₦airaland Forum

Mcy56:
Roll call....
Pls answer if you hear your name:
Tritritri
Ndidigood
Michael11stock
Dwizeone
Cornwall
..
You can add yours.

9free
Ihedioranma
Mercilicious
Dexter
Bigass
Stockbear
Ucheson2
Talk2me2

Deleted

phemmie06:
You're right boss but either we like it or not it will surely rise but to a certain level cos of the proposed right issue.
As for the mother company I believe it will still get to the expected junction of 1.50k very soon(I am not expecting it in that region) . If I may ask what is the fair value of UACN?

4 naira

Uchetoba:
I wonder what they see inside this useless UPDC that they are buying something that the price ought to be crumbling daily.

As for the mother the UACN that one is grossly over valued at 7.7.

I will continue to wait for UACN and it's daughter UPDC at N4 and 60 kobo respectively

I wonder what they see inside this useless UPDC that they are buying something that the price ought to be crumbling daily.

As for the mother the UACN that one is grossly over valued at 7.7.

OakPearl:
I hope no jijoist got trapped in UACPROP.

UPDC is about doing the needfull: returning to 60 kobo. I epect UACN to follow suit by tomorrow.

Mpeace:
I love the UACN stuff. But my problem with it is that I cannot place a particular price to the unbundling of a thing. It's so hard to place a value, more so that there is no monetary consideration. Given the current state of the market wherein most stocks are hugely undervalued, more confusion is created as we cannot determine the rate at which the end product of the unbundling will be "undervalued" by the market. That is why I prefer not to do more than just watch and see.

I see no reason for uacn and updc to rally this much, updc is a never do well. As long as the name of updc is attached to updcreit the value can only go down and not up.

Lets even look at it this way, assuming updc do a right issue of 1 new share for every 2 shares originall held, and is fully suscribed, the the pro rata allotment of the updc shares to the shareholders of uacn may result to not more than 1 for 1, and that of updcreit may result to 1 unit of updcreit for 2 shares updc or there about. If that be the case then the shareholder of uacn will have 2 shares of useless updc and 1 unit of updcreit on top of every 2 shares of uacn held. Is that why somebody should struggle to buy uacn at over 6 naira or updc at 1naira+?

I will only buy uacn at 4 naira and below, and updc at 60 kobo or there about.

What is the reason behind the melt down that is currently going on on the nse?

Most of the companies are not doing badly in terms of results.

onegentleguy:
Yet another perspective to the VALUE proposition in UACN(weighted against its subset, UPDC and UPDC REITS)

Aside the thing about comparing their ALTMAN Z-SCORE(which I highted in the past), there's a bit more.

...a brief;

1st off; according to the proposed unbundling, the shareholders of UACN are to get stakes in UPDC and UPDC REITS post rights issuance to updc shareholders, which is expected to raise near N16B to offset the bridge loan taken from UACN.

3 benefits;

1) Given that the allotment of shares comes post rights issue by UPDC, the shareholders of UACN are totally exempt from any impact of a likely equity dilution.

2) UACN will get a good boost from the leverage(approx N16B) accrued from the rights.
Again, UACN will also indirectly benefit from all the restructuring initiative of the unbundling, including an asset allocation with a current mkt value of near N9B to UPDC(plus an interest payment of over N20B accrued to updc in the reits)

3) The unbundling and 'gifting' to current shareholders of UACN also means they'll immediately partake of accrual gains and future EV(enterprise values) of the subsets, updc and updc-reits.

Using the sum of all parts(SOTP) valuation technique(an indicative tool used to guage the likely value of the subsidiaries/constituents that form a holding company when been sold/spun off or divested from), we can further look in on the inherent VALUE passable to the group.(UACN)
...The idea is to break up the holding coy/conglomerate into the 2 subsets and try to value them seperately.

Using this technique(adjudged from the benefits with the subsets updc and updc-reits EV, RoIC, EV to EBIT, OS, PEG and P/B) as well as its current financial status in view, and adjusting for risk, I have a re-adjusted FVE of approx N14.25 for UACN.
...this is assuming zero% growth to YE.(Assuming that UACN makes zero earning in H2, 2019)

Away from the proposed unbundling, the group is also looking to spun off from its hotel business arm, updc hotel(UHL) to aide more leverage.(assets classified as held for sale/distribution to owners in view)
...and a total revamp of its quick service restaurant arm(UAC restaurant) to further boost earnings.

VERDICT: UACN remains a strong BUY for us !!
While short term price prospect is uncertain(due mainly to the current volatility in the mkt), medium term prospect is STRONG and with a lot of drive.

My advice: Just follow ur instinct.

No further comment on UACN !!

many thanks

Uchetoba:
Uacn may fall back to 4 naira or there about so that I can enter comfortably

As for that good for nothing uac-prop I will not go close to it except it falls to 60 kobo

What even prompted the rally, how come it surdenly moved from 4.5 naira to above 6 naira any new? Uacn I mean

veecovee:
If not this bear ehhhhh, the kind run wey uacn for run no get rival.

Uac prop still on fullbid, and despite it's numbers, it might still reach N1.5. I know the way of that stock.

Uacn may fall back to 4 naira or there about so that I can enter comfortably

As for that good for nothing uac-prop I will not go close to it except it falls to 60 kobo