₦airaland Forum

aremso:
so tax credit did that magic? Nawa oo

Before nko

http://www.nse.com.ng/Financial_NewsDocs/23027_AIICO_INSURANCE_PLC._FINANCIAL_STATEMENTS_JULY_2018.pdf

Not bad. Almost 100% growth in PAT if you trust interim results of insurance companies.

Mpeace:
Story. Just go and draw the price list of 2014. Pre 2015 elections did not bring in those prices. Zenith for instance did not lose upto 2naira in that year. The real fall came after buhari took over. That was when we saw those real lows. That was also when we saw the naira really fall with crude prices. That was when investors really wanted to bail out because buhari in his "wisdom" did not see any reason to defend the naira.
Prices fell pre election but most stocks did not lose more than 15%. They did nit lose as much as 2015 when loans started going bad.
The reason for the present fall is not just elections. Its more of an investment decision by foreign investors which decision not just affects nigeria, but the entire emerging markets.

How was he going to defend the Naira? With crude oil at less than $40/bbl and the reserves on a free fall?

rebekah2011:
Sir, do you think NEM is really a N3 stock. I think what has happened to NEM is just that new retail investors wanted to key into the Insurance sector and found NEM more accommodating as Custodian has gone beyond their reach. If I hold the stock, I will sell because I do not see it doing another 30/50% in the near term.

Well, I sold some at N3.40 to rebalance my portfolio. It became almost 20% of my portfolio which is not in line with my risk management strategy.

If they indeed move to LIFE business, the price will go further up!

currentprice:
not a good result at currentprice of the stock

if this is a reflection of what to expect from DF. then i pity those still holding the stock on HOPE

cc cadialic
cc tritri

Anyone holding any FLOUR does so at its own risk! The competition is KILLING

Prices of Honeywell products are almost 25% lower than that of Flour Mills! If Flour Mills is struggling you can imagine what will happen to Honeywell flour.

As for Dangote Flour, the man thrives where there is high barrier of entry and limited competition. Flour Milling business does not fall into that category.

rebekah2011:
There is nothing to take over in Japaul.

You wicked ooooooo

Mpeace:
Biased but very true. Boyo and tinubu are in real soup and may lose control of oando if they don't enter into a good agreement on the loan.
I believe they will reach a settlement in the nature of the one reached with mangal.

I said that OandO was due for a takeover many years ago. Nothing happening now is new.

https://www.thisdaylive.com/index.php/2018/07/23/the-interlopers-in-oando-plc/

The Interlopers in Oando Plc

Very biased article. That said, the OandO boys are in soup

mendes911:
http://www.nse.com.ng/Financial_NewsDocs/22916_DANGOTE_CEMENT_PLC_FINANCIAL_STATEMENTS_JULY_2018.pdf

Tax almost doubled. Did any of their Pioneer Status expire?

Flat result....

They had to restate their prior year tax expense. They said so in the note to the account. Seems FIRS is working

2017 tax expense restated by ₦34.33 billion for both Group and company respectively. Group's tax charge was restated from ₦11.54 billion to ₦45.87 billion while company's was restated from ₦13.69 billion to ₦48.02. billion.

This was due to the company determining its tax charge in prior years on the basis that profits earned from Ibese production lines 3 & 4 and Obajana production line 4 were entitled to a tax holiday under the Pioneer Status Incentive.

The cumulative adjustment as at 1 January, 2017 of ₦71.82 billion and ₦100.14 billion for the Group and company respectively relates to tax and interest as explained above.

rebekah2011:
the money received will add what to their EPS. This cannot be true. What the funds will succeed in doing is to reduce the Receivables and increase the cash position of the company either by reducing the bank loans and overdrafts or increase the cash and cash equivalent. It has little bearing on the profit or loss account as the finance charges will reduce a bit maybe in 2018 and 2019 accounts.

Correct. Did not see this before responding.

Mpeace:
FO will surely rally today. Watch and see. They are the highest beneficiary of this payment when you consider their outstanding shares. If they get paid, we can expect it to add about 12naira to their eps.

Debts (Receivables) are shown in Balance Sheet not profit and loss. So not sure how payment will affect the EPS except they've made provision for those debts previously and hence planning to do a write back!

