ukay2:


Is wapco Q2 result audited?

onegentleguy:


A good one from JB !!
....
Away from price consideration, JULIUS BERGER is for the future.(more of mid-term play than short)
As I mentioned during a past analysis here, the coy is presently going through an inflection phase towards growth.
Key indicators shows that current YE FP came in good and above expectation.
Aside the quest to diversify their earnings base, the company is presently on top of very juicy contractual deals accross key states in the country.
In Port Harcourt, Rivers State(2 in Obio-akpo and 1 in PH LGA to be precise), the company is currently executing 3 gigantic fly-over bridges. ...with 70% down payment already secured from the state government.(the gov confirmed this)
Somehow, LARFAGE WAPCO is also a part of the contract.(they are the coy contracted to supply cement).
The duration(of the project) is for 18 months but I expect that the cashflow should begin to reflect in their book starting from this quarter.

...we'll see how things play out next week.

Selah

RabbiDoracle:




Nigerian companies are jaguda.

Trade receivables OK, cashflow from operations positive.

When you least expected them to make money, they do.

Tvegas:
Even when audited ,I don't expect any significant deviation from mean. The major problem seems to have been the management of Finance Cost which dropped from N13billion in 2019 to N4billion now.

dinyelutochukwu:


Did you see that PAT?
Approximately 300% rise compared to Q2 2019.
So many positives. Kudos to their management.
If this is an indication of how their 2020 FY will look like, then now is the time for dividend hunters to act, in anticipation of a higher dividend pay out.
That is barring any unforeseen circumstances.
Due diligence is highly advised.

onegentleguy:



That part in bold must have aided their RECEIVABLES.(inventory turnover in view)
...as I stated therein, there was a 70% down payment from the state government.

That said, efforts at pruning cost and optimizing cashflows deserve high commendation.
I mention it then as 2 among the 3 KEY requisite for growth... https://www.nairaland.com/1131485/nigerian-stock-exchange-market-pick/5519#88184915

Regards

RabbiDoracle:


It reduced because of the deconsolidation of the South African entity.

See note 22.10

That means that the addition of the SA entity was bad from the beginning and a plot for the core holders to increase stake.

RabbiDoracle:


I checked the receivables to know if they just gave out goods without collecting money thus increasing the revenue. So I expected a bloated receivable but didn't see any.

Then cashflow from operations was positive and better than the previous period.

Wonderful result so far.

Same wuth Aliko's Cement.

Chibuking come and see result o

onegentleguy:


Meanwhile...

With reference to value with an eye on PRICE;
For every 1 unit of BUA CEMENT u own, u can get(or swap for) near 2.5 unit of WAPCO given their current market prices.

But with reference to reward/return with an eye on VALUE;
For every 1 unit of WAPCO u own, u'll likely have 2.1x more reward than the same measure in BUA CEMENT given their present valuation.(FVE with reward margin in view)

If u understand both line, then u'd know that replacing or aligning with WAPCO ahead of BUA would clearly mean seeking better VALUE for ur money !!
...and doing the opposite, could well be a wasted opportunity cost.

For near similar reason, it would also be best to associate a little more with...

Remember: Price is what u pay... but VALUE is what u get !!

Enough said.

Tvegas:
l mentioned this weeks ago. Wapco remains one of the most undervalued stocks on the NSE. When it's bull run starts no one will be able to catch it. This stock shouldn't be selling for less than N30 right now.

BUA paid a dividend of N1.75kobo out of N1.79 made in FY 2019. Wapco Half year EPS Is already N1.48 kobo. Full year may witness up to N2.50kobo EPS or more as things stand. Tell me a more underrated stock. Buying more on Monday.Result looks forged and unreal.

dinyelutochukwu:

You re-echo my sentiments.
The effect is bound to rub off on the share price.
OGG, you’re blessed with incredible foresight.

RabbiDoracle:


In anticipation of higher dividend? That is HOPE!



See what hope can do:


A man bought a hen. He told his wife that he bought a hen. They were happy.

The wife said soon a cock will mate with the hen and it will have many chicks. She continued that the chicks will grow and she will sell all the grown cocks and keep the hens.

She continued narrating how the hens will mate more and they will have more chicks which will grow.

