Union Diagnostic and Clinical Services Limited

hispy99 · #1 (**permalink**) 30th August 2007, 07:11 AM

Does anyone know about the pp for this company? The comapny was formerly called Tejuosho Diagnostic and Clinical Services Limited. I came across the private placement form on Cashcraft's website, but I did not see any prospectus. The offer opened on the 1st of August and closes on the 31st of Asugust.

c kenneths · #2 (**permalink**) 30th August 2007, 08:04 AM

Sorry if I sound negative here, but the name reminds me of Aboseldehyde labs plc which never performed in the exchange, plus maureen laboratories also a non performer, is there any factor to lab company failures.

We may do well to look before leaping.

hispy99 · #3 (**permalink**) 30th August 2007, 08:07 AM

Yeah, I remember Aboseldehyde; that was why I was asking if anyone had seen the prospectus of this firm.

olusolakemmy · #4 (**permalink**) 30th August 2007, 06:13 PM

Quote:

Originally Posted by c kenneths

Sorry if I sound negative here, but the name reminds me of Aboseldehyde labs plc which never performed in the exchange, plus maureen laboratories also a non performer, is there any factor to lab company failures.

We may do well to look before leaping.

hi c.kenneth,
you are correct about the non-performace of the labs, but i have some background information about the union diag, formerly known as tejuosho scan centre, own by dr akiniyi, now trying to come public.
all i can tell you is that, the the centre started from nothing, just with one scan machine sometime in 1996, now they have not only expanded their business, they have spread to lots of areas in lagos and outside (abuja and port)

the average moving patient in the centre is massive, their is no how, if such company have more funds will not pull adequate profit.

they are planning to have some facilities like MRI and CT if they dont already have that, they also want to introduce DNA sampling test, that test as of now is only done outside the country!!!!!!!!!!!
their is prospect.
i read about the PP and i regreted the fact that i didnt partake, if they said it closes on 31st, 2day is 30th, i dont even know at what price the PP is going for.
if i can help it, i will love to buy the PP.

lca2000_nl · #5 (**permalink**) 31st August 2007, 05:37 PM

Quote:

Originally Posted by hispy99

Does anyone know about the pp for this company? The comapny was formerly called Tejuosho Diagnostic and Clinical Services Limited. I came across the private placement form on Cashcraft's website, but I did not see any prospectus. The offer opened on the 1st of August and closes on the 31st of Asugust.

Just got information that the pp has been extended till next week friday just incase you are still interested, minimum purcahse of 10,000 units at 18,500naira which works out at 1.85.

Linda

hispy99 · #6 (**permalink**) 31st August 2007, 07:52 PM

Quote:

Originally Posted by lca2000_nl

Just got information that the pp has been extended till next week friday just incase you are still interested, minimum purcahse of 10,000 units at 18,500naira which works out at 1.85.

Linda

Do you have the prospectus?

c kenneths · #7 (**permalink**) 31st August 2007, 08:48 PM

Well, you all sound optimistic about this, but I rarely invest in any field I dont understand, (Buffett's system).

Good prospects though.

lca2000_nl · #8 (**permalink**) 31st August 2007, 08:50 PM

Quote:

Originally Posted by hispy99

Do you have the prospectus?

Temi

Sorry, i don't, when i read about it here, i called home (i don't live in Nigeria) to ask my brother to get any information on it and get back to me, i think it is just the extension he was able to read in one of the dailies.

I can't seem to have come across anything myself.

olusolakemmy · #9 (**permalink**) 2nd September 2007, 07:25 AM

ok, will see what happen nxt wk, will check out cashcraft now and give details if any

hispy99 · #10 (**permalink**) 2nd September 2007, 06:51 PM

I live outside Nigeria too, but I have sent emails to Cashcraft (got the email addresses off their website) and no replies. They are the issuing house of the offer, yet the prospectus is not available on their website, just the subscription form. Wonder if they expect a reasonable investor to invest without seeing some numbers..

By the way, the company says they aim to get listed by October this year. Check this link from Thisday. If anyone has access to the prospectus, please pass it around. The company may not be worth investing, but it would be good to confirm that with some numbers
THISDAY ONLINE

jummie · #11 (**permalink**) 3rd September 2007, 12:55 PM

Please chech any office of Cash Craft Asset Management you will get the prospectus. I have bought it on the advise of my broker. The form is also available at Cashcraft Asset Management Limited - A member of the Nigerian Stock Exchange.

hispy99 · #12 (**permalink**) 4th September 2007, 06:47 AM

Quote:

Originally Posted by jummie

Please chech any office of Cash Craft Asset Management you will get the prospectus. I have bought it on the advise of my broker. The form is also available at Cashcraft Asset Management Limited - A member of the Nigerian Stock Exchange.

Jummie

Unfortunately, I do not live in Nigeria. Does your broker have an electronic copy of the prospectus?

BEEJEEADE · #13 (**permalink**) 5th September 2007, 11:59 AM

Union Diagnostic Lab PP was extended by 2wks.............ending on 13th of September,2007.I have gone thru their prospetus,it's looks to good to be real...their Div Yield is abt 10%..Can u beat that?

Beulah · #14 (**permalink**) 5th September 2007, 10:52 PM

Hi Beejeeade,
Pls can you advise where you found their prospectus. It's not on the cashcraft website.

Many thanks

RethinK2.0 · #15 (**permalink**) 6th September 2007, 03:36 PM

Quote:

Originally Posted by Beulah

Hi Beejeeade,
Pls can you advise where you found their prospectus. It's not on the cashcraft website.

Many thanks

http://cashcraft.com/uniondiagnosticpropectus.pdf

pumping · #16 (**permalink**) 6th September 2007, 10:24 PM

Quote:

Originally Posted by BEEJEEADE

Union Diagnostic Lab PP was extended by 2wks.............ending on 13th of September,2007.I have gone thru their prospetus,it's looks to good to be real...their Div Yield is abt 10%..Can u beat that?

BeeJeeAde,

This dividend yield of 10% is based on projected earnings which is not consistent with historical performance of this company. From what I can see on the historical income statement, the company has always retained all earnings. In 2006 the company conveniently decided to give bonus shares of 100M, the last year before coming to the market.

Now if you look at the projected income statement, the company is planning to give dividends of about 87% of earnings. This does not add up like I said based on previous performance.

My fear when it comes to companies which are family start offs like this is that you cannot guarantee fiscal discipline. The company is small enough even after capitalizing for the original owners to still feel it is a family business. This can lead to the situation of the banks when they were still quite small and the board members extends loans to themselves at will.

I like the reference that was made about the other laboratory companies like Aboseldehyde and Maureen Laboratories. Let me add another example - Juli Pharmacy. The issue with these companies is that they remain essentially a family business.

Now this is not to say that investing here is a no no but I want to highlight the fact that you need to really read between the lines to make a decision here. You need to do much much than looking at the figures so you can include some qualitative analysis as well.

Just my 2 cents, I will be very surprised if this company is able to meet up with the stated projected earnings. It might do well but I doubt it will do this well. Anyway, Let's wait and see. I wish the company very well.

Cheers,
Pumping.