The quick the partnership with Wilmar returns good profit soon, the motivation for them to delist. The FMCG sector is really a low margin business and the weak consumer spending power has further affected them.

swilo:


Pls torch light this PZ stock. I have a thing for PZ even tho I don't think it will delist if they can get this their Wilmar thing running effectively.

If I have N100m, I will put everything in Zenith Bank and just be collecting dividend and wait to sell when it gets to N30 because I am very sure it will get to that price.

OakPearl:



The power of compound interest from 6-monthly coupons over 10 yeras cannot be over emphasised you remember.

Imagine someone who needs his peace of mind with his N100m. That's N14m every year to play in the NSE for 10 years at 14%.

Think am.

rebekah2011:
If I have N100m, I will put everything in Zenith Bank and just be collecting dividend and wait to sell when it gets to N30 because I am very sure it will get to that price.

Hmm.

Let me go back to my small 14 inch black and white TV.
I cannot go and come and go and come and kill myself for nothing !!

You are spot on Sir

onegentleguy:



U can relate the parts in bold with ur post and mine from a few weeks ago.
Might not be a bad idea to gradually start accumulating @ below the N5 closing price of yesterday.
Inherent RISK is gradually been 'swallowed' by feasible REWARD.

NOTE: Due diligence still applies.

OakPearl:



The power of compound interest from 6-monthly coupons over 10 yeras cannot be over emphasised you remember.

Imagine someone who needs his peace of mind with his N100m. That's N14m every year to play in the NSE for 10 years at 14%.

Think am.

Then use the same amount to buy UBA at N5.5 for example. This gives you 18.1m units. This units earn dividend after tax of N13.8m. Remember that UBA can hit N18 in 1 year (resulting in a total capital of N325m) or HIT N2 in 3 months (resulting in a total of N36) . You will still be collecting your Dividends even when it falls or rises.

It is advisable to follow the risk that suits you. For me, I won't do long term bond for now. Not yet time!

For you, it could be better to do LT bonds.

rebekah2011:
If I have N100m, I will put everything in Zenith Bank and just be collecting dividend and wait to sell when it gets to N30 because I am very sure it will get to that price.

Same thought here!

Collect 5!

RabbiDoracle:
FCMB result, where art thou?
This should be earth-shattering

It came out November 29 last year

rebekah2011:
If I have N100m, I will put everything in Zenith Bank and just be collecting dividend and wait to sell when it gets to N30 because I am very sure it will get to that price.

Simple intelligent strategy!

onegentleguy:



U can relate the parts in bold with ur post and mine from a few weeks ago.
Might not be a bad idea to gradually start accumulating @ below the N5 closing price of yesterday.
Inherent RISK is gradually been 'swallowed' by feasible REWARD.

NOTE: Due diligence still applies.

Even at N5, it is a strong buy!

If it falls below, buy without pity/regret/fear

It is at multi year low. More than 10 year low.

In fact somersault into the stock now!

musty00:


It came out November 29 last year

Will it be the same this year? Though their calendar shows same date.

rebekah2011:
If I have N100m, I will put everything in Zenith Bank and just be collecting dividend and wait to sell when it gets to N30 because I am very sure it will get to that price.

Oga, you cant be sure of anything in this country oo! it is only death that is sure

Thank you, Sir. same to Oga RabbiDoracle too. But the problem will be how fixated one can become by looking at the market price alone should the market price drop to say N10 for instance. It is possible. However, Zenith, Gtbank, UBA, and some other stocks have proved over the years that the more challenged the economy becomes the easier it becomes for them to turn in tidy profits. Equity at the right entry price is still the best form of investment.

musty00:


Simple intelligent strategy!

aremso:


Oga, you cant be sure of anything in this country oo! it is only death that is sure

And what do you say about the person holding 17 year bond!

Rebekkah is even holding to sell at 30 which could come in 3 weeks sef. Whereas someone is holding an instrument that will mature in 17 years.

As in, pikin wey dem born now go dey University by them o!

I can't fit, abeg!

onegentleguy:
DISSECTING DANGOTE SUGAR' Q3 FINANCIAL PRINT.

