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hispy99 27th November 2008 05:26 AM

Honeywell Flour Mill
 
The Punch :: Honeywell Flour Mills set for N18.65bn IPO

citizen 27th November 2008 04:28 PM

Re: Honeywell Flour Mill
 
Where does Oba Otudeko hope to get his investors at this time of sallah and Christmas. Maybe he is expecting foreign capital

hispy99 3rd December 2008 01:38 AM

Re: Honeywell Flour Mill
 
http://www.honeywelloil.com/images/prospectus.pdf

ikazuagbe 3rd December 2008 11:13 AM

Re: Honeywell Flour Mill
 
Please kindly paste a copy of Honeywell Floiur Mills Plc.-IPO Prsspectus,so

that we can go through it soonest and make up our minds if to buy or not.

Thankls and God bless

BLUEMONEY 3rd December 2008 05:33 PM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by citizen (Post 35491)
Where does Oba Otudeko hope to get his investors at this time of sallah and Christmas. Maybe he is expecting foreign capital




I Wont be Suprised if this one is Actually Oversubcribed.

zainabusman 3rd December 2008 10:40 PM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by BLUEMONEY (Post 35808)
I Wont be Suprised if this one is Actually Oversubcribed.

Why?.......

Abinishio 4th December 2008 12:33 AM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by BLUEMONEY (Post 35808)
I Wont be Suprised if this one is Actually Oversubcribed.

Oversubscribed???:confused:
I dont think so, not this period

Haba!!:rolleyes:

value_investor 4th December 2008 04:06 PM

Re: Honeywell Flour Mill
 
Wise men donít pay too much attention to the market as a whole they look primarily at the company and its fundamentals!

Below are some of the criteria a certain wise man takes before investing:

Strong profitability
'If a business does well, the stock eventually follows.'

Buffett prefers to invest in companies with a proven level of strong profitability, giving more credence to this than what analysts predict will happen in the future.

According to the prospectus, Honeywell Flour Mills PLC (HFMP), experienced a compounded annual growth rate (CAGR) of 70% from 2005 Ė 2008. Also that was excluding the profit gained from Honeywell Superfine Foods Limited, its popular O! Noodles/O! Snacks producing subsidiary.

Understanding the business

'Risk comes from not knowing what you're doing.'

Buffett will only invest in businesses he can understand and analyse, rejecting those that operate in complicated markets or where he is unsure of their operating model. He has largely ignored the technology sector because he claims not to fully understand their business, but prefers retailing, food and insurance stocks.

Itís easy to understand the business that HFMP does: - Semolina, Flour, Brown Flour, Noodles, Snacks and very soon Pastas. They are Flour and Flour-based products!

With our large and increasing population, our increasing GDP per capita, and low daily flour consumption per population size in comparison with other countries...HFMP products are going to sell more and more in the future!

Also, with fast foods like meat pies and sandwiches becoming more popular...
Letís not forget that kids eat more and more spaghetti and macaroni (flour-based products), and HFMP is just about to launch its own pasta products!

Also, it was said that Buffet goes walking on the streets and buys products that a lot of people are using. Go for a walk in the mornings, what you will definitely see are people eating bread! HFMP is the only flour mills in Nigeria that runs a baking school, so has close ties with bakers and the Masters Bakers Association of Nigeria.

With the strong brand of flour, Honeywell Superfine Flour (first Nigerian flour mills to be awarded the international award NIS ISO 9001:2000 Certification) is used throughout Nigeria, with customers ranging from individuals to large businesses like Big Treat and UAC Foods Nigeria ( the producers of the omni-present flour containing Gala!)


Strong management

'It's better to hang out with people better than you, ... Pick out associates whose behaviour is better than yours and you'll drift in that direction.'

Buffett places great emphasis on the quality of a company's management.

By looking at the prospectus, each member of the management team possesses first class education, training and experience in their respective fields.

The Chief Executive Officer, with an agriculture degree was the first prize winner in the 1980 final qualifying ICAN examination. He is held in high regard in the industry being the Vice Chairman of Flour Milling Association of Nigeria and a Council Member of the Association of Operative Millers, Middle East and Africa.

Lastly the management is led by an experienced Board of Directors from Mr. Kola Jamodu MFR the former Minister of Industry, to Dr. Oba Otudeko OFR, the current President of the Nigerian Stock Exchange and Chairman of Fan Milk of Nigeria Plc and FBN Bank (UK) ltd.

So if those criterias are good enough for the GURU Buffet then they are good for me!

