but yes I have shares in the company and I have done my research and the company is a resounding BUY.

A good one. My worry though (I may be speaking for some here) is your moniker - 'NoMONEY'. There should be money nah . On an investment thread, many will be prone to take a second look at any recommendation coming from 'NoMONEY'. I am just thinking loud, sha . Why wont there be money when we are all cracking head here prying into the future of our corporate environment.

Seriously I like your informed objectivity and the power of your persuasiveness laden with facts and verifiable information. A constructive argument that was. Appreciated.

Abeg let's give the guy a break. This is one of the best discussions that has been put up for any stock. Whether the market bows to his analysis or does otherwise, we have to encourage discussions here.

Not every time monkey hunting.

NoMoney:


At least the expectations are very clear the board/management expects the share price to increase and has no intention in crashing the share price. They intend to raise the funds at a better valuation than the current market valuation.

Do you expect them to tell you otherwise ??

samguru:



The man no dey gree pick my calls again

This is serious.

UBA is about giving people xmas gifts. Volumes @ higher prices.......

@NoMoney making alot of sense on cileasing, what he is saying is 100% back-up with numbers and i have said before now that if not because of reconstruction news the stock is one of the best in the mkt today even at N3

but i will never advice anyone to buy pre-reconstruction, best decision is let them construct first,, once the dust settles. reevaluate to know whether to buy or not

maket no day run


vvv
vv
v
v

currentprice:
i no even see anybody continuing comment on this stock as they did when it falling, even pastor V

it is normal for mkt to response to good/bad information as they make available. nobody knows future information to fall on any stock but when the information come,, it is individual responsibilities to analyse and do the needful.

cileasing is good stock to have but things change the moment information of reconstruction become news. not currentprice fault

currentprice:


CCNN is a good stock selling @ good discount based on Q3 but at today price N9.70 while Dangote which is more selling at super discount selling at today price of N9.40 with moderate liquidity. which one do u expect investor to jump in.

for cileasing apart from selling at super discount. it very likely this company is in position to pay her best dividend so far by year end. their FREE CASH is high as at Q3. yes, am aware they plan to raise fund in future

Transcorp is warming up to give her own xmas gift.

Access bank just started giving xmas gifts. Distributing 200 naira notes. can they spread 500/1000 notes in the coming days?

NoMoney:


Dear Samguru,

I will try to address your concerns

1.Liability: C&I Leasing has a lot of debt which is very sustainable. I will try to explain sustainable. If I can lend money at 13% from a bank and fix in treasury bills at 15% that debt is sustainable and the more debt I collect from the bank the better. If they are willing to lend me N100billion, I will collect. C&I leasing major debts are used to finance the purchase of vessels that are put on operating leases to the major IOCs such as shell, Chevron etc on fixed term contracts of 5-8 years. The cashflow from these contracts can pay off the loans while the vessels have a 50 years life span. Once the loans are paid off the remaining cashflow less operational costs translates to profit.

In lay man terms, If you are asked to take a N1billion loan to build a house and chevron is ready to rent the house for 5 years at N250ma year. In five years the rent pays the loan and interest whilst form the sixth year all the rent is mine once the loan has been paid off and the house is fully yours. Will you be willing to take this loan?

2. Abraaj, Custodian and Allied Assurance Leadway Assurance are major shareholders in the company. The Executive Vice Chairman also represents a major share holder in the company


3. The company offer the following services
a: Leasing of ships to IOCs. Revenue is in dollars
b: Provision of contract staff to major companies including Diamond Bank
c: Sale of Suzuki cars in nigeria (loss making at the moment)
d: Operator of the Hertz franchise in Nigera
e: diversifying into the power industry and other sectors
f: provision of car tracking services

4:Profits have been consistently growing but they need to raise additional equity given the volume of business to be tapped due to the cabotage law which favours Nigerian companies for the provision of shipping services in nigeria. they have previously relied on bank loans to finance the business and paid 2billion interest in 2016.

I am NOT a C&I leasing insider but yes I have shares in the company and I have done my research and the company is a resounding BUY.

