₦airaland Forum

SonofElElyonRet:
Think long term so you don't suffer what Oandoans are going through

I don't have single unit of Ellah Lakes though. Just posted the analysis as a guide for those that are in it.

ojeysky:
The EPS got worse, looks like it may dip further from tomorrow. I pray to have spare funds to average down.

The Explainer: Ellah Lakes In-Depth Analysis of Q2 Results and Investment Outlook

Ellah Lakes Plc, a player in the agricultural and food production sector, has faced significant financial challenges during the second quarter (Q2) ending January 31, 2025. Despite modest revenue growth, the company posted a loss of N396.6 million for the period, exacerbated by escalating administrative and personnel expenses. This analyst review delves into the company’s financial performance, offering an analysis of its core metrics and examining its future prospects for investors.

Ellah Lakes saw its revenue for Q2 2025 stand at N18.97 million, a notable improvement from the corresponding period in 2024 when the company reported no revenue at all. This growth, though positive, was insufficient to offset the sharp rise in operating costs. The company’s revenue generation, primarily driven by its agricultural activities, reflects an ongoing effort to expand its business operations. However, the modest increase in income was dwarfed by the surge in operational expenditures, which is a key factor contributing to the company’s poor financial performance.

The company's operating loss for Q2 2025 soared to N675.8 million, a significant deterioration from N344.2 million in Q2 2024. The steep rise in operating losses is attributed to higher administrative costs, which amounted to N249.3 million, a sharp increase from N86.3 million in the prior year. Additionally, personnel expenses nearly doubled, rising to N414.3 million from N119.5 million during the same period last year.

The sharp increase in operating costs is attributed to the company’s ongoing restructuring efforts, the scaling of its business operations, and inflationary pressures that have affected its cost base. As Ellah Lakes continues to ramp up operations, these higher costs will likely persist unless the company achieve significant efficiencies in its processes or pass on the higher costs to consumers.

One of the most concerning aspects of Ellah Lakes' Q2 2025 financials is the surge in its total liabilities, which increased to N4.61 billion, up from N2.7 billion in the same period last year. This substantial rise in liabilities is largely driven by a director’s loan of N1.88 billion and borrowings amounting to N1.14 billion. Such a significant increase in liabilities places additional strain on the company’s balance sheet, particularly as its retained losses have widened to N4.81 billion from N3.96 billion.

The growing debt burden is a serious concern for shareholders, as it threatens the long-term viability of the company and erodes shareholder equity. In particular, the company’s retained losses continue to grow, reducing its ability to reinvest profits into expansion or reduce its reliance on external financing.

Despite the financial challenges, Ellah Lakes has managed to maintain a revaluation surplus of N14.93 billion, which has contributed to total equity of N19.95 billion as of January 31, 2025. This revaluation surplus, however, is largely a paper gain and does not directly contribute to the company’s liquidity position. While the revaluation surplus bolsters the company’s equity, it does little to alleviate the immediate financial pressures, especially considering the mounting operating losses and growing debt.

Ellah Lakes’ cash position is another area of concern. Cash and cash equivalents have sharply declined to N23.1 million from N243.3 million as of July 2024. This sharp decline indicates significant liquidity challenges, and raises concerns about the company’s ability to meet its short-term obligations without resorting to further borrowing or asset sales.

The decline in cash reserves could signal a tight liquidity position, which affect the company’s ability to fund its operations, repay debts, or capitalise on new business opportunities in the near term. For investors, this raises red flags about the company’s financial stability and its capacity to weather future economic or market shocks.

The stock price of Ellah Lakes Plc has also experienced a slight decline, trading at N3.20 per share on Friday, February 28, 2025, down from N3.22 at the previous market opening. While this seem like a minor fluctuation, it reflects broader investor sentiment regarding the company’s current financial health and future prospects.

Given the company’s ongoing financial strain, characterised by rising operating costs, widening losses, a growing debt burden, and a weakened liquidity position, investors may face a challenging period ahead. Although Ellah Lakes has made strides in increasing its revenue and maintaining its equity base, the rising costs and liabilities continues to undermine profitability.

Investor Recommendation: "HOLD" or "SELL"?

For investors currently holding shares in Ellah Lakes Plc, the recommendation would likely be “HOLD” for now, with caution. The company's revaluation surplus and the potential for future growth in its agricultural operations remain factors that may stabilise its financial situation over time. However, given the significant operating losses, growing debt load, and liquidity concerns, investors should monitor the company closely for any signs of improvement in cost control, cash flow, and revenue generation.