Those reasons and many others are why I quickly went and bought my shares! So buy before they become oversubscribed! :)

BLUEMONEY 4th December 2008 05:39 PM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by zainabusman (Post 35820)
Why?.......





My Conclusion is based on the Arrangement that the Issuing Houses (Bank PHB & Oceanic Capital) in Particular are putting in place to ensure that the offer survives this bearish period.

Sources at both Firms told me that thier own Quota of the Offer may not be Enough for them as Stockbroking firms and Individuals are Lobbying for Large Units.

hispy99 4th December 2008 06:35 PM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by BLUEMONEY (Post 35882)
My Conclusion is based on the Arrangement that the Issuing Houses (Bank PHB & Oceanic Capital) in Particular are putting in place to ensure that the offer survives this bearish period.

Sources at both Firms told me that thier own Quota of the Offer may not be Enough for them as Stockbroking firms and Individuals are Lobbying for Large Units.


Interesting. if my memory of DFL's prospectus is correct, margins are razor thin in this business. Well I am looking forward to the memo.

edwardaigbokhan 4th December 2008 06:42 PM

Re: Honeywell Flour Mill
 
Since the owner of this company is a big boy in the nigeria stock market, one can never tell but as for me and my household BYE BYE to public offers or private placement. there are more than enough bargain in the secondary market.

Job 4th December 2008 06:49 PM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by edwardaigbokhan (Post 35889)
Since the owner of this company is a big boy in the nigeria stock market, one can never tell but as for me and my household BYE BYE to public offers or private placement. there are more than enough bargain in the secondary market.

Infact, you are very correct!!! for me also I better go to secondary market to pick more promising stock than to buy public offer.

BLUEMONEY 4th December 2008 07:16 PM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by hispy99 (Post 35887)
Interesting. if my memory of DFL's prospectus is correct, margins are razor thin in this business. Well I am looking forward to the memo.



And Talking about DFL Plc, When they Approached the Exchange for thier IPO, Dr. Oba Otudeko was among those that was sounding Alarm about how Overpriced the IPO was, so I would really like to see the memo of this one.

kokoko 4th December 2008 08:22 PM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by value_investor (Post 35877)
Wise men donít pay too much attention to the market as a whole they look primarily at the company and its fundamentals!

Below are some of the criteria a certain wise man takes before investing:

Strong profitability
'If a business does well, the stock eventually follows.'

Buffett prefers to invest in companies with a proven level of strong profitability, giving more credence to this than what analysts predict will happen in the future.

According to the prospectus, Honeywell Flour Mills PLC (HFMP), experienced a compounded annual growth rate (CAGR) of 70% from 2005 Ė 2008. Also that was excluding the profit gained from Honeywell Superfine Foods Limited, its popular O! Noodles/O! Snacks producing subsidiary.

Understanding the business

'Risk comes from not knowing what you're doing.'

Buffett will only invest in businesses he can understand and analyse, rejecting those that operate in complicated markets or where he is unsure of their operating model. He has largely ignored the technology sector because he claims not to fully understand their business, but prefers retailing, food and insurance stocks.

Itís easy to understand the business that HFMP does: - Semolina, Flour, Brown Flour, Noodles, Snacks and very soon Pastas. They are Flour and Flour-based products!

With our large and increasing population, our increasing GDP per capita, and low daily flour consumption per population size in comparison with other countries...HFMP products are going to sell more and more in the future!

Also, with fast foods like meat pies and sandwiches becoming more popular...
Letís not forget that kids eat more and more spaghetti and macaroni (flour-based products), and HFMP is just about to launch its own pasta products!

Also, it was said that Buffet goes walking on the streets and buys products that a lot of people are using. Go for a walk in the mornings, what you will definitely see are people eating bread! HFMP is the only flour mills in Nigeria that runs a baking school, so has close ties with bakers and the Masters Bakers Association of Nigeria.

With the strong brand of flour, Honeywell Superfine Flour (first Nigerian flour mills to be awarded the international award NIS ISO 9001:2000 Certification) is used throughout Nigeria, with customers ranging from individuals to large businesses like Big Treat and UAC Foods Nigeria ( the producers of the omni-present flour containing Gala!)


Strong management

'It's better to hang out with people better than you, ... Pick out associates whose behaviour is better than yours and you'll drift in that direction.'

Buffett places great emphasis on the quality of a company's management.

By looking at the prospectus, each member of the management team possesses first class education, training and experience in their respective fields.

The Chief Executive Officer, with an agriculture degree was the first prize winner in the 1980 final qualifying ICAN examination. He is held in high regard in the industry being the Vice Chairman of Flour Milling Association of Nigeria and a Council Member of the Association of Operative Millers, Middle East and Africa.

