Benue Cement Plc Stock

[waaan5]

Originally Posted by pumping

:fainted:

Abeg, wey my broker number... not nine not...gring gring......see solid(cement) money.... market no open tomorrow for wetin..? Saturday must be trading day jo...execute this order one time...no limit sam sam...

You pumped me with laughter! Here is my own conversation that just finished ..
waaan5: Where my broker?
broker: Oga waaan5 we dey here ... good evening, happy weekend.
waaan5: Okay buy me BCC tommorrow, no limit price, as much volumes as you can get.
Broker: You mean next tomorrow, monday. Tommorrow is sunday ....
Waaan5: I know tomorrow is sunday. Buy me BBC. Do it after Mass, whatever, just do it. At least Dangote is working tomorrow. Go to his house ... anything ... just buy me BBC!

On a more serious note. Let's know this for what it is ... a forecast. Anything can happen and nija companies do not bat an eyelid when they miss their forecasts. I remember Dangote promising to pay N8.00 dividend when he first accquired BCC. The BCC was N8.50 each or thereabout. That made me to go all out to pick up as much volumes as I could then, only for him to give 1 for 8. The argument then being that the one for eight was as good as N8 per share as the share price had galloped to N66. They have changed as they no longer project how much they would pay out. But the forecasting is still there.

[pumping]

Originally Posted by waaan5

You pumped me with laughter! Here is my own conversation that just finished ..
waaan5: Where my broker?
broker: Oga waaan5 we dey here ... good evening, happy weekend.
waaan5: Okay buy me BCC tommorrow, no limit price, as much volumes as you can get.
Broker: You mean next tomorrow, monday. Tommorrow is sunday ....
Waaan5: I know tomorrow is sunday. Buy me BBC. Do it after Mass, whatever, just do it. At least Dangote is working tomorrow. Go to his house ... anything ... just buy me BBC!

On a more serious note. Let's know this for what it is ... a forecast. Anything can happen and nija companies do not bat an eyelid when they miss their forecasts. I remember Dangote promising to pay N8.00 dividend when he first accquired BCC. The BCC was N8.50 each or thereabout. That made me to go all out to pick up as much volumes as I could then, only for him to give 1 for 8. The argument then being that the one for eight was as good as N8 per share as the share price had galloped to N66. They have changed as they no longer project how much they would pay out. But the forecasting is still there.

LOL.....I die put....

To the real jist. You were right to buy the BCC then. The question is if you waited until the the 1 for 8 was announced. I know about "buy on rumour and sell on news" but I think it is safer to "buy on rumour and sell before the news"... So if I buy BCC now, I will be sure I don't have any when the result is announced.

This broker is trying me o....no CSCS text alert since for order wey I place last night?? I prefer my own before mass...

[bivins1]

Good job
my broker just managed to get 100,000 units of BCC yesterday for me. that was awesome. that is what i call an agbero broker. always performing irrespective of whether its saturday or monday

Originally Posted by pumping

LOL.....I die put....

To the real jist. You were right to buy the BCC then. The question is if you waited until the the 1 for 8 was announced. I know about "buy on rumour and sell on news" but I think it is safer to "buy on rumour and sell before the news"... So if I buy BCC now, I will be sure I don't have any when the result is announced.

This broker is trying me o....no CSCS text alert since for order wey I place last night?? I prefer my own before mass...

[savvy]

Originally Posted by bivins1

Good job
my broker just managed to get 100,000 units of BCC yesterday for me. that was awesome. that is what i call an agbero broker. always performing irrespective of whether its saturday or monday

Hmm the house seems ot be on a lighter mood..jokes everywhere

Guess fellows have been smiling to the bank...

Happy investing jare

[waaan5]

Originally Posted by pumping

LOL.....I die put....

To the real jist. You were right to buy the BCC then. The question is if you waited until the the 1 for 8 was announced. I know about "buy on rumour and sell on news" but I think it is safer to "buy on rumour and sell before the news"... So if I buy BCC now, I will be sure I don't have any when the result is announced.

This broker is trying me o....no CSCS text alert since for order wey I place last night?? I prefer my own before mass...

You are right my brother, the fact I conveniently omitted in my experience story on BCC was that I was able to BUY at N8.50 and SOLD at N68. And if you know my buying habits, you can be sure we are talking very big volumes here. So I think it maybe worthwhile to chase BCC at least before it crosses the N38 mark. I am very late on it already so I will not chase this time.

[lincoln]

Originally Posted by knightofdelta

Is this sustainable given the current market conditions? Even with all the manipulations, I see AP coming below N50 soon.

