₦airaland Forum

Mcy56:
Oh! Was even thinking you haven't enter market yet.
Okay. Just keep eye on Mr. Market.

.

Thanks mcy, your the best of all time

There's this company that may likely do, perhaps not "another neimeth" but likely deliver a juicy reward.
...a potential 80-150% return in the short to mid term.

As usual, most folks will likely only see surrounding RISK without the potentiality for RETURN.
They may not be able to detach FEAR from RISK in other to seek for REWARD.
...even the financial print gives a clue.

I personally dont like the coy, but like I always tell folks;
One of the greatest mystery behind an OPPORTUNITY is that it will sometimes 'disguise itself' and hide behind an obstacle.
...hence given a much better(less weighty in terms of risk)scenerio an 'ugly look' and blowing it out of proportion.
Because great OPPORTUNITIES are usually not found in 'a totally safe and comfortable zone'.
The key however lies in ur ability to 'weigh' the difference between that which is REAL and what is VIRTUAL, and then 'seive out' the latter from the former.
...then u can 'unlock' that obstacle and grap the OPPORTUNITY !!
This is especially true of the stock market terrain, particularly the 'NSE room'.

It is well !!

Marketapprentic:
Episode 1 or 2? Please what you don't know may be bigger than you. Full bid with over 15mill at day highest price possible
Anyways, I am with my oga peterichy waiting for it at car park 20k

Something interesting is about to happen.

Mcy56:
Lol.
We mentioned initially that Japaul may swerve to other related biz since Access is now "controlling" the dredging aspect.
Who knows an investor may come on board if the management sits up and prove they are up to the task.
Let's see how the whole scenario plays out.

Caveat: We are all just guessing here, we dont know what the management is up to.
......but coming to market to raise fund may be a positive development.
We are observing.....

That may be the miracle I need to redeem my forgotten Kaya there. Thanks to my defunct analog broker.

onegentleguy:
#copied

Quite a lengthy post from someone who saw some of the items we highlighted about the inherent potential and value-drive in NEIMETH.
Folks can do well to note the parts in bold. ...we already highlighted most of these items here in times past.

It is well.

I read it and I understood it, thanks for bringing this here.

There is nothing interested to move market for now, we just balance inside our vehicles hoping to get more share by next month of July, 2020 bonanza month.
It's 70% likely that opportunity to enter most vehicle at lower level will present itself this coming month, Peterichy and investors should take note..

Chibuking81:
There is nothing interested to move market for now, we just balance inside our vehicles hoping to get more share by next month of July, 2020 bonanza month.
It's 70% likely that opportunity to enter most vehicle at lower level will present itself this coming month. Peterich take note.

Like we said earlier in the month MARKET will TANK till June 28th then we should EXPECT an OASIS starting from June 29th till July 10th. afterwards MARKET CORRECTION will take place based on Q2 RESULTS

BARGAIN HUNTERS TAKE NOTE!

....

CHAMS

onegentleguy:
There's this company that may likely do, perhaps not "another neimeth" but likely deliver a juicy reward.
...a potential 80-150% return in the short to mid term.

As usual, most folks will likely only see surrounding RISK without the potentiality for RETURN.
They may not be able to detach FEAR from RISK in other to seek for REWARD.
...even the financial print gives a clue.

I personally dont like the coy, but like I always tell folks;
One of the greatest mystery behind an OPPORTUNITY is that it will sometimes 'disguise itself' and hide behind an obstacle.
...hence given a much better(less weighty in terms of risk)scenerio an 'ugly look' and blowing it out of proportion.
Because great OPPORTUNITIES are usually not found in 'a totally safe and comfortable zone'.
The key however lies in ur ability to 'weigh' the difference between that which is REAL and what is VIRTUAL, and then 'seive out' the latter from the former.
...then u can 'unlock' that obstacle and grap the OPPORTUNITY !!
This is especially true of the stock market terrain, particularly the 'NSE room'.

It is well !!

megawealth01:
CHAMS

We need to know the sector first.
*Edited*

onegentleguy:
There's this company that may likely do, perhaps not "another neimeth" but likely deliver a juicy reward.
...a potential 80-150% return in the short to mid term.


It is well !!

Oga OGG, it will be a great deal if you can mention the initial of the Coy.

Thanks in advance.