For prospective investors, the current market price of N3.20 per share represent a short-term opportunity, but only if they are prepared to take on the associated risks. With no clear path to profitability in the near term and ongoing financial pressures, caution is advised. The company’s current financial situation suggests that Ellah Lakes struggle to generate meaningful returns for investors unless there is a significant change in its operational and financial strategies.

Ultimately, investors should consider their risk appetite and closely monitor the company’s next set of financial results and any updates regarding its debt management and liquidity position before making any final investment decision.

© Gilbert Ayoola

https://doclib.ngxgroup.com/Financial_NewsDocs/43233_NIGERIAN_EXCHANGE_GROUP_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2024_FINANCIAL_STATEMENTS_FEBRUARY_2025.pdf

Good one from NGX. EPS of 450k and dividend of 200k.

https://doclib.ngxgroup.com/Financial_NewsDocs/43236_DANGOTE_CEMENT_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2024_FINANCIAL_STATEMENTS_MARCH_2025.pdf

Dangote EPS of 2974k. Dividend of N30 for the financial year, same as last year.

https://doclib.ngxgroup.com/Financial_NewsDocs/43238_ELLAH_LAKES_PLC.-_QUARTER_2_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_MARCH_2025.pdf

Ellah Lakes Q2. At least revenue is now showing in their result, though very little. Lost after tax of 0.20k sha.

Jeez2:
Abeg is there a reason Caverton is on full bid?

https://doclib.ngxgroup.com/Financial_NewsDocs/43181_CAVERTON_OFFSHORE_SUPPORT_GROUP_PLC-CAVERTON_PRESS_RELEASE__CORPORATE_ACTIONS_FEBRUARY_2025.pdf

Above lies the answer. The company entered into agreement with NNPC.....

...

Streetinvestor2:
The old testament and new testament thing is always for different purposes.
The same Jesus cursed a tree which died because it could be termed as witch for not bearing fruit though looking good by other features.Why didn't Jesus bless the tree to show love when he got thr and it had no fruit being hungry/angry
Accepting Jesus as your Lord and saviour is all it requires to be born again.
Make them no accuse me of derailing the thread.
The monikers know themselves. They should stay thr lane as I have decided same.
Love,dislike and hate is part of my own Christian practice.

Is tree a human being? Even the context of that passage is totally different from your explanation (It symbolizes his judgment on those who appear outwardly religious but lack genuine faith and produce no spiritual fruit) If you like, abuse me, I don't care. When it comes to Christianity, let us learn to speak the truth. Do have a nice day.

yMcy56:
Means you're not a born again Christian.
Jesus has come to repeal and abolish some old testament believes.......said they were given such laws because of the stiffness of their hearts.
All the commandments has now been grouped under 2 royal laws as seen in Matt 22:36-40....
Love the Lord thy God and, love your neighbor as yourself.
Make una dey read your Bible very well o, especially New Testament which talks more about the gospel of Christ. 😊

Thank you Landlady for the epistle. The essence of Christianity (Christ-Like People) is summed-up in the bolded and not in any other form of Christianity created by any pastor.

mikeapollo:
Thanks, man. I appreciate.
The man's policies attacked me seriously, so I need to fire back devastatingly

lol @ the bolded. If others lament how the present government policies affected them, you will still thank God. On the contrary, some people benefited a lot too from those policies that you considered negative. So, those people will also come out and say that this government is good. I have a close friend in diaspora that has made over a billion naira in his trading profit since this government took over, and you can guess who he will be supporting whenever we are talking politics.

In conclusion, I want you to understand that the 2 things that can easily scatter friendship between Africans is politics and religion. Let's try to keep this two away from this thread in order to focus on our objectives of making money. Do have a nice day.

Streetinvestor2:
I said it before you appeared. He was looking for his tribe man to come join and behold you came.Is not too much for both of you to stay your lane abi.

Let no one come to advice me oh.Tell these two monikers to stay thr lane.I dey my lane.I hate the two moniker and what ever animal beings behind them

Suprise! Suprise!! Things are changing rapidly I was expecting you to unleash barrage of abuses, but you just came out with light words. FYI, I don't hate people, God forbid. It is their character that I hates. As a person, I love you, but will be happier if you change your character to emulate your saviour. This world is a small place, and I don't see any reason why someone will hate his/her fellow humans.
Do have a nice day.

Streetinvestor2:
Na amadioha go kill you and yours out of envy.Yeye commission agent looking for people to scam.You think because you collect commission means you are into real estate. Hungry clown. I am ready for you.If your type cross my lane in real life.I swear I will remove your head from your useless body with the way I hate this useless moniker.