I think it will impact their balance sheet and improve their liquidity. Direct impact on EPS is minimal if any.

Cadillac15:
Something is telling me that it is the stock of the year.

If anything removes the present board suddenly and a new mgt surfaces, it will be the second dangote flour.

But i no get the mind To enter

Blessed are the obedient.

OBEY the voice

sky2891:
Please, Based on this, what do you think the FY fair price could be?

Sorry sir. Only Oracle and Currentprice are able to determine that. I never reach that level.

pluto09:
This transcorp is looking more and more attractive by the day.

@ Wanajo, are there things one should worry about apart from this non controlling interest and the Tony factor?

H1 EPS of 11kobo. FY at same run rate will be like 25kobo. Assume a PE of 6 that is like N1.50.

Good growth in revenue driven by the power sector. Not sure what they've done differently for almost 50% surge in revenue from Power sector.

Trade receivables of N77bn is a red flag! N100bn borrowings also is not small.

Then you have the related party transactions with Tony and co.

locodemy:
This is a language commonly used in the stock markets.
When there are many sellers and no one willing to buy.
In that case the stock goes into full offer.
Two things should cause dumping.One,General bearishness in the market as a result of negative state of a nation(the one we are witnessing now) and a company bad news/poor results.

What you are witnessing is due to sell off by foreign investors as a result of the hike in Fed rates.

Surprisingly, Nigeria has done well when compared with other emerging markets.

mendes911:
Is this not a fight between Wale's company (Ocean and Oil) and Volpi? The way I see it, if Volpi successfully takes over Wale's company (Ocean and Oil) and directly becomes in-charge of Oando Plc, things might turn out good for shareholders of Oando Plc.

I may be wrong though on my assumptions.

Show me your friends and I will know who you are.

You think Volpi is a saint? Italian - Nigerian!!! Vultures are circling

OandO in the news again

http://thenationonlineng.net/uk-court-volpi-to-pay-60-of-680m-owed-by-firm/


https://www.thisdaylive.com/index.php/2018/07/16/oando-london-arbitration-court-orders-tinubus-firms-to-pay-volpi-680m/


https://guardian.ng/news/oando-crisis-resurfaces-as-london-court-orders-tinubu-to-pay-volpi-680m/

You can pick which version of the news to believe.

I expect many lawsuits after this.

How can one calculate EPS of OandO under this condition

locodemy:
After paying this exorbitant school fees,I am going to repeat class six again.
Just look at Mendes telling me to relax,he will soon be with me in same class six.
Oluwa where ar you?why will you allow this kind thing to happen?

Add after school lesson fee join

locodemy:
Abeg who knows the closing date for UPL 15kobo dividend.I still have close to 500k units not sold.
Need to activate the e-dividend in case i no see buyer till the closing date.

Why? Maybe you need to price appropriately

fxuser:
Custodian
- gapping up yesterday and today !

Not doing badly BUT some consistency is required. Not liquid though.

jideflash:
Because our currency is currently overvalued, as our petrol subsidy cost is becoming overbearing. They won't devalue the naira till after the election

I don't think the currency is over valued.

We are however spending a lot of money importing petroleum products and subsidising the entire West Africa. We are now 'consuming' 65 Litres of PMS daily!

Devaluation should not be on the table at all.

stcool:
MTN overvalued? Better than 80% stocks listed on the NSE both in terms of revenue and profit, presently or future projections.

Waoooo. And you know all these without seeing the prospectus and details of the offer.

Seems another semester tuition fee is due on NSE

shigidi:
My sister if you haven't been able to reply then I'm not sure the stock market is for you. If you bought Dangote Cement in the past 6 months I can assure you nothing has changed about the company in this period. Is it your technical analysis that led you to sell?

To all in the house, There must be a reason why you buy a stock if not it's gambling you are doing. You may as well register and play bet9ja.

The reason is because the price will increase by 50% in one MONTH!

Jejebabaa:
I never sell oo but I have decided to convert it to long terms dey chop dividends till it gets profitable again. Lesson learnt from trying to predict whst market can do. Going forward, once I sell at profit. I will turn to trader like fxuser using position sizing, capital risk of 2% on any stock and arming myself with stop loss all the time. I can't continue to be giving back my bull gains to the next bear market as some of us don dey reach retirement.
I have decided to face my day job and be more loyal to my employer in this bear market.