Perhaps some folks aren't noticing the greatly positive lines with the coys Q3 report.
This is a stock where the possible drive for VALUE signals nothing less than BUY.
With Q3(and looking in on the coys previous 2 quaters), current fundamental stance leaves far more optimism for reward than pessimism with risk(risk-return in view)

High points;

• Outstanding pick up in vol of sugar sales... with 1600bps YoY increment.
While it is not out of place to attribute some of the gains with vol to the recent border closure, it makes a whole lot of sense to say that management were very efficient and innovative especially when u consider that;

1) The push up in vol had come at the back of a higher input cost(mainly raw materials). In retrospect, the average cost of raw sugar accelerated by near 790bps over the course of Q3.
2) The growth in vol came at the back of a similar but much worse decrease over the course of the entire 2018 calendar yr.
For context, over a 3-month timeframe, DSR witnessed a double digit surge in sales @ a faster pace than it did with a YoY contraction in sales margin.
3) Sales saw an over 270bps acceleration relative to the previous quarter despite a slight increase in average price.

• Growth in earnings... it's important to note that Q3 actually witnessed a 500pbs increase in earnings.
However, the slight drop in equity earnings(EPS by circa 6.7% yoy) was majorly the result of a lower interest income and drop in biological assets.
However, there are clear signs for a plausible improvement over the course of Q4.

• Better Operating performance... To weigh in on its profitability strength, the company saw a re-direction and expansion of its EBIT MARGIN.
Elsewhere, the thing about efficiency meant that certain KEY determinant for value(EM, ROAE, ROAA, NET MARGIN AsQ and AsY) all followed a relatively positive path. ...particularly in the last 2 quaters.

I think that this is the best time to gradually look to align with DSR given the present mkt price.
From where am standing, feasible REWARD has greatly overtaken surrounding RISK.
Using a suitable mix of valuation metric, I have FVE of 14.90 with the potential for a no less than N20.70 possible price peg going into YE.

On a sidenote, I believe the current seeming oversupply of its shares on the offer side of trade could well be a crafted attempt to shake-off weak hands from the coy.
To those who hold the stock, hear this; Q3 financial print says its WORTH HOLDING !!

NOTE: DSR is currently not a part of our portfolio.
This piece only aims to guide those looking to align with the company.

CAVEAT: NOT to be infered as any sought of recommendation.
Following ur instinct should still take higher precedence ahead of this post.

Suddenly the oversupply of DSR shares(over 8M offer to less than a 500k bid @ the time I put out the post above) has now disappeared !!
A similar thing is playing out in UA**, FC**, AI***, UB* and TR*******

Is alright.

When we saw the profits the banks made some years back we thought such was not sustainable. However, we have been proved wrong. Zenith, UBA, Gtbank at this level sef I will invest the N100m in Dangote Cement

aremso:


Oga, you cant be sure of anything in this country oo! it is only death that is sure

RabbiDoracle:


Even at N5, it is a strong buy!

If it falls below, buy without pity/regret/fear

It is at multi year low. More than 10 year low.

In fact somersault into the stock now!

Ur head dey there !!

But when I reach some financial target , I fit do 100 years bond sef. If I have 100b for instance. I can put 50b aside for my children's children in long term Bonds

RabbiDoracle:


And what do you say about the person holding 17 year bond!

Rebekkah is even holding to sell at 30 which could come in 3 weeks sef. Whereas someone is holding an instrument that will mature in 17 years.

As in, pikin wey dem born now go dey University by them o!

I can't fit, abeg!

RabbiDoracle:


And what do you say about the person holding 17 year bond!

Rebekkah is even holding to sell at 30 which could come in 3 weeks sef. Whereas someone is holding an instrument that will mature in 17 years.

As in, pikin wey dem born now go dey University by them o!

I can't fit, abeg!

Still only death that is very certain!

Access is at 10 eventually.........pilot move the vehicle......15 here we come.
@Lancee , I got the gut to buy small units eventually. Make we see how it goes.

onegentleguy:
REFLECTING ON GUINNESS NIG PLC...

http://www.nse.com.ng/Financial_NewsDocs/27892_GUINNESS_NIG_PLC_FINANCIAL_STATEMENTS_OCTOBER_2019.pdf

I recall advising some folks to SELL off their stake in this coy a few months ago.
Current fundamental stance leaves more pessimism with risk than optimism for reward(risk-return in view)
The brewery sector is suffering. ...no thanks to margin squeeze from contracting volume push amid lower purchasing power, despite price stability.
The recent border closure has also added to the strain for earnings drive.

When u remember that INTERNATIONAL BREWERIES is currently parked(on full offer in days) @ N12.60 with NO bidder, while looking for money(to raise funds via rights issuance @ N9 per share), u will appreciate the FACT that GUINNESS NG PLC might still be expensive even @ the current market price of N23.85 !!
...no wonder its on full offer too.