Well done o, OC Fight. Only you every time, fighting with everybody. When do you think you will have peace in your lifetime? Later, you will be lamenting that someone is tracking you. Why will someone not track you due to your behavior and with the things you writes: that you will cut somebody head away!. Are you a ri.tu.alist? I know that you will reactivates @undead and smart guy shortly to disturb everybody, but we are already used to it

mikeapollo:
He will benefit too, but compare what he would benefit now against the benefit of keeping the whole 4.3billion to himself and the related party subsidiaries.

I got your point and you are right. In my own view, if Wale decides to corner the entire shares to himself or cronies, it may eventually lead to litigation from those that initially owns it. Therefore, the best way to do it, is to get the shareholders approval through AGM. Afterall, getting half bread with peace of mind is better than eating the whole bread and thereafter going through persecutions.

mikeapollo:
To be honest, I think Wale has taken some steps that show that he means well and is ready to reward Oando shareholders, and also uphold good corporate governance going forward.
It is a big deal to release and distribute a whooping 4.3billion shares amongst minority shareholders. We should never take this gesture for granted because no shareholder would have known if he had refused to do it.
I just hope that Q1 2025 produces good results. If that happens, there may be big price rally for the next tranche of the share distribution.

Correct me if I am wrong though, but we seem to forget that Wale himself will benefit and get more shares than anyone else from the share distribution.

SonofElElyonRet:
Oando people you are the very definition of the rat race
Kubekubekube upandan

Present Sir

Sunrisepebble:
Interesting, they made a loss in Q4.
That dividend is super though, N80. I think I will also start slowing exiting my position here too. Revenue/ profit last year was still driven by FX and the subsidy removal. I don’t think they’ll have the same tailwinds again this year

That is the EPS (N81.94). Dividend would be proposed in a much later date..

currentprice:
comparing to my portfolio it look like you must have average up your price. from you previous post we bought almost at same price and I have more higher percentage that 57% u posted

Yes o. I bought more thereafter. My break even (BE) price is 2164k

IYGEAL:
Oga CP na Genius

I bought the UACN when he first called it out and the stock is already doing 57% comfortably in my portfolio. He also made case for Livestock Feeds. Then Livestock was selling at 375k but now around 600k. He has proven himself on this platform beyond reasonable doubt and it is a pleasure to have him with us alongside other resource persons.

bastardson:
E be like sey Loco don sell em CHAMS. This is not looking normal

There is nothing unusual in what is going on in chams. The stock, just like any other stock in NGX, is bound to go either up or down pending release of their financial result, which will justify the actual market price.

megawealth01:
PATIENCE would have helped you since they maintained civil communication. Well goodluck in your next broker try

Nigeria brokers can't really do much without relying on the TECH INDUSTRY which is still involving in NAIJA

You are right on the bolded. I am very sure the guy would come back here and complain about the next broker he is running to. Morgan capital is a reliable broker that most people are using here. He would have sort the differences out with them patiently.

gabscity:
Please I need Morgan Capital Bank account number. Anyone to please help.

Thanks.

Bank: Zenith Bank Plc
Account name: MorganCapital Securities Limited
Account number: 1013840874

megawealth01:
OANDO matter no dey rest na?

A law firm (THE LAWSMITH - BARRISTER AND SOLICITOR) wrote a letter to Oando yesterday and copied SEC/NGX. Below is the extract and demands:

You will also recall that shareholders were told that Oando Plc could not pay dividends for a straight 10th year running due to the losses suffered in the past years. however, our Clients were disheartened to learn a few days later that Oando Plc held a very lavish and clearly extravagant End-of-year party on 19th December 2024 which featured Burna Boy. Wi2k,'d. Davido, Omah Lay among other music stars to commemorate and mark the 30th Anniversary of your Ocean & Oil Group allegedly at the cost of N7.425biIlion. Our Clients find this expense outrageous and unjustified considering the 31% reduction in the Company's Profit in its Q3 2024 financials and the lack of dividends to minority shareholders since 2013 even though your management staff and Board members have consistently received remuneration without fail over the same period.

Our Clients are further unhappy about how the interests of your Ocean & Oil group have consistently been promoted over and above Oando Plc as exhibited in the 2023 Annual Report in which you attempted revisionism to make Oando Plc look like its story began in 1994 when Ocean & Oil was founded. It must be made clear that Oando Plc and Ocean & Oil Group are distinct and separate. They are not the same entity!

As such, we have our Clients' instructions to make the following demands:

As such, we have our Clients' instructions to make the following demands:
1. An immediate publication of the details of the Companies owing Oando P/c, the sums involved. the exact number of shares involved and proposed ratio of distribution. the relationship between those companies and Oando Directors:
2. An immediate publication ofthe cessation ofyour "Oando Co Private "pet project and fi/ing/service ofa Notice of Discontinuance to this effect.
3. A total refund of the sum spent on the extravagant End-of-year party on December 2024 by Ocean Oil Group to Oando P/c.

