First Aluminium

[billions]

Originally Posted by DeProf

Please advice me

i bought this stcok bcos of my broker. he keep pushing first alumiunm, first alumiunm, i think say naa better company, rush like mumu buy am N10.10 for about 65,000 unit. Can you imagine, now the stock fall to N5.52k

Guys please advise me on what to do?? any hope on this dead company?

thanks

I dont know what d forward PE ratio of dis stock is but if it is very high then u can consider d following:

Since d price is now rising,....wait till it gets to d peak and is about to start falling,then sell half of ur holdings there.You can decide on ur next move after d sales.

However,if it rises to a very very good level...u can sell everything.

Note: Both d growth of the company and PE ratio shd be considered b4 making any move.Cheers.

[tonidol]

Originally Posted by DeProf

Please advice me

i bought this stcok bcos of my broker. he keep pushing first alumiunm, first alumiunm, i think say naa better company, rush like mumu buy am N10.10 for about 65,000 unit. Can you imagine, now the stock fall to N5.52k

Guys please advise me on what to do?? any hope on this dead company?

thanks

Always shine ur eyes. The best broker 4 naija 4 advise na SMN. I have said this before, whenever brokers in naija have sell mandates they are unable to execute, they look 4 Mungu clients, they propose it to them as a good stock. make commission from the sale and also make commisiion from d purchase.
Experience is the best teacher. You may have to wait 4 a while 2 recover ur money hoping something will cause a rally 4 dis stock

[hispy99]

Originally Posted by DeProf

Please advice me

i bought this stcok bcos of my broker. he keep pushing first alumiunm, first alumiunm, i think say naa better company, rush like mumu buy am N10.10 for about 65,000 unit. Can you imagine, now the stock fall to N5.52k

Guys please advise me on what to do?? any hope on this dead company?

thanks

Always remember that brokers are not always looking out for you. They make money from you either way. If you don't have time to analysze stocks yourself, then maybe you should consider buying mutual funds instead.

I like Billions suggestion.

[knightofdelta]

Some analysts have been saying that First Aluminum is going to be one of the best investment for this year and the next. They say that this company owns the largest share of the aluminum market in Nigeria and based on the expansionary budget, this company is going to benefit because we need this particular metal in the construction industry, which we have been told is about to experience a boom.

If what Kola Karim, the MD of Shoreline, that invested in Costain and turned it around, and also took over Nigerian Ropes, is anything to go by, I will not be surprised if he looks towards First Alum. This is just mere speculation... and chances are it is not likely to happen.

Another thing to consider is that this company is releasing results, meaning that they are doing something even if they are losing. We know it does not fall into the category of moribund.

If investing by the gut is anything of note, I will acquire the shares of this company but unfortunately, I dont have money to gamble.

[knightofdelta]

Now, I am beginning to regret not having any money to gamble. First Alum has been placed on technical suspension at the price of N5 to float a rights issues of at N2! Now, that is what I call shareholder appreciation. The company has decided to expand its operations to capitalize on the stable macroeconomy indices.

[hispy99]

Originally Posted by knightofdelta

Now, I am beginning to regret not having any money to gamble. First Alum has been placed on technical suspension at the price of N5 to float a rights issues of at N2! Now, that is what I call shareholder appreciation. The company has decided to expand its operations to capitalize on the stable macroeconomy indices.

All the more reason why I think the stock is overvalued at N5. Who would sell something that is worth N5 for N2 (a discount of 60%!)?. Imagine the stock was trading at N10 in March, if only they had done the PO then

[bsr]

yup, the rights issue of just over 1bn units 50k at 2 N. Turned in the documents to Zenith Capital yesterday. Let nme know if u guys are interested in buying large quantities.

cheers

[kelly5]

Im interested in buying some. has it started yet

[billions]

FIRST ALUMINIUM PLC
SIX MONTHS UNAUDITED RESULTS FOR THE
PERIOD ENDED 30-06-2008
2008 2007
TURNOVER N4.282b N4.297b
PROFIT/LOSS BEFORE
TAXATION (N20.321m) (N252.3477m)
TAXATION (N6.503m) (N80.793m)
PROFIT AFTER TAXATION (N13.818m) (N171.684m)

[hispy99]

Originally Posted by billions

FIRST ALUMINIUM PLC
SIX MONTHS UNAUDITED RESULTS FOR THE
PERIOD ENDED 30-06-2008
2008 2007
TURNOVER N4.282b N4.297b
PROFIT/LOSS BEFORE
TAXATION (N20.321m) (N252.3477m)
TAXATION (N6.503m) (N80.793m)
PROFIT AFTER TAXATION (N13.818m) (N171.684m)

be careful with results released during PO

[balaliyu]

more importantly...be careful of manufacturing companies in Nigeria right now...until the Power scenario improves

[knightofdelta]

Originally Posted by hispy99

be careful with results released during PO

...especially when they are not audited. Who knows, they may have revenues that never really happened...