Dunlop

[BLUEMONEY]

Originally Posted by knightofdelta

Dunlop....

You are Joking again, Dunlop is not Dead.
Your Government will not beg a dead company not to leave the country while promising (as usual) they will look into the problem so as to Aid the company operate effectively in this harsh production environment.

A dead company will not even be full of life enough to say they intend to leave the country and start importing Tyres so as to add value to it's shareholders while reducing wasteful spending to generate power on thier own.

[knightofdelta]

Originally Posted by BLUEMONEY

You are Joking again, Dunlop is not Dead.
Your Government will not beg a dead company not to leave the country while promising (as usual) they will look into the problem so as to Aid the company operate effectively in this harsh production environment.

A dead company will not even be full of life enough to say they intend to leave the country and start importing Tyres so as to add value to it's shareholders while reducing wasteful spending to generate power on thier own.

Uhh hmm... Dunlop is dead as a manufacturing company and it is about to reincarnate as a marketing company. Do we have a marketing sector on the NSE?

Just checked... No.

[BLUEMONEY]

Originally Posted by Babs_O

Make me too go stop generator as them don bring light. Diesel don reach N200 now. Each hour of Generator is now up to N300.Light still fit dey for Dunlop.
Even Michelin factory still dey intact. Who sey anyone of them done die.

They are all in distress like the economy. Only there is no plot of manufacturing index. I think we are about at the lowest point. Yet we wish the market to continue flying based on Financial service companies only. (Banks, Insurance and the likes)

This Diesel Price issue was among the many things the Government promised to look into in thier bid to Appease DUNLOP PLC to continue production in the country meaning that they still expect the company to produce power for production on thier own for now.

DUNLOP PLC on thier part demanded among other things for certain incentives to be given to Companies generating thier own power for production as compensation and I believe it is a well thought demand.

[BLUEMONEY]

Originally Posted by knightofdelta

Uhh hmm... Dunlop is dead as a manufacturing company and it is about to reincarnate as a marketing company. Do we have a marketing sector on the NSE?

Just checked... No.

I beg to disagree.
Samething was said of Micheline when they were about to leave but we all know they are still in business today. in terms of Manufacturing in Nigeria, they are no more but thier product is still seen in the country which tells us that they are Alive and well in Ghana.

So maybe what you intend to say was that the Manufacturing sector in nigeria is DEAD and most of the companies here are struggling to stay alive e.g DUNLOP PLC so as not to end up like the host sector.

In regards to whether we have a Marketing Sector in the NSE, You are right we dont have any but we do have the Automobile & Tyre sector and even if DUNLOP PLC decides to start marketing thier imported Tyres, they would still remain in that sector on the NSE.

[chokit]

Originally Posted by BLUEMONEY

I beg to disagree.
Samething was said of Micheline when they were about to leave but we all know they are still in business today. in terms of Manufacturing in Nigeria, they are no more but thier product is still seen in the country which tells us that they are Alive and well in Ghana.

So maybe what you intend to say was that the Manufacturing sector in nigeria is DEAD and most of the companies here are struggling to stay alive e.g DUNLOP PLC so as not to end up like the host sector.

In regards to whether we have a Marketing Sector in the NSE, You are right we dont have any but we do have the Automobile & Tyre sector and even if DUNLOP PLC decides to start marketing thier imported Tyres, they would still remain in that sector on the NSE.

Bros,i real like your courage o ! I hope i could see things your way as per this coy.Your presntation be like those policy makers ! when investor loose thier holding and the coy deviated from what they are known for,downsizing the operation or possibly close up i think the simple arithmetic is that its moving towards crematorium. I say man no fit sell the stock or no one wan buy am.

[billions]

Dunlop sacks 300, shrinks operation by 25%
24 August, 2008 02:00:00 SIMON NJOKU
Font size:
Charles Ugwu Over 300 workers have lost their jobs at Dunlop Nigeria plc in the wake of the recent downsizing of operation by the tyre manufacturer.

The company’s public relations manager, Abiona Babarinde, told Business Day that the affected workers did not lose their jobs on grounds of incompetence or any other factor but due to the present circumstances of the company.

He said the company has cut down the number of shifts run on daily basis from four to three, producing only selected sizes of tyres. But production of its supersteel or truck tyres is not affected by the new development.

Importantly, the company is not closing shop but is putting on hold further investments on the expansion of its tyre business.

According to Babarinde, Dunlop is currently looking at new businesses to diversify into in order to give value to its shareholders. The company is not overlooking tyre importation as it has always imported tyres.

However, despite assurances by the minister of commerce and industry, Charles Ugwu, that something would be done to rescue the company from its present predicament, Business Day found that nothing has been done even though the company’s CEO has been to Abuja to directly brief the authorities.

Dunlop’s problems are traceable to two critical issues: power and tariff.

The company spends N150 million every month to generate its own power and in the light of the high cost of diesel at N150 – N160 per litre, producing at a competitive price had become difficult.