She said after all are grown, she will sell all the hens and cocks and buy a female goat.

That the female goat will mate with a He-goat and will have 3 kids. The kids will grow and she will slaughter the female goat and eat the head of the goat.

The husband got angry. Quarrelling with his wife and asking her, " how can you eat a goat head when I am here". Fight started and it quickly became noisy.

Neighbours were drawn in. The neighbours asked the man and his wife why they are fighting. The man said why should his wife "eat goat head when he is the man of the house" .

Ok, to settle the matter, the neighbours ask "where is the goat head" .

There was no goat head. It was all based on Hope. Hope that the hen will multiply and they sell and buy goat.

onegentleguy:


It funny bro. ...that was a fine illustration.

However, every investment is still hinged on HOPE.
An investor aligns to an asset(particularly volatile ones like equities) with the view that they can tap into the FUTURE growth potential therein.(earnings from cash flow activities in view)
...and since no man can authoritatively say what the FUTURE holds, the foundation of ur belief to tap into it is basically hinged on that 4-latter word- HOPE !!

What we can only do as investors is to ensure we put measures in place to help adjust that "hope" closer to reality by mitigating or taking calculated risk. ...that way, we tap from the REWARD.
That's why we hear of terms like; MARGIN OF SAFETY, EXPECTED RETURN and ACTUAL RETURN.

Even a dividend growth invested "hopes", because no one is certain that a coy V will pay a fixed amount of dividend YoY. ...so also is the GROWTH and VALUE investor.

I do understand why u had to replied(him) with that illustration though.

Regards

onegentleguy:


That 40% discount is a bit too much.
Infact, some banks may likely deliver near previous pegs. We have highlighted some of these points in times past here.

Look at their 2019 FP and u'll see that some banks(ZENITH, GTB, UBA...) are in line for massive earnings from arbitrage plays(revaluation gains, trade plays etc) given the current system dislocation from the twin 'evil' of covid-19 and oil price drop. ...especially those with a healthy loan sector allocation and lower risk with recovery drive.

Bottom line: Banks are usually always prepared !!

onegentleguy:


Q2 u mean.
Impact in Q1(if any) will be very MINOT.
The twin evil of the worry with covid-19 and oil price slump started in mid March, which was already near the end of Q1, so don't expect any material drawback in the FP of quoted coys by then.
...impact will begin to manifest(albiet low) by Q2.

But even then, its not for coys that are antifragile(can infact benefit from current events) and robust(have relatively strong immunity(balance sheet)).
Ur worry is definitely not for coys like MTN, WAPCO, UACN, PZ, CAVERTON, GTB, ZENITH, UBA AIICO, CUSTODIAN, all coys in the HEALTH SECTOR and a few other select stocks.
Soon, certain things will become clear to some of u.

DISCLOSURE: We do not hold all of the aforementioned coys.
NOTE: NOT an investment advice.

It is well.

RabbiDoracle:


Chibuking81 will be so so upset.

Q2 is coming out better than he had imagined.

onegentleguy:



Ur funny bro. ...that was a fine illustration.

However, every investment is still hinged on HOPE.
An investor aligns to an asset(particularly volatile ones like equities) with the view that they can tap into the FUTURE growth potential therein.(earnings from cash flow activities in view)
...and since no man can authoritatively say what the FUTURE holds, the foundation of ur belief to tap into it is basically hinged on that 4-latter word- HOPE !!

What we can only do as investors is to ensure we build that "foundation" on a very strong footing by putting measures in place(mitigating or taking calculated risk.) to help adjust that "hope" closer to REALITY.
...that way, we can tap from any available REWARD.
That's why we hear of terms like; MARGIN OF SAFETY, EXPECTED RETURN and ACTUAL RETURN.

Even a dividend growth investor "hopes"... because no one is certain that a coy V will pay a projected/fixed amount of dividend YoY. ...so also is the GROWTH and VALUE investor.

I do understand why u had to reply(him) with that illustration though.

Regards

RabbiDoracle:


My point is this: it is better to buy based on the current dividends paid than hoping that it will be increased.

If it is increased, all well and good.

Where it is not increased, such investor will want to sell down because what he anticipated did not happen.

