Mpeace:
BUA does not move with fundamentals. The man decides when and how its share price moves. He and his family own over 95% of the OS. This news aint affecting share price.
On a good day however, a reduction in price of products should have a negative impact on revenue and profitablity or atleast affect future gains that would have accrued from their new plant.
But then BUA is BUA. The fundamentals dey Rabiu hand.

However, it can affect other cement manufacturers. They have to reduce teir prices or...

And a company like lafarge no too sabi share price manipulations.

That lafarge just dey my portfolio dormant for a really long time

chimex38:

Abeg, Expantiate Ooo

Well what I am trying so say is that the day of independence meant nothing but a dream for the common Nigerian, a member of the masses. Back then before October 1st 1960, we could divide the nation into four factions; the first - the British; the second - the Nigerian political elite and their associate economic elite; the third - the military and the fourth - the masses. So on the day of independence the factions became 3 as the British handed over to the Nigerian political elite and their associate economic elite and left.

So what was the reason for the immediate jubilation and celebration on that day? Till today the masses don't realize the true reason.

So October 1st 1960 they, the masses, saw their leaders dancing and celebrating and shouting; "Independence! Independence!!" and so they joined them to dance and celebrate on the streets also shouting "Independence!". But if anyone had asked them why they were dancing and celebrating they would have told the person a long story of how Nigeria was going to be this and how Nigeria was going to be that and how they in turn would live in opulence like their former colonial masters. Something they claimed would come to pass one day in the future - in other words they were celebrating the hope for the realization of a dream. Although, some of them were just dancing because they saw others dancing.

Now if you had gone to meet the leaders at Ikoyi where they were dancing and celebrating inside the inner chambers of the majestic opulence left behind by their former lords and asked them why they were celebrating they would look at you with suspicious wonder and a bit of annoyance and say to you; "o ri ran ni"? And add " Can't you see we have just inherited the palace, can't you see we are now in charge of the entire national budget, can't you see we have been put in command of the entire military force. Today, not tomorrow, not anytime in the future but today, October 1st 1960 is the day we, the political elite and our associate economic elite literary become independent of our masters; to live and act like they did. Is this not a day to remember? The day when we became masters?" And they continued celebrating and dancing.

Phlinx:



Well what I am trying so say is that the day of independence meant nothing but a dream for the common Nigerian, a member of the masses. Back then before October 1st 1960, we could divide the nation into four factions; the first - the British; the second - the Nigerian political elite and their associate economic elite; the third - the military and the fourth - the masses. So on the day of independence the factions became 3 as the British handed over to the Nigerian political elite and their associate economic elite and left.

So what was the reason for the immediate jubilation and celebration on that day? Till today the masses don't realize the true reason.

So October 1st 1960 they, the masses, saw their leaders dancing and celebrating and shouting; "Independence! Independence!!" and so they joined them to dance and celebrate on the streets also shouting "Independence!". But if anyone had asked them why they were dancing and celebrating they would have told the person a long story of how Nigeria was going to be this and how Nigeria was going to be that and how they in turn would live in opulence like their former colonial masters. Something they claimed would come to pass one day in the future - in other words they were celebrating the hope for the realization of a dream. Although, some of them were just dancing because they saw others dancing.

Now if you had gone to meet the leaders at Ikoyi where they were dancing and celebrating inside the inner chambers of the majestic opulence left behind by their former lords and asked them why they were celebrating they would look at you with suspicious wonder and a bit of annoyance and say to you; "o ri ran ni"? And add " Can't you see we have just inherited the palace, can't you see we are now in charge of the entire national budget, can't you see we have been put in command of the entire military force. Today, not tomorrow, not anytime in the future but today, October 1st 1960 is the day we, the political elite and our associate economic elite literary become independent of our masters; to live and act like they did. Is this not a day to remember? The day when we became masters?" And they continued celebrating and dancing.

Hmm, deep, please continue. Does this mean the independence was never really for the masses?

One can also argue that it’s indirectly for the masses as well since they can now work their way up to join the elite too

Phlinx:


Now if you had gone to meet the leaders at Ikoyi where they were dancing and celebrating inside the inner chambers of the majestic opulence left behind by their former lords and asked them why they were celebrating they would look at you with suspicious wonder and a bit of annoyance and say to you; "o ri ran ni"? And add " Can't you see we have just inherited the palace, can't you see we are now in charge of the entire national budget, can't you see we have been put in command of the entire military force.

It is well.

