First Aluminium PLC

kaymoney · #1 (**permalink**) 29th May 2007, 05:28 PM

Is it true that IBTC has taken over the management of First aluminium PLC?

olusolakemmy · #2 (**permalink**) 29th May 2007, 09:41 PM

am a share holder in first aluminium, i posted once on this forum requesting for info on the company, i cld not get any respond

I have not heard anything relating to IBTC, if it happened anyway, it is a sign of good things to come interm os returns to shareholder and possible price appreciation as a result of investor response to the news.

Where did u gather such news?

paragon · #3 (**permalink**) 30th May 2007, 12:59 PM

first aluminium in into manufacturing of aluminium roofing sheets, aluminium frames for windows and office partitioning. Also, they manufacture collapsible tubes like the ones used for toothepaste. They have a subsidiary called Aluminium City.

The thing with the company is that they have stiff competiton in their aresa of expertise. Many companies in Nigeria are into aluminium products, so they cannot and do not command a good market share. They made a loss of about 96% in their 1st quater result which caused their price to fall from N2.53 to N1.98 in less than a week.

kaymoney · #4 (**permalink**) 30th May 2007, 02:34 PM

Hi Olusolakemmy,
I got the information from a friend who happens to be an investor too. He bought some shares too with the aforementioned company.

citidollar · #5 (**permalink**) 26th June 2007, 06:09 PM

well thank God if that is true lets keep our ears on ground. i hav some shares there also and i think the stocks is improving as at today.

olusolakemmy · #6 (**permalink**) 27th June 2007, 09:22 AM

first aluminium sent me their annual report for 2006, although it is late, but then there is no news of impending take over by IBTC in the report.

I also pray for the takeover too myself, because that means more money to do business and possibly more profit.

wanaj0 · #7 (**permalink**) 28th June 2007, 11:40 AM

First Aluminium did a public offer some years ago which was seriously UNDER subscribed. The offer was underwritten by IBTC hence they have to pay for the unsubcribed portion. Since then, IBTC has had a substantial equity in First Aluminium (can't remember the percentage now) with someone from IBTC even sitting on the board. IBTC also has shares in Presco PLC and also sits on the board.

Something seemingly common to Presco and First Aluminiun is that they are not doing well. Though it has nothing to do with IBTC, but it shows that there is no MAGIC wand that can be used to turn around the companies.

First Aluminiun is faced with a lot of issues starting with non production of Alscon which makes them to source for inputs at expensive prices. Hopefully, they will be able to turn around the company soon.

However, as expected in a bullish run, the stock has done well on the NSE.

windywendy · #8 (**permalink**) 28th June 2007, 02:24 PM

Quote:

Originally Posted by wanaj0

First Aluminium did a public offer some years ago which was seriously UNDER subscribed. The offer was underwritten by IBTC hence they have to pay for the unsubcribed portion. Since then, IBTC has had a substantial equity in First Aluminium (can't remember the percentage now) with someone from IBTC even sitting on the board. IBTC also has shares in Presco PLC and also sits on the board.

Something seemingly common to Presco and First Aluminiun is that they are not doing well. Though it has nothing to do with IBTC, but it shows that there is no MAGIC wand that can be used to turn around the companies.

First Aluminiun is faced with a lot of issues starting with non production of Alscon which makes them to source for inputs at expensive prices. Hopefully, they will be able to turn around the company soon.

However, as expected in a bullish run, the stock has done well on the NSE.

I hear Alscon's re-opening is imminent though, and this should reduce dependence on imports. Not sure when it'll be reopened however as no date has been given.

wanaj0 · #9 (**permalink**) 28th June 2007, 03:45 PM

Quote:

Originally Posted by windywendy

I hear Alscon's re-opening is imminent though, and this should reduce dependence on imports. Not sure when it'll be reopened however as no date has been given.

Being hearing that for ages yet nothing.

Instead of First Aluminium, will rather go for Beta Glass. That is the next winning stock provided NAFDAC did not ban the use of bottles for carbonated drinks.

wanaj0 · #10 (**permalink**) 5th July 2007, 07:47 AM

Quote:

Originally Posted by kaymoney

Is it true that IBTC has taken over the management of First aluminium PLC?