The coy is now a loss-making entity, following a gap down accross all KEY revenue and earnings line in its latest financial print.
NB and INTER BREWERIES started out this way(at the time, we also warned about the red flags) as loss-making coys, before their serious plunge in share price.

I still maintain a sell guidance on GUINNESS. ...though expectedly, price is now closer to that point when feasible REWARD should overtake inherent RISK.
Folks will recall that I called for a SELL in the stock when price was still hovering around N41-45.
...it has since lost over 70% given the present market price.

NOTE: Still NOT an investment recommendation. Due diligence should remain ur 1st priority.
My advise? ...Pls follow ur instinct.

Btw, I have since advised a SELL in coys like TOTAL, MOBIL and PZ PLC. ...particularly the 1st 2 coys.

It is well.

Folks should take due note of the part in bold from the post above.

Btw, ACC*** gas still shooting higher !!
Abeg Sir Oracle, u see my small TV remote?

OakPearl:



The power of compound interest from 6-monthly coupons over 10 yeras cannot be over emphasised you remember.

Imagine someone who needs his peace of mind with his N100m. That's N14m every year to play in the NSE for 10 years at 14%.

Think am.

You too sabi !

rebekah2011:
Thank you, Sir. same to Oga RabbiDoracle too. But the problem will be how fixated one can become by looking at the market price alone should the market price drop to say N10 for instance. It is possible. However, Zenith, Gtbank, UBA, and some other stocks have proved over the years that the more challenged the economy becomes the easier it becomes for them to turn in tidy profits. Equity at the right entry price is still the best form of investment.

How can you be fixated? You don't need to look at prices at all.

Just bone! Just relax, Go to AGMs and chop rice and chicken. Afterwards, you get your alerts year in year out presuming you don't sell when prices spike. You will still stand a better chance of making more than who invested in bonds for 17 years.

After 17 years, there is no capital appreciation of that money put in bonds.

You do Fixed income instrument when the market is so hot that the DY is almost meaningless. You do this just to wait for the market to fall before you enter and cherry-pick.

But doing fixed income when the market is low is like drinking "ngwo" where there is "nkwu-enu"!

PETERiCHY:


Access that will soon overtake Zenithbk.

Access don finally hit N10 mark the gap is getting close

rebekah2011:
If I have N100m, I will put everything in Zenith Bank and just be collecting dividend and wait to sell when it gets to N30 because I am very sure it will get to that price.

I’ll secure that 100m with the government first! Then take the interest and invest in sleepless nights nse

onegentleguy:


Suddenly the oversupply of DSR shares(over 8M offer to less than a 500k bid @ the time of I put out the post above) has now disappeared !!
A similar thing is playing out in UA**, FC**, AI***, UB* and TR*******

Is alright.

I have told guys that big guys do that to scare you to bring out your wares. So they shake off weak hands.

Coolcash1:
He should come back tomorrow o coz i couldn't enter at N17 junction... Team N17 junction...

Team N17, its like the bonanza guy wouldnt come to pick you again o, but lets see how today goes.

RabbiDoracle:


Then use the same amount to buy UBA at N5.5 for example. This gives you 18.1m units. This units earn dividend after tax of N13.8m. Remember that UBA can hit N18 in 1 year (resulting in a total capital of N325m) or HIT N2 in 3 months (resulting in a total of N36) . You will still be collecting your Dividends even when it falls or rises.

It is advisable to follow the risk that suits you. For me, I won't do long term bond for now. Not yet time!

For you, it could be better to do LT bonds.

What is the guarantee that UBA dividend will be consistent?

rebekah2011:
When we saw the profits the banks made some years back we thought such was not sustainable. However, we have been proved wrong. Zenith, UBA, Gtbank at this level sef I will invest the N100m in Dangote Cement

Dangote cement will take your N100m it will be as if you didn't go to the market sef.

With Dangote cement, you will have less than 800,000 units o

PETERiCHY:
Access don finally hit N10 mark the gap is getting closer

aremso:


Oga, you cant be sure of anything in this country oo! it is only death that is sure

I’m surprised..

onegentleguy:


Folks should take due note of the part in bold from the post above.

Btw, ACC*** gas still shooting higher !!
Abeg Sir Oracle, u see my small TV remote?

your remote is on Access bus! You will go to North Pole to get it.

Due diligence. You will need to look back and see what it has done in the past and digest the Quarterly results like all your life depended on it.

TraDeRR:


What is the guarantee that UBA dividend will be consistent?