NIGERIAN STOCK EXCHANGE MARKET PERFORMANCE ANALYSIS - Technical Analysis
The month of September ended in almost indecision between bulls and bear as the market nearly closed at the opening index point - little below the opening index. First time market ended bearish since it started the bullish surge in May 2023. The September pause could signal a tentative bearish onset or a mere pause before bullish activities resume in October. Apart from the short term outlook of the market, NSE ASI retains its a strong bullish.

The market index declined to its value zone, on the lower timeframe, in the last trading day of September and got rejected. The resilience of this level could either cause existing uptrend continuation or herald a further descent if found to be weak.

Sector-wise, Consumer goods sector performed best followed by the insurance. Worst is the industrial sector.

PETERiCHY:
BUA Group has decided to being down the price of Cement effective October 2, 2023.

On the surface, the price reduction by BUA is a welcome development, but it would be shrewd for an investor to limit their expectation and not get overly excited.
While it might seem a noble move to a consumer and the real-estate ecosystem at large, it is not necessarily so for an INVESTOR.

There are lots to say but here are some key things you need to know;

The move is a strategic one by BUA aimed at maintaining it's market share amidst the fierce oligopolistic competition in that sector.
It seems LARFAGE (and not really DANGOTE CEMENT) may have "forced" this move.

BUA with a production capacity of approx 11Mta only overtook LARFAGE (with 10.5Mta) when the latter faced OCF/WC challenges ranging from funding mismatch and high COF to PP&E operating snarl. (which was later sorted out by series of debottlenecking exercise)
LARFAGE appears to have overcome those challenges with the right mix of deleveraging efforts and in-house restructuring... which has led to a 3,700 bps boost in mkt share in the last 5 quarters compared to 2,140 bps and 1,977 bps for DANGOTE CEMENT and BUA respectively.
As a result, LARFAGE, though still having the lower mkt share (ref: 19.5%) has witnessed the fastest growth among the 3 key players. (DANGOTE CEMENT controls near 60.1% while BUA CEMENT holds just 0.9% ahead of larfage at 20.4%)

In retrospect, BUA has witnessed the slowest growth hence the need for this strategic move to boost revenue.
But then again, it's not particularly easy to achieve better revenue margin at a time like this.

The business sector is cyclical/seasonal in nature with margins often pressured during the raining season when activities in the RE sector sees lower patronage. (ref: higher cost line, ∆inventory, CBR... lower receivables turnover, CCC, CGPR, CROIC... creating a disequilibrium or imbalance btw expense and income line and a reduction in AsY)
And don't forget that input cost is still on the rise in view of surrounding economic constrains.

So even if they (BUA) reduce price, can they drive the needed vol to support sales/revenue? There lies the 1 million dollar question!
Given that Revenue R= PV (ref: P is price while V is volume), to meet or surpass previous revenue margin and maintain growth trajectory, BUA must have to cover up in its vol push what it intends to knock off in pricing. (ref: approx 12.7% price drop)

What if sales (V) remains pressured?
Applying logic, the move could even suggest that the company is currently struggling with sales or sees a squeeze in margin in the near term and certain lines in their financial print appears to be doing a bad job at turning around that thinking or belief.
There are a few not-so-good lines i've noticed in their last 3 financial report.

With increasing production volume from current expansionary moves, BUA aggressively needs to drive higher revenue to support Opex and CoF to avoid WC and AsQ strain.

BUA been aware of this, knew that something has to give, hence the price reduction.
Is it a good move? Maybe! But if you understand the reasoning behind this post, then you might, like me, have a problem with the TIMING.
The commencement period in October may not be an entirely bad timing but I still have a concern with it considering the company's sub-optimal performance over the course of the year.
Management will need to work very hard with lots of checks & balances, especially as it relates to cost optimization to pull this off. ...otherwise what might seem a good idea may not turn out so well, particularly in the near term!

BUA held an underperform position in our review before now. (I had previously given a sell rating on the coy at near its 52-W high)

Bottom line:
Though the timing may not seem entirely right, BUA needed this move. It's a strategic play to maintain its mkt share, given how it's closest rival, LARFAGE WAPCO is seriously breathing down it's neck!
Added to that pressure is the fact that that rival LARFAGE WAPCO, appears to be doing a lot of things right with it's diversified product mix at the moment, chief of which is the foray into what can potentially be a revenue explosive business unit. (road construction in view)

Again if you got the reasoning behind this post, then saying that it makes a lot of sense to see LARFAGE WAPCO as a more value accretive asset ahead of BUA and DANGOTE CEMENT (in view of their CMPs) should already be taken for granted.
...If there was any doubt whatsoever, a P2P analysis of their Nos using KEY financial metrics should immediately clear such doubt.
So before you put that N1 in BUA or DANGOTE CEMENT, put twice as much in LARFAGE WAPCO!

