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knightofdelta 11th June 2008 07:11 PM

Red Star Express
 
Red Star released their third quarter results for the period ended December 31, 2007 a few months ago on the NSE which showed that they were able to grow their turnover by 16.1% from N2.075 billion to N2.409 billion, while their profit before tax was raised by 35.09% from N228 million to N308 million. This means that they have also been able to work on reducing their cost of sales which has had a positive impact on their bottom line. Profit after tax grew by 34.38% from N160 million to N215 million.

The company presently has about 590 million shares in issue, which means that their earning per share for the period is 36K and their projected year end (March 2008) earning per share will come to about 49K. This means that at the current price of N7.60, their forward price earning multiple will come to about 15.51.

They have expanded their operations into distribution and warehousing services to meet global trends, which means that they are presently a growth stock.

Although the share price floor had helped stabilized it at around N7.57 when it was going down on a free fall. I feel this stock is good for the medium to long term and I want to start acquiring it. The relatively low volume of shares in issue coupled with the fact that there has been a consistent turnover of over 1.5 million over the past few days means that it could be a good candidate for the short term capital appreciation. What do you guys think?

ntom 11th June 2008 10:12 PM

red star
 
i have always say this about redstar we miss presco because no body believe me pls lets put our ears on the ground this is another precso

Michael 14th June 2008 04:04 AM

Quote:

Originally Posted by knightofdelta (Post 21078)
Red Star released their third quarter results for the period ended December 31, 2007 a few months ago on the NSE which showed that they were able to grow their turnover by 16.1% from N2.075 billion to N2.409 billion, while their profit before tax was raised by 35.09% from N228 million to N308 million. This means that they have also been able to work on reducing their cost of sales which has had a positive impact on their bottom line. Profit after tax grew by 34.38% from N160 million to N215 million.

The company presently has about 590 million shares in issue, which means that their earning per share for the period is 36K and their projected year end (March 2008) earning per share will come to about 49K. This means that at the current price of N7.60, their forward price earning multiple will come to about 15.51.

They have expanded their operations into distribution and warehousing services to meet global trends, which means that they are presently a growth stock.

Although the share price floor had helped stabilized it at around N7.57 when it was going down on a free fall. I feel this stock is good for the medium to long term and I want to start acquiring it. The relatively low volume of shares in issue coupled with the fact that there has been a consistent turnover of over 1.5 million over the past few days means that it could be a good candidate for the short term capital appreciation. What do you guys think?

KOD, Ihope you have started buying because the price seems to be moving away from you. it almost did 5% today. I thought i read somewhere that they were coming to the market again.

knightofdelta 14th June 2008 06:42 AM

Quote:

Originally Posted by Michael (Post 21465)
KOD, Ihope you have started buying because the price seems to be moving away from you. it almost did 5% today. I thought i read somewhere that they were coming to the market again.

I bought plenty at N7.57 and then a little more at N7.97, to make it 15% of my portfolio, when my stockbroker was unable to get Costain for me. I ordered for a little bit more again yesterday (Oliver Twist) but was unable to get it. Investors have mopped it up. The buying volume had reduced to to about half a million and it gained 5%! I'm going to ask Zainab to get the unfilled number of bids for it as at yesterday. Though it is not going to affect my holding time decision.

I don dey hammer. I'm not selling this one till it gets to like N14 maybe in 3 - 4 months time because its fair value after my calculations is about N15.

No, it is Transnationwide express (TRANSEXPR) that has its price on technical suspension because they want to increase their shares in issue from 500m to 1 billion. I will not be surprised though if Red Star follow soon but they have been listed for less than a year. So it is not likely.

olusolakemmy 14th June 2008 08:35 AM

Quote:

Originally Posted by knightofdelta (Post 21468)
I bought plenty at N7.57 and then a little more at N7.97, to make it 15% of my portfolio, when my stockbroker was unable to get Costain for me. I ordered for a little bit more again yesterday (Oliver Twist) but was unable to get it. Investors have mopped it up. The buying volume had reduced to to about half a million and it gained 5%! I'm going to ask Zainab to get the unfilled number of bids for it as at yesterday. Though it is not going to affect my holding time decision.

I don dey hammer. I'm not selling this one till it gets to like N14 maybe in 3 - 4 months time because its fair value after my calculations is about N15.

