₦airaland Forum

locodemy:
No need to put much attention.
The stock is not for minority.
They are even regreting the move that took it to #4 self.
I am beginning to avoid stocks that has something with Tony.
I expected the market to react positive to yesterday's news but it was a sluggish move.
The bears will soon descend on the stock and I am expecting the 4% MTO from them at sub #3.

Really?

yMcy56:
Lol Oga mi, sometimes, following those biz owners like Dangote, Bua can have its own advantage too. They have assets to protect.

Alhaji strategized the release of Dangsugar result, he must have envisaged that they'll dump the stock, so he swiftly announced the merger to halt the dumping......
If not for the news, Dangsugar for don reach circa 15/16 by now too.

Merger news came before the release of 2nd quarter result. It is reversal of what u said😆😆😆😆😆

eziokwunwoko:
Good afternoon @ customstreet. Any update on Dangote Foods Listing.
Thanks for all your useful expo
God bless your handwork and labour.

I learnt that It would be concluded before the end of third quarter.

But I will advise you set December as your holding period

Similarly, I also learnt that Dangotesugar would be the coy that would metarmopised to DangoteFood where holder of Nascon would swap 11 of their shares for 10 of Dangotesugar and also holder of Rice would also swap their holding with Dangotesugar

This is not 100% confirmed but may be near the truth.

Hello All,

Transcorp may likely do MTO by buying back 4% of it shares Soon. The price would likely be between the current price and what Otedola was paid.
Due diligence required

dearstan:
Do you mind sharing more color on how shareholders can exercise their rights? How will this work in practice.

1. Get your right circular
2. Approach your broker with it. Fill it together with verification form and this will be sent to Registrar
3. After verification, it will be returned to your broker for trading on the floor
4. NGX then create a trading platform where the right will be traded. There is no price range. You buy and sell at any demanding and supplying market price
5. The base right price is determined by juxtaposing the market price and right price against right units and existing units
6. After trading on the floor, your right trading price will be paid to your account after removing charges
7. Thereafter, your broker send the list of all the right traded to the exchange for noting and exchange approval
8. Then your right circular which had earlier been verified by the registrar, noted and stamped by the exchange would then be officially sent back to the Registrar

I have done right trading on CHAMPION BREWERIES, NEIMETH PLC AND UNILEVER PLC right issue in the past

veecovee:
Thanks alot, but at what ratio to NASCON do you think the conversion will be

To me, I am looking and permutating at the following directions

1. One for one, there post DangoteFood O/S would be less than 20billion outstanding shares
2. One for two, there post DangoteFood outstanding shares would be less than 10billion
3. One for three, there post listing outstanding number of shares would be less than 8billion

When you look at every of Alhaji companies, he always prefer to have a bloated Outstanding number of shares which to me would be in the range of 15b-22b in this case of DangoteFood.

The purpose of this consolidation is to retain number one wealthiest person in Africa. All his three merging companies is not up to BUAfood market capitalization and his intention is to dislodge BUAfood. If we go by his intention, then the number of shares must be equal or greater than 18billion of BUAfood post listing and secondly, the market price must be equal or greater than the current market price of BUA food. If he listed the new company say at N100, then there is high probability that the company share price would go north in the near term just to dislodge BUAfood

Looking at other company owned by Alhaji, and looking at what he did in the past when

1. He sold Dangoteflour to Olam. It was a jackpot because many people had information that Olam would pay N24+ per share when Dangoteflour was trading at less than N15. I believe the same jackpot will occur this time around

2. When he bought over the dying BCC Plc in 2010. The two companies merged and formed Dangote cement Plc. They did a share swap of 1 for every 2 for every BCC shareholders. The pre listing price was N67.50 and the new company was subsequently listed at N135

If I permutate that DangoteFood would be listed at Say N100, then the pre-listing price of each of the merging companies would be close to N50 per share if we assumed what he did with BCC shareholders

To cut the long story short, the options that is more realistic are option one and two with option two been the least and option one been the most

We shall witness a robust share swaps in this scheme that would make everybody smile to the bank

This is my own personal opinion.

eziokwunwoko:
Good morning Sir customstreet.
Please how did you arrive at N100 listing price of Dangote Foods.
Is it adviceable to buy DANGOTE SUGAR OF NASCON at current price
DangoteFood might be listing above 10,000k

I was not the one that derived the price but that I am only privileged to have those information because of my connection to some people in the industry

pizapato:
When someone drop this kind of information rather that questioning the source, what you should do is to check how reliable the previous post of the person is and then do your own due diligence.