CAVEAT: NOT to be inferred as an investment advice. The need for due diligence should still take higher precedence ahead of this post.

God bless Samad. His days shall be long and prosperous. May his business ventures move from glory to glory. I can finally dust my building plan again.
May the overzealous capitalists never see your back. You are a saviour. One day, you will remember us in your BUAFOODS too. It's not always about money, humanity first...
This is a PRACTICAL PALLIATIVE.

Thank God, cement is not what you can warehouse to sell in 2027. The thing Sabi block well well

Good afternoon Sir Onegentleguy.
Please what is your Fair(Value) Price of WAPCO Larfarge.
Please reply me

eziokwunwoko:
Good afternoon Sir Onegentleguy.
Please what is your Fair(Value) Price of WAPCO Larfarge.
Please reply me

...N47.95
And that's a really very conservative intrinsic value!
By implication, that price peg should be the benchmark in view of its recent fundamental stance.

CAVEAT: NOT an investment advice. ...due diligence still applies as always.

Zee finally landed successfully

Digitron:
Please, who uses Wealth.ng here?

I do...

DeRuggedProf:

God bless Samad. His days shall be long and prosperous. May his business ventures move from glory to glory. I can finally dust my building plan again.
May the overzealous capitalists never see your back. You are a saviour. One day, you will remember us in your BUAFOODS too. It's not always about money, humanity first...
This is a PRACTICAL PALLIATIVE.

Thank God, cement is not what you can warehouse to sell in 2027. The thing Sabi block well well

Approach for Alhaji samad going forward na to sit don look him moves; Will see what the moves for financial year '24 look like . If this tactic works, may probably see him go to increase production target to 30 mtpa (in few years) from 17mtpa they are currently undertaking.

What is not clear at this point will be how BUA will proceed -> bite the bullet for the industry with revenue for a short time. The government know how to create tax credit for this folks when the rubber meet the road in form of credit/ projects,etc. Not sure how market share increase will go in terrains loyal to Alh. Aliko.

Definitely expect contagion into foods as well. This na interesing series to watch ....

I sold off my godson shares some time ago but still got a divident of 321 naira,meaning I had some bonus shares with my analogue broker!
How much divident was paid by fidson recently or can someone help me calculate d number of shares that gave that amount??

Bua on price reduction of cement is simply courting Government concessions to attract probably more tax incentives on the industry.... Most factories in Nigeria are runned like sweat shops....

My own analysis is dat the cost of building a cement factory line in Nigeria using the cheapest technology(Chinese) is $600million dollars, this translates to #600billion using($1 to #1000), this factory specification is to produce 6million tonnes of cement per annum, factor in a capacity utilization of 60% and you get a yeild of around 3.5million tonnes per annum.........
Nigeria being the country that it is plus the use of chinese technology, you had better recover your capital in 2 years.....If not you are in for a long thing as factories ARE not charity organizations........ This translates to the sale of cement @ about #4300 a bag, the market price is @ about #5500, this means that cement manufacturers are trying to recoup their cost in the shortest possible time(18 months)

What bua is trying to do is to recoup his cost in a longer time frame, a good move but @ what cost and in which country.......Cement production is capital intensive and should attract a lot of tax incentives which d Nigerian govt is unwilling to grant also bua new plant are scaled at half this factory specification meaning that they are producing at a higher cost compared to Dangotes plant........
Well, we cross our arms to see where this moves lead to

BuchyD:


I do...

When last did you get your dividends. Most of mine has not being paid since June

sky2891:
Please, what if this court case is not concluded on 10th October? Maybe adjourned after the 10th October court session till a later date.
How will the market possibly react?

Its now clear that NLC may not go onɓstrke afterall. So lets watch how the oando court thing goes.

Any idea of any index fund a newbie in the stock market can invest money into while learning about individual stocks available on NGX?

Mfunkynation:
Zee finally landed successfully

I tire...
My own still missin in action

PETERiCHY:


It's people like you that will end up chasing UBA @#60.

BARGAIN HUNTERS TAKE NOTE!

@N60? Really? You never fail to impress.

So when is the payment date?
I sold all my UBA by Friday last week!
Hopefully will buy twice as much when its time comes. Or may decide to buy something else that offers to be more remunerative during that time

Iamblessed85:


Hmm, deep, please continue. Does this mean the independence was never really for the masses?

One can also argue that it’s indirectly for the masses as well since they can now work their way up to join the elite too

Take note, everything ever created always involves the masses...

...but for the creator.

emmanuelewumi:
Dangote Foods should be able to do at least N150 in the next 6 months

pluto09:
Is Ema among the prophets too

Hope this is not being too optimistic?
If its Mcy, someone for don tag am as gambler, MH or too optimistic.

