Archive for June 2013

INSPIRATION: Timing is Key!!


This is a post i shared this morning as a note on my facebook page.... http://www.facebook.com/notes/oluwaseyi-oshea-ilubanwo/timing-is-key/10151497709801448
Its exactly 3years,1month and 8days since I wrote a note on this platform (April 20, 2010). As i was preparing for work this morning, I tuned to a radio station (inspirational fm 92.3) which has birth and inspired this note. My wish and prayer is that it will touch and inspire you...
TIMING IS KEY!
Let me start with this illustration; A man with one wrist watch will always be sure of what the TIME says but another man with Two wrist watches might not be able to say for sure what TIME it is. TIMING is everything in life, for everything there is a right TIME; for it to happen or for it to be executed. People often say " I don't have TIME" its a big lie.... Its because the person have failed to plan and misplaced his/her priorities. The Holy book says " There is TIME for everything under the earth " but if You believe that you don't have enough TIME, you tend to procrastinate which makes you to have lesser TIME to achieve your set goals.
You cannot afford to wait for perfect conditions. Goal setting Is often a matter of balancing TIMING against available resources. Opportunities are easily lost while waiting for perfect conditions... So Friend, you'll see that when ever you plan and set a goal, you always meet your target.
I learned that we can do anything, but we can't do everything... at least not at the same TIME. So think of your priorities not in terms of what activities you do, but when you do them. TIMING is everything.....
Don't forget to share with your friends. Good morning...

Cadbury, UBA, PZ lead other large capitalised stocks in returns

In terms of price appreciation, the shares of Cadbury Nigeria plc, United Bank for Africa plc, and PZ Cussons plc outperformed other largely capitalised stocks at the Nigerian Stock Exchange, BusinessDay trend watch has found.
The largely capitalised stocks at the Nigerian bourse make up the NSE-30 index, a basket which tracks the top 30 companies in terms of market capitalisation and liquidity.
Share price appreciation of these companies over a five-month period (January to May) showed that Cadbury Nigeria plc has gained 91.34 percent or N26.49 from N29 as at January 3, 2013 to N55.49kobo at the close of trade on May 31, 2013. In this period, the yield-to-date of the Nigerian Stock Exchange All Share Index stood at 34.60 percent.