I can authoritatively tell you that Chevron won't pay you 250m rentage for your property of N1B except it's going to be theirs after the 5 years. My brother if it was that easy to make money, we will be seeing N1000 bills on the ground every now and then.
Looks to me like the money will be used to service long standing debt that has been bugging the company and then fresh debt raised for the future. No be small thing.

Reminds me of Japaul (Jegede, God is watching you o). The company paid dividends for a few years, gave bonus and then came for a Public Offer. They wanted to increase their fleet to take advantage of the Cabotage Act. He also mentioned earning in dollars then. Chai see ego They purchased Tug boats and all. The rest is history.

My point is, don't make assumptions that can be too costly. I see you have done a lot of work in researching the pros of this investment. You should put in double effort to unearth the risk. Thereafter you can go for it with all that you have got, if convinced. I want to assume you have done this sha.

The company appears to be growing but doesn't look stable to me. Anyway, we all take risk. Yeah, the stocks in our different portfolios represent that. All the best bro.

I advise everyone to put up for sale the Japauls, Daarcom, IEIs of this NSE. The core investors might be willing to set us free.

NoMoney:


Dear Samguru,

I will try to address your concerns

1.Liability: C&I Leasing has a lot of debt which is very sustainable. I will try to explain sustainable. If I can lend money at 13% from a bank and fix in treasury bills at 15% that debt is sustainable and the more debt I collect from the bank the better. If they are willing to lend me N100billion, I will collect. C&I leasing major debts are used to finance the purchase of vessels that are put on operating leases to the major IOCs such as shell, Chevron etc on fixed term contracts of 5-8 years. The cashflow from these contracts can pay off the loans while the vessels have a 50 years life span. Once the loans are paid off the remaining cashflow less operational costs translates to profit.

In lay man terms, If you are asked to take a N1billion loan to build a house and chevron is ready to rent the house for 5 years at N250ma year. In five years the rent pays the loan and interest whilst form the sixth year all the rent is mine once the loan has been paid off and the house is fully yours. Will you be willing to take this loan?

2. Abraaj, Custodian and Allied Assurance Leadway Assurance are major shareholders in the company. The Executive Vice Chairman also represents a major share holder in the company


3. The company offer the following services
a: Leasing of ships to IOCs. Revenue is in dollars
b: Provision of contract staff to major companies including Diamond Bank
c: Sale of Suzuki cars in nigeria (loss making at the moment)
d: Operator of the Hertz franchise in Nigera
e: diversifying into the power industry and other sectors
f: provision of car tracking services

4:Profits have been consistently growing but they need to raise additional equity given the volume of business to be tapped due to the cabotage law which favours Nigerian companies for the provision of shipping services in nigeria. they have previously relied on bank loans to finance the business and paid 2billion interest in 2016.

I am NOT a C&I leasing insider but yes I have shares in the company and I have done my research and the company is a resounding BUY.

Not as sweet as you paint it. I can not put my kobo in CI leasing. The business model is cyclical. One is winning contract with IOC other is executing the contract. My eyes don see something in the hands of this SHELL and the like.I am close to this industry. How is the business different from Japaul, Caverton and where is RT Briscow? Infact we were sold to by CI leasing. NSE/SEC needs to investigate what is moving the price. Retail investor don suffer. again,

Lafarge Africa Plc: Listing of 85,261,220 Ordinary Shares Dealing Members are hereby notified that 85,261,220 ordinary shares of Lafarge Africa Plc (lafarge or the Company were on 22 November 2017 listed on the Daily Official List of The Exchange. The shares listed were issued to shareholders of AshakaCem Plc (Ashakacem or the Company in exchange for their shares in AshakaCem pursuant to a scheme of arrangement for capital re-organisation between AshakaCem and holders of its fully paid ordinary shares of 50k each dated 26 September 2017. With this listing of 85,261,220 ordinary shares, the total issued and fully paid up shares of Large Africa Plc has now increased from 5,490,513,997 to 5,575,775,217 ordinary shares. This is for your information and necessary action please.