ducii:


It is a price war, I just told you that they all still make profit

they still make profit despite the 40% reduction? so you think other competitors are well diversified like dangote? hope you have heard about "the four grid-matrix approach to management"

smada13:



they still make profit despite the 40% reduction? so you think other competitors are well diversified like dangote? hope you have heard about "the four grid-matrix approach to management"

Wow Dangote is the list Diversified business man I know, check is net worth on bloomberg and check the market capitalisation of his cement company. you will understand what i am talking about. His net worth is marked to the market. Meaning that if something happens to that cement company today he loses over 90% of his net worth.

next year insha amadioha i am moving to my house. pls dont quote me o

ducii:


Wow Dangote is the list Diversified business man I know, check is net worth on bloomberg and check the market capitalisation of his cement company. you will understand what i am talking about. His net worth is marked to the market. Meaning that if something happens to that cement company today he loses over 90% of his net worth.

What??!!! do you know what you are saying?!!! which other group is as diversified as dangote group? with his investment in salt, sugar, wheat meal, semovita and other cereals? spaghetti, macaroni? and his new petroleum investment? are you saying the cement business takes the chunk of the conglomerates? are you kidding me?!!!

Sorry, I'm not in the mode for arguments. Especially, on NL where defending your stand is prioritized over objectivity.

About the secondary school? Dangote, his management team and I would be in the same class I think? What a great priviledge?!

smada13:



sorry, where did you learn your own economics from? where did you school?

you sure need to go back to secondary school


please follow this link


http://www.yourarticlelibrary.com/industries/7-most-commonly-pursued-price-determinants-in-industrial-market/22619/

How can someone be complaining cos of a reduction in price of a commodity. You better take advantage of the offer in this our unstable economic climate.

smada13:
As news filtered in about the reduction in the price of Dangote cement, a greater number of people were in jubilant mood citing its positive effect on cost of building.

But in the real sense of it, how many will benefit from this?, how many people have that capability to even rent apartments they desire more or less buy land and build on it? is the current state of things in the country giving credence to the cement price reduction? will the masses not be at the receiving end in the long run through unemployment through the inability of other firms to compete? are Nigerians a forward thinking people? is the said Capitalist ( dangote) not after his own personal good and not collection good? Why is it only dangote that reduced his cement price? what is the position of the other cement producing and importing firms? Why is the FG not carrying other firms along in its plans to reduce housing deficit?


These and many more are questions begin for answers.

THINK! NIGERIANS THINK!


Like SOLA SALAKO wrote on her Facebook page:



"Obviously, this is another move in the attempt to
stifle competition coming on the heels of getting SON
to regrade cement classification in its favour via
political patronage.

While this seems like a benefit for consumers in the
short term, I fear it is very inimical to growth in that
sector in the long term. The few competing brands
may eventually close down if they don't survive the
price war after emerging bruised from the pseudo
classification battle. More unemployment looms...

Just as Dangote has the singular power to determine
pricing downwards, who will challenge him when he
pushes price to N3,000 after he has successfully run
competition out of the market? This is akin to a rat
nibbling away at your feet and blowing soothing air so
you don't feel it...until it hits blood!

Nothing to rejoice about here if we are long term
oriented people. Unfortunately, Nigerians are not,
so...."

Obviously u re not current, so u don't know that bua cement company has also reduce their cement price to 1k telling dangote that if he can them too can reduce it....waiting for elephant to follow suit or is it bua that produce elephant cement... I stand to be corrected in that regard.

smada13:



What??!!! do you know what you are saying?!!! which other group is as diversified as dangote group? with his investment in salt, sugar, wheat meal, semovita and other cereals? spaghetti, macaroni? and his new petroleum investment? are you saying the cement business takes the chunk of the conglomerates? are you kidding me?!!!

It is obvious you do not understand what a diversified portfolio means. over 90% of Dangote's wealth is tied to his Cement business, I already told you go to Bloomberg and see the capitalisation of Dangote cement and compare it to his net worth, you will find out that 90% of his wealth is made up of the Cement Company. Putting it in lay man's term if Dangote cement Disappears from planet earth today, his net worth will reduce by over 90% he might not even be a dollar billionaire anymore, and he will be taken off the Forbes list.

I will try and give you a clearer view of what Dangote's position looks like
Imagine I have 10 eggs and 10 Baskets of which to store the Eggs, and I put 9 of my 10 Eggs in one basket and spread the remaining 1 egg into nine places and put them in the other 9 baskets.
As you can see with my simple illustration above, if anything happens to my basket with the 9 eggs, I am as good as being finished.
Because I have Eggs in all my baskets doesn't mean I am well diversified, because 90% of my holdings in Eggs are in one basket.

Dangote is one of the undiversified billionaires on that Forbes list.

He tried listing Dangote cement on the London Stock Exchange, but he was turned down because of what is called KEY MAN RISK. He owns more than 70% of Dangote cement.

I don't Know how to explain this concept to you any more, if you don't get now then I give up

ducii:


It is obvious you do not understand what a diversified portfolio means. over 90% of Dangote's wealth is tied to his Cement business, I already told you go to Bloomberg and see the capitalisation of Dangote cement and compare it to his net worth, you will find out that 90% of his wealth is made up of the Cement Company. Putting it in lay man's term if Dangote cement Disappears from planet earth today, his net worth will reduce by over 90% he might not even be a dollar billionaire anymore, and he will be taken off the Forbes list.

I will try and give you a clearer view of what Dangote's position looks like
Imagine I have 10 eggs and 10 Baskets of which to store the Eggs, and I put 9 of my 10 Eggs in one basket and spread the remaining 1 egg into nine places and put them in the other 9 baskets.
As you can see with my simple illustration above, if anything happens to my basket with the 9 eggs, I am as good as being finished.
Because I have Eggs in all my baskets doesn't mean I am well diversified, because 90% of my holdings in Eggs are in one basket.

Dangote is one of the undiversified billionaires on that Forbes list.

He tried listing Dangote cement on the London Stock Exchange, but he was turned down because of what is called KEY MAN RISK. He owns more than 70% of Dangote cement.

I don't Know how to explain this concept to you any more, if you don't get now then I give up

lolzz @ your egg and basket explanation.... not that I don't get what you are saying, I just seem not to agree ni......

will check it out on the net later in the evening and I'll make my position known....


well done.

smada13:



lolzz @ your egg and basket explanation.... not that I don't get what you are saying, I just seem not to agree ni......

will check it out on the net later in the evening and I'll make my position known....


well done.

Dangote Cement Market Cap 3,559,591,000,000.59 (That is what Dangote Cement is worth in Naira)

Dangote cement is worth N 3.5trillion
If you divide that by N 160 you will get $22,247,443,750 (That is what Dangote Cement is Worth in Dollars)

Now below is Dangote's Net worth from Forbes


Real Time Net Worth
$22.6 Billion*

follow this link and see for yourself the perfect definition of capitalism


http://m.tickld.com/x/capitalism-explained-this-is-so-accurate-it-hurts

ducii:



Dangote Cement Market Cap 3,559,591,000,000.59 (That is what Dangote Cement is worth in Naira)

Dangote cement is worth N 3.5trillion
If you divide that by N 160 you will get $22,247,443,750 (That is what Dangote Cement is Worth in Dollars)

Now below is Dangote's Net worth from Forbes


Real Time Net Worth
$22.6 Billion*

to counter your fact, go through this:

http://en.m.wikipedia.org/wiki/Aliko_Dangote