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  #181 (permalink)  
Old 16th August 2011, 07:03 PM
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Default Re: C&I Leasing

Quote:
Originally Posted by hispy99 View Post
bros, e neva finish o, but no kudi na...dat na y i wan come collect for "free" for ur house

tashere pass tashere o...tashere for u fit e N5M for 3-day work
I signed NDA with them: my lips are sealed.
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  #182 (permalink)  
Old 16th August 2011, 07:20 PM
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Default Re: C&I Leasing

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Originally Posted by omydee View Post
I signed NDA with them: my lips are sealed.
make we take this one unseal am? Château La Mondotte Saint Emilion 1996 - The Old & Rare Wine Company
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  #183 (permalink)  
Old 16th August 2011, 10:56 PM
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Default Re: C&I Leasing

Quote:
Originally Posted by hispy99 View Post
Shuo! $229 merlot!! Oga o! I will tell my mummy and my daddy...a won eleyi... a won eleyi...won baaad gan o! My eye just clear quickly as i see the price.

As my eye clear so, na im i say make i kuku post the thing wey i say i go post tomorrow today. See below.

Background:
C & I Leasing (CIL), the Company (not Group), the market leader in its business sector of leasing i.e. operating leases to large companies, providing consumer leases to employees of large companies, as well as running the Hertz Car Rental franchise in Nigeria. Up until 2008, CIL had been a solid business that had consistently grown revenues and earnings and consistently improved its fundamentals from as far back as 2001. They only had a decline in earnings year-on-year only once in 2005 (marginal decline of about 7%) in those entire eight years interval between 2001 and 2008, 2001 being the time from which one has access to its accounts. In fact it nearly tripled its earnings year-on-year in 2008! Never had a loss. So what went wrong?
Between 2007 and 2008, the management and board, with the growing profits took a strategic step to diversify horizontally (C&I Motors and CiTrans) as well as geographically to Ghana (Lease Afric). This was when its troubles started as, unfortunately, this ended up being the VERY WRONGEST time to start such a diversification strategy, on account of the headwinds the global and local economy later ran into in 2008, which no one really saw coming anyway. This turmoil in the markets, especially in the credit markets, made non-sense of their plans and chinks began to show in their diversified group on account of this.

HOWEVER, all the chinks that showed up ALL showed up not in its core business of leasing but largely in the three new subsidiaries it has created i.e. CI Motors, Citrans and Lease Afric. The core business itself of leasing actually remained strong despite the harsh business environment, actually growing PBT 12% in 2009 and maintaining it at 2008 levels in FY2010.

What were the problems with these subsidiaries?

C and I Motors: took off in the middle 2008 and placed a large order for the first set of Suzuki cars, all in the environment of a buoyant/rising middle class at that time. However, before the shipment arrived, disaster struck in the markets and credit dried up such that these cars landed without the ready market had been envisaged for them. The company had also taken bank loans to finance a large portion of this shipment because manufacturer appears in the annual reports not be extending supplier credit. This all threw whatever assumptions were made for this ordering of cars out of the window and the CI Motors was hit heavily by the twin head bandages of high inventory level and high interest payments. So much that it had a loss of N90million in 2009 and N124million in 2010. (The loss of 2010 whacked out over a third of the profit generated by the core business of leasing. Although, it’s only the summary of 2011 FYE January that we have, the information gleaned from an interview by the CEO in one of the newspapers tells me CI Motors made a loss of close to N300million, wiping out the entire over N200million+ PAT that the core business generated.)

Lease Afric: was acquired from an existing hailing Ghanaian leasing operation in 2007/8. Unfortunately, they had some board and management tussles after the acquisition which prevented the newly acquired entity to find its footing, as it showed a higher than normal level of NPLs. Consequently, Lease Africa generated a loss in 2010 of N70million, whacking out about a fifth of the profit generated by the core business of leasing in Nigeria.

CITRANS: This subsidiary manages the Red Cab business in Lagos. All the issues indicated above affected it as well such that it generated loss of N33million, whacking out another tenth out of the profit generated by the core business.