Also in terms of returns to equity holders, United Bank for Africa plc came second among companies in the NSE-30 basket after its share price rose by 86.62 percent or N3.95kobo from N4.56kobo to N8.51kobo.
On the other hand, the share price of PZ Cussons plc appreciated by 85.05 percent or N23.44kobo from a year open level of N23.44kobo to N51, placing it on the league of top three in terms of returns,
According to analysts at Meristem Securities, “Across emerging, frontier and developed markets around the globe, Nigeria remains an investment hub for investors desiring good returns. Analysing data across markets show the much of potential returns across instruments that Nigerian markets (fixed income and equities) present.”
Cadbury Nigeria plc, United Bank for Africa plc, and PZ Cussons plc outperformed large cap stocks like UACN plc, Unilever Nigeria plc, Access Bank plc, Diamond Bank plc, FCMB plc,  Fidelity Bank plc, Guaranty Trust Bank plc, Julius Berger Nigeria plc, Skye Bank plc, Union Bank of Nigeria plc, Zenith Bank plc,  Ecobank Transnational Incorporated plc, and GlaxoSmithKline Consumer Nigeria plc.
Other companies that make up this Index are Dangote Flour plc, Dangote Sugar Refinery plc, Flourmill Nigeria plc, Nestle Nigeria plc, Ashaka Cement plc, Dangote Cement plc, Guinness Nigeria plc, International Breweries plc, Mobil Oil Nigeria plc, Nigerian Breweries plc, Total Nigeria plc, Lafarge Cement WAPCO plc, Stanbic IBTC Holdings plc, and FBN Holdings plc.
Following the top three performers in the review period are stocks like Lafarge Cement WAPCO plc; Julius Berger Nigeria plc, and International Breweries plc. The share price of Lafarge Cement WAPCO plc also appreciated by 78.25 percent or N43.04kobo from N55 to N98.04kobo; Julius Berger Nigeria plc gained 62.34 percent or N21.6kobo from N34.65kobo to N56.25kobo; while International Breweries plc garnered 62.22 percent or N10.08kobo from N16.2kobo to N26.28kobo.
“The Nigerian bourse remains relatively attractive on a comparative basis with other emerging and African markets. The equities market remains largely positive relative to the general mood of 2012. We expect the continuous flow of foreign funds which will possibly be buoyed by expectations of impressive second-quarter (Q2) results to keep the market upbeat; comparable macros seem to align with this assertion. A comparative analysis of emerging markets, developed markets and frontier markets reveals that the NSE All Share Index (ASI) has a lower Price-Earnings (PE) ratio, suggesting that the market is fairly undervalued when compared to these markets. Though some stocks have significantly gained in the year, some others remain fundamentally underpriced,” Meristem analysts added.
Our trend watch on other large cap stocks showed that UACN plc gained 38.10 percent, or N16 from N42 to N58; Unilever Nigeria plc rose by 44.22 percent or N20.85kobo from N47.15kobo to N68. Access Bank plc rose by 18.77 percent or N1.77kobo from N9.43kobo to N11.20kobo. Union Bank of Nigeria plc rose by 51.07 percent or N3.83kobo from N7.5kobo to N11.33kobo. Dangote Cement plc gained N66 or 52.8 percent from N125 to N191.
Also, Stanbic IBTC Holdings plc rose from N11 to N16.01kobo, adding N5.01kobo or 45.55 percent. Dangote Sugar Refinery plc garnered N2.8kobo or 41.79 percent from N6.70kobo to N9.50kobo. Ashaka Cement plc rose from N18.40 kobo to N27, after adding N8.6kobo or 46.74 percent. Nestle Nigeria plc appreciated from N700 to N1001.01kobo after its share price gained N301.01kobo or 43 percent.
Diamond Bank plc gained 35.29 percent or N1.8kobo from N5.10kobo to N6.90kobo. FCMB plc gained 11.11 percent or N0.5kobo from N4.50kobo to N5. Fidelity Bank plc garnered 24.19 percent or N0.6kobo from N2.48kobo to N3.08kobo. Guaranty Trust Bank plc rose from N25.05kobo to N28.50kobo, representing N3.45 gain or 13.77 percent.
The share price of Zenith Bank plc appreciated by N2.4kobo or 12.12 percent from N19.80kobo to N22.20kobo; Ecobank Transnational Incorporated plc rallied by 36.55 percent or N4.09kobo from N11.19kobo to N15.28kobo;  and GlaxoSmithKline Consumer Nigeria plc gained 28.60 percent or N12.9kobo from N45.10kobo to N58.
Also, Dangote Flour Mills plc gained 12.20 percent or N1 from N8.20kobo to N9.20kobo; Flour Mills of Nigeria plc gained 36 percent or N23.4 percent from N65 to N88.40kobo. Nigerian Breweries plc gained 18.44 percent or N27.7kobo from N150.21kobo to N177.90kobo; Total Nigeria plc gained 36.02 percent or N43.43kobo from N120.57kobo to N164; FBN Holdings plc rose by 10.50 percent or N1.72kobo from N16.38kobo to N18.10kobo; while Mobil Oil Nigeria plc gained 8 percent or N8.75kobo from N109.25kobo to N118.
Equity holders of Skye Bank plc and Guinness Nigeria plc were not favoured in the period under watch following the decline in both companies’ share price. Skye Bank plc lost 5 percent or N0.25kobo in the five-month period from N5 to N4.75; while Guinness Nigeria plc declined by 0.27 percent or N0.75kobo from N276.75kobo to N276.

[businessdaynigeria.com]

Aliko Dangote Is Africa's First $20 Billion Man - Forbes


Dangote has been named Africa's first $20billion man, thus becoming one of the top 25 richest people in the world.