Selah (copy copy no go kee me)

onegentleguy:
There's this company that may likely do, perhaps not "another neimeth" but likely deliver a juicy reward.
...a potential 80-150% return in the short to mid term.

As usual, most folks will likely only see surrounding RISK without the potentiality for RETURN.
They may not be able to detach FEAR from RISK in other to seek for REWARD.
...even the financial print gives a clue.

I personally dont like the coy, but like I always tell folks;
One of the greatest mystery behind an OPPORTUNITY is that it will sometimes 'disguise itself' and hide behind an obstacle.
...hence given a much better(less weighty in terms of risk)scenerio an 'ugly look' and blowing it out of proportion.
Because great OPPORTUNITIES are usually not found in 'a totally safe and comfortable zone'.
The key however lies in ur ability to 'weigh' the difference between that which is REAL and what is VIRTUAL, and then 'seive out' the latter from the former.
...then u can 'unlock' that obstacle and grap the OPPORTUNITY !!
This is especially true of the stock market terrain, particularly the 'NSE room'.

It is well !!

Boss spill the beans na

Perter how do you see Caverton @#1.50, Buy or wait?

Heishere:
Boss spill the beans na

If he finally says JAPAUL... You go buy?

Chibuking81:
Perter how do you see Caverton @#1.50, Buy or wait?

he said #1

One good thing about Cham in bonanza period is once you get it at its lowest low of 20 kobo , there is no further fear of any fall. You will wait till the month of August when the upward movement will likely resume, the wave of q2 anticipated bad result will deliver many stocks at good entry Junction come the month of July.

megawealth01:
If he finally says JAPAUL... You go buy?

megawealth01:
he said #1

Peter that will still adjust the price to 30kobo even if it gets there.

megawealth01:
If he finally says JAPAUL... You go buy?

Lol. I'm one of the passengers in Japaul already.

Chibuking81:
Perter how do you see Caverton @#1.50, Buy or wait?

AVIATION SECTOR is the WORST HIT in this pandemic and we learnt this COVID-19 ERA might last longer than 2021

So why RISK my HARD EARNED MONEY on such SECTOR even at 20kobo I'm no longer interested in buying CARVETON till the COAST is CLEAR.

Covid-19 or not some SECTORS will STILL make MONEY I e BANKING SECTOR.

The GOOD OLD BOOK says
"WISDOM is the PRINCIPAL thing and with all thine getting get UNDERSTANDING"

BARGAIN HUNTERS TAKE NOTE!

Mcy56:
Peter that will still adjust the price to 30kobo even if it gets there.

You sabi octopus jare

Heishere:
Lol. I'm one of the passengers in Japaul already.

Hope you read octopus prediction

Is like Cutix cable didn't declared final year dividend in their final year result ended April, 2020. Or who know whether they declared?

CARVER TORN is exempted. They now use water way

PETERiCHY:
AVIATION SECTOR is the WORST HIT in this pandemic and we learnt this COVID-19 ERA might last throughout 2021

So why RISK my HARD EARNED MONEY on such SECTOR even at 20kobo I'm no longer interested in buying CARVETON till the COAST is CLEAR.

Covid-19 or not some SECTORS will STILL make MONEY I e BANKING SECTOR.

The GOOD OLD BOOK says
"WISDOM is the PRINCIPAL thing and with all thine getting get UNDERSTAND"

BARGAIN HUNTERS TAKE NOTE!

sellydion:
CARVER TORN is exempted. They now use water way

They are not totally grounded, but their business will be affected. All sectors will be affected, including banking sectors. But it will not affect the banking sectors to the negative q2 EPs, but will be negative comparing the previous year.

Chibuking81:
They are not totally grounded, but their business will be affected. All sectors will be affected, including banking sectors. But it will not affect the banking sectors to the negative q2 EPs, but will be negative comparing the previous year.

Let us sha make profit from trading them

Well the effect may be slight on the banking sector. Money does not sleep

However those that are in transport and logistic chain will feel the impact.

Carveton business is diversified but would suffer loss of revenue where it matters.