From the foregoing, and if you take the time to tear apart their 2008, 2009 and 2010 Annual reports, what shows is the core business which was responsible for about 63% of revenue and has a PBT margin of 7-8%, is still rock solid. The headache this company has had SIIINNNCEEEE are its subsidiaries. Once the issues in the subsidiaries get fixed, the profits are going to sky rocket. Why? From the double effect of the core business continuing to grow its profits year-on-year and from the subsidiaries either breaking even or turning profit positions from their present loss making disgrace.

So where are we now?

I am convinced that the company is right about at the corner where these subsidiaries’ fortunes turn for the good.
1.) If you look at the FYE 2011 results analysis interview, Lease Afric is alredy out of the woods as at January 2011, declaring a profit of N15million, which I also believe may actually be a netting of losses in the earlier quarters of the financial year by the bigger profits in its latter quarter(s). What this implies is that I expect it to have a full year of quarterly profits throughout the financial year that will end January 2012.
2.) I estimate CI Motors would have sold off all the inventory it took in during 2008. And although it may report lower revenues in the FY2012, will nevertheless not generate A LOSS, which is the real problem it had been giving the group.
3.) CITrans is a very small portion of the company accounting for not up to 4% of its revenue. At a minimum, I expect this one to break even, even if it does not generate a profit. (Please don’t forget that it indirectly generates profit for the core business because the core business handles all the leases to the taxi drivers that bought the Suzukis on hire purchase.)
If one takes all this above 3 together, my sense is that this present financial year between from February 2011 to January 2012 is when this company comes out of the woods. Consequently, this stock will fall under the category of “Turnaround” as defined by Peter Lynch, this one being an example of the type he calls “the perfectly-good-company-inside-a-backrupt-group” kind of turn-around.
Now if you take a close look at this company’s April 2011 first quarter results and compare it to that of April 2010 (last year), having the things I said were happening in each of its subsidiaries at the back of your mind, viz:

Turnover 11 N2.458b 11 N2.145b Cost Of Sales 11 (N1.720b) 11 (N1.802b) Profit Before Tax 11 N129.266m 11 (N38.848m) Taxation 11 (N25.212m) 11 (N13.145m) Profit After Tax 11 N104.054m 11 (N51.993m)
Balance Sheet Information
Fixed Assets 30-04-11 N655.905m 31-01-11 N720.984m Investment 11 N43.974m 11 N46.453m Lease Rental Due 11 N463.282m 11 N217.944m Loans And Advances 11 N67.991m 11 N36.007m Cash and Bank Balances 11 N275.846m 11 N357.607m Other Debit Balances 11 N11.293b 11 N11.317b Trade Creditors 11 N178.657m 11 N114.604m Short Term Borrowings 11 N5.273b 11 N6.034b Other Credit Balances 11 N5.517b 11 N4.810b Net Assets 11 N1.707b 11 N1.598b 38.848m) Taxation 11 (N25.212m) 11 (N13.145m) Profit After Tax 11 N104.054m 11 (N51.993m)

You will observe, in the light of my investment thesis above, that the ONLY reason why this company CAN declare a profit this quarter must be that C&I Motors is finally out of the woods, or at least that its loss has reduced significantly as not to eat too much into the profits of the core business. Another positive from above result is the reducing borrowings, which is one of the biggest costs in fy 2009 and 2010 for the company.
Furthermore, the core business should be taking delivery of the big ship built for the use of Shell by either late 3rd quarter or early 4th quarter, by my estimates, which is gonna further significantly ramp up revenue with good margins.
The 2nd quarter results of the company that should be coming out by end of this month will give a better glimpse of the above thesis I have developed. However, I have chosen not to wait for that and voted for my candidate. My sense is that the best valuation approach to adopt for this company in the light of the above will be a “sum-of-the-parts” approach.

Please feel free to ask questions, clarifications or critique above/punch holes in my thesis above.

Cheers!

