Ikeja Hotels Plc - Any News?

[tonidol]

Originally Posted by hispy99

KoD,

No doubt Nigeria is an emerging market. Foreigners are flocking to the "giant" because there is money to be made. Tourism, is another matter entirely. Perception of Nigeria is still very negative in most western countries and it would be difficult to convince tourists to visit. 90% of news stories on Nigeria is negative; it is either oil peipeline have been blown up or or oil workers have been kidnapped (as the KoD with vested interest in tourism, make you appease your people na...). Most people I know here that have any intentions of visiting Africa want to do a safari tour, or want to go to Egypt. So if you ask me, the impact of tourism will be minimal at best.

I don't know what their future plans are so I can't speak on them. I know that 80% of funds raised during the 2007 PP was used to pay the bridge loan that was obtained to finance the 51% stake in Abuja Sheraton. The PP memo does not also give any insight into future plans.

Hispy99, u dey there too. E be like say our guys no know say dis oyinbo people see naija as a delicate haven to visit. In fact to them, na we follow Zimbabwe.

[Michael]

Originally Posted by hispy99

KoD,

Why do you think Ikeja Hotel is a growth stock? In my opinion, it's difficult for this company to be a growth stock at this stage, except they are rapidly building out new hotels or expanding existing hotels. Their main hotels are Sheraton Hotels in Abuja and Lagos and Federal Palace Hotel.

The most likely route for them to grow earnings would be to raise prices. The company grew revenue by around 18% YoY based on Q1 results. I would be surprised if they acheive anything higher than a 25% - 30% growth rate. Even their prospectus gives us a hint of this. Revenue and PAT are expected to be roughly ~25% higher for FYE Dec 2008 compared to FYE Dec 2007. If we assume a price of N12, then you would be looking at a PE ~ 26 based on 2008 PAT forecast.

My Calculations may be faulty but I am getting a P/E of 21 at 12. I don´t mind it getting to 10 and the sooner the better. I am being fleeced here.

[panasharp]

Originally Posted by hispy99

KoD,

No doubt Nigeria is an emerging market. Foreigners are flocking to the "giant" because there is money to be made. Tourism, is another matter entirely. Perception of Nigeria is still very negative in most western countries and it would be difficult to convince tourists to visit. 90% of news stories on Nigeria is negative; it is either oil peipeline have been blown up or or oil workers have been kidnapped (as the KoD with vested interest in tourism, make you appease your people na...). Most people I know here that have any intentions of visiting Africa want to do a safari tour, or want to go to Egypt. So if you ask me, the impact of tourism will be minimal at best.

I don't know what their future plans are so I can't speak on them. I know that 80% of funds raised during the 2007 PP was used to pay the bridge loan that was obtained to finance the 51% stake in Abuja Sheraton. The PP memo does not also give any insight into future plans.

Remember that these hotels especially in Lagos cater not to tourist but to expatriates and those in the business community who are on a visit to Nigeria. The Abuja based hotels are the ones that are grossly under utilized based on their occupancy rate compare to Lagos. Definitely, the hotels' preferred customer base are not tourist.

[kenebobo]

Does anybody know if this company still intends to come out for PO?

[hispy99]

Originally Posted by kenebobo

Does anybody know if this company still intends to come out for PO?

Don't know, but is there not a law that says you can't do a PO till 1 year after listing?

[kenebobo]

I couldnt get this stock to buy today just becuase it closed 1 Naira above the maximum price I gave my broker.It has done 5% twice now and may continue if care is not taken.This stock is a good buy for those interested.

[Michael]

Originally Posted by kenebobo

I couldnt get this stock to buy today just becuase it closed 1 Naira above the maximum price I gave my broker.It has done 5% twice now and may continue if care is not taken.This stock is a good buy for those interested.

It appears brokers are hoarding the stock. I booked an order at maximum price and still couldn't get it. I have been trying for at least 5 days. The market has become a bigger mess since denials and technical problems became the order of the day

[kenebobo]

Originally Posted by Michael

It appears brokers are hoarding the stock. I booked an order at maximum price and still couldn't get it. I have been trying for at least 5 days. The market has become a bigger mess since denials and technical problems became the order of the day

I have also been trying for one good week to get it but my broker is full of stories. They said my order was almost half of what was sold for the days I made the order and told me to reduce which I did and yet they couldnt get it for me. Now the bears are back I think this is a nice time to try again, but I wouldnt buy until the price comes back to 5.5. I foresee this stock being another costain for this year.

[hispy99]

Originally Posted by kenebobo

I have also been trying for one good week to get it but my broker is full of stories. They said my order was almost half of what was sold for the days I made the order and told me to reduce which I did and yet they couldnt get it for me. Now the bears are back I think this is a nice time to try again, but I wouldnt buy until the price comes back to 5.5. I foresee this stock being another costain for this year.

This does not make sense. Why should they tell you to reduce your order just because the quantity you requested for is half the daily trading volume? Can't they just buy in tranches, or must they buy everything at once?

[olusolakemmy]

Originally Posted by hispy99

they did one in 2007 prior to listing on the NSE.

am aware that they did an IPO in late 2006, i dont know if it cross to early 2007.

but there are recent rumours that this coy wants to raise money again from the market, hence my question.

[kenebobo]

Originally Posted by hispy99

This does not make sense. Why should they tell you to reduce your order just because the quantity you requested for is half the daily trading volume? Can't they just buy in tranches, or must they buy everything at once?

I dont know what is wrong with my broker this bullish week. They have served me well in the past. I initially requested for 50k units which they complanied was large compared to the volume that was sold for those days (27 and 30th June). Even when I reduced it to 20K Units, It was still impossible. They usually execute my orders at once or at 70% of what I ordered.

[hispy99]

Originally Posted by olusolakemmy

am aware that they did an IPO in late 2006, i dont know if it cross to early 2007.

but there are recent rumours that this coy wants to raise money again from the market, hence my question.

You are correct, the PP was in 2006

[ntom]

the are coming to the market at yet to be fix date for p o the price has not be fix but there earning is good

[Michael]

Originally Posted by kenebobo

I dont know what is wrong with my broker this bullish week. They have served me well in the past. I initially requested for 50k units which they complanied was large compared to the volume that was sold for those days (27 and 30th June). Even when I reduced it to 20K Units, It was still impossible. They usually execute my orders at once or at 70% of what I ordered.

I was eventually able to get 100k units yesterday

[kenebobo]

Originally Posted by Michael

I was eventually able to get 100k units yesterday

Ur lucky. Now that the bears are back, I would have to wait for the stock to go back below 6 Naira before I buy

[kenebobo]

Originally Posted by ntom

the are coming to the market at yet to be fix date for p o the price has not be fix but there earning is good

From what source did you get the info? Is it now confirmed that they are comming out?