NSE 102. How much tuition did you pay for this module?

When the bulls are raging, everyone become an expert! Caution is thrown into the wind. Then they get trapped and have the BEAR starring them in the face.

currentprice:
Ekuu cileasing to reach 2.50

if this stock Q2 inline with expectation, then i congratulate those who jump in below 1.30 when it was announced weeks ago, this week you will reach 100% in this bear period.

i still stand on it,, cileasing might be one of the best performing stock this year. ccnn beware

cc NoMoney

jejebaba how far here

Hope you warned people that the stock is NOT liquid.

That said, NEM will give CCNN a run also

Jejebabaa:
My portfolio is presently at 15% loss and I won't be surprised if it gets to 50%. I have seen worse than that before. FBNH dropped from 16 naira in 2014 to 3 naira in 2016/17 and we no die. I kept on averaging down till 7 and and yet it became "profitable" (naira terms not considering changing $ to 158 naira then and now $ is 360). Pls lets learn to control our emotions in times like this.

Most thought they had their emotions in check UNTIL they see 'better' bear! Then all the candlesticks will start causing them nightmares

Yayira:
Hmmm so many things I’ll correct from November.
Never will I buy a stock like say na my papa get the company..
Overload no good.. Now I no fit run

NSE 101. How much tuition did you pay for this lesson?

prof2007:
2018 HALF YEAR REVIEW - NSE BEST PERFORMERS (abridged from Nairametrics.com)

Result Sheet - July 3, 2018:

June is over. If you are a retail investor with an active portfolio, this is the period to take stock of your portfolio performance in the last 6 months. For Nigerian stocks in general, the All Share Index closed basically flat @ 0.09% in the first 6 months of 2018. For June, the index closed positively, eking out a profit of just 0.46%.

Despite gloom in recent weeks, we did have some major winners in the first half of 2018, with about 37 stocks posting double-digit gains.
The top 5 gainers:
Ikeja Hotels: 76%
Learn Africa: 80%
Unity Bank: 83%
NEM: 93%
CCNN: 153%.

On this week’s Result Sheet, we take a look at some of the best performing stocks, so far this year. We start from bottom of the best, all the way to the best performing.

C&I LEASING
YTD return: About 60%
Position on list of H1-2018 best stocks: 10th.
Valuation: 2.9x earnings; 0.39x book value.
FY-2017 PAT:19% rise in profits to about N1 billion.
Important Note: Despite rise in profits, the company still has a debt load and has mooted raising capital. Could this be a reason for the rise in its share price? Some analysts believe there might be a correlation, as most stocks typically rise ahead of news of an equity raise. Investors smell an opportunity and ride their luck, hoping the capital appreciation could be sustained for a while.

FIDSON HEALTHCARE PLC
YTD Return: 62%
Position on H1-2018 best stocks: 9th.
Q1-2018 PAT: 26% increase, to N202 million.
Important Note: Rumours earlier in the year that Fidson was exploring a merger plan with May & Baker. The company put out a press release denying it but this has not stopped speculators propping up its share price. Don't be surprised if this goes on a little longer.

ETERNA OIL & GAS PLC
YTD Return: 66%
Position on H1-2018 best stocks: 8th.
Valuation: 4.22x earnings.
Q1-2018 PAT: 25% drop, to N510 million.
Important Note: Last May, NNPC issued a 2-year crude export license to some local and foreign companies, including Eterna Oil. Strong revenue potential and possible momentum for higher share price.

BETA GLASS PLC
YTD Return: 68%
Position on H1-2018 best stocks: 7th.
Q1-2018 PAT: 38% increase, to N1.10 billion.
Important Note: It is a subsidiary of Frigoglass Industries Nigeria Ltd which holds 61.9% ordinary shares of the company. The ultimate controlling party is Frigoglass S.A.I.C, Athens. We've been tracking Beta Glass for some time now and believe its strong capital appreciation is a function of strong earnings and lack of liquidity. It is incredibly difficult to find sellers for this stock.