P.S: there may be a lot of typos above: I did not proof-read. The thing long small.
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Last edited by omydee; 17th August 2011 at 06:05 AM.
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  #184 (permalink)  
Old 17th August 2011, 12:26 AM
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Default Re: C&I Leasing

Quote:
Originally Posted by omydee View Post
Shuo! $229 merlot!! Oga o! I will tell my mummy and my daddy...a won eleyi... a won eleyi...won baaad gan o! My eye just clear quickly as i see the price.

As my eye clear so, na im i say make i kuku post the thing wey i say i go post tomorrow today. See below.

Background:
C & I Leasing (CIL), the Company (not Group), the market leader in its business sector of leasing i.e. operating leases to large companies, providing consumer leases to employees of large companies, as well as running the Hertz Car Rental franchise in Nigeria. Up until 2008, CIL had been a solid business that had consistently grown revenues and earnings and consistently improved its fundamentals from as far back as 2001. They only had a decline in earnings year-on-year only once in 2005 (marginal decline of about 7%) in those entire eight years interval between 2001 and 2008, 2001 being the time from which one has access to its accounts. In fact it nearly tripled its earnings year-on-year in 2008! Never had a loss. So what went wrong?
Between 2007 and 2008, the management and board, with the growing profits took a strategic step to diversify horizontally (C&I Motors and CiTrans) as well as geographically to Ghana (Lease Afric). This was when its troubles started as, unfortunately, this ended up being the VERY WRONGEST time to start such a diversification strategy, on account of the headwinds the global and local economy later ran into in 2008, which no one really saw coming anyway. This turmoil in the markets, especially in the credit markets, made non-sense of their plans and chinks began to show in their diversified group on account of this.

HOWEVER, all the chinks that showed up ALL showed up not in its core business of leasing but largely in the three new subsidiaries it has created i.e. CI Motors, Citrans and Lease Afric. The core business itself of leasing actually remained strong despite the harsh business environment, actually growing PBT 12% in 2009 and maintaining it at 2008 levels in FY2010.

What were the problems with these subsidiaries?

C and I Motors: took off in the middle 2008 and placed a large order for the first set of Suzuki cars, all in the environment of a buoyant/rising middle class at that time. However, before the shipment arrived, disaster struck in the markets and credit dried up such that these cars landed without the ready market had been envisaged for them. The company had also taken bank loans to finance a large portion of this shipment because manufacturer appears in the annual reports not be extending supplier credit. This all threw whatever assumptions were made for this ordering of cars out of the window and the CI Motors was hit heavily by the twin head bandages of high inventory level and high interest payments. So much that it had N90million in 2009 and N124million in 2010. (The loss of 2010 whacked out over a third of the profit generated by the core business of leasing. Although, it’s only the summary of 2011 FYE January that we have, the information gleaned from an interview by the CEO in one of the newspapers tells me CI Motors made a loss of close to N300million, wiping out the entire over N200million+ PAT that the core business generated.)

Lease Afric: was acquired from an existing hailing Ghanaian leasing operation in 2007/8. Unfortunately, they had some board and management tussles after the acquisition which prevented the newly acquired entity to find its footing, as it showed a higher than normal level of NPLs. Consequently, Lease Africa generated a loss in 2010 of N70million, whacking out about a fifth of the profit generated by the core business of leasing in Nigeria.

CITRANS: This subsidiary manages the Red Cab business in Lagos. All the issues indicated above affected it as well such that it generated loss of N33million, whacking out another tenth out of the profit generated by the core business.

From the foregoing, and if you take the time to tear apart their 2008, 2009 and 2010 Annual reports, what shows is the core business which was responsible for about 63% of revenue and has a PBT margin of 7-8%, is still rock solid. The headache this company has had SIIINNNCEEEE are its subsidiaries. Once the issues in the subsidiaries get fixed, the profits are going to sky rocket. Why? From the double effect of the core business continuing to grow its profits year-on-year and from the subsidiaries either breaking even or turning profit positions from their present loss making disgrace.

So where are we now?

