₦airaland Forum

RabbiDoracle:
You can trade it on most forex platforms.

I have accounts with Pepperstone and FXTM, but I can't find options for commodity trading.


I will ask them.


Thanks

RabbiDoracle:
There is currently a herd effect in gold. You won't understand it because in Nigeria we don't buy gold.

Most people in Middle East, Asia, are packing all their funds into gold. This is herd effect. The lucky buyers were Nosa2 dem that bought long ago. Once the selloff don gain traction, then you will see massive dumping of gold before it will now stage a comeback after Fed do their yeye thing once more.

What platform do you buy commodities (Gold and Crude-oil)?

Don't get sold a story!
Good intentions and attention-grabbing details aren't enough to make a good Rule #1 investment, because there's nothing certain about a nice story.

Truth234:
Hope you are liking the publications.

Great

Truth234:
Unilever Overseas Holdings Purchased 17m Shares in Unilever Nigeria

Unilever Nigeria Plc on Wednesday disclosed that Unilever Overseas Holdings B.V, a substantial shareholder, bought total shares of 17,023,490 in Unilever Nigeria Plc.

This, the company disclosed in its latest statement released through the Nigerian Stock Exchange.

https://investorsking.com/unilever-overseas-holdings-purchased-17m-shares-in-unilever-nigeria/

wow

CashDiMkpa:
I am on duty today

I suspect you are loading more law and union.

CashDiMkpa:
August 24 qualifies one to vote.

Proxies can be sent in 24 hours before meeting which is in September.

Thanks

CashDiMkpa:
http://www.nse.com.ng/Financial_NewsDocs/31228_LAW_UNION_AND_ROCK_INS._PLC.-_NOTICES_OF_COURT_ORDER_M.pdf

Any shareholder of Law Union in the house? Please appoint me as proxy so that i can participate in this court ordered meeting. There are a few pertinent questions for law Union Board and management.

The purchase consideration per share of N1.23 is at a 28% discount to BVPS of N1.71 as at Half year 2020. Verod Capital and management/board are are leveraging on depressed prices of insurance stocks over the past few years make that purchase consideration look attractive. For 100% sale as an invetor i will be looking for premium on higher of market price or book value per share (whichever is higher)......and this is one of the better managed insurance companies.

Retail shareholders getting s*rewed as usual by the institutional ones. Alternative Capital, Swanlux Solutions etc. una try o. Shareholders have to leverage on Resolution D to get them to increase the consideration. But it will be a tough call as the institutional investors control close to 80% of voting rights.

Any announcement on about the closing date.

zimams:
With the border closure, soap makers and some coys into consumer good are relying on supplies of CPO from Presco and Okhomu majorly, which is good for them. They also cultivated a couple of acres of palm trees which should start yielding pretty soon , increasing their capacity. I think the times are good for them.

Biafran4life:
Oga palm oil is sky rocketing in the market.No Malaysia oil coming in and over 50% of raw materials for noodles is from palm oil.okomu will definitely hit 100 soon

That is information i have been looking for .

Going long on Presco

Thanks.

Agriculture/Agro Allied Sector

OKOMU OIL PALM PLC. (palm oil) 80NGN
PRESCO PLC. (palm oil) 51.5NGN
ELLAH LAKES PLC. 4.25NGN
FTN COCOA PROCESSORS PLC 0.2NGN
LIVESTOCK FEEDS PLC. 0.62NGN

It seems palm oil is booming

Oyel wahala

BullBearMkt:
...I've been going through some researches on FA & I really wonder why many people that invest based on FA on this forum are investing based on fundamentals. Most of the these companies (on NSE) do not worth investing for long term based on FA. Most companies financial report shows good revenue/sales; nice net income, some managed to pay dividend and squandered the remaining profits. No Free Cash, Management acumen/performances are zero. Only price is moving, which invariably means short term investing/trading is what will make money on NSE.