Chibuking81:
They are not totally grounded, but their business will be affected. All sectors will be affected, including banking sectors. But it will not affect the banking sectors to the negative q2 EPs, but will be negative comparing the previous year.

onegentleguy:
Neimeth is already reverting to mean. Just one or two pointers on the firm...
The company is a pharmaceutical company specialised in the manufacturing and marketing of pharmaceutical products. Its top products include NCP, Pyrantirin, and Ciklavit. The stock rallied from 36kobo to as high as N2.57, representing over a 500% upside. Many wondered if it was a genuine rally or just some penny stock being manipulated. Although the stock already started coming down, in a move that seemed to be a profit-taking action. Is the coy a good coy or not? Maybe or maybe not.

The company started as Pfizer in the late 50s. Pfizer Group were operating in the Nigerian economy then, and they operated through a subsidiary - Pfizer Nigeria. From the 50s to 1997, Pfizer was in Nigeria and they eventually opted to leave the Nigerian markets. During the process, a management buyout (Google this) took place and the name was changed to Neimeth.
Since the change of name, the company had made progress in its operations and modus operandi. A very strong characteristic of this company is its Research and Development. The company stands as one of the very few local companies with an aggressive drive towards local research. As a matter of fact, over 80% of their products have local contents somehow. Professor Maurice Iwu, a Professor of Pharmacognosy and a former Chairman of INEC, is one of the directors whose major role is to provide direction and oversight to the R & D team. The product Ciklavit was a result of local research.

The Chairman of the Board is A.B.C Orjiakor (also the Chairman of Seplat with very strong corporate governance standards). The Board consists of 11 members, with about 6 of them as pharmacists or with pharmacy background (the highest in the industry). Fidson has just 2 pharmacists out of 8 Board members. May and Baker has 3 pharmacists out of 9 Board members. GSK has just 1 person with a pharmaceutical background out of 8 Board members.
The rest of Neimeth's Board members are spread across folks with experience in banking, finance, oil and gas. The trend could also be seen among other peers. Is it a nice idea to have too many pharmacists on the board. Actually, I think it is a good thing and a bad thing as well. While it might be useful to have folks who have experience and deep knowledge about how things work in the industry - particularly an industry like the pharmaceutical industry, it might also be wise to have folks with other interests to help the company should it require the expertise of folks in other fields. Neimeth's Board consists of 8 males and 3 females (M&B, Fidson both have the same, while GSK has two females on their respective Boards).

What has been the problem with Neimeth over the years?

The challenge had been liqudity and working capital shortages. The company adopted a strategy where it decided to boost sales via increased credit offerings to distributors. The idea was that, "yeah we know we won't get cash now but we can always get cash from our customers later. If we insist that they bring cash now when they do not have, we could lose the opportunity to make sales. After all, it is not like these cash won't come."
For instance, the profit before tax of the company stood at N182mn in 2013, meanwhile impairment loss was N155mn (85% of PBT). Better put, but for the impairment loss recorded during that year, profit before tax would have been N337mn instead of N182mn. In 2014, profit before tax was negative at N198mn (that is, they made a loss of N198mn). Meanwhile, impairment loss was N154mn.

Overall, the problem was a combination of high operating expenses and high impairment losses (due to their strategy of increased credit sales). I, for one, do not like a company with liquidity issues. It is always a very red flag.

So what did the company do to fix the problem?

Obviously, it was not a sustainable thing to go on like that. As a result, the company changed strategy. They decided to change their focus from sales generation to cash generation. They told their distributors that they would only supply to folks who have cash. Those who didn't have cash had to be struck out. This is similar to what Unilever Nigeria Plc is doing presently. Resulting from the policy shift, revenue declined by 10% in 2015.
To further support their new drive, they appointed a new Managing Director, named Mrs. Ebere Igboko-Ekpunobi (Ph.D), a pharmacist by education and practice. Babe's appointment was meant to be the gamechanger. Talmabout 18 years experience in the United States (an economy very big on healthcare development) and China. Two biggest economies of the world.

Because they had to realign strategy, they took another one-off impairment and they suffered another loss in 2015.

In 2016, the strategy change paid-off. Revenue spiked by 37%. The increase in revenue was due to an improvement in sales force and distribution. Because it had to get rid of some distributors, the company strengthened her relationship with Worldwide Commercial Venture Limited, (responsible for the distribution of 80% of Neimeth's goods). Only those who had cash would get goods. Therefore, cash generation significantly improved. Operating cash flow rose by 97% from N243mn in 2015 to N481mn in 2016.
In addition, the company also halted its previous approach of widespread retailing which often resulted in lower asset quality.