SonofElElyonRet:
Your post shows you are uncouth and totally beneath me.. not forcing anyone to buy or attend the webinar but display of arrogant ignorance is repulsive to me. You know not and know not that you know not. Your cabal can't intimidate me. I dey kampe
Modified: change your name to street urchin. Or better still.. oando don cast

There he goes again. Don't waste your energy on that moniker. I wonder what he is doing in stock trading, when he is supposed to be in UFC or heavyweight boxing. His second name is FIGHT and it is inculcated in his DNA Even @emmanuelewumi that was addressed did not retaliate with abusive words. We need to give him the award as the MIKE TYSON of NSEMPA

emmanuelewumi:
I will rather buy the one at Ikoyi,


But wait ooo, since the property already has tenants and the rent can pay the mortgage. Why is the owner selling.


He is either selling at an inflated price, he expects a correction in the real estate market or he has over leveraged himself by taking more than enough loans.


All I know is that real money making opportunities are top kept secrets and no one will invite others to understand their money making secrets.


My opinion though.

I might be wrong


I have been wrong on several occasions

lol at the way some criticize your comments. Old man with sense

The problem is that most people doesn't know that your style of investment is to look well before you leap. That notwithstanding, there is always one or two things to learn from your post.

..

HesInMe:
Na wa. Haven't your balls descended yet? You're too easily triggered: Every disagreement with you turns into a knife fight in the dark to the death. Can't I appreciate someone's analyses and disagree with him on his conclusions?

Stop taking everything so personally abeg. Buy Chams if you want.

Don't waste your time on that moniker. He has practically fought with almost everybody on this platform. You can just do a little background check on his moniker and you will see what I am talking about. My advice to him is to change his ways, behaviour and personal relationship with people. It is only by then that he can have absolute rest of mind without anybody tracking him. I wonder what he has that people are tracking him up and down? maybe those that he has fought with before sha . I saw him calling you a crim.ina.l just because your moniker is old and idle, without decently finding out why. You have been good with your responses so far, and I encourage you to keep to it.

On Chams, you have not done anything bad by your analysis/criticisms, that is why this thread was created. Due to Loco's stance on Chams, I made some background checks and discover that they are somehow linked with the powers to be, therefore, it is most likely they will be favoured by this government. Thereafter, I bought close to 4m units. I rest my case for now.

Xidget:
The person selling down Chams is not done o. This is the 3rd 3m units he's bringing today

There is a buyer also waiting for him to bring it on. @locotrader, no shaking. Chams must move

In addition, I heard from local parlance that Chams has one link or the other with the presidec.

Ginalex:
Eku market o from my husband and I 🌚🌝

I go love o!!! Congratulations

Sunrisepebble:
Tbh I’m inclined to agree with you. Like I’ve mentioned many times before I don’t sabi book too much so TA is far above my pay grade and even if I did, considering the way our market is structured I don’t think one can really use it here but volume is always a leading indicator.

When Wapco started its relay at 42 to 46 and I was asking why the sudden attention, people were telling me it was not sudden, that Wapco was undervalued but straight away I knew something was up and went to do investigation. There’s no smoke without fire. This was my spiritual analysis but I’m sure anyone looking at the volume chart would have seen unusual activity.

The fact that you don't believe in something does not meant it doesn't work. People that have been using it since time immemorial testified to the fact that it works. Therefore, I don't see any reason trying to discountenance their strategy. Success in the stock market is not necessarily tied to a single strategy. As we always say here, keep to what works for you and respect the strategy that works for others too. Do have a nice trading day.

HesInMe:
I swear nothing makes sense in the NSE. Which normal market would buy ahead of a recapitalization exercise that is dilutive to existing shareholders?

Anyway, you know what they say about penny stocks: They go up right before the market crashes. But what do I know?

From my experience over the years, market crashes are always led by banks. The moment you see their financial results declining massively, then you should know that market crashes are imminent because institutional investors will start selling their holdings to move the funds to the money market. However, the fact that insiders in these banks are still buying their bank shares is a pointer to the fact that things will still be alright, at least in the next 3 months.

ojeysky:
Waiting for a time when we will see ellahlakes have actual product for export

The truth is that it will take ellah at least 3 years from now to achieve this feat. Palm plantation don't grow overnight, it takes at least 4 years for an average oil palm to reach fruition. The crucial question to ask is, when did ellah planted their oil palm plantation? This will help in determining when to buy the stock for capital appreciation.

dapix:
Is NGX trading half day today?

Yes. Market closes by 12.30pm today.