Check the previous post of customstreet, you will realise he was among the first to call DANGSUGAR at around 17. He was also the first person go give a to hint about the merger.
That tells you he is privy to classified info.

Once he drops his gems, it is left for you to do you due diligence and take position if you consider the information valuable.

You can't expect him to come and tell you he arrive at the listing price.

Note: not saying you should buy at current price.
A pull back might happen presenting an opportunity to enter at a lower price.

You have hit the hammer on the nail my dear brother. Many thanks

abuhusna1:
It's not dangote Refinery sir don't raise our hope too high

Listing DangoteFood @ N100 or above is raising your hope? Ok no wahala

yMcy56:
NASCON:
If NASCON can cross the 40 marks today, then the post merger price may likely be juicy be that....
* Pls don't take my comment for it......just stating my observation*

* GSK: on full bid @8.90......
How much can this Coy possibly offer as buy-out Price?

** Most trades on GSK are cross deals!!
Make dem allow people to sell on the floor as well na

DangoteFood might be listing above 10,000k

phoinix:
Which 1:1, Dangsugar and Nascon na mate before? Dont worry, wind go soon carry that your oversized wig comot for that ur bald head way u dey hide so.

This is the thoughts of some analysts

Since Dangote Rice Ltd is the only unquoted among the three of them and majority, if not all of the shares is owned by Alhaji. Share exchange ratio might favour Rice at the detriment of Salt and sugar. This would gives enormous strength to Alhaji to have more ownership in Dangfood even though he has majority shares in both salt and sugar. Let us see how event unfold in the short term

No matter how it goes, minority shareholders will still benefits from Alhaji share exchange calculations

jimmiedave:
Thank you so much for your response. The name of the stockbroker is ESS INVESTMENT, I tried contacting them, but couldn't reach them and before now i was trying to do some changes like change of address and email address but i was not able to do that, they say i cant do it myself except the broker because i bought the shares from secondary market, something like that. i have tried the e-mandate form but didn't work out. dont really know what to do. am actually in Lagos.

ESS is no longer ESS. It was bought over by Dun Lorren Merrifield Securities Ltd (DLM Securiries Ltd). If u have any issues, you can contact them via this mail address. iatanda@dlm.group

https://doclib.ngxgroup.com/Financial_NewsDocs/39189_DANGOTE_SUGAR_REFINERY_PLC-_QUARTER_2_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_JULY_2023.pdf



BAD! BADDER!! BADDEST!!!😆😆😆😆👏👏👏👏

One insurance company people are not paying attention to, which is still heavily underpriced, penny stock and which has many factors going on well for them is SUNU ASSURANCE PLC.

Watch out for this stock before it get to 100k

emmanuelewumi:
Did she buy through a bank or Stockbroker?


Was it a primary or secondary market offering

The first one she bought N5.5m was through FBN Quest, primary market and it appeared on her CSCS

The second one she bought N8.9m was through Molten Trust Ltd, primary market and also appeared on her CSCS

emmanuelewumi:
quote author=customstreet post=124657752]

The Federal Govt Bond of less than 10million my wife bought appeared in her CSCS statement



We have FGN savings bond which one can buy with N5000 and above


We also have the FGN bond which one can buy with N50 million and above.


What is the tenure of the one bought by your wife?

Your wife bought FGN savings bond from the primary market

My wife bought 10 years FGN Bond. I know what I am saying and not Federal Govt Saving Bonds

emmanuelewumi:
You will need N50 million for that if you are buying FGN bond and not the savings bond.


What the banks do is to buy billion naira worth on behalf of their customers and make some money through that.

The Federal Govt Bond of less than 10million my wife bought appeared in her CSCS statement

NGX DIVIDEND ANNOUCEMENT

*NGX Group DECLARES 25kobo INTERIM Dividend*

*QD...31/07/2023*

*PD...31/08/2023*

Thank you.

vacanci:
Since it's not up to the required 50M, will this appear on one' CSCS portfolio as well?

As long as you put in your CSCS details, it will appear in your CSCS statement

yMcy56:
No need to wait for any 3yrs..
If you're not in it, don't create any fear of anything.
When Japaul was mentioned here, there were some positive news that later surfaced to drive it up....
Financially, the book turned positve with profits from it's dredging activities....
So also other positive news highlighted here.

