Dunlop

[Stockbear]

The reality of this is good news for Dunlop.

Financial Standard
FG may hike tariff on imported tyres to 40%
By Cami Ezenwa

There are strong indications that the federal government may soon hike the tariff on imported tyres and other related products into the country from 10 per cent to 40 per cent. This is aimed at checking the current high level of importation of these products from different manufacturers across the world.
The new tariff proposition is a direct fallout of a meeting of the federal government and stakeholders in the footwear, leather and tyre sub sector of the economy which held recently in Abuja.
The meeting at which the government was represented by Mr R.O. Ogunbanbi, a permanent secretary in the federal ministry of trade and industries was necessitated by the recent closure of the Port Harcourt factory of Michelin, a leading producer of tyre and related products in the country, and which put about 1,500 jobs on the line.

http://www.financialstandardnews.com...page.asp?id=17

[anekwlc]

Dunlop seems to have released their 1st quater result and to me it seems not to be a good one. They reported an interest of 337.67N and who knows what it is?. Is it loan repayment or what? I thought they just raised money from the floor.
I need some analysis for timely decision

[okechukwuobinnaa]

I bought the share during the public offer. Since then, i have not received my certificate. What do i do? I need to get ready 4 sales as soon as possible.

[olusolakemmy]

i believe for a company just raised money from the public, after the utilisation of the money, they will bounce back.

what they intend to use the money for might not have been executed and so, patient is needed in this case, remember the competion in that industry is not too stiff, and the laws does not favour importation anymore.

So i dont see reason why dunlop should not do well at the long run, however, it also depend on your investment goals, if you are for short term, then you can sell as soon as you get your certificate, atleast you are sure of getting double your investment cos the current price is above N5.

One of my friend is waiting for the certificate to be release, he is so sure that so many people will want to sell and so the price will go down, thats when he wants to buy because he missed out on the public offer. I also intend to buy at that time cause the quantity i got during the public offer is kind of small

[topeolaks]

i actually think market forces are at hand again, i bought some shares at the public offer but am yet to get my certificate, i heard that they have started distributing the certificates, so the decline in price can be attributed to those investors taking profit. with near monopoly in the market.........the stock is a good buy for medium/long term.

Now is actually the time to buy more.

[Isa Tasiu Isyaka]

i just want to say that dunlop are not after profit , i think their mission is like they are after quality
tasiu

[Isa Tasiu Isyaka]

the patient dog eat the fattest bone

[promise]

I am new on this site. I am amazed at the wealth of information and experience available.
Dunlop share price is on a free fall at the minute. Could that be as a result of the negative Ist Q result or investors taking profit following public offer certificate issue. Or is something sinister in the offing. I am planing to buy some dunlop share for the medium term for capital apprciation. Is this a good time to buy.

[paragon]

hi guys,

i believe now is actually the best time to buy dunlop shares. most nigerian investors lack foresight and that is why they are selling off. The company has earnings and value that would start reflecting once the proceeds from their last PO is utilised. \so we can buy now before serios demands for the stock begins. They reached a high of N7 this year alreday, and i know they would get there again

[wanaj0]

Originally Posted by paragon

hi guys,

i believe now is actually the best time to buy dunlop shares. most nigerian investors lack foresight and that is why they are selling off. The company has earnings and value that would start reflecting once the proceeds from their last PO is utilised. \so we can buy now before serios demands for the stock begins. They reached a high of N7 this year alreday, and i know they would get there again

I beg to differ. Dunlop will still declare a loss for YE Dec 2007. It is stated in their prospectus. They will make marginal profit in 2008 and by 2009 should have fully turn the corner.

Did not buy the PO based on this analysis. I expect the price to go below 4.00 once the certificates hit the market. Will wait till they declare the YE Dec 2007 result which will be a loss. By then, most investors that did not bother to read the prospectus will be angry and start another selling spree. For me that is the BEST and RIGHT time to amass Dunlop shares. By then income from their Radia Tyre project will be in. Loan significantly paid off and now in the era of profitability.

So as a patinet dog, will wait till then to buy! Not all offers are meant to be bought!

[Geeman]

Originally Posted by wanaj0

I beg to differ. Dunlop will still declare a loss for YE Dec 2007. It is stated in their prospectus. They will make marginal profit in 2008 and by 2009 should have fully turn the corner.

Did not buy the PO based on this analysis. I expect the price to go below 4.00 once the certificates hit the market. Will wait till they declare the YE Dec 2007 result which will be a loss. By then, most investors that did not bother to read the prospectus will be angry and start another selling spree. For me that is the BEST and RIGHT time to amass Dunlop shares. By then income from their Radia Tyre project will be in. Loan significantly paid off and now in the era of profitability.

So as a patinet dog, will wait till then to buy! Not all offers are meant to be bought!

Wanajo,
I know that the reading of stock potentials do differ from person to person, but the suggestions of my stockbrokers at Futureview and others I have spoken to seem to tally with the view of Paragon and I have actually bought some. Well, it may be a good strategy to "siddon look" for now, problem is if you 'siddon' for too long, you may have to buy at a premium.

[Ehis]

Hi all,
Please does anyone have any latest info about the acquisition of Michelin by Dunlop?

[DaInvestor]

Guys can u comment on the disagreement btw the board and the shareholders on the issue of the reconstruction of Dunlop's shares.

[olusolakemmy]

seriously, i have not read the reason for the proposed reconstruction.
must of the time, reconstruction helps to reposition the company on the stock exchange, PHB and ACCESS for example, , but then other things have to be consider, they have a lot of work to do to convince people that their shares is worth it,otherwise they willreconstuct by sat 100%, the price will go to say N6, and before you know it, it will fall back to where it was before reconstruction, what will be the profit to us?

[c kenneths]

@ Olusolakemmy, the management said the reconstruction is to enable them reduce the cost of administering the shares in circulation (whatever that means)

I think the chairman wants the value of company shares to go up and by so doing erase the effects of selling that will start immediately the certs come out.

But the shareholders refused and the management has to retrace their steps. Victory for the real owners of the company, the masses!

[oseitutu]

This seems like a case of the pilot of an aircraft wanting to fly higher, but the passengers refuse to let him. Well, we all know that there are some unspoken truths about share re-construction on the NSE. These I assume can not be shared on the floors of AGM. Thus the refusing passengers may be making things harder for the pilots. I think the management wants to do what is done on the NSE, but can not say so in public. The shareholders had better let their pilots cruise the plane at their desirable height.
Unless there is a power tussle, then some other issues need to be addressed by Dunlop. At AGMs decisions are usually made prior to these AGMs which are more often than not formalities. I wonder what is amis in this one with Dunlop. This sounds like saying a company that is proposing no dividend suddenly gets to AGM and decides to pay 1 naira per share.

[RethinK2.0]

@oseitutu

But why does management act like fools with no direction?

How can you have a public offering and offer billions of shares...go about campaigning about how the offer is so good..how its the best ever?

Few months later...realize that you have offered too many shares and now you want to reconstruct....too many companies have gone down this route..and it is just a funny lousy game....

investors are going to say no sooner or later and thats whats happening...
Let the mgmt concentrate on growing profits jare...afterall the results were not super impressive