₦airaland Forum

This week on the podcast, I review my investing practice and share my wins/ mistakes in 2021.

Thanks for listening.

https://anchor.fm/value-nigeria/episodes/42--A-review-of-2021-My-wins-and-mistakes-e1c667u

This week, we look at the various means via which one can buy shares in any company.

We also consider the advantages/ disadvantages of each method.

Thanks for listening.

https://anchor.fm/value-nigeria/episodes/41--Should-I-buy-a-Companys-Public-Offer-e1bu3o8

Many times, we complicate investing and make our own lives difficult.

This week on Value Nigeria, we look at why its important to stick to the basics, recognise your limits and the dangers of pushing the boundaries.

Thanks for listening.

https://anchor.fm/value-nigeria/episodes/40--Keep-your-investing-simple-e1bk011

Calebbold:
Oga DrAwo...pls where can i get that 10 years financial statement chart of Betaglass you posted From?

I create the charts myself from the companys annual reports sir...
Its worth the trouble to me as it gives me a better view of things...

RabbiDoracle:
Look into Betaglass

This is a company that its Q3 2021 EPS is more than the 2020 YE results.

Q3 2021 EPS of N8.33 vs Q3 2020 EPS of N3.74

Q3 2021 EPS of N8.33 vs 2020 YE EPS of N6.93

If 2021 YE EPS come in at N11 or N12, media will easily propagate how Betaglass increased earnings by 70 to 75% and by then prices could go ballastic.

The stock is very illiquid.

Betaglass that I have been accumulating since time immemorial...

I have always told anyone that cares to listen that Betaglass is an under appreciated well run company that operates almost as a monopoly and is poised for great things...

They have their own issues like being illiquid and a high CapEx but overall, excellent company with long term prospects...

Outsized returns will not come only because of the media lauding their sharp growth (which is mainly due to covid disrupting operations in 2020)... It'll largely come because they are steadily growing, have a huge Moat and are very well managed.

onegentleguy:
@currentprice,
I'll reply you in a bit, let me round off with a meeting 1st.

In the meantime, try to digest the post below;
(it's from a very smart pal in one of the financial forums I belong to)...

There is insane value in GSK, actually.

What they did in 9months can be considered temporary. In Q1 2021, the global supply chain disruption made it difficult to procure raw materials. Hence, production could not take place and revenue had to dip by 30% YoY.
In the subsequent quarters, as most manufacturing coys experienced, there were significantly high costs that eroded margins.

These seem like a temporary problem.
While the operating performance might currently be under pressure, the market price is really at a steep discount.

If you check the statement of financial position as of 9M 2021

Cash stood at N10bn
Net assets was N8bn

While market value is at N7bn - N7.50 bn
Cash alone is greater than market value (for a coy with zero debt)? Nah...

#END

I already summarized this here in the past. (it explains the part about negative Enterprise Value)
But that is just a part of the value potential in GSK.
will revert once am done with my meeting.

Your post stimulated my interest to looking into the numbers of GSK...

I agree their balance sheet looks attractive as :

1. They are awash with cash (about 10 billion)
2. Have no long term debts which is quite commendable.

The seeming huge cash pile must have come from somewhere though as we know it's a balance sheet. It must balance one way or another.

The didn't sell any property, sell equity or borrow money. However, a look at their liability shows that they are owing their suppliers (trade and other payables) about 14 billion.

In essence, even though they appear cash rich on the balance sheet, the money does not largely belong to them. If you factor this into the consideration for enterprise value, is EV really negative? They may not owe banks but they owe their suppliers...

In my own world, gsk is a good company but it doesn't meet my criteria.

NB: This post is aimed at rubbing minds and learning.

This week, using the principles of inversion, we explore how to achieve monumental poverty.

If these are avoided, our chances of achieving wealth dramatically increases.

Thanks for listening and sharing.

https://anchor.fm/value-nigeria/episodes/39--Inversion-How-to-achieve-monumental-and-world-class-poverty-e1b9e10

This week on Value Nigeria Podcast, we read an email sent in by a listener and discuss strategies for investing through market downturns...

Considering events of the last few days, this discussion is very timely!

Thanks for listening...

https://anchor.fm/value-nigeria/episodes/38--Investing-through-market-downturns-e1au925

This week on Value Nigeria, we take a journey through the accounting nuances of bonus shares and explore if they really benefit shareholders or not.