No, it is Transnationwide express (TRANSEXPR) that has its price on technical suspension because they want to increase their shares in issue from 500m to 1 billion. I will not be surprised though if Red Star follow soon but they have been listed for less than a year. So it is not likely.

redstar is a good one to buy, but i have simply decided not to go into any stock now until thiings settle down in the market.

do you know that, stocks with good EPS nad fantastic forward earning also experince that free fall?

so in an acute bearish market, how good the stock is might not have a bearing on the immediate share price, so if the freeze is release on monday, i see lots of stock goind down due to panic selling.

so applied small caution in acquiring shares right now

zainabusman 14th June 2008 12:40 PM

Quote:

Originally Posted by knightofdelta (Post 21468)
I bought plenty at N7.57 and then a little more at N7.97, to make it 15% of my portfolio, when my stockbroker was unable to get Costain for me. I ordered for a little bit more again yesterday (Oliver Twist) but was unable to get it. Investors have mopped it up. The buying volume had reduced to to about half a million and it gained 5%! I'm going to ask Zainab to get the unfilled number of bids for it as at yesterday. Though it is not going to affect my holding time decision.

I don dey hammer. I'm not selling this one till it gets to like N14 maybe in 3 - 4 months time because its fair value after my calculations is about N15.

No, it is Transnationwide express (TRANSEXPR) that has its price on technical suspension because they want to increase their shares in issue from 500m to 1 billion. I will not be surprised though if Red Star follow soon but they have been listed for less than a year. So it is not likely.

Unfortunately, i dont have access to the NSE premium members service which is where u can get all the details. I usually just get the CSL report which has the bid and offer for the top three.

I think i will consider paying 4 the NSE services. It is useful info.

tonidol 14th June 2008 04:30 PM

Quote:

Originally Posted by zainabusman (Post 21484)
Unfortunately, i dont have access to the NSE premium members service which is where u can get all the details. I usually just get the CSL report which has the bid and offer for the top three.

I think i will consider paying 4 the NSE services. It is useful info.

Zainab, what is the cost of accessing the NSE services annually and what is the procedure for paying? Daily bid and offer status is very key for me pls.

knightofdelta 15th June 2008 04:55 PM

Quote:

Originally Posted by olusolakemmy (Post 21472)
redstar is a good one to buy, but i have simply decided not to go into any stock now until thiings settle down in the market.

do you know that, stocks with good EPS nad fantastic forward earning also experince that free fall?

so in an acute bearish market, how good the stock is might not have a bearing on the immediate share price, so if the freeze is release on monday, i see lots of stock goind down due to panic selling.

so applied small caution in acquiring shares right now

I totally agree. I am armed with my Costain return money and waiting for the next one to two weeks to see how low prices will fall. The lower the better though.

ntom 5th July 2008 02:39 PM

Quote:

Originally Posted by knightofdelta (Post 21468)
I bought plenty at N7.57 and then a little more at N7.97, to make it 15% of my portfolio, when my stockbroker was unable to get Costain for me. I ordered for a little bit more again yesterday (Oliver Twist) but was unable to get it. Investors have mopped it up. The buying volume had reduced to to about half a million and it gained 5%! I'm going to ask Zainab to get the unfilled number of bids for it as at yesterday. Though it is not going to affect my holding time decision.

I don dey hammer. I'm not selling this one till it gets to like N14 maybe in 3 - 4 months time because its fair value after my calculations is about N15.

No, it is Transnationwide express (TRANSEXPR) that has its price on technical suspension because they want to increase their shares in issue from 500m to 1 billion. I will not be surprised though if Red Star follow soon but they have been listed for less than a year. So it is not likely.

suddenly it has started coming down and i have not bought pls members lets sniff around if we are lucky i see the stock doing better than presco possibility of bonus is very very high and the are coming for ipo with 600m share we can never lose

ntom 9th July 2008 10:14 PM

redstar has release the audited result 310b 305pbt 195pat dividend 25k i dont understand this result

pumping 10th July 2008 02:48 AM

Quote:

Originally Posted by ntom (Post 24349)
redstar has release the audited result 310b 305pbt 195pat dividend 25k i dont understand this result

What is confusing? I saw the result too. I think it was very good. In particular the 25kobo dividend. This is around 3.5% dividend yield, could be better but quite good for a low cap company. I sold mine on Monday because I feared they might do like others and give 10 kobo dividend.

The result generated some interest today. See the bid/offer at the close of today.

MARKET BY PRICE - redstarex ( What's this? )
Enter a Symbol :

Buy
Orders Volume Price
1 100,000 7.14
1 50,000 7.10
1 200,000 6.90
1 100,000 6.80

Sell
Price Volume Orders
7.22 10,000 1

So if you have it, you can still hold for another 5 to 10% at least short term.

emmanuel ewumi 11th July 2008 02:07 PM

The head office of the company is in my neighbourhood,some where around MURITALA iNTERNATIONAL aIRPORT ROAD.They are diversifying into haulage, logistic ansd distribution management.They have already invested into these new businesses and the clients are increasing.This company wont be a bad buy on the medium to long term.From reliable source the EPS,would have been better but for the investment in the new businesses.

knightofdelta 11th July 2008 06:05 PM

:confused: What is going on? I don't understand this result too.