First Bank was dumped at the news of Oba's 4.7billion units purchases but what happened today?
Full bid @19.85!
That's the power of news.........and if you think it's only the financials that's driving it, then think again....
* Did you go thru the report?
Do you know why FBNH released Q2 result early?
This is the same First Bank that released 2022 fye and Q1 very late.

* By now, we should know news drives this market to some extent, even for stocks you can least expect or you write off.

What of International Energy? When I first mentioned it here it was around 38kobo or less, no single person even replied me.... except for one Oga that was holding it for long and was asking for update on it. Today people queue to buy it @1.30......unbelievable to you right?

Don't worry, the Kobo stocks lover will be doing their thing regardless of your views, shebi na to say make person no mention it here na?

If you think you're trapped in JP, you know one of the best approaches to exit without loss. Use it and you'll be fine by God's grace.

IEI was not available until when it was 100k when it was readmitted back to the bourse and hence we could not get it

megawealth01:
Is there a possibility of a bonus? Or I should just expect dividend? Did they pay bonus last year?

Era of given bonus issue is gone going by the new regulation that obligate every companies quoted on the exchange to cancel the shares different between issues and fully paid shares and Authorised share issue. But that does not mean companies cannot give bonus but has to go through long process.

emmanuelewumi:
I don't think there is any difference in value investing or growth investing, the only difference I know of is the difference between Investment and speculation. A number of growth investors think they are investing but they are speculating or gambling


There is growth in value investing, and the is value in growth


Value investors want to buy a business below its intrinsic value, while growth investors are ready to pay premium on the intrinsic value based on the expected earning growth and other potentials of the business.


The Koko is to practice Growth At a Reasonable Price as preached by legendary Peter Lynch

There is absolutely large difference between the two. We have three types of investing styles going by what MORNING STAR classified them, which are
1. Value Investing
2. Growth investing
3. Blended investing

The differences among are:
1. A value investors focuses more on companies with low P/E ratio, low P/BV ratio, low P/S ratio, low P/CF ratio and high Dividend yield. I can classify myself as value investor because that’s the yardstick I used in picking stocks. When GTB was doing N17 or thereabout, a value investor will capitalized on the low P/E compared to average banking P/E ratio because he believes that it will revert back to the mean. Also the dividend yield at that price would be closed to 19%. That is mostly what value investors look at. They looks less on the earning and earnings growth. This risk of the style is the VALUE TRAP, where you think the price is low not knowing that the price would still crash further.

2. On the contrary, a growth investor focuses more earning and earning growth. They don’t look the way of P/E, P/S and others mentioned above to make investment decision. Primarily, a growth investor uses what u referred to as GARP(Growth at reasonable Price) to make decision. Coming back to illustration on GTB when the price came to N17, a growth investor would investigate their earning and see if the earning is sustainable and can growth. The problem with this style is what is called GROWTH TRAP, where u think earning will growth not knowing that it will come down further in future

3. May be, this is what you are talking about. They combined both value and growth features to make decision

All of us here on this platform would takes one of the three investment style

Thank you my brother

emynike2001:
Good day everyone, happy to see this thread and this family.


Since 2008, since the NSE crashed I have not gone back to know what is happening to my stocks again which I bought then.

I bought international energy insurance in the secondary maeket then, when it was N2 but now so devaluated, called an old friend who told me meristem is now their registerer. I was sent the e-mandate form but but don't know how to go about it.

I just need to get all my accumulated dividends since 2008.


Pls can someone guide me on how to go with the e-mandate form now printed. What's the next step pls?

You can go ahead and process your e-dividend mandate but I am not sure U will have any outstanding dividend because IEI has gone bankrupt before Norrenberger saved their soul. Since 2008, they had problem and gone under until now that they were bought over by Norrenberger

emmanuelewumi:
The merger of Dangote Sugar, NASCON and Dangote Rice to form a new company called Dangote Foods is a continuation of Forbe rating bragging right.

Dangote Foods will have about 15 billion outstanding shares, BUA Foods currently have 18 billion outstanding shares with a market capitalization of over N2 Trillion.

BUA Foods paid a dividend of N4.50k which was about 95% of the earnings for the year, the current price of BUA Foods is over N110 per share.


Don't be surprised to see Dangote Foods at a minimum price of N60 per share going forward.



My opinion though

Not less than N100

emmanuelewumi:
Not at all, someone said NASCON made EPS of N2.48 in Q1, which was higher than the total EPS for 2022. But I advised him to always use the audited result, give a maximum growth rate of 20% and maximum PE of 15 in order to avoid over paying for the stock.