Thank you for listening.

https://anchor.fm/value-nigeria/episodes/37--Are-Bonus-shares-beneficial-to-shareholders-in-reality-e1ak5fa

On my podcast called Value Nigeria, I had a chat with Dr Tayo Oyedeji, founder and CEO of Overwood Nigeria, an investment firm helping people achieve their aims of financial independence.

He retired at age 40 and he shared how he achieved this. It may be difficult but it is very possible...

Enjoy our chat...

There are also countless other episodes about investing so feel free to explore the podcast on any podcast platform of your choice....

https://anchor.fm/value-nigeria/episodes/35--Low-risk-approach-to-building-wealth-A-chat-with-Dr-Tayo-Oyedeji-e19s5ms

In this episode, we discuss what Real Estate Investment Trusts (REITs) are, the various options available and the best strategies to use when investing in REITs.

Thanks for listening...

https://anchor.fm/value-nigeria/episodes/36--Investing-in-Real-Estate-Investment-Trusts-REITs-e1a923g

currentprice:
I think If you are looking for PURE cashflows from operations the stressful one is the deal

Net cash generated from operation includes other items like ""interest paid , interest receive, tax paid, provisions payment, employment benefit, change in derivatives, share of profit from associate and so on""

I kuku understand oh oga mi...
But I am doing the analysis for personal use and nothing more...
1 shortcut will not derail the thesis too much...
Indulge my laziness...

currentprice:
PAT + Depreciation/Amortisation +/- working capital changes

then deduct Capital expenditure from the the number to arrive at ur FCF

Reference Dr. abraham from SMN

_{^{you can as well read everything about the FCF on the internet, there are many ways to arrive at the number and go for the one that fit ur other metrics}}

A less stressful, easier but imperfect way that I do it is to just deduct CapEx from the "Net cash generated from operations" in the cash flow statement as amortisation, depreciation and changes in working capital have all been added back or accounted for in this figure...

Willie2015:
Pls see attached..
in the below link for their earning release for Q3 2021....
Saves ones the hassles of calculation...

https://doclib.ngxgroup.com/Financial_NewsDocs/34417_MTN_NIGERIA_COMMUNICATIONS_PLC%20MTN_NIGERIA_EARNINGS_RE.pdf

Thanks for pointing me to this publication from MTN in which the FCF you stated was quoted from...

There are diverse ways of calculating FCF... Some are more representative of reality than others... MTN has told us which formula they used to calculate the stated FCF (EBITDA - CapEx)... I will not comment on if this formula is factual or not but realise that they will choose whichever formula best suits their narrative...

I recommend we all read about FCF and how to calculate it rather than taking numbers hook line and sinker...

Willie2015:
MTN Free Cash Flow is in the region of N373.4 billion.....
as at Q3...
23 percent increase on YOY basis.....
Sincerely, there are few coys that can match that FCF on the NSE....
Its a healthy stock to have in ones portfolio...

Bros...
How did you calculate this your own MTN Q3 2021 free cash flow? Because I cannot see what you are seeing...

Maybe we are looking at different financial statements sha...

In personal finance and wealth building, there are few people who do not just talk the talk but walk the walk as well. My guest this week on Value Nigeria is one of these few people.

Enjoy my chat with Dr Tayo Oyedeji, CEO of Overwood Nigeria as we talk about having a saving culture, wealth building and everything in-between.

https://anchor.fm/value-nigeria/episodes/35--Low-risk-approach-to-building-wealth-A-chat-with-Dr-Tayo-Oyedeji-e19s5ms

In this episode of Value Nigeria Podcast, I have a chat with a friend and astute individual investor, Keji Alabi, about all things investing...

Believe me, you do not want to miss this discussion!

https://anchor.fm/value-nigeria/episodes/34--All-things-investing-A-chat-with-Keji-Alabi-e19hi21

This week on Value Nigeria Podcast, we conclude our take on the Buy Checklist of Philip Fisher from his seminal book, common stocks and uncommon profits.

Thanks for listening...

https://anchor.fm/value-nigeria/episodes/33--What-to-Buy-A-checklist-from-Philip-Fisher-Part-2-e196srq

This week on Value Nigeria Podcast, we look at the Investing checklist of Philip Fisher from his book, "Common Stocks and Uncommon profits"...

Thanks for listening...

https://anchor.fm/value-nigeria/episodes/32--What-to-Buy-A-checklist-from-Philip-Fisher-Part-1-e18sgsb

This week, we review some common psychological traps that can reduce your portfolio returns if you fail to mitigate them.

