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Food/Beverages & Tobacco stocks 7UP, Cadbury, Flour Mills, Nestle, Nigeria Bottling Company (NBC), Union Dicon Salt etc

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  #381 (permalink)  
Old 20th February 2013, 04:28 PM
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Default Re: Nestle

Quote:
Originally Posted by cecemontero View Post
The powers that took it there might still work together to keep it there.....
I might be wrong cos I've been wrong many times.


Prices of Stocks na water, they must always find their level. No matter how you try to manage or sustain the price of a stock.

Some management staff with Nestle portfolio of about 1 billion Naira, going home with a dividend of about N15 million Naira, Will want to sell and may be invest in other stocks that can give a dividend of between 50 million to 80 million Naira.

The price of Nestle may not come down from N1000, but it may be stagnant.

Last edited by emmanuel ewumi; 20th February 2013 at 04:40 PM.
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  #382 (permalink)  
Old 20th February 2013, 04:41 PM
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Default Re: Nestle

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Originally Posted by Ozone View Post
Oga Emma don't worry, whatever goes up must come down, that is what the law of gravity says. The price of Nestle will still come down.
For moon nko?
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  #383 (permalink)  
Old 20th February 2013, 04:44 PM
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Default Re: Nestle

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Originally Posted by emmanuel ewumi View Post
When a stock of N1000, pays a total dividend of N15. The stock will be appropriately priced.
Dividend is N18.50! This is the beginning of the crash!
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  #384 (permalink)  
Old 20th February 2013, 04:45 PM
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Default Re: Nestle

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Originally Posted by cecemontero View Post
The powers that took it there might still work together to keep it there.....
I might be wrong cos I've been wrong many times.
And that power will be working together amongst themselves to keep it there. We go just dey watch them like film.
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  #385 (permalink)  
Old 20th February 2013, 04:46 PM
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Default Re: Nestle

Quote:
Originally Posted by Oracle View Post
Dividend is N18.50! This is the beginning of the crash!
That means more than 90% of their earnings will be paid out as dividends.
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  #386 (permalink)  
Old 20th February 2013, 04:56 PM
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Default Re: Nestle

Quote:
Originally Posted by Oracle View Post
Dividend is N18.50! This is the beginning of the crash!
Quote:
Originally Posted by emmanuel ewumi View Post
That means more than 90% of their earnings will be paid out as dividends.
Bros.. dont expect this result to make the price fall!

Most of us with Nestle do have Nestle cos their their growth and excellent management and we are ready to hold it at a premium!

If people panic and start to sell, we will joyfully mop up more!!

Did you see the massive drop of 72% in the Finance cost?

BTW 67% increase in dividend payout no be moin moin! hopefully we will see another one like this by half year!
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  #387 (permalink)  
Old 20th February 2013, 04:57 PM
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Default Re: Nestle

Quote:
Originally Posted by cecemontero View Post
Oga mi, I looked at both turnover and PAT within the last 3yrs which might not be how to evaluate them. Pardon me if I'm wrong
I dont know if you can enlighten me how they valued this stock to be 1k cos i'm really curious.
you were initially talking about profitability which is different from valuing nestle at N1000. Valuing Nestle at N1000 is what i can't justify. Try and read about net profit margin and return on equity then compare those companies again
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  #388 (permalink)  
Old 20th February 2013, 05:02 PM
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Default Re: Nestle

Audited result 2012
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  #389 (permalink)  
Old 20th February 2013, 05:05 PM
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Default Re: Nestle

Quote:
Originally Posted by emmanuel ewumi View Post
That means more than 90% of their earnings will be paid out as dividends.
and the dividend yield is?
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  #390 (permalink)  
Old 20th February 2013, 05:12 PM
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Default Re: Nestle

Quote:
Originally Posted by overload View Post
Bros.. dont expect this result to make the price fall!

Most of us with Nestle do have Nestle cos their their growth and excellent management and we are ready to hold it at a premium!

If people panic and start to sell, we will joyfully mop up more!!

Did you see the massive drop of 72% in the Finance cost?

BTW 67% increase in dividend payout no be moin moin! hopefully we will see another one like this by half year!
That's a tall dream...Nestle is very very over valued....
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  #391 (permalink)  
Old 20th February 2013, 05:25 PM
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Default Re: Nestle

Quote:
Originally Posted by emmanuel ewumi View Post
I regret selling 60% of my Nestle holdings at N800, anyway life goes on.
why? u know say e go reach N1,000? You made the best decision given the information you had.
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  #392 (permalink)  
Old 20th February 2013, 05:26 PM
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Default Re: Nestle

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Originally Posted by horlads View Post
That's a tall dream...Nestle is very very over valued....
Bros, you are the man! Abeg take kolanut!


