Nahco

[oseitutu]

NAHCO plans hybrid offer to shore up capital base
Gentlemen, start your engines. Save for the offer!

[nichobabe81]

Fellow SMNs

Pls what do you think about NAHCO? the price is just crashing everyday do i sell off my shares and count my losses? It is really painful.

Pleaseeeeeeeeeeeee...

[alanbow]

May be we ought to reconsider, From the analysis below the future does not look bright

http://www.proshareng.com/myproshare...es.php?id=1168

[Survival2006]

.Boy! the analysis and the report on NAHCO does not sound attractive. The offer will go as far as the price. Good price will be anything less than two digits. The future too looking at our economy and level of advancement is somewhat stunted. Several nations have placed a travel ban on Nigeria right now due to the Niger Delta saga which no one knows when it will lift. I fear for the future growth given the security situation of Nigeria viewed from the eyes of cautious investors, etc etc. Just my two naira worth.

[c kenneths]

Nahco, handles passengers and baggage,cargo and mail at four international airportsin Nigeria. If they have an to access cheap funds from the capital market and with good management, it would perform much better.

The company is planning to expand its operations to other airports, like Calabar, Benin, Enugu, Yola and Sokoto. It is also diversifying into other areas of business.

[wanaj0]

Originally Posted by c kenneths

Nahco, handles passengers and baggage,cargo and mail at four international airportsin Nigeria. If they have an to access cheap funds from the capital market and with good management, it would perform much better.

The company is planning to expand its operations to other airports, like Calabar, Benin, Enugu, Yola and Sokoto. It is also diversifying into other areas of business.

But by how much will NAHCO grow its business. Right now it is seriously OVER priced.

[windywendy]

Around the world, the airline industry does not do very well. However NAHCO provides services to this industry and could potentially do well. I think that for a company like NAHCO, the major catalyst for growth (apart from additional funds) will be an increase in the volume of travel going through the airports. I just read today that 3 airlines have been approved for direct flights to the US from Nigeria. Also, there are other airlines that are getting on the international route to and from Nigeria. I'm not sure what domestic travel is like and what the trends in volumes are, but I can imagine that with the new government safety requirements for local airline operators, people might be more confident to travel by air and this will increase domestic airline traffic. Also, NAHCO has only one competitor, skypower, which is basically inefficient and a much smaller player. So given these (plus the fact that the company is planning to expand into other areas of operations that will potentially diversify its revenue streams), I believe NAHCO is well placed to do well as a company over the medium to long term.

Now the next question is: is the stock a good investment? This will depend on the price at which the stock will be offered. Also, if the current shareholding structure is maintained (i.e. if only a small percentage of the post-offer shares are held by individual investors), this will reduce the available float on the exchange and could help the price. So I guess we should get the prospectus first and see what price the offer will be made at and what other plans management has to make the company stay competitive. We might also want to do some sniffing around to see what the current big shareholders like BA are going to do regarding the offer -- if they're divesting for instance, that might be a sign that all is not well. However they've already said that there'll be preferential allotment of the offer to some core investors, so that might be a sign that the current core investors are going to be holding on to their % of the company's shareholding, which might just be another good thing.

[wanaj0]

Originally Posted by windywendy

Around the world, the airline industry does not do very well. However NAHCO provides services to this industry and could potentially do well. I think that for a company like NAHCO, the major catalyst for growth (apart from additional funds) will be an increase in the volume of travel going through the airports. I just read today that 3 airlines have been approved for direct flights to the US from Nigeria. Also, there are other airlines that are getting on the international route to and from Nigeria. I'm not sure what domestic travel is like and what the trends in volumes are, but I can imagine that with the new government safety requirements for local airline operators, people might be more confident to travel by air and this will increase domestic airline traffic. Also, NAHCO has only one competitor, skypower, which is basically inefficient and a much smaller player. So given these (plus the fact that the company is planning to expand into other areas of operations that will potentially diversify its revenue streams), I believe NAHCO is well placed to do well as a company over the medium to long term.

Now the next question is: is the stock a good investment? This will depend on the price at which the stock will be offered. Also, if the current shareholding structure is maintained (i.e. if only a small percentage of the post-offer shares are held by individual investors), this will reduce the available float on the exchange and could help the price. So I guess we should get the prospectus first and see what price the offer will be made at and what other plans management has to make the company stay competitive. We might also want to do some sniffing around to see what the current big shareholders like BA are going to do regarding the offer -- if they're divesting for instance, that might be a sign that all is not well. However they've already said that there'll be preferential allotment of the offer to some core investors, so that might be a sign that the current core investors are going to be holding on to their % of the company's shareholding, which might just be another good thing.

Windywendy, fair point.