CAVERTON OFFSHORE SUPPORT GROUP PLC
YTD Return: 69%
Position on H1-2018 best stocks: 6th.
Q1-2018 PAT: 37% increase, to N293 million.
Important Note: Caverton has risen largely on positive market sentiments in Q1, and the company signing a major contract with Chevron Nigeria Ltd. We like this stock too and have it on our watch list.

IKEJA HOTELS PLC
YTD Return: 76%
Position on H1-2018 best stocks: 5th.
Q1-2018 PBT: 82% increase, to N328 million.
Important Note: Rise in its share price is largely due to lifting of a 2-year suspension by NSE. There had been a boardroom tussle between Goodie Ibru and a faction led by Maiden Ibru. Goodie stepped down from the board in February last year, citing need for a new generation of Ibrus to take over. Some analysts believe this could be one of the major reasons there is a scramble for the shares. In fact, the stock experienced a major surge as soon as NSE lifted the suspension. This could be a bull trap, so be careful.

LEARN AFRICA PLC
YTD Return: 80%
Position on H1-2018 best stocks: 4th.
FY-2017 PAT: 13% increase, to N238 million.
Important Note: Not much can be deciphered on why the share price has grown this much, especially for a stock with very little volume of trade. We suspect a potential merger or acquisition in play here, or the company might be planning to raise capital. In terms of debts, it has a combined external loan of just over N100 million, so its unlikely that it is looking to raise capital to repay debts. This stock's performance remains a mystery to us.

UNITY BANK PLC
YTD Return: 83%
Position on H1-2018 best stocks: 3rd.
Important Note: Earlier in the year, it was the best performing stock, before being overtaken by CCNN. Rally in its share price was initially due to news of a planned $1 billion investment by a private equity firm, Milost Global. Milost terminated the agreement following threats by an unnamed investor. Unity however denied any form of agreement was signed. SEC is currently investigating the transaction. The renewed capital appreciation we have seen lately perhaps is indicative of another deal in the offing. Unity Bank was bailed out by the CBN and is running against time to get a buyer.

NEM INSURANCE PLC
YTD Return: 93%
Position on H1-2018 best stocks: 2nd.
Q1-2018 PAT: 24% increase, to N751 million.
Important Note: The first 5 months of the year are typically great periods for NEM stock. Some investors buy around February, hoping to see capital appreciation come April when they would have released their results. It did happen that way too. More recently, the company's board squabbles can be largely attributed to the share price hike.

CEMENT COMPANY OF NORTHERN NIGERIA PLC
YTD Return: 153%
Position on H1-2018 best stocks: 1st.
Valuation: 7.96x earnings.
Q1-2018 PAT: 95% increase, to N1 billion.
Important Note: Recent news of a merger with Kalambaina Cement, a subsidiary of BUA Cement. BUA is ultimately controlled by Abdulsamad Rabiu. Whilst this may not be the reason for the impressive return of the stock, investors typically like to buy stocks that have hints of mergers or acquisitions. The company's result has been impressive and perhaps investors are also bullish about its potentials, thus the reward of capital appreciation. Is this still a good buy? If its mid-year performance beats expectations, then one might in hindsight believe its current share price is cheap. Despite this, we do not see this stock hitting another 100% in the next 6 months (we hope we are wrong).

SOURCE: Nairametric.com (abridged for brevity).

They were making some sense until they touched Learn Africa. The comment shows that they did not perform any analysis. A review of the figures will give an indication.

http://www.nse.com.ng/Financial_NewsDocs/22715_LEARN_AFRICA_PLC_CORPORATE_ACTIONS_JUNE_2018.pdf

14kobo dividend with qualification date of 6th of July

Oil price going towards $80/bbl.

Jejebabaa:
Hmmmn, oro agba ti ose lowuro, ase lale. What an elder sees sitting down, a child won't see if he climbs iroko tree.

Again, without doing analysis paralysis, a city set on a hill cannot be hidden. It is EASY to see a company that is doing well in the 'market'.

The Flour Business is highly competitive. Margins are dropping. It is going to get tougher!

currentprice:
Loco ur food don land

http://www.nse.com.ng/Financial_NewsDocs/22703_UNIVERSITY_PRESS_PLC._FINANCIAL_STATEMENTS_JUNE_2018.pdf

FY EPS is 48kobo. How does this compare with the quarterly results?