Leave people wey don drink HopeRibena and chop HopeChin-chin make dem dey defend that stock.
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Last edited by Oracle; 20th February 2013 at 05:34 PM.
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  #393 (permalink)  
Old 20th February 2013, 05:26 PM
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Default Re: Nestle

Quote:
Originally Posted by horlads View Post
That's a tall dream...Nestle is very very over valued....
How many times have we heard analyst say this same thing on Nestle?
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  #394 (permalink)  
Old 20th February 2013, 05:48 PM
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Default Re: Nestle

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Originally Posted by overload View Post
How many times have we heard analyst say this same thing on Nestle?
Not every one knows when to walk away...Nestle has a P/E of 36.8x. I see no justification in the current price. Now their ROE dropped year on year...You can buy if you want, it may keep going up if it wants but if you don't sell your shares you won't make as much as someone who invests in Nascon....Na so so big portfolio valuation you go dey carry waka...Shikena
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  #395 (permalink)  
Old 20th February 2013, 06:35 PM
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Default Re: Nestle

Quote:
Originally Posted by overload View Post
Audited result 2012
Please can someone explain to me the logic of those rushing to buy Nestle at N1,000 based on these results? If one is after dividend yield it is only 2.7% based on the results even if all the profits are shared. This is less than the transaction cost. If it is short term capital appreciation based on the results then clearly the downside risk is very high. If it is long term investment, why not wait for a reasonable dip later?

Last edited by manemi; 20th February 2013 at 06:37 PM.
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  #396 (permalink)  
Old 20th February 2013, 06:41 PM
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Default Re: Nestle

Quote:
Originally Posted by horlads View Post
Not every one knows when to walk away...Nestle has a P/E of 36.8x. I see no justification in the current price. Now their ROE dropped year on year...You can buy if you want, it may keep going up if it wants but if you don't sell your shares you won't make as much as someone who invests in Nascon....Na so so big portfolio valuation you go dey carry waka...Shikena
Over valued is a relative term. Nestle will always be sold at a premium because of the foreign ownership that reduces the available float, the excellent management, good corporate governance and the growth story.

Is it worth 1k? I don't know. Note however that the value is tied to the future cash flow. If you look at the investment they have made of recent, the expanding middle class, you will agree that Nestle is just entering into a growth phase.

Someone mentioned NBL, the issues are different. Brewery sector is facing competition that is increasing everyday. There is over capacity which with competition is not allowing them to increase prices. Add to that increase cost of input leading to reduction in margins.

You have more retail investors in NBL than in Nestle. Hence Nestle is less susceptible to speculators like Ololo!

Prices cannot continue to increase forever. However, i don't see Nestle losing 50% of current value.

There is a lot of premium due to goodwill that it is enjoying.
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  #397 (permalink)  
Old 20th February 2013, 06:44 PM
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Default Re: Nestle

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Originally Posted by manemi View Post
Please can someone explain to me the logic of those rushing to buy Nestle at N1,000 based on these results? If one is after dividend yield it is only 2.7% based on the results even if all the profits are shared. This is less than the transaction cost. If it is short term capital appreciation based on the results then clearly the downside risk is very high. If it is long term investment, why not wait for a reasonable dip later?
Maybe because they know from history that such dip is unusual. Most
Of those buying are in for the long term.
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  #398 (permalink)  
Old 20th February 2013, 06:53 PM
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Default Re: Nestle

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Originally Posted by wanaj0 View Post
Maybe because they know from history that such dip is unusual. Most
Of those buying are in for the long term.
I can only wish them good luck. When Nestle was at #600, I even thought the second zero was a typo error.
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  #399 (permalink)  
Old 20th February 2013, 07:01 PM
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Default Re: Nestle

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Originally Posted by afolabi27 View Post
I can only wish them good luck. When Nestle was at #600, I even thought the second zero was a typo error.
Felt like that when it was N80! Historically it always trade at a premium to others. Same with Total until the wahala in the downstream sector started.

Nestle is hardly the stock that ignorant investors will buy.
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Old 20th February 2013, 07:06 PM
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Default Re: Nestle

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Originally Posted by horlads View Post
Not every one knows when to walk away...Nestle has a P/E of 36.8x. I see no justification in the current price. Now their ROE dropped year on year...You can buy if you want, it may keep going up if it wants but if you don't sell your shares you won't make as much as someone who invests in Nascon....Na so so big portfolio valuation you go dey carry waka...Shikena
i just kpamu one side to watch this NAScON sef. this one na my own Nestlé
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