I am convinced that the company is right about at the corner where these subsidiaries’ fortunes turn for the good.
1.) If you look at the FYE 2011 results analysis interview, Lease Afric is alredy out of the woods as at January 2011, declaring a profit of N15million, which I also believe may actually be a netting of losses in the earlier quarters of the financial year by the bigger profits in its latter quarter(s). What this implies is that I expect it to have a full year of quarterly profits throughout the financial year that will end January 2012.
2.) I estimate CI Motors would have sold off all the inventory it took in during 2008. And although it may report lower revenues in the FY2012, will nevertheless not generate A LOSS, which is the real problem it had been giving the group.
3.) CITrans is a very small portion of the company accounting for not up to 4% of its revenue. At a minimum, I expect this one to break even, even if it does not generate a profit. (Please don’t forget that it indirectly generates profit for the core business because the core business handles all the leases to the taxi drivers that bought the Suzukis on hire purchase.)
If one takes all this above 3 together, my sense is that this present financial year between from February 2011 to January 2012 is when this company comes out of the woods. Consequently, this stock will fall under the category of “Turnaround” as defined by Peter Lynch, this one being an example of the type he calls “the perfectly-good-company-inside-a-backrupt-group” kind of turn-around.
Now if you take a close look at this company’s April 2011 first quarter results and compare it to that of April 2010 (last year), having the things I said were happening in each of its subsidiaries at the back of your mind, viz:

Turnover 11 N2.458b 11 N2.145b Cost Of Sales 11 (N1.720b) 11 (N1.802b) Profit Before Tax 11 N129.266m 11 (N38.848m) Taxation 11 (N25.212m) 11 (N13.145m) Profit After Tax 11 N104.054m 11 (N51.993m)
Balance Sheet Information
Fixed Assets 30-04-11 N655.905m 31-01-11 N720.984m Investment 11 N43.974m 11 N46.453m Lease Rental Due 11 N463.282m 11 N217.944m Loans And Advances 11 N67.991m 11 N36.007m Cash and Bank Balances 11 N275.846m 11 N357.607m Other Debit Balances 11 N11.293b 11 N11.317b Trade Creditors 11 N178.657m 11 N114.604m Short Term Borrowings 11 N5.273b 11 N6.034b Other Credit Balances 11 N5.517b 11 N4.810b Net Assets 11 N1.707b 11 N1.598b 38.848m) Taxation 11 (N25.212m) 11 (N13.145m) Profit After Tax 11 N104.054m 11 (N51.993m)

You will observe, in the light of my investment thesis above, that the ONLY reason why this company CAN declare a profit this quarter must be that C&I Motors is finally out of the woods, or at least that its loss has reduced significantly as not to eat too much into the profits of the core business. Another positive from above result is the reducing borrowings, which is one of the biggest costs in fy 2009 and 2010 for the company.
Furthermore, the core business should be taking delivery of the big ship built for the use of Shell by either late 3rd quarter or early 4th quarter, by my estimates, which is gonna further significantly ramp up revenue with good margins.
The 2nd quarter results of the company that should be coming out by end of this month will give a better glimpse of the above thesis I have developed. However, I have chosen not to wait for that and voted for my candidate. My sense is that the best valuation approach to adopt for this company in the light of the above will be a “sum-of-the-parts” approach.

Please feel free to ask questions, clarifications or critique above/punch holes in my thesis above.

Cheers!

P.S: there may be a lot of typos above: I did not proof-read. The thing long small.
Excellent analysis. Added to my watch list. Thanks
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  #185 (permalink)  
Old 17th August 2011, 04:00 AM
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Default Re: C&I Leasing

Based on it's Q1 result the forward p.e of this stock is 1.9, I dont expect this to last long and given the liquidity level of this stock and the deep pockets of smn members I expect this stock to go on BID.

Waiting for sunrise to call my broker.
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  #186 (permalink)  
Old 17th August 2011, 05:25 AM
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Default Re: C&I Leasing

Quote:
Originally Posted by nosa2 View Post
Based on it's Q1 result the forward p.e of this stock is 1.9, I dont expect this to last long and given the liquidity level of this stock and the deep pockets of smn members I expect this stock to go on BID.

