₦airaland Forum

megawealth01:
3rd PICK for the year...

CWG @$6+

DYOR

NettyNelly:
Well done
I believe it's a #80 - #90 stock as well.
I started looking at the stock at #49, but I didn't buy cause it's not the type of business I would like to hold for a long time.

They are really struggling with energy cost and I couldn't see a favourable runway ahead of the business, like most of my portfolio businesses.
If I was a trader I would have loaded up and hold it for a year for capital appreciation.

megawealth01:
3rd PICK for the year...

CWG @$6+

DYOR

olig:
How did I miss the first two 😫

GeeKudi:
Care to mention the first two? Must have missede them. Merci

unite4real:
The current market price is not N49.

It is N64.90

KarlTom:
1. NB.
2. Deap

megawealth01:
3rd PICK for the year...

CWG @#6+

DYOR

handsomebolanle:
Is there any regulation that support non-withdrawal into a different account even though it’s the same person because the account is not registered with the broker?

In this case from a stockbroker to the the persons account.

emmanuelewumi:
Well done


It is a capital intensive business, capex margin of 68% is on the highside coupled with low dividend payout.

I prefer businesses with capex margin of 20% and below although 10% and below is preferable.


What percentage of the net operating cash flow did they use for capex. 30% and below of net operating cash flow is better.

ositadima1:
Let me start by saying that I haven’t looked deeply into the details beyond glancing at the audited 2023 earnings and the unaudited third-quarter 2024 earnings. The rest of my analysis is based on basic technical analysis and statistics.

My estimated final EPS for 2024 is similar to yours at 16.9. If the dividend follows the very low payout from 2023, it should be around ₦1.8 per share. It looks like a solid company focused on growth, which explains why only 11% of earnings are being paid as dividends. This low dividend payout pattern may continue, as the chart doesn’t show any anomalies in volume—unless, of course, they’re exceptionally good at hiding information.

With the kind of EPS they’re generating, the stock should be trading between ₦92 and ₦177, but the low dividend payout is holding back share price growth. This is the type of company that could issue a bonus in the future, perhaps something like a 3-for-2 stock split.

I’ll be keeping an eye out for anomalies in trading volume. While I believe the stock price will rise, I also expect it to dip below the current price at some point during the year due to the low dividend payout, only to recover later.

unite4real:
if the exit price for the majority shareholders stood at N90, then i believe the MTO for the minority should be doing above N100

emmaodet:
Capex is 5.7b while OFC is negative 7.7b, so total FCF is -#13.4b. To answer your question, 74% of OFC was used for capex in 9M
Account receivables of 58b is roughly 75% of 9M revenue which is we need to keep an eye on
Inventory of 25b is 3x of profit 8b which is worrisome

Locotrader:
You are on the right track this year.
More wins

temi4fash:
CWG is at 6.85 presently....

Is it a good buy too?

Is wema bank also a good one?


DD is on me

Locotrader:
All ICT stocks are going to be repriced.
For CWG,I am seeing #20.
As it happened to the insurance after a long shouting so shall it be to the ICT sector soon

Locotrader:
All ICT stocks are going to be repriced.
For CWG,I am seeing #20.
As it happened to the insurance after a long shouting so shall it be to the ICT sector soon.

NettyNelly:
Well done
I believe it's a #80 - #90 stock as well.
I started looking at the stock at #49, but I didn't buy cause it's not the type of business I would like to hold for a long time.

They are really struggling with energy cost and I couldn't see a favourable runway ahead of the business, like most of my portfolio businesses.
If I was a trader I would have loaded up and hold it for a year for capital appreciation.

emmaodet:
You are right with the valuation of 80-90 though i don't see them struggling with energy cost because operating expenses only rose by 3.8% between 9M/2024 and 9M/2023 while revenue grew by 76% during those periods.

my concern is their account receivable rising alot which means buyers are owing them more and inventory rising alot too - Both of these means product is struggling to move in the market thereby having more in store and buyers struggling to sell the ones they have so as to pay back their debts.
We can confirm this looking at their - Cash Conversion Cycle (CCC) which is the number o days it takes the company to convert inventory to cashflow.
CCC = DIO (time to sell your products) + DSO ( time to collect money from customers) - DPO (time to pay your bills)
CCC = 91 +124 - 67 = 148 days ( we want less than 30 days, though we will compare with their peers in the same sector)
It takes 91 days for betaglass to sell their products, 124 days to collect the money and 67 days to pay contractors/suppliers of of raw materials.
With this, we can see betaglass is under pressure to pay their own bills (67 days) compared to the days it takes them to produce and get back their money (215 days)
Let's look back at betaglass CCC 5 years history to see if they are improving or not -

DIO ( 2020 - 2024 LTM) = 130 - 109 - 78 - 96 -91 -So as we can see, this number is improving. Taking betaglass 3 months to sell their products compared to previous 4 months plus. We want less than 30 days though.
DSO (2020 - 2024 LTM) = 85 - 68 - 75 - 74 - 124 - It takes 4 months to get back their money from buyers compare to 3 months previous. This number is getting bad. We want less than 30 days
DPO (2020 - 2024 LTM) - 98 - 83 - 67 - 74 - 67 - This number is reducing from 3 months to 2 months for betaglass to pay back contractors. It is not good. We want 90+

KarlTom:
₦20 is a long shot...

emmanuelewumi:
What is your average cost price?

If it less than N40 you can book profit.

With the appreciation of Naira, I don't think investors will be paid more than N90 per share and this should be paid by second quarter of 2025

Locotrader:
All ICT stocks are going to be repriced.
For CWG,I am seeing a #20 stock.
Etranzact will also rise
Chams and omatek will deliver heavily.
As it happened to the insurance after a long shouting so shall it be to the ICT sector soon.

Locotrader:
All ICT stocks are going to be repriced.
For CWG,I am seeing a #20 stock.
Etranzact will also rise
Chams and omatek will deliver heavily.
As it happened to the insurance after a long shouting so shall it be to the ICT sector soon.

PETERiCHY:
LOCO better go appease the gods so by the time your portfolio hit 100m, You will quit MONKEY BUSINESS and start REAL INVESTMENTS. I rest my case.

PETERiCHY:
LOCO better go appease the gods so by the time your portfolio hit 100m, You will quit MONKEY BUSINESS and start REAL INVESTMENTS. I rest my case.

Locotrader:
It's good that way my brother.Anyone who wants to eat frog should eat a big one

emmanuelewumi:
What is your average cost price?

If it less than N40 you can book profit.

With the appreciation of Naira, I don't think investors will be paid more than N90 per share and this should be paid by second quarter of 2025

Omooloriredade:
There's been an appreciable influx of FDI into agriculture particularly livestock farming and meat processing. Good for the industry and Nigerians at large.

https://www.reuters.com/markets/commodities/brazilian-meatpacker-jbs-agrees-invest-25-bln-nigeria-build-six-factories-2024-11-22/

https://punchng.com/chi-farms-plans-2-5bn-livestock-investment/

https://punchng.com/saudis-1-2bn-investment-to-create-more-jobs-for-nigerians-fg/