Dangote Sugar

[Stockbear]

DSR has now gone to an all new year high of N42.46. At this rate, all things going well, the next trading session should see the stock appreciate considerably further.

[Stockbear]

As published in today's BusinessDay:

• DSR to begin export in 2008. To this effect, plant size will increase from 5000 tons per day to 7000 tons.

• It is opined share price will reach N100

• Profit margins looking very good: Still enjoys tax holiday.

• Two dividend paypents due anytime now: Investors urged to contact registrar and give CSCS account details to facilitate issue of e-dividends.

Current share price as of yesterday: N46.80

[bwalaman]

Dangote is quintessential Buffett – of course Buffett is the narrator of the investment word, ala, B. Graham.

Look at everything Plc, that Dangote has touched: DSR, National Salt Comm, BCC- look at where all the companies came from- and today! Take National Salt for example it went from .50/60 kobo in January to 13 plus today, Dangote website claims to have 70% of the salt market. DSR is the biggest in Africa (and in the top 5 in the world!). Focusing on West Africa along will sustain growth for the next 10 yrs!

Dangote is a conglomerate!!! Check out its activity and infrastructure (port facilities, transport). And soon Dangote will be some quasi-monopoly in Sugar, Salt and will give the Cement subsector a run for their money.

For me the final blow for Transcorp was when he withdrew from the Board (never miss a chance to bash Transcorp- don’t mind me).

The issue of favour from the govt is really mute- this guy talks to IMF and World Bank directly!

It is in the interest of govt to talk to Dangote! The Asian Tigers built their economy around conglomerate- memory recall.

What is good for Dangote is good for Nigeria - period!!!

[Dis GuY]

Yes O!

the current price 56.20

quick question how easy is it to sell DSR, i have a feeling people wont want to buy it now as it is expensive. let say i want to sell some of my shares (no way-no yet!)

[babatunde akinyemi]

Originally Posted by adefabibayo

Where can i find the electronic/soft copy of dangote's IPO?

I suspect that Alhaji Dangote has made bwalaman a multi-millionaire-judging from the lavish praises he bestows on the man. Seriously, though,everything this Dangote man touches turns to Gold. We await his next move with high expectations

[bwalaman]

Credit is due man...

to the man and the company!!!

...lets all be happy...

[Stockbear]

My people I need your help on this one! Consider me ignorant and possibly foolish, but I was under the impression that DSR was enjoying a tax hloliday which even after its expiry, can still be extended even further.

If this is so, then why include a tax deduction before issuing/calculating of dividends? If the tax break exists then Dangote just screwed us out of some good money by pocketing it for himself! Am I wrong!!!

Please someone, everyone, enlighten me!

[windywendy]

Originally Posted by Stockbear

My people I need your help on this one! Consider me ignorant and possibly foolish, but I was under the impression that DSR was enjoying a tax hloliday which even after its expiry, can still be extended even further.

If this is so, then why include a tax deduction before issuing/calculating of dividends? If the tax break exists then Dangote just screwed us out of some good money by pocketing it for himself! Am I wrong!!!

Please someone, everyone, enlighten me!

By legislation, dividends are considered as income and are taxable at 10%. This is irrespective of the tax status of the company paying the dividend. So a company may be enjoying a tax holiday, but the IRS still expects them to withhold and remit taxes on dividends, since the dividends are considered income to the shareholders (think of the withholding tax as a form of income tax payable by the shareholder).

[Royal]

Hi,
windy is right. there has been calls to scrap the 10% tax on dividends on the ground that it constitutes double taxation. a company is taxed and the shareholders are also taxed on dividends - given that the tax the company itself pays is paid from shareholder's funds - double taxation.
No one is shouting load enough though.
regards.

[bwalaman]

I believe the difference is that (1) is Corporate tax and (2) is capital gains tax.

1. Is on the company, a form cost of business tax.
2. Is a form of income tax.

Companies enjoy tax breaks on the former, while individuals could on the latter, in our case there is a capital gains tax- dividend is gain on capital, so considered income, thus tax...

Am I correct???

[Stockbear]

Thanks everyone! I appreciate the response.

@ Windywendy - A big welcome back home to our wonderful community. We have missed your presence.

To all guests and members alike, Windywendy is one of our gurus. She knows her stuff and can help shed light on our collective ignorance or further enhance our understanding.

[Stockbear]

Now we will know how strong the DSR stock is by noting not only its staying power (price support levels) and how it surpasses them!

The Punch
Dangote Sugar dips further as investors take profit
By Goddy Egene and Bosede Olusola-Obasa
Published: Friday, 27 Apr 2007

The share price of Dangote Sugar Refinery Plc dipped for the third day on Thursday at the stock market as investors sold to reap part of the capital appreciation the equity had amassed since it was listed in March.

DSR, which was listed at N18 per share, rose by 211 per cent to close at N56 per share last week. Following the release of the share certificates, many investors are selling to reap part of the 211 per cent capital growth.

The resultant high supply has been pushing the share price down since Tuesday. It shed N5.51 between Tuesday and Wednesday and lost another N2.50 on Thursday to close at N47.68 per share.

Some market operators said that the price drop was normal as investors would not ignore an opportunity to realise a capital growth of over 200 per cent within one month.

They contended that the equity would appreciate again after the current bear run.

http://www.punchontheweb.com/Articl....07042622203950

[Miss_Risky]

I've just heard that Dangote Flour Mills will be coming to the market very soon. Rightly or wrongly, I intend to invest purely based on market sentiments - on the recent performance of DSR. Moreover someone had commented that everything the man touches turns to gold.

My question is whether anyone can confirm this rumoured IPO and does anyone have any data that might dissuade me from investing? For instance what is the implication of the importation of the wheat used in their milling plants in terms of government policies etc?

[alanbow]

Hi All,

I am new to the forum but what an excellent site. I just can stop reading the various comments.

I had from a credible source yesterday that the Dangote flour mills IPO is coming out soon and FCMB will be one of the issuing houses. Infact as early as next month I gather.

If and when I know more I will let you know.

[c kenneths]

We are all waiting and saving.

[Lidris]

I can see Dangote sugar is doing great, is it alrite to 2 buy now or will there be a future IPO? HELP ANY BODY.

[paragon]

for now there's no IPO. They just concluded one last year. The price of the stock has fallen a bit, so you can step in now. the stock has potential. So go ahead and make that move

[c kenneths]

I think Paragon is right, Dangote sugar is a 100 plus stock, barring any future problems.