Presco plc

[Abinishio]

YE '2007
Div 5k
Bonus 1:1Result just released today.
The rally is on

AB

[hispy99]

Originally Posted by Abinishio

YE '2007
Div 5k
Bonus 1:1Result just released today.
The rally is on

AB

PRESCO: YE DEC 2007 & 1ST QTR MAR 2008

PRESCO PLC, AUDITED ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2007

TURNOVER 07 N2.266b, 06 N2.104b

EXCEPTIONAL ITEMS 07 N32.315m

PROFIT BEFORE TAXATION 07 N239.913m, 06 N293.711m

TAXATION 07 (N202.662m) 06 (N76.841m)

PROFIT AFTER TAXATION 07 N37.251m, 06 N216.870m

PROPOSED DIVIDEND /SHARE 5KOBO

PROPOSED BONUS ISSUE 1 FOR 1

CLOSURE DATE 30TH JUNE TO 4TH JULY 2008

PAYMENT DATE 30TH JULY 2008

[newton]

Little wonder the bonus issue, the comparative result is quite bad (check PAT drop...)

[tonidol]

Presco closed today @22.95 with 4.99% +change.

I don't really follow this sector but can anyone explain the reason for this sharp drop in PAT?

If it is a one off problem during the year, l do not mind jumping in before the close date of 30 June at the right price to benefit from the bonus issue.

Gurus following this sector, what is the right price to take position to benefit from the bonus please?

[anekwlc]

Originally Posted by newton

Little wonder the bonus issue, the comparative result is quite bad (check PAT drop...)

.
Not sure it is bad. They showed exceptional item for 2007 and also released a Q1 result for 08 with Turnover growth of 80% and PAT of 160%. To me it seems like they have been investing and are now ready for harvesting. I think the split is to reward their patient investors.

[tonidol]

Originally Posted by anekwlc

.
Not sure it is bad. They showed exceptional item for 2007 and also released a Q1 result for 08 with Turnover growth of 80% and PAT of 160%. To me it seems like they have been investing and are now ready for harvesting. I think the split is to reward their patient investors.

Do you have details of what the exceptional item is???

[anekwlc]

Originally Posted by tonidol

Do you have details of what the exceptional item is???

Not yet but tried their website today and was impressed with the organisation. They showed when they started planting, hecters planted , upgrading their Boiler and about 75% are ready for harvesting. I wonder why I have not gone to this site before now. I am not thinking of buying now because I am not sure i will get at good price. They have about 600M shares with 60% in the hand of one Belgium investor. Upto you guy

[tonidol]

Originally Posted by anekwlc

Not yet but tried their website today and was impressed with the organisation. They showed when they started planting, hecters planted , upgrading their Boiler and about 75% are ready for harvesting. I wonder why I have not gone to this site before now. I am not thinking of buying now because I am not sure i will get at good price. They have about 600M shares with 60% in the hand of one Belgium investor. Upto you guy

Up to me indeed!!! Will also try to visit their website to know the full scope of their operation. If they are into any form of food production apart from poultry, with the global food crisis, it should then be a worthy investment. Anyway, thanks.

[DaInvestor]

the rally has started, good luck to the guys that took position on this one

[Apache]

From your discussions, I guess none of you have seen their 1st Qtr result. They had a PAT of =N=278m against =N=76m in the previous quarter which is a 160% increase.
I hope those guys that sent me PMs on what to buy early in the year got into this stock as i recommended then when it was hovering btw =N=10-12. Though, can't advise you enter now.

[ntom]

presco is a growing concern it is a mistake we did not notice it in time with there 1st qtr result and the expansion going on we have miss it our elders on this forum pls any news on redstar and ikeja hotel let us know in time b4 it becomes another presco

[zainabusman]

Originally Posted by DaInvestor

the rally has started, good luck to the guys that took position on this one

The way the market is of recent the rallies dont last long. Lets watch and see.

[newton]

Originally Posted by anekwlc

.
Not sure it is bad. They showed exceptional item for 2007 and also released a Q1 result for 08 with Turnover growth of 80% and PAT of 160%. To me it seems like they have been investing and are now ready for harvesting. I think the split is to reward their patient investors.

I dont place much reliance on interim results as we've had instances of coys with 9month PAT much more than FY PAT. Especially for companies without proper controls over financial reporting (most securities on the NSE are in this category), also the foreign investor thing is usually a means of repartriating funds overseas as they make money even when their affiliates are in losses (thru technical services cahrges / management charges / intercompany transactions - i'v seen all sorts of these in due diligence reviews)

[BLUEMONEY]

Originally Posted by zainabusman

The way the market is of recent the rallies dont last long. Lets watch and see.

you are correct. is like the bear is refusing to let go of the market.

[BLUEMONEY]

[QUOTE=hispy99;19501]We need to be careful with PRESCO, I have gone through their results from 2003 and usually, they have around 2 bad quarters every fiscal year.

this was originally posted by hispy99 in the NASCON thread and i am in total agreement of what he said.

this every year father christmas of giving bonus this by company is alarming becuase they have not shown any evidence of improving profit.

[Babs_O]

Originally Posted by zainabusman

The way the market is of recent the rallies dont last long. Lets watch and see.

The PRESCO rally has really lasted long. It has done 100% price appreciation this year. Wonder if it will start falling during summer ?

[BLUEMONEY]

Originally Posted by Babs_O

The PRESCO rally has really lasted long. It has done 100% price appreciation this year. Wonder if it will start falling during summer ?

Yes it has done 100% this year but i believe what zainabusman was trying to point out was the rally after the release of the result. Despite the bonus, the rally was short-lived unlike in a Bull market.

[Babs_O]

Originally Posted by BLUEMONEY

Yes it has done 100% this year but i believe what zainabusman was trying to point out was the rally after the release of the result. Despite the bonus, the rally was short-lived unlike in a Bull market.

No she made the remark on the 21st @ N25. And it still rallied for 1 more week. It was just N16 a month ago.

[anekwlc]

Originally Posted by Babs_O

No she made the remark on the 21st @ N25. And it still rallied for 1 more week. It was just N16 a month ago.

People made their money in this stock this year and will still make more after the mark down. The stock was selling for N12 at the begining of the year

[hispy99]

I repeat, if history is anything to go by, PRESCO is going to have 1 or 2 dissapointing quarters, so extrapolating 2008 Q1's results might be misleading.