rebekah2011:
http://www.nse.com.ng/Financial_NewsDocs/23934_LAFARGE_WAPCO_PLC._FINANCIAL_STATEMENTS_OCTOBER_2018.pdf

I just pity the investors in this company. They need at least 200b in fresh equity. The 90b they are looking for is just scratching the surface.

One of the worrying issue with LARFAGE WAPCO was the disservice the parent coy (LARFAGE holcim) did to the Nigerian entity. ...because ever since some past coperate actions (specifically mergers), the company's financial performance on the back of very poor management efficiency has been to say the least abysmal !!
The merger with Ashaka cement and Unicem were not properly accounted for. I recall I stated it then that larfage would've been better off expanding on their own than embarking on those mergers. In retrospect, the company paid/gave in more for those margers as could be seen from comparing all involved entities ENTERPRISE VALUE, PBT MARGIN and EBITDA MARGIN as at the time. (comparing that of larfage to ashaka cement and unicem)
That said, the greatest problem with this coy is that of COST MANAGEMENT AND OPTIMIZATION !! Opex margin has been on an upward trajectory since these mergers.
To put things in perspective, operating cost has grown at a CAGR of near 26%, which is at an over 158% faster rate than the 10% CAGR in revenue in the last 3-4 years.
The company's ROAA, ROAE, NET MARGIN, FCF, RoIC and EM also tells of a very 'bad story'.

The SIGNS to most of these issues were always there for any descerning investor to see. ...particularly in the last 6 quaters.
I recall we highlighted some of these RED FLAGS when I advised folks to SELL OFF their holding in the coy at the beginning of Q1 2018 after doing an analysis on the company.
Then, LAFARGE was selling for near N50. ...current price is now N20.7, which is a near 60% loss. ...and which would now require a whooping 142% uprise before an investor can breakeven and sell at the same N50 again !!
With LAFARGE, I always knew the last rights fund raise wouldn't put them in any good stead. Worse still, the company went ahead to pay over N90B as dividend from the money. ...when they were clearly in huge debt and there was need to optimize cost. Money that should've been utilized on delaveraging.
Outside that, the result print is also showing a few areas of funding mismatch. ...a clear case of gross incompetence on the part of management. Just take a good look at their recent spat of results.
Its clear that the company currently lacks foresight on the need for INNOVATION, coupled with the big issue of COST OPTIMIZATION.
Aside DC, CCNN is also not making things any easy for them. In my view, CCNN has done far much better in the short to mid term.

My advise:
It's best to stay off LARFAGE. ...unless of course, ur investment horizon is of the very long term. But even then, I'd prefer to remain on the side line until there are signs of a positive change in trend with their financials.
Like I always tell folks;
"When u see a company running a business where COST is growing faster than REVENUE on the back of decelerating EARNINGS and at the same time, they keep coming for ur money, RUN and ask questions later !!
If in doubt, u can indulge the past shareholders of Oando.

DISCLAIMER: NOT to be reckoned as any sought of recommendation. ...when in doubt, pls do well to engage the services of an investment manager/adviser for guidance.

Let's hope that things will get better for them !!

onegentleguy:


My advise:
It's best to stay off LARFAGE. ...unless of course, ur investment horizon is of the very long term. But even then, I'd prefer to remain on the side line until there are signs of a positive change in trend with their financials.
Like I always tell folks;
"When u see a company running a business where COST is growing faster than REVENUE on the back of decelerating EARNINGS and at the same time, they keep coming for ur money, RUN and ask questions later !!
If in doubt, u can indulge the past shareholders of Oando.

DISCLAIMER: NOT to be reckoned as any sought of recommendation. ...when in doubt, pls do well to engage the services of an investment manager/adviser for guidance.

Let's hope that things will get better for them !!

always enjoy reading ur posts

this part:
"When u see a company running a business where COST is growing faster than REVENUE on the back of decelerating EARNINGS and at the same time, they keep coming for ur money, RUN and ask questions later !!

http://www.nse.com.ng/Financial_NewsDocs/23937_GUARANTY_TRUST_BANK_PLC._FINANCIAL_STATEMENTS_OCTOBER_2018.pdf

EPS N5.03. This is a bank and a good business

rebekah2011:
http://www.nse.com.ng/Financial_NewsDocs/23937_GUARANTY_TRUST_BANK_PLC._FINANCIAL_STATEMENTS_OCTOBER_2018.pdf

EPS N5.03. This is a bank and a good business

Efficiency is the key

Lafarge Posts 1,205% Loss in Q3 as Cost of Sales Rises by 7.5%
https://www.businesspost.ng/2018/10/17/lafarge-posts-1205-loss-in-q3-as-cost-of-sales-rises-by-7-5/

Q3 2018: UBA Impresses with N375b Earnings, N62b PAT
https://www.businesspost.ng/2018/10/17/q3-2018-uba-impresses-with-n375b-earnings-n62b-pat/

fxuser:


always enjoy reading ur posts

this part:
"When u see a company running a business where COST is growing faster than REVENUE on the back of decelerating EARNINGS and at the same time, they keep coming for ur money, RUN and ask questions later !!

Thank u !!
But its funny how u smartly excluded the sentence immediately below that 'RUN and ask questions later' part, because u are involved in...

It is well my dear.

rebekah2011:
http://www.nse.com.ng/Financial_NewsDocs/23937_GUARANTY_TRUST_BANK_PLC._FINANCIAL_STATEMENTS_OCTOBER_2018.pdf

EPS N5.03. This is a bank and a good business

By FAR the most EFFICIENTLY RUN/MANAGED BANK in the country !!
...GTB is a near perfect description of an EXEMPLARY INSTITUTION, immersed in everything great on CORPORATE GOVERNANCE.