Sustainability is one thing. The other problem might arise from the local community which may wish to disrupt the companies activities. Dangote gave the local community some good compensation. Some pot bellies in the community sat on the money. the issues has been coming on and off. Some one some where might call the locals attention to the huge profit Dangote is making on their soil and they may start looking for KOD for advice on how to...I wont pick a unit of it any way. The factory is sitting right in my village so im jus trying to get u info that u may need to factor into ur buying decision especially for long term. It may or may not be an issue afterall but factor in this production disruption issue.

[zainabusman]

BENUE CEMENT CO PLC
3RD QUARTER FORECAST
PROFIT AND LOSS ACCOUNTS INFORMATION
2009
TURNOVER N42.950b
COST OF SALES N23.844b
PROFIT BEFORE TAXATION N15.438b
PROFIT AFTER TAXATION N15.438b
CASH FLOW INFORMATION
CASHFLOW FROM OPERATING
ACTIVITIES N20.405b
NET CASH GENERATED FROM
OPERATING ACTIVITIES N2.153b
CASH FLOW FROM FINANCING
ACTIVITIES N6.720b
CASH FLOW FROM INVESTING
ACTIVITIES (N6.461b)
NET DECREASE IN NET CASH
AND CASH EQUIVALENTS N1.152b
CASH AND BANK BALANCE AT
THE BEGINNING OF THE PERIOD N1.189b
CASH AND BANK BALANCE AT THE
END OF THE PERIOD N2.641b

[zainabusman]

BENUE CEMENT CO PLC
4TH QUARTER FORECAST
PROFIT AND LOSS ACCOUNTS INFORMATION
2009
TURNOVER N59.646b
COST OF SALES N32.493b
PROFIT BEFORE TAXATION N22.167b
PROFIT AFTER TAXATION N22.167b
CASH FLOW INFORMATION
CASH FLOW FROM OPERATING
ACTIVITIES N28.831b
NET CASH GENERATED
FROM OPERATING ACTIVITIES N8.382b
CASH FLOW FROM FINANCING
ACTIVITIES N4.378b
CASH FLOW FROM INVESTING
ACTIVITIES (N6.462b)
NET DECREASE IN NET
CASH AND CASH EQUIVALENTS N5.037b
CASH AND BANK BALANCE AT
THE BEGINNING OF THE PERIOD N1.489b
CASH AND BANK BALANCE AT
THE END OF THE PERIOD N6.527b

[Dragon123]

Originally Posted by zainabusman

BENUE CEMENT CO PLC
4TH QUARTER FORECAST
PROFIT AND LOSS ACCOUNTS INFORMATION
2009
TURNOVER N59.646b
COST OF SALES N32.493b
PROFIT BEFORE TAXATION N22.167b
PROFIT AFTER TAXATION N22.167b
CASH FLOW INFORMATION
CASH FLOW FROM OPERATING
ACTIVITIES N28.831b
NET CASH GENERATED
FROM OPERATING ACTIVITIES N8.382b
CASH FLOW FROM FINANCING
ACTIVITIES N4.378b
CASH FLOW FROM INVESTING
ACTIVITIES (N6.462b)
NET DECREASE IN NET
CASH AND CASH EQUIVALENTS N5.037b
CASH AND BANK BALANCE AT
THE BEGINNING OF THE PERIOD N1.489b
CASH AND BANK BALANCE AT
THE END OF THE PERIOD N6.527b

[B]Is it safe to board BCC today?
[B
I have been trying to hop onto this train but the speed with which it was cruising was too much for me. Today it will be marked down for the 1 for 4 bonus and brought down to a more comfortable speed (price) of N36 if my mathematics is correct (it closed on Friday at N45) Pls Zain, would today be a good day to board? Do I wait till later in the year with the hope that it may go lower? With this juicy PAT of N22bn and outstanding shares of about 4bn post closure of register translating to N5.5 EPS do I have anything to lose? Kindly share your thoughts.

[zainabusman]

Originally Posted by Dragon123

[B]Is it safe to board BCC today?
[B
I have been trying to hop onto this train but the speed with which it was cruising was too much for me. Today it will be marked down for the 1 for 4 bonus and brought down to a more comfortable speed (price) of N36 if my mathematics is correct (it closed on Friday at N45) Pls Zain, would today be a good day to board? Do I wait till later in the year with the hope that it may go lower? With this juicy PAT of N22bn and outstanding shares of about 4bn post closure of register translating to N5.5 EPS do I have anything to lose? Kindly share your thoughts.

I dont own BCC and so dont know much about it. I tend to prefer cash dividend paying companies.

If the forecast is met, the PE at current price is around 6.4. In the past this PE would have been considered a bargain. Is it a bargain now or will it fall further? That is something only those with crystal ball can answer.

U may also wish to dig deeper and see if u can find more info to help ur analysis as this particular stock is not in my radar.

In my view the market will drop in the last qtr. But there is no guarantee that will happen. For all we know it might go up. The important question is really whether BCC is a bargain at this price. In my view the current price is attractive provided the forecast is met. There are very few non banking/insurance stocks with forward PE's of less than 7.