From Forbes
Nigerian billionaire and Africa’s richest man Aliko Dangote has become the first African entrepreneur to lay claim to a $20 billion fortune as the stock value of his largest holding, Dangote Cement, leaped just about three-fourths since March when Forbes released its annual ranking of the world’s richest people.
Aliko Dangote’s 93% stake in the cement company is now worth $19.5 billion. Add this to his controlling stakes in other publicly-listed companies like Dangote Sugar and National Salt Company of Nigeria and his significant shareholdings in other blue-chips like Zenith Bank, UBA Group and Dangote Flour; his extensive real estate portfolio, jets, yachts and current cash position, which includes more than $300 million in recently awarded Dangote Cement dividends, Dangote is now worth more than $20 billion.
Put into context, the Nigerian billionaire is now among the top 25 richest people in the world, richer than Russia’s richest man, Alisher Usmanov, richer than India’s Lakshmi Mittal and running neck and neck with India’s Mukesh Ambani. He is catching up to such Americans as Google’s billionaire founders Larry Page and Sergey Brin.

The unprecedented surge in Dangote Cement’s share price is largely a market response to the company’s impressive 2013 Q1 results.

The cement manufacturer’s unaudited results for the three months ending March 31 showed that the company’s pre-tax profit rose to $339 million, representing an 80.6% increase from last year and a strong indicator of the company’s future earning potential. The results also indicate a 79.5 % rise in its earnings per share over the corresponding period last year.

Explaining the company’s share price boost in an email to Forbes, Carl Franklin, Dangote Cement’s Head of Investor Relations in the U.K said that in the first quarter of 2013, the company had a huge increase in demand across Nigeria, gas supply improved considerably and the capacity was much more ramped up.

“So Q1 was the first sign of just how profitable we can be in Nigeria. The amazing thing is that 66% of our gas-fired production in Q1 was done at 84% gas. Imagine what would happen to margins if we did the same amount at 95%. This has given investors a good sense of what we can really do when everything goes in the right direction,” Franklin said.

With a current market cap of $20.5 billion, Dangote Cement becomes the first Nigerian company to achieve a market capitalization of over $20 billion.

“It’s certainly a landmark for a Nigerian company and we’re proud to be the first to achieve it. Obviously we are focusing on building long-term and sustainable value for shareholders through our investments in Nigeria and Africa. Nigeria is a very entrepreneurial country and I can assure you that other companies will follow us in achieving this.”

Other companies might eventually achieve this, but it’s going to take a bit of time. Dangote Cement currently accounts for more than a quarter of the total market capitalization of the Nigerian Stock Exchange. The second largest company on the Nigerian Stock Exchange (NSE) is currently Nigerian Breweries, West Africa’s largest manufacturer of Alcoholic and non-alcoholic beverages. The company has a market cap of $8.5 billion.

Dangote debuted on the FORBES billionaires list in 2008 with a fortune we pegged at $3.3 billion. His fortune dropped to $2.5 billion in 2009 and plunged further to $2.1 billion in 2010. His fortune surged  557% in 2011 to $13.8 billion after he took Dangote Cement public. He dropped to $11.2 billion in last year’s rankings, but rebounded at $16.1 billion this year. Since March, his fortune has jumped another 30%.

Dangote was destined to shine in business. At age 8, he apparently gave packets of sweets he had made to the house servants to sell for him. His father Mohammed Dangote was a successful businessman and an associate of his maternal uncle Alhaji Sanusi Dantata. Dantata and his brother controlled the trade in kola nuts and livestock conducted by 200 agents. Dangote started building his fortune over three decades ago after taking a loan from Sanusi Dantata. He started trading in commodities like flour, sugar and cement.

He became a billionaire by later manufacturing these items. He started making pasta, salt, sugar and flour in 1997. But he found his gold mine in cement, when he was awarded a government’s state owned cement business in 2000 and began building his own plant in 2003. He listed Dangote Cement in 2010.

Today, it is Africa’s largest cement company providing cement to Nigeria and other African countries that otherwise would likely have to pay to import much of the materials.

Dangote still likely has bigger ambitions. He told Forbes Wealth Editor Luisa Kroll at Davos in 2011 that he expected his firm to have a market cap of $60 billion within five years. At $20.5 billion, Dangote Cement still has a long way to go to live up to that dream, and while it is quite unlikely that Dangote Cement could hit a $60 billion Market Cap by 2016, don’t write it off as ‘impossible’. With Dangote, you never know.

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