I don't base my cashflow payments on Hope. I base it on consistent past dividends paid viz a viz events at that point in time.

I remembered when people were hoping that Japaul will pay N1 Dividend. That was a careless Hope!

RabbiDoracle:

I remembered when people were hoping that Japaul will pay N1 Dividend. That was a careless Hope!

RabbiDoracle:


You just dey everywhere.

RabbiDoracle:


In anticipation of higher dividend? That is HOPE!



See what hope can do:


A man bought a hen. He told his wife that he bought a hen. They were happy.

The wife said soon a cock will mate with the hen and it will have many chicks. She continued that the chicks will grow and she will sell all the grown cocks and keep the hens.

She continued narrating how the hens will mate more and they will have more chicks which will grow.

She said after all are grown, she will sell all the hens and cocks and buy a female goat.

That the female goat will mate with a He-goat and will have 3 kids. The kids will grow and she will slaughter the female goat and eat the head of the goat.

The husband got angry. Quarrelling with his wife and asking her, " how can you eat a goat head when I am here". Fight started and it quickly became noisy.

Neighbours were drawn in. The neighbours asked the man and his wife why they are fighting. The man said why should his wife "eat goat head when he is the man of the house" .

Ok, to settle the matter, the neighbours ask "where is the goat head" .

There was no goat head. It was all based on Hope. Hope that the hen will multiply and they sell and buy goat.

Biafran4life:
My bro,life is all about hope supported by faith/prayer.The worst thing to have is a hopeless life

steveneche:
Experts in the house, pls I need help on how to set up dividend reinvestment plan here in Nigeria. I have some units of Mtn shares and will like to reinvest all dividend automatically

emmanuelewumi:



We have two companies on Nigeria Stock Exchange, that have Dividend Reinvestment Programme.

The companies are Nigeria Brewery and Stanbic IBTC.

The best bet is to get your dividends and you the proceeds to buy additional shares of MTN

steveneche:


Ok sir thank you. Am just trying to see if I can Dodge paying commission for buying additional units of the same share.

Secondly, I noticed MTN is not listed on United registrar's e-dividend form. My confusion is how do I go about filling the form without MTN on the list? Or there something I should know?

megamart247:


Guinness management already issued a profit warning last month so we are patiently waiting for it at the right price which is N10 and below cc. Bbm, Fxuser

RabbiDoracle:


I checked the receivables to know if they just gave out goods without collecting money thus increasing the revenue. So I expected a bloated receivable but didn't see any.

Then cashflow from operations was positive and better than the previous period.

Wonderful result so far.

Same wuth Aliko's Cement.

Chibuking come and see result o

RabbiDoracle:
A Snake has started to eat itself from the tail.

When will the world meet to talk about the volatility in the USD (Bretton Woods: Season 2) and its effect on global economies? The gidigbo will not be here!

Which currency will then be adopted by the world?

Fed is using a cup to bale out water from a tsunami.










When is Fed money going to flow towards our NSE?

We are patiently waiting

Chibuking81:


Leave this Chibuking alone, am interested in more amount of share to buy at lower price, that will enable me receive huge dividend, if possible always get back my initial invested capital in 6 years, if my entry price qualifies me to get 16%/18% percent of earning per annum in one stock.

I don't believed much in jijo, but focus heavily in investment, when a company price moves up only few amount of share can be acquire, but at low price much will acquire.

Most oil company will be good for investment now because more share will be acquire for future use, company like Seplat, Total, Eterna, Conoil, Ardova Plc, Company like Caverton, there lies the principle of be greedy when others are fearful, and fearful when others are greedy.

For an investors, every action in stock exchange is win win, if the stock moves up, he gain through capital appreciation, when stock enter bonanza he also win by buying more amount of share with the same money that would have get him lower amount of share at its high price.

That's why buying sound fundamental stock with good history of dividend payment at lower price, is more preferable for an investors, who investment monthly or at intervals.

ukay2:


Well said Sir Chibuking

leo1234:


Chibuking is an easy going man but he no dey hear word


What he said was very okay but that does not justify his previous posts that was based on mere wishful thinking.
I hope he will not come with school fees bonanza this September