That stubborn line called impairment losses, also nosedived by 45%. Overall, the company reported a profit after tax of N65mn (from loss of N335mn in 2015). Babe did remarkable well just a year in charge.

The profit trend thus far:
2013: profit of N131mn
2014: loss of N229mn
2015: loss of N336mn
2016: profit of N65mn

However, on account of accumulated losses in the past, the company had a negative retained earnings and could not pay any dividends. To make up for that, they did a bonus issue (of shares) instead.

Meanwhile, it was not to last.
On March 7 2017, a fire incident occurred that wiped out the company's factory and its entire raw materials. It was a disastrous incident that nearly resulted in the collapse of the company. Shareholders and many other stakeholders had to rally round to save the company. Directors supported by lending cash to the business and other forms of negotiations with other major stakeholder (suppliers, distributors, customers etc).

In another sad news, the newly appointed MD, who had been successful thus far, was involved in a sporting accident which made her incapacitated to function. She resigned to focus on her health.

Due to the fire incident, the company had to write-off a significant portion of its inventory (net of insurance proceeds from insurer). Again, the company went back to loss-making position.
In 2018, the company rebounded. Topline advanced by 44%, profit stood at N149mn (from a N400mn loss in the previous year). Quite impressive, to be honest. From an incident that almost took the company out just a year prior, and coming out of it in a really strong manner underpins the strong competence and leadership of the management. A significant step taken by the company was to seize the opportunity to upgrade facilities to modern standards during the renovation process. The improved facilities was expected to ensure efficiency in production activities, thus bringing down the time spent on production and costs incurred.

The company also relocated its staff from its property at Ikeja to its manufacturing premises at Oregon. That decision saved about N109mn in overhead cost. A bonus issue was declared again to shareholders because of the negative retained earnings (N800mn deficit).

In 2019, the company consolidated its efforts and this time for real, it appeared that there was going to be consistency. A new CEO was appointed, another pharmacist. He graduated from Obafemi Awolowo University (First Class, Pharmacy). He proceeded to obtain an MBA in marketing. He further obtained an M.Sc in Public Health from the University of London. He worked with May and Baker previously.

The company decided to focus on sustainability of earnings. Revenue grew by 5% in 2019, profit before tax grew by 83%.
They also mapped out a 2020 - 2024 strategy. As regards the negative retained earnings, it was going to take about 4 years to wipe it out organically (that is, using accumulated profits). Hence, the company decided to do a capital restructuring (by reducing the share premium and taking it to retained earnings) so it could pay dividends.

And this was where the rally came from.

Yeah, in Q2'20, they made a loss, although the massive profit made in Q1'20 made up for it. However, the first half of their financial year (they run on an October - September financial year) is usually the weakest. They get majority of their earnings in the second half of the year. And they are poised to maintain their profit levels in 2020.

What makes the company a viable coy?
1. I find it impressive that the company has a working solution and strategy. And thier committment to success is evident.
2. Operating efficiency.
3. Relatively strong R & D.
4. Experienced Board in the industry.
5. Relatively strong flagship products (e.g Ciklavit is a nutritional supplement for sickle cell patients)
6. Improved ROE (right now, Neimeth has the highest ROE in the industry. It's ROE of 23% compares to May and Baker's 7%, Fidson's 4%, and GSK's 10%).
Nonetheless, there is still that continued efforts required to maintain consistency in topline and bottomline growth. They also need to be quick on the capital restructuring...

Quite a lengthy post from someone who saw some of the items we highlighted about the inherent potential and value-drive in NEIMETH.
Folks can do well to note the parts in bold. ...we already highlighted most of these items here in times past.

It is well.

Interesting read.

Thanks for sharing

sellydion:
CARVER TORN is exempted. They now use water way

So the CARVER has TORN his craft?
We said wait below N2.00 they rushed to give people parachute and assured them of safety....
Where was the safety?
Looking at the crashed craft now wondering if Loco was on board.

DeRuggedProf:
So the CARVER has TORN his craft?
We said wait below N2.00 they rushed to give people parachute and assured them of safety....
Where was the safety?
Looking at the crashed craft now wondering if Loco was on board.

See as d prick small.

ositadima1:
See as d prick small.

You be woman ? How matter take concern you now?