In addition, the epileptic supply of gas, price of which was hiked by 300 percent recently had worsened the company’s energy problem. The power problem had greater effect on the production of radial tyres being a heavy power consumer. And for most manufacturers, electricity from the Power Holding Company of Nigeria (PHCN) serves as back up.

The company’s second major problem has to do with tariff. According to the public relations manager, before the company went into radial tyre production, tariff on imported truck tyres was 40 percent. But at the time the company was entering the market with its truck tyres from its new N8 billion radial tyre plant, government reduced the tariff to just 10 percent, making the locally produced tyre uncompetitive.

[XXCASH]

Originally Posted by billions

Dunlop sacks 300, shrinks operation by 25%
24 August, 2008 02:00:00 SIMON NJOKU
Font size:
Charles Ugwu Over 300 workers have lost their jobs at Dunlop Nigeria plc in the wake of the recent downsizing of operation by the tyre manufacturer.

The company’s public relations manager, Abiona Babarinde, told Business Day that the affected workers did not lose their jobs on grounds of incompetence or any other factor but due to the present circumstances of the company.

He said the company has cut down the number of shifts run on daily basis from four to three, producing only selected sizes of tyres. But production of its supersteel or truck tyres is not affected by the new development.

Importantly, the company is not closing shop but is putting on hold further investments on the expansion of its tyre business.

According to Babarinde, Dunlop is currently looking at new businesses to diversify into in order to give value to its shareholders. The company is not overlooking tyre importation as it has always imported tyres.

However, despite assurances by the minister of commerce and industry, Charles Ugwu, that something would be done to rescue the company from its present predicament, Business Day found that nothing has been done even though the company’s CEO has been to Abuja to directly brief the authorities.

Dunlop’s problems are traceable to two critical issues: power and tariff.

The company spends N150 million every month to generate its own power and in the light of the high cost of diesel at N150 – N160 per litre, producing at a competitive price had become difficult.

In addition, the epileptic supply of gas, price of which was hiked by 300 percent recently had worsened the company’s energy problem. The power problem had greater effect on the production of radial tyres being a heavy power consumer. And for most manufacturers, electricity from the Power Holding Company of Nigeria (PHCN) serves as back up.

The company’s second major problem has to do with tariff. According to the public relations manager, before the company went into radial tyre production, tariff on imported truck tyres was 40 percent. But at the time the company was entering the market with its truck tyres from its new N8 billion radial tyre plant, government reduced the tariff to just 10 percent, making the locally produced tyre uncompetitive.

This is terrible.

[BLUEMONEY]

Originally Posted by chokit

Bros,i real like your courage o ! I hope i could see things your way as per this coy.Your presntation be like those policy makers ! when investor loose thier holding and the coy deviated from what they are known for,downsizing the operation or possibly close up i think the simple arithmetic is that its moving towards crematorium. I say man no fit sell the stock or no one wan buy am.

First of all, I will like to make it clear that i am not recommending this stock to anyone but personally if i am given the opportunity to choose between buying this stock and depositing my money in those banks offering mouth-watering interest, i will Gladly buy this stock.

What i am trying to point out is that the Notion that this company is Dead --- when in the real sense they want give value to thier shareholders --- is Premature and as such Pointless and Baseless. it will be unfair to pronounce a Fish that is struggling to survive on land Dead until it is placed in water and confirmed that it is actually dead with no sign of life.

AFPRINT NIGERIA PLC was once declared dead when they were still in the then Dead Textile industry but the management of the company surprised Skeptics and Cynics alike when they Announced they have diversified into Agriculture and was later Reclassified into the Agriculture & Agro - Allied sector on the NSE. Word is the company is doing good and it's shareholders are more relaxed unlike when it was in the Textile industry.

So i wont rush to the conclusion that DUNLOP PLC is Dead. I will also like the management of the company to go ahead with thier initial plans to start importing tryes because i dont think the Government will met thier demands.

[dannynoko]

Originally Posted by BLUEMONEY

First of all, I will like to make it clear that i am not recommending this stock to anyone but personally if i am given the opportunity to choose between buying this stock and depositing my money in those banks offering mouth-watering interest, i will Gladly buy this stock.

What i am trying to point out is that the Notion that this company is Dead --- when in the real sense they want give value to thier shareholders --- is Premature and as such Pointless and Baseless. it will be unfair to pronounce a Fish that is struggling to survive on land Dead until it is placed in water and confirmed that it is actually dead with no sign of life.
AFPRINT NIGERIA PLC was once declared dead when they were still in the then Dead Textile industry but the management of the company surprised Skeptics and Cynics alike when they Announced they have diversified into Agriculture and was later Reclassified into the Agriculture & Agro - Allied sector on the NSE. Word is the company is doing good and it's shareholders are more relaxed unlike when it was in the Textile industry.

So i wont rush to the conclusion that DUNLOP PLC is Dead. I will also like the management of the company to go ahead with thier initial plans to start importing tryes because i dont think the Government will met thier demands.

I am feeling you bro. Well said, but am not heading to such struggling fish on land when there others that still in water and are bubbling or either finding it difficult to breath.