Thanks for listening.

https://anchor.fm/value-nigeria/episodes/31--Psychological-pitfalls-to-avoid-in-investing-e18hv20

SweetVibe:
I have a question for those of you who check financial report and quaterly results of companies before making stock decisons
"What if those financial reports were all cooked up or manipulated by the campany"?
yMcy56
locodemy
megawealth01
OBAGADAFFI

In an ideal world, this will not happen. The companys accounting department should check and double check. The CFO (Chief financial officer) will also check and recheck. The auditors will also check and double check. The CEO and CFO usually sign every financial statement putting their reputation and office on the line for every financial statement they release and there are penalties for offenders...

Since its not an ideal world, things happen. So the responsibility is on you to critically look at the report, compare with the past and other competitors to assess its believability.

Unfortunately accounting rules itself has loopholes that financial engineers can exploit to perform miracles... The key is to ensure proper risk management (avoid companies with a history of mago-mago or with low believability-index) and have faith in the system...

Join us this week on Value Nigeria Podcast as we put Fidelity Bank and its numbers under the value investing microscope...

We look at trends over the past 7 years in gross income, PAT, Net Margins, ROA and ROE...

Thanks for listening...

https://anchor.fm/value-nigeria/episodes/30--Fidelity-Bank-Analysis-Part-2-e187cu1

In the market, you can either learn before trying to earn or you can try to earn before learning...

2 different approaches...
2 different outcomes...

Choose wisely...

#ValueNigeria

This week on Value Nigeria Podcast, we undertake an overview of how to analyse the financial statement of banks and the key numbers to look out for.

Thanks for listening...

https://anchor.fm/value-nigeria/episodes/29--Fidelity-Bank-Analysis-Part-1-Understanding-the-financial-statement-of-a-bank-e17tm7b

What single skill can an investor acquire that can significantly boost your returns?

On this episode of Value Nigeria, we explore the discipline to say No.

Send your feedback/ entries for company analysis to valuenigeriawithajibola@yahoo.com

https://anchor.fm/value-nigeria/episodes/28--The-discipline-to-say-NO-e17hrbf

Checklists are a set of well spelt out steps that promote the safe completion of complex tasks.

How can checklists help you improve your investing process? This and much more is answered in this weeks episode of Value Nigeria Podcast.

https://anchor.fm/ajibola-oladele-awolowo/episodes/Investing-Checklists-e178nlm

eziokwunwoko:
It is not annualised.
Please check your calculations and confirm

You are correct...
I was wrong...
I used the wrong figures...
Forgive my error...

locodemy:
Eps from 39 to 67 kobo.
Some banks are very cheap o.
I guess this Fidelity is cheaper than Access bank.

Annualised earnings...

KenBen217:
Ive been following these stock thread for a while,I just need a few assistance on navigating this market,I decided to venture into the stock market and I bought some stocks,sundial towers stock,anyways I decided to check my portfolio and discovered that the stock has depreciated over the last days. I carried out some research on the company,it is a premium cannabis manufacturing company. However I need to know from experienced investors,what do you look out for when investing in stocks because I know this is not guess work nor is it entirely luck. How do you source information? What statistics do you look out for and where? Thanks in advance

I think you have asked a very very salient question here... The truth is that the same principles govern the investing universe despite varying geographies... There may be a few peculiarities but its generally the same.

I'll recommend you read books on fundamental analysis and seek to join groups where like minded investors who are better than you are on. This would help you improve.

In the interim, if you listen to the podcast below, it answers all your questions but not in too much detail. I'll see it as an induction into the world of stock picking. You can get further books and build on the foundation you get there.

All the best...

https://anchor.fm/ajibola-oladele-awolowo

How many stocks or assets should I own?
10, 30, 50 or 100?

This week on Value Nigeria with Ajibola, we discuss Diversification vs Concentration.

Thanks for sharing & listening.

https://anchor.fm/ajibola-oladele-awolowo/episodes/26--Diversification-vs-Concentration-e16t8go

What is risk? How can I manage the risk I am exposed to as a value investor?

You'll find answers to these questions and more on this weeks episode of Value Nigeria with Ajibola...

Thanks for listening...

https://anchor.fm/ajibola-oladele-awolowo/episodes/25--Risk-Management-Strategies-e16jgqc

I stumbled unto this thread and its good to see like minded people particularly with value investing at heart...

Many regards...