This is what happened when NSE and SEC are allowing poor cooperate governance.

safepaulooo:
Could this be true that Naira is officially devalued to N379 to dollar

https://investogist.com/cbn-devalues-the-official-rate-of-naira-for-the-second-time-in-2020/

I though CBN wanted to unify the currency

lexy2lexy:
That is my suspicion too, I think the parent company owns Nutricima which has been using PZ Nigeria assets for production. Have they been paying compensation for using those assets over the years? As part of the deal for Nutricima, they were to sell the factory which is on PZ Nigeria’s land. I think some of these complexities led to postponement of the EGM. It will be interesting to see how this end, I sincerely hope the Nigerian shareholders are not shortchanged.

PZ is a complex multinational.

For example :

Kings oil is from PZ Wilmar

PZ Wilmar is a joint venture between PZ Cussons International, UK and
Wilmar International Ltd, Singapore

emmanuelewumi:
How did Private Equity firms like Thermis Capital and others own substantial shares of UACN?..


It happened during the last right offer of UACN. Most shareholders did not take their right because of the dismal performance by the company and her subsidiaries, coupled with the fact that 2 years before last right, the company raised money through right which shareholders did not see any substantial return on their Investments .

Thermis Capital and firms used the right offer to buy into the company to own substantial holding, Stanbic IBTC was the issuing house to the right. The current CEO of the company worked with Stanbic IBTC before he founded Thermis Capital, the private equity firm that is now a major shareholder of UACN

I want to believe that the acquisition was financed by loan, hence asset stripping in order to get quick returns on their Investments.


I never expected core portfolio managers to create wealth for shareholders by creating wealth through efficient management of company.

The attractions are the huge assets of the company that were under utilized which the new corporate raiders are interested in converting to cash, rather than cash flow generating assets.


I hope their is no relationship between the new core owners of this old conglomerate and a former CEO of the company.

If they actually used loans to finance to the acquisitions, SEC should step in and stop the assets stripping.

This is why I love the US SEC.
They will make sure core investors turn around the company before selling off any asset.

onegentleguy:
No comment my dear !!
On the part in bold, which matter? ...there's no matter oo !!

Divergent views and perspectives is always welcome. ...it's what makes the stock market one of the most dynamic investing environment and broadly determines the mechanics of money flow within it.

I can only advise u to follow ur instinct.

It is well.

My friend, Quick question.

Do you trust UACN management?

onegentleguy:
I can only wish u Good luck dear !!
...after all, u are and will always be the CEO of ur portfolio.

Regards

I have few units in UACN, but those guys at UACN are not smiling at investors.


Let's watch what will happen to the funds they got

Mpeace:
"...Elsewhere, the N17 billion inflow will also help improve on the groups existing cash position particularly its FCF which went down as a result of a surge in capex.(CFI in view)..."
This part got me thinking. Its best they share the money.

onegentleguy:
On the UACN investors conference call...

Statement from the MD/CEO of the group, Mr Folasope Babasola Aiyesimoju on the recent partnership with CUSTODIAN inv on the group's subset UPDC Nig Plc;

"Last yr, we indicated the intention to unbundle our interest in UPDC to stakeholders with the key motivation being the differences between UPDC and the rest of our operating segment.
Over the course of implementing the planned unbundling, we entered into discussions with CUSTODIAN, the conclusion of which were checked relative to the proposed unbundling.
The discussions led to UACN and CUSTODIAN executing binding agreements for the latter to acquire a 51% interest in UPDC at a price per share of 82.5k with 85% of the total consideration paid down immediately on closing the deal, and the balance upon certain conditions.
We determined that the transaction with CUSTODIAN presents superior value to the unbundling for 3 primary reasons;

1) UAC crystallizes cash proceeds
2) We achieve our laid down strategic objectives
3) We get to receive units in the UPDC REITS which is profitable, cash generative and with potential future upside.

Also of significance is that UPDC will benefit from the introduction of a strong anchor shareholder which improves its prospect for future value creation, for which UACN will benefit via its retained stake.
As at June 30th, 2020, we carried our stake in UPDC at a value of N17.2 billion. The transaction values our stake in UPDC at N14.4 billion including the defered consideration components. ...but we will also receive units in the UPDC REIT worth N2.5 billion at yesterdays closing price, bringing the whole value to UACN to over N17 billion."


