wanaj0:


So we are saying that we have ONLY two companies in the Sugar Industry and may likely become ONE at the end of the day. That is called MONOPOLY.

Like I stated before, he only plays in industry where there is high barrier of entry and with limited competition

Nothing stops sugar importers from joining forces together and challenge Dangote sugar and Flour Mills.

With the focus of the government on Agriculture, investors in Sugar production have a lot to gain.

wanaj0:


I don't work for Elder Dempster so cannot comment on their strategy.

I am only saying that Dangote plays successfully in sectors where we have HIGH barrier of entry or there is a monopoly. Feel free to disagree with that.

The smart thing is for the competitors to combine resources and forces in other to surmount the higher barrier.



The higher the barrier the more money the disciplined investors who break the barriers will make

emmanuelewumi:



Nothing stops sugar importers from joining forces together and challenge Dangote sugar and Flour Mills.

With the focus of the government on Agriculture, investors in Sugar production have a lot to gain.

Sometimes, it is easier said than done. I like dangote companies because he enjoys alot of patronages and privileges from government. He is an anointed son of any government in power and he knows how to warm himself into the heart of people in power. Take it from me, if not for direct intervention of government, dangote wouldn't have been where he is today.

stockbuego:


I think you are right. Dangote hates market competition with passion and his perspective towards it is laced with odious disdain. He has tried and failed severally when competition is stiffed, in most cases he needs special intervention from government in order to stifle his market competitors. By the way, in Ibeto cement saga, we know what transpired. We also know his case against BUA group and so many uncountable others too numerous to elaborate.

That said, i have no doubt in my mind that his flour voyage will be a huge success as it is still constitute of about 50 percent of my portfolio which I brought at average price of 5.20k

Thanks. You are totally correct.

I believe you made a GOOD investment decision. You picked up a company undergoing turnaround. I however don't expect the growth rate to be sustained considering the competition. Same for the margin.

It is NOT a SELL recommendation BUT rather to make people to manage their expectations.

stockbuego:


Sometimes, it is easy say than done. I like dangote companies because he enjoys alot of patronages and privileges from government. He is an anointed son of any government in power and he knows how to warm himself into the heart of people in power. Take it from me, if not for direct intervention of government, dangote wouldn't have where he is today.

What did Ibeto, Folawiyo, BUA, Lafarge and other cement importers/manufacturers do when Obasanjo came up with the backward integration policy in the cement industry?
How many keyed in into the policy and believed that the government will embark on a policy of gradual reduction of cement importation.

emmanuelewumi:


The smart thing is for the competitors to combine resources and forces in other to surmount the higher barrier.



The higher the barrier the more money the disciplined investors who break the barriers will make

Well, easier said than done. You have example of Ibeto and BUA.

FACT is Alhaji thrives when he enjoys government protection or pseudo monopoly. In an all comers affair, he gets beaten blue and black. Still remembered in the midst of the forex crisis, he was getting forex at ridiculous rates to fund his businesses outside the country.

I admire his boldness and belief in Nigeria. I am however not naive. I do understand his business strategy and the limitations.

emmanuelewumi:



What did Ibeto, Folawiyo, BUA, Lafarge and other cement importers/manufacturers do when Obasanjo came up with the backward integration policy in the cement industry?
How many keyed in into the policy and believed that the government will embark on a gradual policy of reducing importation of cement?

Sorrry, I do not understand your line of argument?

My position is simple

1) Dangote FAILED or could not replicate his 'midas touch' in businesses where the barrier of entry is low or where you have many competition.
2) Dangote has SUCCEEDED in areas where there is monopoly, enjoys government protection or there is high barrier of entry.

Feel free to disagree with any of the points above. Thank you.

wanaj0:


I don't work for Elder Dempster so cannot comment on their strategy.

I am only saying that Dangote plays successfully in sectors where we have HIGH barrier of entry or there is a monopoly. Feel free to disagree with that.

Dansa Beverages another example.

NJ

wanaj0:


Sorrry, I do not understand your line of argument?

My position is simple

1) Dangote FAILED or could not replicate his 'midas touch' in businesses where the barrier of entry is low or where you have many competition.
2) Dangote has SUCCEEDED in areas where there is monopoly, enjoys government protection or there is high barrier of entry.

Feel free to disagree with any of the points above. Thank you.

I was referring to the submission that Dangote was given undue advantages in the cement industry, whereas the backward integration policy was there for all players to key into.

Why Lafarge was repatriating funds to France, Dangote ploughed back his profits and also took loans to buy Benue Cement and also built the biggest cement plant in Africa.

I guess Dangote is also enjoying protection and government patronage in the African countries where his cement plants are located.

He is also enjoying government patronage and protection in the salt industry because there is no competition among the over 10 major players in that sector.