Lastly the management is led by an experienced Board of Directors from Mr. Kola Jamodu MFR the former Minister of Industry, to Dr. Oba Otudeko OFR, the current President of the Nigerian Stock Exchange and Chairman of Fan Milk of Nigeria Plc and FBN Bank (UK) ltd.

So if those criterias are good enough for the GURU Buffet then they are good for me!

Those reasons and many others are why I quickly went and bought my shares! So buy before they become oversubscribed! :)

I admire Otudeko's guts for coming out with a public offer at such a time that most people are cynical about the Nigerian market.
Your arguments for Honeywell and convincing (dont mind me but it crossed my mind that you are a PR staff for Honeywell group!) but I refused to be swayed. My reasons are legion but most importantly, Honeywell and Dangote flour will fight a price war and I don't see Honeywell getting the best of Dangote that is already up and running. But what do I know...Otudeko is a guru and he may yet work some magic.

value_investor 4th December 2008 08:27 PM

Re: Honeywell Flour Mill
 
Its important that we cut out hearsay, rumours and fearmongering until we have the hard facts! Just because some of us got burnt it doesnt mean that all the stocks, in particularly initial offers are on fire!

Have a look at the prospectus for youself and you'll see that this company is fundamentally strong and will continue to be... and thats what drives long term value and returns, not speculation! (any more! ;))

kokoko 4th December 2008 08:35 PM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by value_investor (Post 35904)
Its important that we cut out hearsay, rumours and fearmongering until we have the hard facts! Just because some of us got burnt it doesnt mean that all the stocks, in particularly initial offers are on fire!

Have a look at the prospectus for youself and you'll see that this company is fundamentally strong and will continue to be... and thats what drives long term value and returns, not speculation! (any more! ;))

Whao! You feel strongly for this public offer. I thought you work for Otudeko but now I am almost convinced you do! Correct me pls and yes...post the prospectus.

hispy99 4th December 2008 08:40 PM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by value_investor (Post 35904)
Its important that we cut out hearsay, rumours and fearmongering until we have the hard facts! Just because some of us got burnt it doesnt mean that all the stocks, in particularly initial offers are on fire!

Have a look at the prospectus for youself and you'll see that this company is fundamentally strong and will continue to be... and thats what drives long term value and returns, not speculation! (any more! ;))

True, but we know that DFL and Flour Mills are the 2 dominant players. If you have the prospectus (I presume you do since you said the company is fundamentally strong) can you please post it here?

value_investor 4th December 2008 08:50 PM

Re: Honeywell Flour Mill
 
haha, unfortunately I don't! Like you i admire the bravery and may i add the foresight of the man!

Its just that ive had a good look at the prospectus and I bought into the offer!

The fact of the matter is that the capital market is here to stay! All over the world people have been burnt but when this all over..it will be here!

It has been the driver of growth and wealth creation..and it will continue to be.

So my look on all this is that one can either put their money under the pillow..or thay can enter the market with clear eyes and realism and look closely at the fundamentals (something i stress) of stocks in general! Buy into companies that are strong and will continually be and reap the rewards.

So no am not an employee, am an investor that has been burnt and whose eyes have been open to true value investing!

blanka 4th December 2008 09:25 PM

Re: Honeywell Flour Mill
 
Tried Posting the prospectus without success. But please it can be downloaded from the the BGL securities website...I did not really read the entire document, but haven seen the forecast figures, i see no cause for optimism. My personal opinion.

kokoko 4th December 2008 09:42 PM

Re: Honeywell Flour Mill
 
Quote:

Originally Posted by value_investor (Post 35908)
haha, unfortunately I don't! Like you i admire the bravery and may i add the foresight of the man!

Its just that ive had a good look at the prospectus and I bought into the offer!


The fact of the matter is that the capital market is here to stay! All over the world people have been burnt but when this all over..it will be here!

It has been the driver of growth and wealth creation..and it will continue to be.

So my look on all this is that one can either put their money under the pillow..or thay can enter the market with clear eyes and realism and look closely at the fundamentals (something i stress) of stocks in general! Buy into companies that are strong and will continually be and reap the rewards.

So no am not an employee, am an investor that has been burnt and whose eyes have been open to true value investing!

Ok, I believe you dont work for him. So please be kind and post a link to the prospectus so maybe I will join you in this investing a la Warren Buffet. Abi you want to enjoy alone? :D Dont worry, I am no money bag so it wont be oversubscribed because of the few units I might buy:D


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