Dunlop

[Betiku Franklin Olugbenga]

for all "bad news" investors, Dunlop is offering another golden opportunity to make good money.My take is to wait till say the end of november to see how much the stock will be worth by then, and then buy big time.

[Taipan]

I heard that a tyre company recently packed their bags and left the country.
Is this info true? If it is, which one, why and when?

[DaInvestor]

michelin i think
they shut down their factory and decided to import tyres into the country instead due to the high cost of production from factors like NEPA.....
i think it was sometime in 2nd week in Jan. i hope this link answers your ques

BBC NEWS | Business | Michelin to close Nigerian plant

[Apache]

Originally Posted by 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.

The law does not favour the importation of fairly used tyres and not importation totally. Moreover, Dunlop still has a lot of competitors it's just that htye are the only local manufacturers of tyres for now.

I think it will be better to get into Dunlop after their YE loss result has been announced like wanajo suggested

[newton]

Nicely put paragon. For a monopoly stock selling at abt 40% its year high, common guys d only way to go is up. The tactic wd be to time the entry point, now thats were indepth analysis comes in. For me N3 is a good price to enter dunlop. (NB it could even hover a lil lower during the xmas/new year break)
Fantastic forum, lets keep firing!

[Taipan]

Originally Posted by DaInvestor

michelin i think
they shut down their factory and decided to import tyres into the country instead due to the high cost of production from factors like NEPA.....
i think it was sometime in 2nd week in Jan. i hope this link answers your ques

BBC NEWS | Business | Michelin to close Nigerian plant

Thanks, DaInvestor, u'r the man!

[Goddey]

I need help O! Do I keep or Sell to buy Zenith?:

[Goddey]

I need help O! Do I keep or Sell to buy Zenith?:

[knightofdelta]

It depends on your entry point. Dunlop is not presently profitable and they do not seem ready to generate profits till 2009. If you bought high, and have lost up to 10%, you can sell but if you have made some money or lost little, you may sell.

I am not an expert but if I were in your position I would do that. Another thing you should consider is what is going on in Zenith bank at the moment. The staff are not too happy with the fact that their salaries have been slashed. I will therefore not touch Zenith bank with a long pole, not because they will not be profitable in the long run, but who knows that is going on with them are the moment? Why do they have to reduce their running cost using short term means?

The choice is yours...

The Knight of Delta.

[Avocado]

What's your average buying price for Dunlop?
When did you buy, and why?

The last time Dunlop had a +ve PAT was their 3rd month 2006 results; 6-month and full year 2006 results, and 3-month result for 2007 were all -ve PAT. The fundamentals aren't encouraging; but, there's a lot going for Dunlop on the floor...

Could anyone be kind to confirm the shares outstanding of Dunlop? The figure I have is 4,621,328,418.

Thanks.

[olusolakemmy]

i really do not have much info on dunlop, but i will adviused hold position for now, that is if you are ready to mid to long term, the thing is when real bullish market resume, profitable or not, dunlop will also enjoy enough patronage, couple with the fact that they concluded their public offer and now have some money at their disposal to do business and increase profitability.
dont be surprise that their next result will be a good one.
people said so many things about unity bank, how small they are, how they have too many shares etc, now unity bank is inching close to N9, to close the year, i will not be surprise if it closed at N15 at the end of january.

please i will strongly advocate hold position for dunlop

[Avocado]

There's a difference between the "NSE-price-bug" and the hope for good results. On what basis would anyone expect Dunlop to churn out fantastic results, better than they have projected? A policy change? (No 'tokunbo' tires importation?) A strategy change? The one other thing going for Dunlop will be how effectively they have deployed proceeds from the last public offer.

Numbers to watch out for:

FORECAST OFFER STATISTICS 31 Dec 2007 (see full prospectus, pg. 9)
Profit Before Interest and Taxation:__N894,622,000
Profit/(Loss) Before Taxation:_______N328,915,000
(Loss)/Profit After Taxation:________N230,241,000

[Goddey]

You are all very smart people and very political in your answers. May 2008 be a year of great harvest for all of us. I bought some of my Dunlop shares from the public offer and later from the market at almost 5 Naira.

[nezvest]

Hold is the advice from me on Dunlop. Yes dunlop may not be doing very well at the moment but also you must understand that anything can happen. The mentality of Nigerians are gradually changing from Tokumber materials generally. Go to the street and see a lot of cars now bought brand new.

Cars like Kia, Chevrolet, CK(china) ...are common in the street now. This means that people prefer new materials now to tokumbo even if the new stuff is not too strong as you can see from the proliferation of brand new china, indian and south Korean automobiles in our roads.

What of motorcycle? A visit to motorcycle market at Nnewi, Anambra State, will confirm the fact that tokumbo sellers are presently scrambling for a new business. Average Okada rider prefer brand new motorcycle from china to tokumbo ones which used to be the darling of the market.

With all these, I can tell our members with Dunlop share to hold one. "Better" is on the way. Check out what happened to Evans Pharmacutical. Their story has changed. What of Neimeth, the story is all changing. These are companies that cheaper competition tried to push out of market but resilience and focus brought back to profitability.

We must all know that threat is a part of S.W.O.T in management that must always be there and in fact, that is what eventually is converted to opportunity.

So hoild on, hope is on the way

[olusolakemmy]

Originally Posted by Avocado

There's a difference between the "NSE-price-bug" and the hope for good results. On what basis would anyone expect Dunlop to churn out fantastic results, better than they have projected? A policy change? (No 'tokunbo' tires importation?) A strategy change? The one other thing going for Dunlop will be how effectively they have deployed proceeds from the last public offer.

Numbers to watch out for:

FORECAST OFFER STATISTICS 31 Dec 2007 (see full prospectus, pg. 9)
Profit Before Interest and Taxation:__N894,622,000
Profit/(Loss) Before Taxation:_______N328,915,000
(Loss)/Profit After Taxation:________N230,241,000

yeah, all the picture look so bad for dunlop, if we have to look at history, if we consider that cash at someones disposal, he can make alot of difference, AP was in a mess and no one wants to touch it wilth a long pole, but zenon step in with capital, they returned to profitability, AP that was permanent at N45 IS FAST APPROaching N200!!!!!!!!!!!!
dunlop public offer can turn things around.

[chidiohaz]

I believe that all those who have long term investment interest in Dunlop would continuously smile to the bank in the nearest future. I would say 4-5 years patience would be ideal for all wouldbe investors.

If one can only wait for Dunlop to systematically and patiently conclude all their re-positioning strategy and perhaps offset of their backlog of over-head debts, then one can enjoy the good returns that would come with the company.

Finally, I believe that by this futuristic time Michelin would want to come back from their Ghana or whatever West African Coast they have been to.

[newton]

Funny enough michelin is still very much in nigeria as against popular opinion. Their plantation in benin in still in operation and supplies most of the raw materials they now use in the ghana plant. They only shut in their PH plant for reasons best known to them (probably high cost of labour - ph, and epileptic power supply - compared 2 ghana)