I don't understand how all the countries in Africa, protected and patronised Dangote cement, that Dangote cement is the biggest in Africa while Lafarge is in a distant 2nd

emmanuelewumi:



What did Ibeto, Folawiyo, BUA, Lafarge and other cement importers/manufacturers do when Obasanjo came up with the backward integration policy in the cement industry?
How many keyed in into the policy and believed that the government will embark on a gradual policy of reducing importation of cement?

I am fully aware that Ibeto did something in respect of cement backward integration policy implemented by Obj gov. I hope u remembered how his cement importing licence was illegally revoked and was rumoured to have been engineered by those who strongly disdained mrk competition. That licence was later restored by Jonatan after they settled out of court making Ibeto the only cement importing company to compensate for lost ground when others were importing. He is has acquired Ngalagu cement(nigercem) and it is currently undergoing turnaround.

Dangote Industries Limited is a conglomerate that invests in various sectors of the economy. There is no conglomerate that will do well in all markets it enters. You can ask UACN, John Holt Leventis, cfao etc.

Dangote Industries Limited was smart by spinning off the divisions into separate companies, listing some of the companies and opening up ownership.

A business leader or entrepreneur needs to choose his fight and plan when to fight back.

Dangote lost in the noodles market, fruit juice market and some other markets, but what is the percentage contribution of these markets to Dangote Industries Limited bottom line?

emmanuelewumi:
Dangote Industries Limited is a conglomerate that invests in various sectors of the economy. There is no conglomerate that will do well in all markets it enters. You can ask UACN, John Holt Leventis, cfao etc.

Dangote Industries Limited was smart by spinning off the divisions into separate companies, listing some of the companies and opening up ownership.

A business leader or entrepreneur needs to choose his fight and plan when to fight back.

Dangote lost in the noodles market, fruit juice market and some other markets, but what is the percentage contribution of these markets to Dangote Industries Limited bottom line?

Ok. He lost out where there is competition. He succeeded where there is monopoly or government protection with high barrier of entry.

Since you agree with that, no argument then.

stockbuego:


I am fully aware that Ibeto did something in respect of cement backward integration policy implemented by Obj gov. I hope u remembered how his cement importing licence was illegally revoked and was rumoured to have been engineered by those who strongly disdain mrk competition. That licence was later restored by Jonatan after they settled out of court making Ibeto the only cement importing company to compensate for lost group when others were importing. He is has acquired Ngalagu cement(nigercem) and it is currently undergoing turnaround.

Nkalagu is recent maybe about 10 years ago or less, at the expiration of the period of grace given by Obasanjo where is the production plant of Ibeto, what is the production capacity of the plant.

Because at the expiration of the period which Obasanjo gave, importation of cement to meet up with short fall in the national need was tied to the local production of the importer/manufacturer.

O

wanaj0:


Ok. He lost out where there is competition. He succeeded where there is monopoly or government protection with high barrier of entry.

Since you agree with that, no argument then.

I guess there are no competitions in the salt market, sugar market and cement market.

Competitors should learn to combine forces and resources when the entry barriers are high.

I doubt if the markets Dangote moved out from contributed a combined 5% to his bottom line. Why should a smart business man devote the same mental energy to a business unit that contributes 1% to your bottom line as with a business unit that contributes 30%.

I am sure you are conversant with Pareto's law, 80% of our income comes from 20% of our customers. Don't you think it makes business sense to focus on the 20% that brings in 80% of the money.

wanaj0:


I don't work for Elder Dempster so cannot comment on their strategy.

I am only saying that Dangote plays successfully in sectors where we have HIGH barrier of entry or there is a monopoly. Feel free to disagree with that.

Investing and equipping your business and yourself in order to harness emerging opportunities that requires a high entry barriers is a strategy.



Spending all your income or business profits, thinking or assuming the good times will never end is also a strategy.


Read " Making and makers of Nigerian private enterprise." by Tom Forrest

Such entrepreneurs in the second group abound in the book.

BANKING INDEX SHOWING ACCUMULATION AND CLOSE TO DEMAND LEVEL

A closer look at NSE Banking sector indicates that the price has fallen up to the level where smart monies will start buying while many others are still selling. What makes it more interesting is that accumulation is already ongoing. Apart from FBNH and recently WEMA bank, most banking stocks are on massive decline.

This is the high time to start looking for a stock of interest to invest into at a demand level or better still, wait for the confirmation of rally before jumping into any banking stock.

As an example, below, I show the charts for Diamond and Fidelity Banks support level (highlighted zones) and dotted line to show confirmation of rally when price close above it.