My view:

Prior to the deal, UACN owns about 94% stake in UPDC, while UPDC owns approx 61% stake in UPDC REITS.
Post deal, CUSTODIAN buys up 51% in UPDC, while UACN retains 43% stake, and also gets a cash inflow of over 17 billion.
Given the stipulated sharing formula, UACN and CUSTODIAN shall hold stakes in the REITS at proportions of approx 27.9%[(43/51)x61] and 33.1%[(51/94)x61] respectively.
This proportion shall determine the % sharing of yearly cashflow proceeds of UPDC REITS to UPDC which would drop down to both coys.
At the current RoR of approx N3B dividends from UPDC reits to UPDC, UACN and CUSTODIAN should get about N1.37B and N1.62B in annual inflow until the deal is totally consummated.(UACN sells the bal of 43% to CUSTODIAN)
...and when that happens, CUSTODIAN might consider buying out minority shareholders of UPDC given that it would own a 94% stake in total, with just a minot 6% as free float.

Looking at UACN' financial print...

The drop in NETT MARGIN was broadly the result of a material drop in finance income(from STinv) when compared to the corresponding period in 2019.
YtD though, value drive from growth proposition remains intact.
...with the BS showing NCWC in the positive line(CA @ premium to TL), receivables growing at a faster rate than inventry position, a combination of decelerating trade and A/c payables(reflective in NWC days), a much reduced StD(over 3,500bps down Ytd) and zero LtD, I can tell that the group is now very well positioned to laverage on opportunities ahead.
Elsewhere, the N17 billion inflow will also help improve on the groups existing cash position particularly its FCF which went down as a result of a surge in capex.(CFI in view)

As I stated here before now, using an appropriate blend of valuation model, which uses an approach that considers all key financial lines and extensively nets off a high risk premium from the assets valuation, in lieu of future volatility, my FVE estimate of UACN pegs @ N13.85, drawing from this financial print.
...this is excluding the consideration of the partnership deal with CUSTODIAN.
Factor that in, and well, ur guess is already as good as mine.

3 entities... UACN, UPDC and CUSTODIAN.
A dig on their last spate of financial print put side by side with the feasible benefits accrued from the proposed deal and UACN still hold the biggest prospect for us.(risk-reward margin in view)
If I were an investor, I would look to align more of my portfolio in UACN ahead of CUSTODIAN.
...a 70-30 % weighting wouldn't be a bad idea.

With a close possibility of a future delisting(plausible MTO from CUSTODIAN post total consummation of the deal), I have a neutral view on UPDC.
...well, for now !!


CAVEAT: This interpretation and follow-up inference are in view of the financial print as released by the company. ...it is neither subjective nor conclusive.
Due diligence still applies as always.

My advise: Pls follow ur instinct.

Thanks for your submission.

The major problem here, is that I don't trust UACN management, they have not been sincere from day one.

I would rather hold UPDC(managed by CUSTODIAN) and If they decide to delist, they will pay me above current market price.

Mcy56:
Yes. I knew of 2 and 4 litres anyway

Wow I just realised this morning.

It seems some companies are benefiting from the Agirculure local content.

So Okomu produces Banga palm oil

Mcy56:
Someone mentioned jumping out of INTBREW bus. I think this is the time to start entering the bus little by little........
Ayam coming......let me reconfirm........

Breweries are not brewing well anymore.

I am waiting for their bottom.

aremso:
They are in the process already！

Great news

Mpeace:
They will soon buy world bank.

They might buy CBN before December

I don't like Access Bank shopping spree

naturalflow:
uacn full offer,no single bid.

While UAC-PROP is on full bid.

It seems investors trust Custodian management than UAC mgt

SlahJoe:
Good morning house, please help a novice, I tried sending my completed share Transfer forms and kept getting this reply "Kindly use a SCANNING MACHINE and not phone scanner to scan the documents to us as the print out of the form cant be processed" how do I go about it?

If you don't have a scanner, take it to a business center, scan and send it to them.

UAC-PROP on the move

emmasoft:
That is what I just said. I only added that they used to be at Apapa

Yes, I notice that.

emmasoft:
They have since moved away from Apapa
That address is correct. It's very Close to this firm cashcraft

GTL Registrars is still at Yaba

NB

FLOUR MILLS NIG shakara full-bid ended