₦airaland Forum

ositadima1:
You want to commit more money to a company that has clear issues? This looks more like an emotional move to me. If I were you, even if I wanted to average down, I would wait to see positive financials or corporate disclosure. Even if a merger is planned, how do you merge a company that is carrying negative equity? It will surely significantly reduce the controlling ratios of DS (I maybe very wrong).

Anyway, Mcy56 said the loss has already been priced in. The experts have spoken, sha.

Heishere:
Thanks for the comfort. So I should average down?

BullBearMkt:
DANGSUGAR IN ANOTHER HEAVY LOSS, A SELL?
The stock price currently hovering around Bullish Order Block. The stock has potential of reversal at this level. Wait for rejection candle for confirmation

PLAN YOUR TRADES TRADE YOUR PLANS

ojeysky:
I was shocked when I saw it back to 27 but no regrets 100% made on my little units...am out

Zegra:
Has the company submitted its merger documents to the Securities and Exchange Commission (SEC) for review and approval?

ProphetUtuocha:
Mark this:
Oando profit takers will struggle to join a moving train.

Agbalowomeri:
I am here please

Heishere:
Chai. Na serious haircut this stock dey give person. Already down by 34% loss. I wonder how low it will go from here. By the way, someone mentioned to expected good news on Dangote foods soon.

SonofElElyonRet:
I exited at N35 yesterday to stand aside and observe. Will re enter when coast is clear .. partly exited UBA at N21 .. couldn't sell rest at that price. We go again. Make Prophet drop jewel quick before i spend the tashere funds

Ginalex:
Why you go talk this kyn thing

Agbalowomeri:
Gest ke. It's a good buy at N15

yMcy56:
I also wonder oo
Doesn't people want bonus again?
Or they're afraid UCAP's bonus too might not be real?
AFRIPRUD mistake was from NGX, the officer in charge needs to be queried and suspended for toying and misleading with very sensitive info!

Announcement!!
UCAP's bonus issue of 2:1 (two new for every one held) is real ooooo 😁

mikeapollo:
Anything can happen. But the prospects of Oando going above N50 is very high, especially if the HY 2024 financials show positive results.

megawealth01:
Anyone that missed Oando should just move on until the dust clears...

You can still buy it then sef no matter the price...

Nothing is really missed in this market as opportunities dey always dey

Choiceguy:
Village people is after my me.
Pastor Agba, what is going on Oando. bullbearmk is the man that deprived me this opportunity because of the wrong court date he posted.i was waiting to re-enter Oando later.the rest is history.

Ginalex:
😆😆

Ginalex:
🙏😔 Na beg we dey beg... Bonus share we never still receive am🥹🥹

Choiceguy:
That's why we are preaching you should always confirm what is on the table before jumping.

MARKETJJC:
I think na work of MM. I think they want to create doubt and control the fall somehow.

Full bid wey almost all bid dey 99000units😀😀

Raider76:
He is trying to start another rally.

Princkez:
OANDO oooo

Raider76:
He is trying to start another rally.

vacanci:
news since 3 years ago?

ositadima1:
Consolidated Metrics Comparison (Dangote Sugar vs BUA Foods), 2023:

Return on Equity (ROE): -93.08% vs 42.78%
Return on Assets (ROA): -12.28% vs 10.47%
Net Profit Margin: -16.71% vs 15.37%
Current Ratio: 0.77 vs 0.91
Quick Ratio: 0.68 vs 0.76
FCFE (in '000 Naira): 94,498,754 vs 216,089,523

Now, let's consider scenarios without forex losses for both companies:

Dangote Sugar's forex loss: 148,328,367 ('000 Naira) (my previous 170 billion was wrong)
Adjusted Net Income: 74,568,059 ('000 Naira)

BUA Foods' forex loss: 81,864,676 ('000 Naira)
Adjusted Net Income: 193,962,173 ('000 Naira)

Adjusted Metrics (without forex losses) - Dangote Sugar vs BUA Foods:

Return on Equity (ROE): 94.10% vs 74.01%
Return on Assets (ROA): 12.41% vs 18.12%
Net Profit Margin: 16.89% vs 26.59%
Current Ratio: 0.77 vs 0.91 (unchanged)
Quick Ratio: 0.68 vs 0.76 (unchanged)
Adjusted FCFE (in '000 Naira): 242,827,121 vs 297,954,199

Analysis of Adjusted Scenarios:

1. Profitability: Without forex losses, both companies show strong profitability. Dangote Sugar's performance improves dramatically, with its ROE even surpassing BUA Foods'. BUA Foods maintains excellent profitability ratios, with a higher ROA and Net Profit Margin.

2. Liquidity: Liquidity ratios remain unchanged as they are not directly affected by the forex losses.

3. FCFE: Both companies show significantly improved FCFE without forex losses. Dangote Sugar's FCFE increases by about 157%, while BUA Foods' FCFE increases by about 38%.

Key Observations:

1. Forex losses had a substantial impact on both companies, but the effect was more pronounced for Dangote Sugar.

2. Without forex losses, both companies demonstrate strong profitability, with Dangote Sugar showing a remarkable turnaround.

3. BUA Foods maintains a higher ROA and Net Profit Margin even after adjustments, indicating potentially better operational efficiency.

4. Liquidity remains a concern for both companies, with ratios below 1, suggesting potential challenges in meeting short-term obligations.

5. The adjusted FCFE for both companies is significantly higher, indicating strong cash generation capabilities when forex impacts are removed.

6. BUA Foods still generates higher FCFE than Dangote Sugar in the adjusted scenario, but the gap narrows considerably.

Conclusion:
When forex losses are excluded, both Dangote Sugar and BUA Foods demonstrate strong financial performance. The adjusted figures reveal that both companies have solid underlying operations. BUA Foods still maintains an edge in terms of operational efficiency and cash generation. The forex losses highlight the significant impact of macroeconomic factors on these companies' financial results, emphasizing the need for robust forex risk management strategies.

ositadima1:
If you look closely, my comparison is based on efficiency since they are both in the same space. From your perspective, DS has performed much worse, with only sugar having a bigger cost of sales compared to a whole conglomerate of products.

Though, DS is significantly larger than BUA's sugar sector.

Why do you think the merger alone will make it more efficient? They are still individual products made at different plants.

Look at my post again and see that the difference in efficiency is almost twice as much.