Let's not forget that SUGAR stayed for long at circa 16/17 when BUAFOODS was selling at circa 70/75......before the merger news moved Sugar up to where it is currently.

While not saying it might not attain this price over time, let's caution ourselves in how we are raising hope too high on the price projection as well........at least this is the type of advice some here would have given some of us as well.

From the price movement, the insiders already settled the buying range at btw 51/55 for now.....and as at now, until the merger and re-listing price is announced.

I come in peace.

Mpeace:
Its now clear that NLC may not go onɓstrke afterall. So lets watch how the oando court thing goes.

My brother when you hear bull or bear smart ones make money while the pig got slaughtered. It will happen in OANDO this week. You see the 53 million offers would clear this week mostly by those that believe in fundamentals who would want to buy at N6 and atlease even if it got delisted they will make N1 profit and the risk takers like us who would want to average down to see the end of the delisting matter.



Please this is not a buy advise. Do your due diligence and follow the patern that works for you.

yMcy56:


Hope this is not being too optimistic?
If its Mcy, someone for don tag am as gambler, MH or too optimistic.

Let's not forget that SUGAR stayed for long at circa 16/17 when BUAFOODS was selling at circa 70/75......before the merger news moved Sugar up to where it is currently.

While not saying it might not attain this price over time, let's caution ourselves in how we are raising hope too high on the price projection as well........at least this is the type of advice some here would have given some of us as well.

From the price movement, the insiders already settled the buying range at btw 51/55 for now.....and as at now, until the merger and re-listing price is announced.

I come in peace.

Expecting another bad Q3 result from DANGSUGAR, so the price can come down further.

dapix:


Expecting another bad Q3 result from DANGSUGAR, so the price can come down further.

Some are seeing a frog, some are seeing a horse, yet others are waiting for the artist to interprete...

No one in reality loses money in the stock market. Never! Some gain money, others take home the experience in exchange for their money which some here call 'school fees'...
When you pay school fees, don't relent, go apply your knowledge and 'recover' your 'lost' cash.

maishai:
Bua on price reduction of cement is simply courting Government concessions to attract probably more tax incentives on the industry.... Most factories in Nigeria are runned like sweat shops....

My own analysis is dat the cost of building a cement factory line in Nigeria using the cheapest technology(Chinese) is $600million dollars, this translates to #600billion using($1 to #1000), this factory specification is to produce 6million tonnes of cement per annum, factor in a capacity utilization of 60% and you get a yeild of around 3.5million tonnes per annum.........
Nigeria being the country that it is plus the use of chinese technology, you had better recover your capital in 2 years.....If not you are in for a long thing as factories ARE not charity organizations........ This translates to the sale of cement @ about #4300 a bag, the market price is @ about #5500, this means that cement manufacturers are trying to recoup their cost in the shortest possible time(18 months)

What bua is trying to do is to recoup his cost in a longer time frame, a good move but @ what cost and in which country.......Cement production is capital intensive and should attract a lot of tax incentives which d Nigerian govt is unwilling to grant also bua new plant are scaled at half this factory specification meaning that they are producing at a higher cost compared to Dangotes plant........
Well, we cross our arms to see where this moves lead to

Ain't you Happy ALHAJI RABIU want to LET the POOR BREATH

Prices must come down this week o

DeRuggedProf:



Some are seeing a frog, some are seeing a horse, yet others are waiting for the artist to interprete...

No one in reality loses money in the stock market. Never! Some gain money, others take home the experience in exchange for their money which some here call 'school fees'...
When you pay school fees, don't relent, go apply your knowledge and 'recover' your 'lost' cash.

lol!!!
In stock market, some see golden opportunities where others foresee pitfalls while others are indifferent. All these are shaped by subjective views, experience, and intuition. It's essential to know therefore, that there's no singular 'correct' view in the market. Diverse perspectives are what make the market dynamic.

BullBearMkt:

lol!!!
In stock market, some see golden opportunities where others foresee pitfalls while others are indifferent. All these are shaped by subjective views, experience, and intuition. It's essential to know therefore, that there's no singular 'correct' view in the market. Diverse perspectives are what make the market dynamic.

Boss, Gbam!

Game of OANDO has started this morning oooo

Princkez:
Game of OANDO has started this morning oooo

Wale go just dey wonder. This peole sef

i beg ooooo

make dem dis Oando people stop messing with people mind with this topsy turvy movement ooooo

mental health is crucial ooooooo

lollllllllllllll

Where is that man that claimed to have invested 33m in oando, here is your opportunity to sell o.... At least take out your original capital of 4m