Nestle

[Dicobody]

http://www.nse.com.ng/Financial%20Ne...BER%202012.pdf

[Salida]

Nestle’s expansion drive bolster earnings

[Salida]

NESTLE NIGERIA PLC

(Q2 2012 Unaudited results) Sept 30, 2012

Dividend (k) 150


Bonus NIL


Closure Date 14/12/2012


Payment Date 24/12/2012

[afolabi27]

Is it only me, I think Nestle should be a #60 stock

[goldsun]

Originally Posted by afolabi27

Is it only me, I think Nestle should be a #60 stock

how did you arrive at that

[dr.abrahamb]

Originally Posted by afolabi27

Is it only me, I think Nestle should be a #60 stock

I agree with you on the condition that its true you omitted a zero between those two digits above. From a cash value position it is circa NGN590. Mr.Market is sane about this stock.

[afolabi27]

Originally Posted by dr.abrahamb

I agree with you on the condition that its true you omitted a zero between those two digits above. From a cash value position it is circa NGN590. Mr.Market is sane about this stock.

The Doctor, please throw more light on how you arrived at a cash value position of N590.

[goldsun]

Originally Posted by afolabi27

The Doctor, please throw more light on how you arrived at a cash value position of N590.

let me make a contribution to make contribution and i hope it won't be out of place. The company use leverage to give return to shareholders and they are very good at it. With forward ROE of 67%, net profit growth of 63% PEG of 0.37. Its not overvalued

[nosa2]

Originally Posted by goldsun

let me make a contribution to make contribution and i hope it won't be out of place. The company use leverage to give return to shareholders and they are very good at it. With forward ROE of 67%, net profit growth of 63% PEG of 0.37. Its not overvalued

Hmm… their p.e is in the stratosphere oh! If it was trading at around N250 then those buying in would be sure to enjoy the growth but at current levels the growth is already priced in so at best it's rightly priced and at worse it's over priced.

[laso]

Originally Posted by goldsun

let me make a contribution to make contribution and i hope it won't be out of place. The company use leverage to give return to shareholders and they are very good at it. With forward ROE of 67%, net profit growth of 63% PEG of 0.37. Its not overvalued

Is there any way of relating ROE with stock price or we just assume dat once a stock has a high ROE it doesnt matter what d price is?

[goldsun]

Originally Posted by laso

Is there any way of relating ROE with stock price or we just assume dat once a stock has a high ROE it doesnt matter what d price is?

that was why the PEG was calculated

[afolabi27]

Originally Posted by goldsun

let me make a contribution to make contribution and i hope it won't be out of place. The company use leverage to give return to shareholders and they are very good at it. With forward ROE of 67%, net profit growth of 63% PEG of 0.37. Its not overvalued

kini? The problem with that G in PEG is how you determine it! Why not measure the profit growth over 5yrs and see if this is comparable with the 63%?

Again, could this G be the dividend growth rate from one year to another?

and from elementary corporate finance, is this G= ROE x retention rate?

And since Nestle is significantly geared, why use ROE instead of ROCE or ROA?

Originally Posted by nosa2

Hmm… their p.e is in the stratosphere oh! If it was trading at around N250 then those buying in would be sure to enjoy the growth but at current levels the growth is already priced in so at best it's rightly priced and at worse it's over priced.

Spot on Oga, ignore my "ijebu" a 50% discount is close to fair value for you and I.

But I have to wait and hear what Dr.Abraham will say on that cash flow.

[laso]

Originally Posted by goldsun

that was why the PEG was calculated

Bros, i dont get it o, do u mean we can relate ROE to PEG?

[knightofdelta]

Originally Posted by goldsun

let me make a contribution to make contribution and i hope it won't be out of place. The company use leverage to give return to shareholders and they are very good at it. With forward ROE of 67%, net profit growth of 63% PEG of 0.37. Its not overvalued

What is with this PEG thing flying all over the place? Research has shown over and over again that PEG has zero correlation with stock price movement... Sir Afolabi27 should be able to confirm this from "Level Two"...

It has been relegated into the backwaters of equity analysis and currently lives in the realm of "one of those theories with good academic explanations and zero practical application".

[afolabi27]

Originally Posted by knightofdelta

What is with this PEG thing flying all over the place? Research has shown over and over again that PEG has zero correlation with stock price movement... Sir Afolabi27 should be able to confirm this from "Level Two"...

why do you have to burst speaker??? take your time O.

[horlads]

Originally Posted by knightofdelta

What is with this PEG thing flying all over the place? Research has shown over and over again that PEG has zero correlation with stock price movement... Sir Afolabi27 should be able to confirm this from "Level Two"...

It has been relegated into the backwaters of equity analysis and currently lives in the realm of "one of those theories with good academic explanations and zero practical application".

Originally Posted by afolabi27

why do you have to burst speaker??? take your time O.

We know who be we wa foe hia...Tuale boss...

[dr.abrahamb]

Originally Posted by afolabi27

The Doctor, please throw more light on how you arrived at a cash value position of N590.

With time sir, with time.

[dr.abrahamb]

Originally Posted by knightofdelta

What is with this PEG thing flying all over the place? Research has shown over and over again that PEG has zero correlation with stock price movement... Sir Afolabi27 should be able to confirm this from "Level Two"...

It has been relegated into the backwaters of equity analysis and currently lives in the realm of "one of those theories with good academic explanations and zero practical application".

Ok nauw...

I don burst the speaker finish be dat

[solo66]

http://www.nse.com.ng/MarketNews/Dow...010%202012.pdf

See interim dividend for N700.00 stock! Just 150k.

[overload]

Originally Posted by solo66

http://www.nse.com.ng/MarketNews/Dow...010%202012.pdf

See interim dividend for N700.00 stock! Just 150k.

bros cool down... this is 3rd interim dividend!

for your info, this stock has returned 82% YTD and you say what?