Kudos to the management !!

rebekah2011:
http://www.nse.com.ng/Financial_NewsDocs/23937_GUARANTY_TRUST_BANK_PLC._FINANCIAL_STATEMENTS_OCTOBER_2018.pdf

EPS N5.03. This is a bank and a good business

Still thanking God I entered Zenith Bank on time...awaiting Q3

N40 exit price.

onegentleguy:


By FAR the most EFFICIENTLY RUN/MANAGED BANK in the country !!
...GTB is a near perfect description of an EXEMPLARY INSTITUTION, immersed in everything great on CORPORATE GOVERNANCE.

Kudos to the management !!

Lets see fidelity first before deciding which is the most efficient. But you are right, GTB is an exemplary institution.
Many banks will do well this term with rising crude prices and writebacks from previously impaired bad loans.

stcool:


Still thanking God I entered Zenith Bank on time...awaiting Q3

N40 exit price.

Are you saying that bonanza gang will be buying at N40? Chai.

stcool:


Still thanking God I entered Zenith Bank on time...awaiting Q3

N40 exit price.

You really dont know Zenith history.

It won't go more than N30.

Mpeace:
Lets see fidelity first before deciding which is the most efficient. But you are right, GTB is an exemplary institution.
Many banks will do well this term with rising crude prices and writebacks from previously impaired bad loans.

This is not applicable to First bank, the more the petrol dollar the worst for first bank.
Anybody expecting good news from fbn would have to wait for years.

Mpeace:
Are you saying that bonanza gang will be buying at N40? Chai.

If I see that bonanza gang hand... I go raise price to N45

I can only imagine eps of GTB & Zenith in 2019 and going forward.

The beauty of gtb equity, strictly driven by market forces. GTB is not perfect but a true measure n reflection of Nigeria economy.
You do not need to be a forensic auditor to know dt the bank posted a good result that will surely delight investors.
A crime for any Nigerian of 20 yrs and above not to have at least 5000 units of this pace setting bank.
So far, this the only bank in Nigeria that can do what capitec bank is doing in South Africa in the rest of the world.
Let's hope they keep the flame burning and not rest on their accolades.
Good bank, good management, always protecting minority investors in the scheme of things.
BRAVO GTB.
If your entry price is down in dz bank, be rest assured that you are only experiencing paper loss, sooner or later the bank will cross the 52 week high.
Don't share the sentiment of gtb being overpriced. Buy it at any current price you can afford.

stcool:


If I see that bonanza gang hand... I go raise price to N45

I can only imagine eps of GTB & Zenith in 2019 and going forward.

I always "admire" how "optimistic" you can be when it comes to stocks and their share price, especially the ones you are invested in.

Keep it up. You will never loose sleep employing such an attitude!

onegentleguy:


Thank u !!
But its funny how u smartly excluded the sentence immediately below that 'RUN and ask questions later' part, because u are involved in...

It is well my dear.

- OMG hahaha . . had to recheck again, d Oando part ! ur still spot on, nt for investors at all.

Zenith
- big vol

stcool:


If I see that bonanza gang hand... I go raise price to N45

I can only imagine eps of GTB & Zenith in 2019 and going forward.

I have since said that the financial services sector (banks and by extension, insurance coys) are in line to reap big from the current trajectory of the Nigerian economy.
The many policy flip-ups on the larger economy means that our banks will continue to look out and align more with non-core banking services. ...at least for now !!
They are smart, and will continue to look out for those opportunities of arbitrage as they come.
...and with the country's current u-turn in inflation, debt profile and policy mis-match, they are very much in line to gain even more going forward.

Folks should keep an EYE on the fixed income space !!

It is well.

Please OOG, current price and other FA gurus. What is the implication of this line: ''other comprehensive income item that will be reclassified to income statement'' in UBAs report?

Does it mean that at FY the negative N14B will impact on the banks bottom line?

CUTIX PLC Full Bid

OBAGADAFFI:
CUTIX PLC Full Bid

YES... FULL BID @ N2.23 with nearly 2M total bid, but NOT a single offer !!
Blessed are those who managed to KEY IN @ between N1. 85 to N1.90 after the analysis yesterday.

...It is well.

onegentleguy:


YES... FULL BID @ N2.23 with nearly 2M total bid, but NOT a single offer !!
Blessed are those who managed to KEYED IN @ between N1. 85 to N1.90 after the analysis yesterday.

...It is well.

The journey to the South starts after friday.

onegentleguy:


YES... FULL BID @ N2.23 with nearly 2M total bid, but NOT a single offer !!
Blessed are those who managed to KEY IN @ between N1. 85 to N1.90 after the analysis yesterday.

...It is well.

OBAGADAFFI:


The journey to the South starts after friday.

You are always wrong and you be wrong on this one too

Nice Job Fidelity! Come to our junction fast....

Yayira:


You are always wrong and you be wrong on this one too

No be fight

Keep hope alive.

DeRuggedProf:
Nice Job Fidelity! Come to our junction fast....

Proff what ur junction ? 0.80?

fxuser:
Zenith
- big vol

Volume wey come with drop in price I don’t understand oo

DeRuggedProf:
Nice Job Fidelity! Come to our junction fast....

Watch ya back
That junction will cave-in this time

Agbalowomeri:


Watch ya back
That junction will cave-in this time

So you know the junction abi?...

OBAGADAFFI:


You really dont know Zenith history.

It won't go more than N30.

higest my brother is N32

aremso:




higest my brother is N32

The Zenith i know always go south after result.