If u are interested in it to hold for 2 to 3 years, then i would say buy for example 60% to 70% of what u need within the next few days. The remaining 30% you could keep until when the price falls below ur average price.

However, if u buying it to trade, then it is a different game which i have no clue how to play.

[Dragon123]

Thanks Zain. God bessyou.

[Waves]

Originally Posted by zainabusman

I dont own BCC and so dont know much about it. I tend to prefer cash dividend paying companies.

If the forecast is met, the PE at current price is around 6.4. In the past this PE would have been considered a bargain. Is it a bargain now or will it fall further? That is something only those with crystal ball can answer.

U may also wish to dig deeper and see if u can find more info to help ur analysis as this particular stock is not in my radar.

In my view the market will drop in the last qtr. But there is no guarantee that will happen. For all we know it might go up. The important question is really whether BCC is a bargain at this price. In my view the current price is attractive provided the forecast is met. There are very few non banking/insurance stocks with forward PE's of less than 7.

If u are interested in it to hold for 2 to 3 years, then i would say buy for example 60% to 70% of what u need within the next few days. The remaining 30% you could keep until when the price falls below ur average price.

However, if u buying it to trade, then it is a different game which i have no clue how to play.

I am a long term investor in this stock (got in at N3.90 in 2005). The stock is unlikely to pay any cash dividend before the expiration of the 5 year tax holiday (2010) and the repayment of the huge loan the company took in 2006. If you consider bonus as dividends, then this should not bother you. In any case the company is rather prompt in crediting CSCS accounts with bonus.

On an industry scale, take note of the tussle going on between Dangote and FGN on cement importation. Cement companies are unlikely to win the argument if the Naira continues to strengthen.

.

[hispy99]

The share price of benue cement company plc was adjusted for a scrip issue of 1 for 4.

[hispy99]

Guardian Newspapers
Dangote Group invests N45 billion in BCC, says official

[zainabusman]

29th july 2009
bcc plc interim financial report for half year ended
30th june 2009 2nd quarter corporate actions proposed
dividend n1 closure of register august 24th to 28th 2009
payment date august 31st 2009

[zainabusman]

29TH JULY 2009
BCC PLC INTERIM FINANCIAL REPORT FOR HALF YEAR ENDED
30TH JUNE 2009 2ND QUARTER
2009 2008
TURNOVER N19.598b N4.101b
PROFIT BEFORE TAXATION N9.673b N1.460b
TAXATION NIL (N321.407m)
PROFIT AFTER TAXATION N9.673b N1.139b
BALANCE SHEET INFORMATION 30-06-2009
FIXED ASSETS N41.827b N36.635b
STOCK N2.296b N2.449b
TRADE DEBTORS N18.105m N24.145m
CASH AND BANK BALANCES N3.300b N308.308m
OTHER DEBIT BALANCES N1.769b N2.296b
TRADE CREDITS N1.867b N1.845b
SHORT TERM BORROWINGS NIL N13.961b
OTHER CREDIT BALANCES N24.678b N15.059b
WORKING CAPITAL (N17.857b) (N25.346b)
NET ASSETS N23.318b N11.068b

[eniyanman]

Originally Posted by zainabusman

29TH JULY 2009
BCC PLC INTERIM FINANCIAL REPORT FOR HALF YEAR ENDED
30TH JUNE 2009 2ND QUARTER
2009 2008
TURNOVER N19.598b N4.101b
PROFIT BEFORE TAXATION N9.673b N1.460b
TAXATION NIL (N321.407m)
PROFIT AFTER TAXATION N9.673b N1.139b
BALANCE SHEET INFORMATION 30-06-2009
FIXED ASSETS N41.827b N36.635b
STOCK N2.296b N2.449b
TRADE DEBTORS N18.105m N24.145m
CASH AND BANK BALANCES N3.300b N308.308m
OTHER DEBIT BALANCES N1.769b N2.296b
TRADE CREDITS N1.867b N1.845b
SHORT TERM BORROWINGS NIL N13.961b
OTHER CREDIT BALANCES N24.678b N15.059b
WORKING CAPITAL (N17.857b) (N25.346b)
NET ASSETS N23.318b N11.068b

50% profit margin!!! Wow!

[zainabusman]

Originally Posted by eniyanman

50% profit margin!!! Wow!

Yes at the PBT level. However, they are enjoying a tax holiday so PBT and PAT are the same.

[X-2-X]

Zain,

Please do you know until when the tax holiday will last?

Thanks.

[nosa2]

Originally Posted by X-2-X

Zain,

Please do you know until when the tax holiday will last?

Thanks.

i think its 4 years from their start date, i know thats what it is for pioneering industries