Ashaka Cement

[yodiyokun]

Anyone with any news on ashaka cement? It seems the boat is rocking over there and the share price has taken a serious nose dive!

Anyone with information - I need to know when to take position if i will be doing so.

[easimoni]

Originally Posted by yodiyokun

Anyone with any news on ashaka cement? It seems the boat is rocking over there and the share price has taken a serious nose dive!

Anyone with information - I need to know when to take position if i will be doing so.

Turnover and profits are falling at Ashaka! Don't touch with a 10-ft pole

[Stockbear]

If you can trust anyone's advice, you can trust Easimoni's.

For those not in the know, Easimoni is an established guru over at Nairaland. He has earned his guruship many times over (no bi say i talk am!).

[c kenneths]

All hail his royal guru-sty, Easimoni.
Your guruship has been confirmed and approved

[wanaj0]

Originally Posted by easimoni

Turnover and profits are falling at Ashaka! Don't touch with a 10-ft pole

I tend to differ!!!!

Ashaka is one of the best cement companies around!!! They had problems last year with LPFO supply. That was what led to teh closure of the textile mills in the North. Hence they've had production disruption. Now they are converting to use of coal and doing some works on their Kiln. Good thing about Ashaka is the HUGE cash reserve that they've built up over the years. Interest INCOME for 2006 was around N900m. So even if they don't produce cement, they will still make money. Also the reserve is able to cushion the current temporary drop in profit. They have money!!!

My concern is the lack of an expansion plan. The current improvements will increase production by about 20% but that is nothing in the face of current realities. Apart from that, Ashaka is a very strong company!!!!

If the price can just fall a bit then expect savvy investors to make a swoop on the shares! The current dip is temporary.

[yodiyokun]

Originally Posted by wanaj0

I tend to differ!!!!

Ashaka is one of the best cement companies around!!! They had problems last year with LPFO supply. That was what led to teh closure of the textile mills in the North. Hence they've had production disruption. Now they are converting to use of coal and doing some works on their Kiln. Good thing about Ashaka is the HUGE cash reserve that they've built up over the years. Interest INCOME for 2006 was around N900m. So even if they don't produce cement, they will still make money. Also the reserve is able to cushion the current temporary drop in profit. They have money!!!

My concern is the lack of an expansion plan. The current improvements will increase production by about 20% but that is nothing in the face of current realities. Apart from that, Ashaka is a very strong company!!!!

If the price can just fall a bit then expect savvy investors to make a swoop on the shares! The current dip is temporary.

Wanaj0,
chei - you dey everywhere !

anyway your point and easimoni's is well taken .. let us see how low it will go.

[wanaj0]

Originally Posted by yodiyokun

Wanaj0,
chei - you dey everywhere !

anyway your point and easimoni's is well taken .. let us see how low it will go.

My sister, you follow me reach here????

Ok OOO

[c kenneths]

Yeah, and am also watching the pendulum swinging the price from here to there, I will buy the stock if it gets low enough, and if it rises, ol boy I go run oo.

Una two points are taken, thanks.

[Doyin]

The building sector is definetely not a short term market. The Ashakas, WAPCO's are not for short term, but will hopefully produce result in the long term (6 -9 months).
The new policy of flooding the market with imported cement in order to crash cement prices will help the economy (building prices will reduce) but will negatively impact on the cement companies as their market domination is weakened.
We will see how this policy plays out, and with the likes of dangote cement coming to the market next year, competition will definetely be tight, so a hold strategy may be best!

[wanaj0]

Originally Posted by Doyin

The building sector is definetely not a short term market. The Ashakas, WAPCO's are not for short term, but will hopefully produce result in the long term (6 -9 months).
The new policy of flooding the market with imported cement in order to crash cement prices will help the economy (building prices will reduce) but will negatively impact on the cement companies as their market domination is weakened.
We will see how this policy plays out, and with the likes of dangote cement coming to the market next year, competition will definetely be tight, so a hold strategy may be best!

Ibeto has a license to import 1.5m tonnes. That is not up to 10% of teh market. How will they now crash the market? Don't fall for the propaganda!

