₦airaland Forum

vacanci:
Vitafoam might go into full bid from tomorrow. At what price do you think one should stop chasing it. I will love to buy it and hold for medium term

Raider76:
New tax law: Air Peace CEO warns of ₦1m base fare

https://businessday.ng/aviation/article/new-tax-law-air-peace-ceo-warns-of-%e2%82%a61m-base-fare/

unite4real:
The major tax component from the article is the return of the 7.5% vat.

How will this take airfare to N1 Million if not that he wants to cause an economic scare.
The NCAA has refuted the 5% tariff and the issue of bank interest rate has always been there.

Harddiskng:
You would be surprised what some people would take away from a conversation when it is not properly clarified

Sunrisepebble:
I currently have 12 stocks in my portfolio, looking to bring it down to 6: BETAGLASS, GTCO, MTNN, NAHCO, PRESCO, SEPLAT, TRANSCORP, UACN, VITAFOAM, WAPCO, WEMA
ZENITH.
I love Zenith, MTNN, WAPCO, SEPLAT. I’m looking for more undervalued gems like Vitafoam for the new year. It’s been a while since I’ve analyzed the market.

emmanuelewumi:
Leverage is not bad.

What is bad is over leverage.

What is bad is using leverage without having cash flow that can liquidate the loan in 5 years or less, but focusing on capital appreciation for the servicing of the loan.


What is bad is using leverage on a stock whose Return on Invested Capital is less than inflation and the interest rate on the loan.

What is bad is using leverage when you don't know how to value and business and also incorporate the sustainable earning growth of the business into your valuation.

What is bad is not knowing about Growth At a Reasonable Price. Some of us buy growth stocks and the valuation given to the stocks are extremely high.

What is bad is the inability to identify quality stocks that are selling at a discount.


What is bad is using leverage based on the current valuation of our portfolio. Eg having a portfolio valued at N100 million, but the dividend paid in 2025 is N3 million and it is expected to grow by 10% for the next 5 years but you got a loan of N50 million against the portfolio. How can the dividend service the loan.

Whereas another investor with a portfolio of N100 million, but the dividend earned in 2025 is N8 million and it is expected to grow by 15% for the next 5 years. If this investor gets a loan of N16 million to N24 million against the portfolio. This is about 2 to 3 years of the current dividend earned. His portfolio dividend can easily liquidate the loan in 3 to 5 years.

Or using leverage for stock market investment should not be more than your total annual income from all sources for 2 years provided you don't have other outstanding loans or debts to service



Ask the Pastor that got a loan of N60 million to invest in Sterling Bank in 2005, what was the total dividends he hoped to get from his portfolio when he got a leverage of that amount, did he consider the valuation of Sterling Bank.



To do well using leverage you have to consider the following.

1. Valuation
2. Expected sustainable growth
3. Efficiency of the stock bought through leverage.
4. Liquidity of the stock bought through leverage
5. Your cash flow.
6. The leverage should not be more than thrice the most recent total annual dividend.


These are very conservative but it will give peace and the staying power to hold on when the market is bearish and that will happen at least once in every 3 to 4 years although the longer the bull market the more brutal the bear market

unite4real:
The major tax component from the article is the return of the 7.5% vat.

How will this take airfare to N1 Million if not that he wants to cause an economic scare.
The NCAA has refuted the 5% tariff and the issue of bank interest rate has always been there.

Raider76:
But if, as he said, out of a ticket of N350k the airline only gets N81k there is definitely a big problem.

unite4real:
I agree

But the N1 Million for domestic flights statement is reckless

chimex38:
It's just economics to me.
demands has and will always be more than supply.
All these tax excuses don't cut it.

awesomeJ:
Even if it's to eliminate this delay in trade streams, can't they start with that?

If you can't stream trades for 160 companies in real time without lag, how do you intend to do it for 1000 companies, or when there are up to 500k deals per day?


people close to these guys should be ringing these things to their ears please 🙏🙏🙏

mikeapollo:
Why would you say tax excuses?
It is a fact known globally that taxes lead to increase in costs and could drive some items from the reach of the common man.
Do you know the current airfares for local flights?

mikeapollo:
https://punchng.com/fg-writes-off-1-42bn-n5-57tn-nnpc-debt/

Tinubu's FG writes off $1.42b and N5.57tr NNPC debt.

Sunrisepebble:
I currently have 12 stocks in my portfolio, looking to bring it down to 6: BETAGLASS, GTCO, MTNN, NAHCO, PRESCO, SEPLAT, TRANSCORP, UACN, VITAFOAM, WAPCO, WEMA
ZENITH.
I love Zenith, MTNN, WAPCO, SEPLAT. I’m looking for more undervalued gems like Vitafoam for the new year. It’s been a while since I’ve analyzed the market.

leo1234:
The lag was very noticeable this morning.

jckgroup1:
Good morning Chief,

Aradel seems to be missing on the list or am I missing something.

Compliments of the season Sir.

jckgroup1:
Good morning Chief,

Aradel seems to be missing on the list or am I missing something.

Compliments of the season Sir.

Sunrisepebble:
I exited my position at 868

KarlTom:
Sold at 800+

KarlTom:
Part of the preparation(s) for the listing...

nosa2:
Be patient. Gravity is coming for this stock

awesomeJ:
Is it that the people in charge haven't noticed

It's been going on for almost 6 months now.

Any day deals are above 30k, the system seems to struggle.

6 months is more than enough to have pushed an upgrade.

Deals could top 50k today.

chimex38:
Taxes are there, but demand and supply are underestimated.

The airlines are given tax as excuses as reason for the increase. I am merely condeming them as the tax is just a front.
I think The major driver is demand and supply for local flights this festive season..
-Flight seats get filled up days ahead
-many states still depend on other states for air port both land and take off.
-some states airport can't accommodate night travels.
-we seem to have more Non-sale functional airports than planes.
-security issue in the country is another issue.

That's why I said, demand and supply fuels it more this season than tax.


I saw a text somewhere where someone said:
its better he borrows money and pays his own ransom by purchasing flight tickets to and fro for himself and his family than to risk such on road transport with kidnappers.

The odds are, no matter the cost of flight, it will be cheaper than the cost of ransom