The major holders are not divesting.

NAHCO is also trying to 'push' its competitor out of the market.

That siad, the oustanding shares of NAHCO is over bloated. They just gave a bonus of 3 for 2!!!!!!!!!!!! That is an increase of over 150%. Add that to the new shares to be issued. Can they grow profits by over 150%? Nothing on teh ground supports it.

NAHCO's offer for sale was done at a ridiculously low rate. That's why people have made over 1,000% returns. Do you see another 1,000% returns in the next two years? Very unlikely.

What I found out is people tend to forget that previous performance is not a guarantee for future performance. When you buy a stock, you are not buying the 'past'. You are buying into the future of the company!

[windywendy]

@ wanaj0, I doubt that anyone would disagree that buying into a company means buying into its future and not its past, and that's the reason most of the analysis you see here are based on questions about a company's prospects and not on the company's past.

The question is: Is NAHCO a good investment compared to other alternatives on the NSE?

Subject to the information that I see published in the prospectus, I would say the company is poised to do very very well in the future. Now I can't say for sure if they will grow profits by 150% (and I wouldn't know why anyone will place such an unsustainable expectation on any company) but what I can say is that they are in a really sweet spot right now -- they're the major player in a market that can only grow going forward. This is especially good given that entry barriers into that market are high. Also, the fact that they're increasing investment will heighten those barriers and help them consolidate their position. This to me is what I like most about NAHCO.

All other things factors, such as the fact that most of the shares is held by investors that are unlikely to trade them on the floor (thereby reducing available float and potentially increasing capital appreciation), etc are just icing on the cake. Of course, no one is expecting that NAHCO stock will do another 1000% (and I don't believe those are the expectations you would set while investing in a stock). But given its position, I believe the company is one of the few whose performance will likely be extremely good, just like DSR going forward.

All of the above however depends on Management's strategy and how they intend to take advantage of the position they're in. Hopefully we'll find out when the prospectus comes out.

[abelinvest]

When will we receive the 3 for 2 Bonus shares?

[ahmedaderibs]

hey guys am relatively new to this mombo jumbo (joke!) stock thing...so am a novice & as such wont mind a lending hand to learn the ropes...well, anyone.Is access bank offer GOOD or what?

[Yusuf]

ahmedaderibs

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[bwalaman]

NAHCO today represents a buy opportunity- but again it is a matter of perspective. Over priced? Checking the Nigerian Stock on Bloomberg, and the whole market seems overpriced. So, I don’t know – about how relevant some of the fundamentals are, especially when gauged against the Nigerian Factor (whatever this means).

On the issue of Bonus, NAHCO technically did not give a bonus. It was technically a stock split 3 – 2. So we ended up with more shares for the same value. In the process of the stock split, NAHCO also increased total shares (including the split volume) – it is part of this increase that will be offered to the public.

Personally I am not too worried about NAHCO, the foreign interest alone will ensure that the excess shares after “IPO” will be moped up. Not to talk about corporate governance issues and the fact that NAHCO is the sub-sector in this field. NAHCO does not need to muscle anyone out of this sub-sector.

Do not forget that it went from 5.5 – 70 naira, pre split. And the current share value adjusted for pre split value will put it in the mid 60 naira range. Remember it was split from mid 60 naira – 26 naira.

I think NAHCO at current price represents a buy opportunity. It has yo-yoed post split, but never dipped below 26. Of course it not going to go up as fast as it did again, no stock has "1000%" growth cycles back to back in 1-3 years. Buy and hold!!!

Think again folks...

[Avocado]

"
The shares of Nigerian Aviation Handling Company Plc (NAHCO) was today placed on technical suspension following the receipt of an application for an Offer for Sale at N17.50 and Rights Issue at N16.50 per share.

"

[dotunk]

NAHCO in the beginning of the year promised to come to the market at a price below N20. At that time i never believed they could do it considering that the price shot up to N70 and corrected to about N30 and it rose back to N40 -50.

Now i believe. i think its a good stock to buy. and if one can still get from the secondary market it would be goos cos i think the offer will be over subscribed becos of sentiments of its price rally in the recent past.

[Miss_Risky]

The NAHCO offer opens on September 10th.

Proshare News

[pumping]

I think this is a good stock to buy based on the key selling points below I received from BGL.

 A major player in the aviation handling industry controlling app. 80% of the international flights market.
 Seeks to move into handling domestic flights shortly.
 Over 60% of the shares are owned buy institutional investors; British Airways, Luftansa, Air France, Sabena Air.

See also the valuation

PE Valuation 25.63
Comparative Price-to-sales 24.89
Comparative Price-to-book 24.74

I will consider it for medium to long term.

Pumping.