[bblqk69]

The policy to import cement will only take place if the cement operators dont find a way to reduce prices.
The Govt has not implemented yet!

[atebe]

If you currently own Ashaka, cement, I suggest you hold and if you had bought high, then this is an opportunity to dilute your average purchase price. Ashska shareholders at the last AGM rejected the N1.50 dividend and 1 for 6 stock split proposed by the board. They also accused their major foreing investor, the French cement giant, Lafarge, of bad management and retrenching old hands of the compny that have in the past been responsible for the company's enviable perfomance that resulted in a 2 for 3 stock split and a handsome dividend payout for year end 2003.

This coupled with the bearish market and a combination of factors earlier expressed by Wanadjo, coupled with the govt's position on importation of cement must be playing on investors sentiments. The P/E ratio of Ashaka should be used to gaugue the stock just now as to decide if it is a good buy or not. The cement industry in Nigeria is a very good place to invest now and for the long term. I agree to a minimum of 6 - 9 months horizon for Ashaka!

[RethinK2.0]

Originally Posted by atebe

If you currently own Ashaka, cement, I suggest you hold and if you had bought high, then this is an opportunity to dilute your average purchase price. Ashska shareholders at the last AGM rejected the N1.50 dividend and 1 for 6 stock split proposed by the board. They also accused their major foreing investor, the French cement giant, Lafarge, of bad management and retrenching old hands of the compny that have in the past been responsible for the company's enviable perfomance that resulted in a 2 for 3 stock split and a handsome dividend payout for year end 2003.

This coupled with the bearish market and a combination of factors earlier expressed by Wanadjo, coupled with the govt's position on importation of cement must be playing on investors sentiments. The P/E ratio of Ashaka should be used to gaugue the stock just now as to decide if it is a good buy or not. The cement industry in Nigeria is a very good place to invest now and for the long term. I agree to a minimum of 6 - 9 months horizon for Ashaka!

Are you sure they rejected the dividend or they just complained?
Their share price was adjusted for the bonus. check your facts.

[pumping]

Originally Posted by atebe

If you currently own Ashaka, cement, I suggest you hold and if you had bought high, then this is an opportunity to dilute your average purchase price. Ashska shareholders at the last AGM rejected the N1.50 dividend and 1 for 6 stock split proposed by the board. They also accused their major foreing investor, the French cement giant, Lafarge, of bad management and retrenching old hands of the compny that have in the past been responsible for the company's enviable perfomance that resulted in a 2 for 3 stock split and a handsome dividend payout for year end 2003.

This coupled with the bearish market and a combination of factors earlier expressed by Wanadjo, coupled with the govt's position on importation of cement must be playing on investors sentiments. The P/E ratio of Ashaka should be used to gaugue the stock just now as to decide if it is a good buy or not. The cement industry in Nigeria is a very good place to invest now and for the long term. I agree to a minimum of 6 - 9 months horizon for Ashaka!

I'm curious about this rejection. Is it because the company earned more but gave less?? Surely they can't pay more than earnings and in any case they have to retain some

[wanaj0]

Originally Posted by RethinK2.0

Are you sure they rejected the dividend or they just complained?
Their share price was adjusted for the bonus. check your facts.

Cashed my own dividend already so maybe I am not part of those that rejected the dividend

Ashaka is facing problems because of energy supply. They could not get LPFO to fire their kilns.

However, I blame them for not having an expansion plan all this while that they were sitting on idle cash!!!!!!

Ashaka is for the medium term. They will turn out good once they can solve the current energy problem.

[atebe]

Originally Posted by RethinK2.0

Are you sure they rejected the dividend or they just complained?
Their share price was adjusted for the bonus. check your facts.

It is a fact that at the AGM, the shareholders in attendance were reported to have "rejected" the bonus and stock split. The point here is that sharehlders at the AGM also threatened to pass a vote of no confidence on the board...again this was reported. This probably has played on sentiments on possible investors. I did not state this as a singular issue responsible for the percieved lack of interest in Ashaka. In anycase, it could all have been hot air but these sort of talk have a way of creeping into investors sentiments. Ofcourse the prices was adjusted for the proposed dividend payout and stock split so...