[bwalaman]

NAHCO today represents a buy opportunity- but again it is a matter of perspective. Over priced? Checking the Nigerian Stock on Bloomberg, and the whole market seems overpriced. So, I don’t know – about how relevant some of the fundamentals are, especially when gauged against the Nigerian Factor (whatever this means).

On the issue of Bonus, NAHCO technically did not give a bonus. It was technically a stock split 3 – 2. So we ended up with more shares for the same value. In the process of the stock split, NAHCO also increased total shares (including the split volume) – it is part of this increase that will be offered to the public.

Personally I am not too worried about NAHCO, the foreign interest alone will ensure that the excess shares after “IPO” will be moped up. Not to talk about corporate governance issues and the fact that NAHCO is the sub-sector in this field. NAHCO does not need to muscle anyone out of this sub-sector.

Do not forget that it went from 5.5 – 70 naira, pre split. And the current share value adjusted for pre split value will put it in the mid 60 naira range. Remember it was split from mid 60 naira – 26 naira.

I think NAHCO at current price represents a buy opportunity. It has yo-yoed post split, but never dipped below 26. Of course it not going to go up as fast as it did again, no stock has "1000%" growth cycles back to back in 1-3 years. Buy and hold!!!

Think again folks...