At the current price of N29.85

Dangote Sugar has EBITDA/ Market Capitalization yield of 27%.

The current free cash flow per share of N6.53 alone multiplied by minimum PE of 8 will give you about N50 per share valuation

Coupled with the cash being piled up by the company, was N175 billion in Dec 2022, it increased to over N180 billion at the end of Q1

My brother, I said it yesterday that that 248k EPS of NASCON is an annualized EPS. Q1 EPS was 62k

Divided this circled PAT with outstanding number of shares, it is equal to 62k and not 248k

emmanuelewumi:
These are the figures based on the last audited financial report of both companies, probably they might audit their accounts for half year or before they commence with the merger


DANGOTE SUGAR

Current price N29.85
Shareholder's fund N171 billion
Book value per share N14.1
Earnings Before Interest and Taxes N91 billion
Profit after tax N55 billion
Outstanding shares 12.1 billion
Return On Equity 32%
5 years average ROE 23%
Current EPS N4.50
Normalized EPS N3.17
5 years average EPS N2.37
Cash and cash equivalents N175 billion
Operating cash flow N105 billion
Free cash flow N79 billion
Operating cash flow per share N8.90
Free cash flow per share N6.53
Cash Flow Return On Investment 56%
Return On Capital Employed 44%
Free cash flow margin 20%
Free cash flow yield 21%
Net profit margin 13.6%
Gross Margin 22%
Enterprise value N396
Enterprise value/FCF 5
Enterprise value/EBIT 4.35



NASCON

Current price N25.5
Shareholders fund N19 billion
Book value per share N7.17
Earnings Before Interest and Taxes N9 billion
Profit after tax N5.5 billion
Outstanding shares 2.65 billion
Return On Equity 28%
5 years average ROE 25%
Current EPS N2.06
Normalized EPS N1.80
5 years average EPS N1.30
Cash and cash equivalents N13 billion
Operating cash flow N3.5 billion
Free cash flow N2.6 billion
Operating cash flow per share N1.32k
Free cash flow per share 98kobo
Cash Flow Return On Investment 14%
Return On Capital Employed 35%
Free cash flow margin 4.5%
Free cash flow yield 4%
Net profit margin 9.5%
Gross profit margin 41%
Enterprise value N83 billion
Enterprise value/Free Cash Flow 32.
Enterprise value/EBIT 3.6


You can compare and contrast. Definitely both companies can't have the same share exchange ratio

Well you may be right or I may be right. U May be wrong or I may also be wrong. But going with details above. You estimated the intrinsic value of Dangotesugar to be N32.72 while of NASCON to be N31.32 while information about DangoteRice is not available. Going by this, the intrinsic value is almost equal for the two we know.

You and I are just permutating here, Alhaji Dangote will determine our faith😆😆😆😆. I will call someone now to give me the comprehensive details about the share exchange stuff.

Have a blessed day

megawealth01:
WOW

Any idea on the new name after?

That I don’t know

emmanuelewumi:
It does not work that way, the professional advisers will consider the fundamentals of both companies.


I foresee a share exchange ratio of 3 NASCON shares will be exchanged for 2 shares of Dangote Sugar

For me, I feel they would do 1:1
I may be wrong

Streetinvestor2:
This plan was already set in motion and you knew it.You didn't announce it straight like how OGG does it here,lol.You made it sound like beer parlour gist which I equally made my contribution.
Nevertheless I believe it will favour minority shareholders as alhaji wants to higher his status in forbes list.The flour deal did favour all.I personal got 21M plus in it

😆😆😆😆😆😆Beer parlour gist keeeee. Ok oooo

monopolistic:
Any other suppose merger .

Yes there is !

Unity Bank Plc + Providous Bank Plc

One listed on NGX and other listed on NASD OTC Exchange

Streetinvestor2:
Oga you for allow me buy my sugar in peace,lol.You see watin you dey cause me now

When I mentioned it three weeks ago, u doubted me and ignored my information

I don’t say what I don’t know

debeey87:
Q1 2023 alone ended with an eps of N2.48 for nascon exceeding even the FY2022 EPS of N2.06.

My brother, the EPS for quarter 1 you are talking about is not correct. The Q1 EPS was actually 62k and not 248k. This Q1 EPS was actually annualized.

Please check this well from their Q1 result and u will notice what I am saying. Q1 was 62k and annualized to 248k