[donchisel]

Originally Posted by BLUEMONEY

First of all, I will like to make it clear that i am not recommending this stock to anyone but personally if i am given the opportunity to choose between buying this stock and depositing my money in those banks offering mouth-watering interest, i will Gladly buy this stock.

What i am trying to point out is that the Notion that this company is Dead --- when in the real sense they want give value to thier shareholders --- is Premature and as such Pointless and Baseless. it will be unfair to pronounce a Fish that is struggling to survive on land Dead until it is placed in water and confirmed that it is actually dead with no sign of life.

AFPRINT NIGERIA PLC was once declared dead when they were still in the then Dead Textile industry but the management of the company surprised Skeptics and Cynics alike when they Announced they have diversified into Agriculture and was later Reclassified into the Agriculture & Agro - Allied sector on the NSE. Word is the company is doing good and it's shareholders are more relaxed unlike when it was in the Textile industry.

So i wont rush to the conclusion that DUNLOP PLC is Dead. I will also like the management of the company to go ahead with thier initial plans to start importing tryes because i dont think the Government will met thier demands.

I think i agree with Bluemoney. I see light glowing in the future of this company. I bought my first set of stocks with at N1.42 and is planning another entry at <N1 if....
If localized operator like Afprint can bounce back from hell. I wonder what will happen for a company with Huge asset (N8b factory).
Just as Gov has adviced that they should generate their own power, i foresee another investment on Solar panels comming from them.

From Billion's post, I feel confident in the management of this coy.
Meanwhile, Guys should stay away from their stocks until i am done with my penny cash.
I am gladly waiting for the worst.

[donchisel]

Originally Posted by dannynoko

I am feeling you bro. Well said, but am not heading to such struggling fish on land when there others that still in water and are bubbling or either finding it difficult to breath.

Just hoping that the active fish in the water does not bit that hard.
And one day the struggling fish on land will always recognise that someone picked her up and gave her life, proberbly in Pond.

Let's see how it goes.

[knightofdelta]

The situation gets drearier. What is happening to Dunlop is sending the shivers down my spine about where we are heading to. For those that do not have any inkling what Economics is all about, I am going to paint the picture that is playing in my head right now.

Dunlop has laid off some employees... unemployment is rising. Dunlop is finding it difficult to purchase the materials they need to manufacture... inflation is rising, therefore the demand for input is dropping, i.e they are reducing the demand for diesel. Let us extrapolate this particular scenario to another scene... the demand by manufacturers for raw materials is dropping because of increased prices. Assuming that the unemployed people go to the farm to make ends meet, they may not be able to sell their produce because of reduced demand for them by manufacturers. Meanwhile the cost of living is skyrocketing and... I could go on and on.

The situation is bad...

[Babs_O]

Originally Posted by knightofdelta

The situation gets drearier. What is happening to Dunlop is sending the shivers down my spine about where we are heading to. For those that do not have any inkling what Economics is all about, I am going to paint the picture that is playing in my head right now.

Dunlop has laid off some employees... unemployment is rising. Dunlop is finding it difficult to purchase the materials they need to manufacture... inflation is rising, therefore the demand for input is dropping, i.e they are reducing the demand for diesel. Let us extrapolate this particular scenario to another scene... the demand by manufacturers for raw materials is dropping because of increased prices. Assuming that the unemployed people go to the farm to make ends meet, they may not be able to sell their produce because of reduced demand for them by manufacturers. Meanwhile the cost of living is skyrocketing and... I could go on and on.

The situation is bad...

For some of us in nija. We feel sad when we hear another company is going down as the effect is extended. The extension you painted a thread of.

I can postulate that with more like this happening the GDP growth may reverse sharply and one of the fundamental foundations of the stock market growth is GDP growth. We are still afloat because of high oil prices. Should something happen to this oil income right now ASI may head for 10,000. Thank God Oil price is high and it is still flowing both on-shore and offshore. Even increasing steadily offshore !

[dimeji_777]

Originally Posted by knightofdelta

The situation gets drearier. What is happening to Dunlop is sending the shivers down my spine about where we are heading to. For those that do not have any inkling what Economics is all about, I am going to paint the picture that is playing in my head right now.

Dunlop has laid off some employees... unemployment is rising. Dunlop is finding it difficult to purchase the materials they need to manufacture... inflation is rising, therefore the demand for input is dropping, i.e they are reducing the demand for diesel. Let us extrapolate this particular scenario to another scene... the demand by manufacturers for raw materials is dropping because of increased prices. Assuming that the unemployed people go to the farm to make ends meet, they may not be able to sell their produce because of reduced demand for them by manufacturers. Meanwhile the cost of living is skyrocketing and... I could go on and on.

The situation is bad...

I can only thank my star that I did not buy into Dunlop when it was N5. Remember there was much positive talk about Dunlop that a foreign company was pumping fund into it and all the news, only for Dunlop to have transfered its status from a manufacturer to importer, exporter and general merchants.
May God save us oooo