PLAN YOU TRADES AND TRADE YOUR PLANS

onegentleguy:



Since the path about estimated net worth and estimated annual income are not marked with asterisk (ie the red symbol), it would be best u leave them blank.
...it simply means its not compulsory for u to fill those areas.
Just fill out the areas that are marked with asterisk and those u might likely have the need for.

Good luck to u my dear !!

Thanks boss

BullBearMkt:
BANKING INDEX SHOWING ACCUMULATION AND CLOSE TO DEMAND LEVEL

A closer look at NSE Banking sector indicates that the price has fallen up to the level where smart monies will start buying while many others are still selling. What makes it more interesting is that accumulation is already ongoing. Apart from FBNH and recently WEMA bank, most banking stocks are on massive decline.

This is the high time to start looking for a stock of interest to invest into at a demand level or better still, wait for the confirmation of rally before jumping into any banking stock.

As an example, below, I show the charts for Diamond and Fidelity Banks support level (highlighted zones) and dotted line to show confirmation of rally when price close above it.

PLAN YOU TRADES AND TRADE YOUR PLANS

You go wait make their results show first.

More people will jaaaaaaaaaaa.

emmanuelewumi:




Investing and equipping your business and yourself in order to harness emerging opportunities that requires a high entry barriers is a strategy.



Spending all your income or business profits, thinking or assuming the good times will never end is also a strategy.


Read " Making and makers of Nigerian private enterprise." by Tom Forrest

Such entrepreneurs in the second group abound in the book.

Well said sir.

No smart thinking investor should try being a jack of all markets. If you make an attempt at a market and things turn out different from your projections, smartness implies that you exit, and plough your resources to other areas of strength.

But I think the market is largely responsible for why the success of the cement business is more pronounced.

We assign a 23x P.E to it, while the Sugar does just 6.6x
If the cement were to do just 6.6x also, DANGCEM would only be about 7% of the index, and Alhaji's networth would be lower by more than $7bn, as a matter of fact he would lose his spot as Africa's richest.

So one factor which may have even been more pronounced than government coverage is investor's sentiments

Even in the debt market, he enjoys such likeness from lenders and investors that his finance cost are at c.MPR.

CCNN trades at 7.3PE and they likely don't get as much cheap credits too.

So there's a favourable bias from investors too.

Again,

Cost of sales are basically manpower costs and fuel costs for DANGCEM (limestone cost is just a small royalty), while for sugar the cost of imported raw sugar tightens the margin.

awesomeJ:


Well said sir.

No smart thinking investor should try being a jack of all markets. If you make an attempt at a market and things turn out different from your projections, smartness implies that you exit, and plough your resources to other areas of strength.

But I think the market is largely responsible for why the success of the cement business is more pronounced.

We assign a 23x P.E to it, while the Sugar does just 6.6x
If the cement were to do just 6.6x also, DANGCEM would only be about 7% of the index, and Alhaji's networth would be lower by more than $7bn, as a matter of fact he would lose his spot as Africa's richest.

So one factor which may have even been more pronounced than government coverage is investor's sentiments

Even in the debt market, he enjoys such likeness from lenders and investors that his finance cost are at c.MPR.

CCNN trades at 7.3PE and they likely don't get as much cheap credits too.

So there's a favourable bias from investors too.

Again,

Cost of sales are basically manpower costs and fuel costs for DANGCEM (limestone cost is just a small royalty), while for sugar the cost of imported raw sugar tightens the margin.

Dangote cement is selling at a huge premium, I wonder why he enjoys the great goodwill from the investment community.

Dangote cement that is listed comprises of all his cement plants in Africa, same thing with Lafarge. I expect Lafarge to give Dangote a good fight in the African cement market, but is Lafarge ready for a fight to reclaim her market share in Africa?

Dangote went home with a whopping dividend of N119 billion from Dangote cement in 2017 after the deduction of withholding tax. The dividend is expected to move up to N147 billion in 2018

While dividend from Sugar in 2017 was N4.74 billion which will rise to N9.87 billion in 2018

RabbiDoracle:


You go wait make their results show first.

More people will jaaaaaaaaaaa.

Sell pressure is already weak

emmanuelewumi:



Dangote cement is selling at a huge premium, I wonder why he enjoys the great goodwill from the investment community.

Dangote cement that is listed comprises of all his cement plants in Africa, same thing with Lafarge. I expect Lafarge to give Dangote a good fight in the African cement market, but is Lafarge ready for a fight to reclaim her market share in Africa?

Dangote went home with a whopping dividend of N119 billion from Dangote cement in 2017 after the deduction of withholding tax. The dividend is expected to move up to N147 billion in 2018

While dividend from Sugar in 2017 was N4.74 billion which will rise to N9.87 billion in 2018

sometimes, the difference between the ordinary and the extraordinary is the VISION.
Alhaji is relentless. That about him is enviable.