I need to see Redstar annual report ASAP. I don't understand what they are up to. How can the PAT drop from N215 million from 3Q to N195 million at full year? Is it the investment they made into distribution and warehousing?

Abeg, make dis people no burn Chevron money o.

ntom 11th July 2008 10:41 PM

Quote:

Originally Posted by knightofdelta (Post 24526)
:confused: What is going on? I don't understand this result too.

I need to see Redstar annual report ASAP. I don't understand what they are up to. How can the PAT drop from N215 million from 3Q to N195 million at full year? Is it the investment they made into distribution and warehousing?

Abeg, make dis people no burn Chevron money o.

i don die chie i bought this stock base on there 3Q result now this abacabra why is sec nse ndi come this people must explain how 215M turn to 195M are the on reverse?

hispy99 12th July 2008 02:14 AM

Quote:

Originally Posted by emmanuel ewumi (Post 24492)
The head office of the company is in my neighbourhood,some where around MURITALA iNTERNATIONAL aIRPORT ROAD.They are diversifying into haulage, logistic ansd distribution management.They have already invested into these new businesses and the clients are increasing.This company wont be a bad buy on the medium to long term.From reliable source the EPS,would have been better but for the investment in the new businesses.

Except they took a huge hit in terms of depreciation (new assets purchased for exansion into new business) or interest expense (loan used to finance expansion) in Q4 alone, I do not understand why this investment should have impacted Q4's result to the extent that they declared a loss. It would be interesting to see the annual report, hopefully that will shed some light on what happened.

knightofdelta 12th July 2008 04:22 PM

Quote:

Originally Posted by hispy99 (Post 24561)
Except they took a huge hit in terms of depreciation (new assets purchased for exansion into new business) or interest expense (loan used to finance expansion) in Q4 alone, I do not understand why this investment should have impacted Q4's result to the extent that they declared a loss. It would be interesting to see the annual report, hopefully that will shed some light on what happened.

Yes I need to see the cash flow to keep my pulse rate low and steady.

ntom 29th July 2008 09:04 PM

Quote:

Originally Posted by hispy99 (Post 24561)
Except they took a huge hit in terms of depreciation (new assets purchased for exansion into new business) or interest expense (loan used to finance expansion) in Q4 alone, I do not understand why this investment should have impacted Q4's result to the extent that they declared a loss. It would be interesting to see the annual report, hopefully that will shed some light on what happened.

pls does any body has any news on this coy the Q4lost the delay result the low volume and the worst of it is losing somebody pls help

knightofdelta 30th July 2008 04:48 PM

Quote:

Originally Posted by ntom (Post 26253)
pls does any body has any news on this coy the Q4lost the delay result the low volume and the worst of it is losing somebody pls help

Relax my friend. I am still waiting for the annual report if this company before I make my final decision. I have this feeling that the lack of growth in the net income from the 4Q was as a result of investments they made. I still believe that no matter what the price says at this point, the lower it goes, the more one should accumulate.

Despite the lack of growth in PAT, they were able to churn out 25K dividend, the same amount as IBTC-Stanbic. That means they have something up their sleeves and it will be a good idea to ride it out. I am riding this one and I believe they will do well in the medium term.

Meanwhile start Fedexing documents all over the place so that your company can make more money.

ntom 30th July 2008 09:25 PM

Quote:

Originally Posted by knightofdelta (Post 26319)
Relax my friend. I am still waiting for the annual report if this company before I make my final decision. I have this feeling that the lack of growth in the net income from the 4Q was as a result of investments they made. I still believe that no matter what the price says at this point, the lower it goes, the more one should accumulate.

Despite the lack of growth in PAT, they were able to churn out 25K dividend, the same amount as IBTC-Stanbic. That means they have something up their sleeves and it will be a good idea to ride it out. I am riding this one and I believe they will do well in the medium term.

Meanwhile start Fedexing documents all over the place so that your company can make more money.

did any body attend there AGM today at civic center

knightofdelta 31st July 2008 03:47 PM

1 Attachment(s)
I agree that the rate of fall of Redstar on the floor is rather alarming but I believe that this company is still a good buy. I am not aware of the AGM that was held.

I have attached my analysis of this company.


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