Waiting for sunrise to call my broker.
Liquidity might be a problem here. What is the Outstanding Shares?.
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  #187 (permalink)  
Old 17th August 2011, 05:31 AM
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Default Re: C&I Leasing

Quote:
Originally Posted by migiets View Post
Liquidity might be a problem here. What is the Outstanding Shares?.
About 800m.
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  #188 (permalink)  
Old 17th August 2011, 06:01 AM
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Default Re: C&I Leasing

Quote:
Originally Posted by nosa2 View Post
about 800m.
1,882,818,912
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  #189 (permalink)  
Old 17th August 2011, 07:00 AM
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Default Re: C&I Leasing

Quote:
Originally Posted by omydee View Post
Shuo! $229 merlot!! Oga o! I will tell my mummy and my daddy...a won eleyi... a won eleyi...won baaad gan o! My eye just clear quickly as i see the price.

As my eye clear so, na im i say make i kuku post the thing wey i say i go post tomorrow today. See below.

Background:
C & I Leasing (CIL), the Company (not Group), the market leader in its business sector of leasing i.e. operating leases to large companies, providing consumer leases to employees of large companies, as well as running the Hertz Car Rental franchise in Nigeria. Up until 2008, CIL had been a solid business that had consistently grown revenues and earnings and consistently improved its fundamentals from as far back as 2001. They only had a decline in earnings year-on-year only once in 2005 (marginal decline of about 7%) in those entire eight years interval between 2001 and 2008, 2001 being the time from which one has access to its accounts. In fact it nearly tripled its earnings year-on-year in 2008! Never had a loss. So what went wrong?
Between 2007 and 2008, the management and board, with the growing profits took a strategic step to diversify horizontally (C&I Motors and CiTrans) as well as geographically to Ghana (Lease Afric). This was when its troubles started as, unfortunately, this ended up being the VERY WRONGEST time to start such a diversification strategy, on account of the headwinds the global and local economy later ran into in 2008, which no one really saw coming anyway. This turmoil in the markets, especially in the credit markets, made non-sense of their plans and chinks began to show in their diversified group on account of this.

HOWEVER, all the chinks that showed up ALL showed up not in its core business of leasing but largely in the three new subsidiaries it has created i.e. CI Motors, Citrans and Lease Afric. The core business itself of leasing actually remained strong despite the harsh business environment, actually growing PBT 12% in 2009 and maintaining it at 2008 levels in FY2010.

What were the problems with these subsidiaries?

C and I Motors: took off in the middle 2008 and placed a large order for the first set of Suzuki cars, all in the environment of a buoyant/rising middle class at that time. However, before the shipment arrived, disaster struck in the markets and credit dried up such that these cars landed without the ready market had been envisaged for them. The company had also taken bank loans to finance a large portion of this shipment because manufacturer appears in the annual reports not be extending supplier credit. This all threw whatever assumptions were made for this ordering of cars out of the window and the CI Motors was hit heavily by the twin head bandages of high inventory level and high interest payments. So much that it had a loss of N90million in 2009 and N124million in 2010. (The loss of 2010 whacked out over a third of the profit generated by the core business of leasing. Although, it’s only the summary of 2011 FYE January that we have, the information gleaned from an interview by the CEO in one of the newspapers tells me CI Motors made a loss of close to N300million, wiping out the entire over N200million+ PAT that the core business generated.)

Lease Afric: was acquired from an existing hailing Ghanaian leasing operation in 2007/8. Unfortunately, they had some board and management tussles after the acquisition which prevented the newly acquired entity to find its footing, as it showed a higher than normal level of NPLs. Consequently, Lease Africa generated a loss in 2010 of N70million, whacking out about a fifth of the profit generated by the core business of leasing in Nigeria.

CITRANS: This subsidiary manages the Red Cab business in Lagos. All the issues indicated above affected it as well such that it generated loss of N33million, whacking out another tenth out of the profit generated by the core business.