RabbiDoracle:


You go wait make their results show first.

More people will jaaaaaaaaaaa.

...@RabbiDoracle, I trade on the TA data I see. If the market goes against me, I am armed with my STOP LOSS.

Agbalowomeri:


Sell pressure is already weak

I think so,

Npf microbank dividend 17kobo.

awesomeJ:


Well said sir.

No smart thinking investor should try being a jack of all markets. If you make an attempt at a market and things turn out different from your projections, smartness implies that you exit, and plough your resources to other areas of strength.

But I think the market is largely responsible for why the success of the cement business is more pronounced.

We assign a 23x P.E to it, while the Sugar does just 6.6x
If the cement were to do just 6.6x also, DANGCEM would only be about 7% of the index, and Alhaji's networth would be lower by more than $7bn, as a matter of fact he would lose his spot as Africa's richest.

So one factor which may have even been more pronounced than government coverage is investor's sentiments

Even in the debt market, he enjoys such likeness from lenders and investors that his finance cost are at c.MPR.

CCNN trades at 7.3PE and they likely don't get as much cheap credits too.

So there's a favourable bias from investors too.

Again,

Cost of sales are basically manpower costs and fuel costs for DANGCEM (limestone cost is just a small royalty), while for sugar the cost of imported raw sugar tightens the margin.

When DANGCEM complies fully with listing requirements THEN we will know the true value of DANGCEM.

Alhaji knew that he can ONLY survive where there is little or no competition, high barrier of entry and government protection. He has decided to focus in those areas which is good business decision. He is fully aware that on a LEVEL playing field, he will find it difficult to survive.

Everyone knows that he is government poster child and they adjust accordingly. They are aware of what befell those that try to 'compete' with him. That is BUSINESS for you.

As far as I know, there is no special 'technology' or innovation that is distinguishing him from the rest.

Kudo's to him for believing in Nigeria.

.......I enjoy Dangote conglomerates.....whether he enjoys monopoly or not....he has created niche for himself and the millions of families benefiting from his conglomerates

.......have some of his listed companies in my portfolio......

...... I love the way he beliefs in Nigeria.....we can do it together....

.......am really waiting for Dangote Refinery Plc to be listed........That is my own little way of supporting his vision for Nigeria......WE CAN MAKE IT TOGETHER

wanaj0:


How many SUGAR refining companies do we have?

Are the likes of Elder Demspter still allowed to import Sugar?

Look at the fight going on now in the Cement sector. See how BUA is giving him a run for his money?

On the bolded, so much that he currently is in a seeming malice motivated battle with BUA over a limestone deposit site in BUA's territory in Edo State.

ukay2:
.......I enjoy Dangote conglomerates.....whether he enjoys monopoly or not....he has created niche for himself and the millions of families benefiting from his conglomerates

.......have some of his listed companies in my portfolio......

...... I love the way he beliefs in Nigeria.....we can do it together....

.......am really waiting for Dangote Refinery Plc to be listed........That is my own little way of supporting his vision for Nigeria......WE CAN MAKE IT TOGETHER

His best cement distributor in 2017 went home with a cash prize of N150 million.
Lafarge needs to be innovative and generous, Dangote cement is the market leader at Ifo, Ewekoro, Ota, Sagamu these are towns that are about 10km from Lafarge plants. Dangote has taken the fight to the territory of Lafarge, some bricklayers now turn down jobs if the cement procured is not Dangote cement.

Thousands of investors have made money from NASCON, Dangote cement, Dangote sugar, and very soon from Dangote Flour

Deadlytruth:


On the bolded, so much that he currently is in a seeming malice motivated battle with BUA over a limestone deposit site in BUA's territory in Edo State.

I think Edo state government should be held responsible for the quagmire, the site belongs to BUA.

emmanuelewumi:



His best cement distributor in 2017 went home with a cash prize of N150 million.
Lafarge needs to be innovative and generous, Dangote cement is the market leader at Ifo, Ewekoro, Ota, Sagamu these are towns that are about 10km from Lafarge plants. Dangote has taken the fight to the territory of Lafarge, some bricklayers now turn down jobs if the cement procured is not Dangote cement.

Thousands of investors have made money from NASCON, Dangote cement, Dangote sugar, and very soon from Dangote Flour

N150million....waooo......Dangote flour capital appreciation wil be much if they record fantastic Q1result

ukay2:


N150million....waooo......Dangote flour capital appreciation wil be much if they record fantastic Q1result

Yes N180 million, the winner is an Ibo man he was at wedding of the man's daughter.




You can google Dangote cement rewards distributors..


A total of N2.4 billion was shared to distributors across the country at the event in Eko Hotel last year, the overall winner actually went home with N180 million and not N150 million as earlier stated.