IBTC owns 21% in First Aluminium. They may however divesting soon. They've made their money with First Aluminium now above 3.00.

oseitutu · #11 (**permalink**) 5th July 2007, 01:45 PM

If IBTC are business people, they will know more about the company's potential and may not care so much about price. Besides, unless they find an institutional investor, the moment they sell all those shares, the price will hit rock bottom. As part owners, IBTC would do better turning the company around or selling to those that can rather than dumping their shares.

c kenneths · #12 (**permalink**) 5th July 2007, 06:55 PM

I ordered for some of these stocks after I heard IBTC is currently holding some of the shares, I hope to ride this trend and dump as soon as I feel the price has peaked, because if IBTS starts to dump, it will be disastrous.
The earnings of this company are nothing to write home about, just the technicals, I am in this one for short term only.

wanaj0 · #13 (**permalink**) 6th July 2007, 09:03 AM

Quote:

Originally Posted by oseitutu

If IBTC are business people, they will know more about the company's potential and may not care so much about price. Besides, unless they find an institutional investor, the moment they sell all those shares, the price will hit rock bottom. As part owners, IBTC would do better turning the company around or selling to those that can rather than dumping their shares.

IBTC did not plan to own the shares. There was a public offer with IBTC as the underwriter. The shares was seriously undersubscribed so IBTC had to cough out the money to take up the shares. This happenened about 5yrs ago. Since then, the company being having problems making profit! Even now, they are not out of the woods. Problems with ALSCON etc

IBTC is not there to turn around the company. They lack manufacturing experience. Guess that's why they were the underwriter for a very unsuccessful offer.

c kenneths · #14 (**permalink**) 7th July 2007, 02:24 AM

Wanaj0, Icant get a grasp of your last paragraph, you said IBTC is not about to turn around first aluminum, cause they lack manufacturing experience, but how will it constitute a reason for them underwriting an offer they know will be unsuccessful? or please explain more.

wanaj0 · #15 (**permalink**) 8th July 2007, 02:29 PM

Quote:

Originally Posted by c kenneths

Wanaj0, Icant get a grasp of your last paragraph, you said IBTC is not about to turn around first aluminum, cause they lack manufacturing experience, but how will it constitute a reason for them underwriting an offer they know will be unsuccessful? or please explain more.

Put it simply, IBTC got it wrong.

First Aluminium went for an offer with IBTC as the underwritter of the offer. Implication being that any shares not taken by the public will be taken by IBTC. Now the offer was hugely undersubscribed. Hence IBTC was FORCED to take up the shares. Don't think that IBTC planned that the offer will be undersubscribed at least not to that level. The initial plan was never to have IBTC manage or turn around teh company.

I believe something similar is happening in Presco. IBTC also owns shares there. It will likely be because of an underwriting agreement. Don't think IBTC was planning to turn Presco around!

paragon · #16 (**permalink**) 8th July 2007, 06:39 PM

Quote:

Originally Posted by c kenneths

I ordered for some of these stocks after I heard IBTC is currently holding some of the shares, I hope to ride this trend and dump as soon as I feel the price has peaked, because if IBTS starts to dump, it will be disastrous.
The earnings of this company are nothing to write home about, just the technicals, I am in this one for short term only.

c kenneths, i think your action is what makes people ending up with burnt hands. You said quite well that the earnings of the company is nothing to write home about and i have confirmed that in their recent report. so why then would a wise injvestor buy the shares of a company that does not have earnings? I think we had better stop doing wishful investing and start doing things right.

That's the only way you can sleep well at night.

wanaj0 · #17 (**permalink**) 9th July 2007, 07:14 AM

Quote:

Originally Posted by paragon

c kenneths, i think your action is what makes people ending up with burnt hands. You said quite well that the earnings of the company is nothing to write home about and i have confirmed that in their recent report. so why then would a wise injvestor buy the shares of a company that does not have earnings? I think we had better stop doing wishful investing and start doing things right.

That's the only way you can sleep well at night.

Don't think there is anything bad in what C Kenneth is trying to do. He is in it for the SHORT TERM. He intends riding teh wave. If he has gone in then, he must have made about 25% by now. Not bad. Note that his decision is based on purely TECHNICAL analysis. Nothing to do with FUNDAMENTALS which is what earnings is all about. FUNDAMENTALS is good for the LONG TERM while TECHNICAL is your best bet for the SHORT TERM