From the foregoing, and if you take the time to tear apart their 2008, 2009 and 2010 Annual reports, what shows is the core business which was responsible for about 63% of revenue and has a PBT margin of 7-8%, is still rock solid. The headache this company has had SIIINNNCEEEE are its subsidiaries. Once the issues in the subsidiaries get fixed, the profits are going to sky rocket. Why? From the double effect of the core business continuing to grow its profits year-on-year and from the subsidiaries either breaking even or turning profit positions from their present loss making disgrace.

So where are we now?

I am convinced that the company is right about at the corner where these subsidiaries’ fortunes turn for the good.
1.) If you look at the FYE 2011 results analysis interview, Lease Afric is alredy out of the woods as at January 2011, declaring a profit of N15million, which I also believe may actually be a netting of losses in the earlier quarters of the financial year by the bigger profits in its latter quarter(s). What this implies is that I expect it to have a full year of quarterly profits throughout the financial year that will end January 2012.
2.) I estimate CI Motors would have sold off all the inventory it took in during 2008. And although it may report lower revenues in the FY2012, will nevertheless not generate A LOSS, which is the real problem it had been giving the group.
3.) CITrans is a very small portion of the company accounting for not up to 4% of its revenue. At a minimum, I expect this one to break even, even if it does not generate a profit. (Please don’t forget that it indirectly generates profit for the core business because the core business handles all the leases to the taxi drivers that bought the Suzukis on hire purchase.)
If one takes all this above 3 together, my sense is that this present financial year between from February 2011 to January 2012 is when this company comes out of the woods. Consequently, this stock will fall under the category of “Turnaround” as defined by Peter Lynch, this one being an example of the type he calls “the perfectly-good-company-inside-a-backrupt-group” kind of turn-around.
Now if you take a close look at this company’s April 2011 first quarter results and compare it to that of April 2010 (last year), having the things I said were happening in each of its subsidiaries at the back of your mind, viz:

Turnover 11 N2.458b 11 N2.145b Cost Of Sales 11 (N1.720b) 11 (N1.802b) Profit Before Tax 11 N129.266m 11 (N38.848m) Taxation 11 (N25.212m) 11 (N13.145m) Profit After Tax 11 N104.054m 11 (N51.993m)
Balance Sheet Information
Fixed Assets 30-04-11 N655.905m 31-01-11 N720.984m Investment 11 N43.974m 11 N46.453m Lease Rental Due 11 N463.282m 11 N217.944m Loans And Advances 11 N67.991m 11 N36.007m Cash and Bank Balances 11 N275.846m 11 N357.607m Other Debit Balances 11 N11.293b 11 N11.317b Trade Creditors 11 N178.657m 11 N114.604m Short Term Borrowings 11 N5.273b 11 N6.034b Other Credit Balances 11 N5.517b 11 N4.810b Net Assets 11 N1.707b 11 N1.598b 38.848m) Taxation 11 (N25.212m) 11 (N13.145m) Profit After Tax 11 N104.054m 11 (N51.993m)

You will observe, in the light of my investment thesis above, that the ONLY reason why this company CAN declare a profit this quarter must be that C&I Motors is finally out of the woods, or at least that its loss has reduced significantly as not to eat too much into the profits of the core business. Another positive from above result is the reducing borrowings, which is one of the biggest costs in fy 2009 and 2010 for the company.
Furthermore, the core business should be taking delivery of the big ship built for the use of Shell by either late 3rd quarter or early 4th quarter, by my estimates, which is gonna further significantly ramp up revenue with good margins.
The 2nd quarter results of the company that should be coming out by end of this month will give a better glimpse of the above thesis I have developed. However, I have chosen not to wait for that and voted for my candidate. My sense is that the best valuation approach to adopt for this company in the light of the above will be a “sum-of-the-parts” approach.

Please feel free to ask questions, clarifications or critique above/punch holes in my thesis above.

Cheers!

P.S: there may be a lot of typos above: I did not proof-read. The thing long small.
Great write-up!

I actually thought that C&I Leasing would be good, at this time, only for those that have a high risk appetite. The chances of making quick money out of it are high and the chances of losing your money are also pretty high. Remember that the investors' confidence in NSE is still low not to talk of that in C&I leasing. At a time like this, I think investors prefer stocks that have performed consistently over the years in order to be rest assured (at least to some extent). C&I Leasing cannot be classified as a performer and investors have lost loads of money in this stock in the past due to their inconsistent results. They must have to prove themselves over time again before they can get my penny. One stock that comes to mind when looking at C&I Leasing is IEI. The more you look the less you see! Remember that all I have said here represents only my opinion.
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  #190 (permalink)  
Old 17th August 2011, 07:34 AM
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Default Re: C&I Leasing

Quote:
Originally Posted by omydee View Post
1,882,818,912
Proshare has a different figure o! This obviously means that the calculation for forward p.e is wrong thus my buy order has to be put on hold cause its not cheap enough.
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Old 17th August 2011, 07:44 AM
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Default Re: C&I Leasing

Quote:
Originally Posted by omydee View Post
1,882,818,912
https://www.proshareng.com/investors...?ref=CILEASING

865,808,912.00
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  #192 (permalink)  
Old 17th August 2011, 07:52 AM
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Default Re: C&I Leasing

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Originally Posted by hispy99 View Post
bros, e neva finish o, but no kudi na...dat na y i wan come collect for "free" for ur house

tashere pass tashere o...tashere for u fit e N5M for 3-day work
Ooooohhhhhhh! Why you dey dull me naaaa??? Abi na N15M you wan talk i.e. N5M per day for 3 days??
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  #193 (permalink)  
Old 17th August 2011, 08:01 AM
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Default Re: C&I Leasing

Quote:
Originally Posted by omydee View Post
1,882,818,912
Are you sure of this?

I'm thinking it is 2,088,590,000.

How did you get your figure?
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  #194 (permalink)  
Old 17th August 2011, 08:04 AM
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Default Re: C&I Leasing

Quote:
Originally Posted by omydee View Post
1,882,818,912
Quote:
Originally Posted by nosa2 View Post
Omydee's figure is the correct one as at end of January 2010...I checked up thier share capital yesterday in their 2010 annual report. It is slightly above 800 million Naira which makes their shares outstanding to about 1.6 billion. Maybe they've converted debt to equity between now is what i don't know...
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Last edited by horlads; 17th August 2011 at 08:10 AM.
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  #195 (permalink)  
Old 17th August 2011, 08:10 AM
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Default Re: C&I Leasing

Quote:
Originally Posted by omydee View Post
Shuo! $229 merlot!! Oga o! I will tell my mummy and my daddy...a won eleyi... a won eleyi...won baaad gan o! My eye just clear quickly as i see the price.

As my eye clear so, na im i say make i kuku post the thing wey i say i go post tomorrow today. See below.

You will observe, in the light of my investment thesis above, that the ONLY reason why this company CAN declare a profit this quarter must be that C&I Motors is finally out of the woods, or at least that its loss has reduced significantly as not to eat too much into the profits of the core business. Another positive from above result is the reducing borrowings, which is one of the biggest costs in fy 2009 and 2010 for the company.

Furthermore, the core business should be taking delivery of the big ship built for the use of Shell by either late 3rd quarter or early 4th quarter, by my estimates, which is gonna further significantly ramp up revenue with good margins.

The 2nd quarter results of the company that should be coming out by end of this month will give a better glimpse of the above thesis I have developed. However, I have chosen not to wait for that and voted for my candidate. My sense is that the best valuation approach to adopt for this company in the light of the above will be a “sum-of-the-parts” approach.

Please feel free to ask questions, clarifications or critique above/punch holes in my thesis above.

Cheers!

P.S: there may be a lot of typos above: I did not proof-read. The thing long small.
(To the part in bold) See quote to support it.


Quote:
C&I LEASING SIGNS $50 MILLION CONTRACT WITH SHELL

C&I Leasing Plc recently signed a five year contract, with options, estimated at $50m with Shell Petroleum Development Company Ltd, for the provision of three new tug boats and two crew boats to support the Shell’s crude oil export tanker operations in Bonny.

This is a reflection of the much talked about dividends of the cabotage Act of 2003 and the Nigerian Content Act of 2010, as C&I Leasing is one of the first Nigerian companies to win a contract of that nature in the maritime/oil and gas sector. Mr. John Osi, Shell Logistics Manager speaking at the ceremony, said that this was the first time that Shell considered a Nigerian company for such a sensitive operation. This is because the C&I Leasing boats will support the export operations at Nigeria’s largest crude oil export terminal in Bonny. He stated that the contract with C&I Leasing was a further demonstration of Shell’s belief and commitment to the local content programme of the Nigerian government. Also speaking at the contract signing ceremony, the Managing director of C&I Leasing Plc., Mr. Emeka Ndu, commended Shell Petroleum for the gesture and promised to provide the same world class service that Shell expects from its present contractors.
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  #196 (permalink)  
Old 17th August 2011, 08:24 AM
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Default Re: C&I Leasing

@omydee,

My questions:

(1) Do you know about the bonds through which C & I wants to raise cash?
(2) Will it be convertible? You know they ahve always been doing issuing convertible bonds? So you should expect the total outstanding units to be more in the coming years.

(3) Is your ''Thuraya'' still on? Accept my video call!
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  #197 (permalink)  
Old 17th August 2011, 04:25 PM
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Default Re: C&I Leasing

Quote:
Originally Posted by Oracle View Post
Are you sure of this?

I'm thinking it is 2,088,590,000.

How did you get your figure?
Addition of 1 and 2 below:

1.) From Annual Report end Jan2010:
808,505,000 x 2 units

PLUS

2.)Supplementary Listings in January 2011
C & I Leasing Plc
265,808,912
Part conversion of Loan Stock into Equity.

(this constitutes about 75% of the loan stock from Auerous capital).
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  #198 (permalink)  
Old 17th August 2011, 04:34 PM
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Default Re: C&I Leasing

Quote:
Originally Posted by Oracle View Post
@omydee,

My questions:

(1) Do you know about the bonds through which C & I wants to raise cash?
(2) Will it be convertible? You know they ahve always been doing issuing convertible bonds? So you should expect the total outstanding units to be more in the coming years.

(3) Is your ''Thuraya'' still on? Accept my video call!
On 1 and 2.) They subsituted that plan with the $10million convertible from Aureous, when the tide of the market changed. Except you are saying they have FRESH plans, which i doubt. The total outstanding will ultimately make shares outstanding to be 2billion by the time all oustanding convertibles are converted.

3.) Biko, lound am for me: which one be "Thuraya". Abi you dey mix me up with Waan$$$$$$$$$$? Where i want get Thuraya buy?
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  #199 (permalink)  
Old 17th August 2011, 05:22 PM
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Default Re: C&I Leasing

Quote:
Originally Posted by omydee View Post
Addition of 1 and 2 below:

1.) From Annual Report end Jan2010:
808,505,000 x 2 units

PLUS

2.)Supplementary Listings in January 2011
C & I Leasing Plc
265,808,912
Part conversion of Loan Stock into Equity.

(this constitutes about 75% of the loan stock from Auerous capital).
Check the 2010 AR, You will see a dilution of 471,590,000 units of stock. I guess it is from Auerous and their staff trust share scheme.
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Old 17th August 2011, 05:29 PM
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Default Re: C&I Leasing

Quote:
Originally Posted by omydee View Post
On 1 and 2.) They subsituted that plan with the $10million convertible from Aureous, when the tide of the market changed. Except you are saying they have FRESH plans, which i doubt. The total outstanding will ultimately make shares outstanding to be 2billion by the time all oustanding convertibles are converted.

3.) Biko, lound am for me: which one be "Thuraya". Abi you dey mix me up with Waan$$$$$$$$$$? Where i want get Thuraya buy?
In their 2010 AR, it was mentioned that they will raise money through issuance of bonds in 2 tranches. Don't know if they will still do that.
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