C&I Leasing

[Survival2006]

Hello Folks, Can we share our knowledge on C & I Leasing. I see there has been some increased activity on the shares of this company lately, and they even paid a 6k Interim Dividend. Their half year result is adjudged impressive compared to their last year performance. Its shares outstanding is given as 600,000,000. It almost always features in the BUY recommend lists of notable analysts. What more can be said about this stock? Please if you do know, kindly share. Thanks for your self-sacrificing spirit.

[hispy99]

My brothers and sisters on this forum...

I have heard a number of people say good things about this company and I have decided to take a look myself. However, I cannot find financials on this firm on my own (they have a website, but everytime i try to connect to it, I fail) or from my broker. Anyone with financials of this company in the house or a link to where I can get the financials? I promise to share my observations with the house if the financials are detailed enough to permit a thorough analysis.

[JEI]

Information gathered from Stockwatch weekly revealed that C & I leasing Plc's earnings have been improving consistentently since the beginning of the current financial year as the company has acquired 40% of a leasing company in Ghana. Its recent 5 kobo interim dividend paid to its shareholders and the possibility of final dividend at the year end is high as the market expects the company's audited result for the finanacial year ending January 2008.

[blanka]

Really wanted to buy C&I back when it was 5 bucks....the Eps of 47kobo at third quater is impressive...eps full year is likely to exceed 60kobo cos they are making an average of 15-16kobo/quater....The implication of this is that there is a huge prospect for cap appreciation(60kobo full year can support N12)...and div possibility is high!

[Gengen]

CILeasing is one of the dark horses that I have followed for some time. However, I will like to clarify some issues from those of you that know much about this company.
Some Questions:
1. Was the acquisition of a leasing company in Ghana successful?
2. Who are the major share holders? Any foreign investors?
3. Is the outstanding share number of 600,000,000 shares correct?
4. Are there any plans for a Public Offer soon?

Expecting your FEEDBACKS yesterday!!!

[pumping]

Originally Posted by Gengen

CILeasing is one of the dark horses that I have followed for some time. However, I will like to clarify some issues from those of you that know much about this company.
Some Questions:
1. Was the acquisition of a leasing company in Ghana successful?
2. Who are the major share holders? Any foreign investors?
3. Is the outstanding share number of 600,000,000 shares correct?
4. Are there any plans for a Public Offer soon?

Expecting your FEEDBACKS yesterday!!!

3. Outstanding shares is around 1.6B

PO sometime June 2006 for 1.4B shares - 75% subscribed according to the SEC website.

[blanka]

Shareholding structure as gleaned from 2006 annual report shows that leadway assurance and crusader insurance has 6 and 5% respectively,a certain credit alliance fin services has 10%,petra properties ltd has 11%,out consortium fin ltd has 13%.....No chance of a PO soon cos one was done in mid 2006....shares oustanding should be in the region of 1.6B to 2B shares.reason is C&I had 600million shares as at jan 2006(as seen in the 2006 annual report), they have since issued a PO of 1.4Billion shares. even if i don't know the level of subscription...And yes GENGEN the aquisition of a 48% stake in that leasing firm in Ghana was a done deal...I hope this helps!

[Gengen]

A BIG THANKS to Blanka and Pumping for your feedbacks. I really appreciate this.

This issue of having wrong Outstanding shares, with margin of error high (compare 0.6 billion vs. 1.6 billion), needs to be addressed. Even the NSE website is wrong

[biyi oshinaga]

guys, ive been observing c&i leasing lately, the company has been posting good earnings lately..., the latest eps is 47kobo from 29kobo.the conpany has also divisified into leasing of oil equipment, therefore boosting its earnings. after a comparative analysis, i realized that c&i is cheap and a good buy at the crrent market price... guys.. lets invest with numbers....any other views?

[pumping]

Originally Posted by biyi oshinaga

guys, ive been observing c&i leasing lately, the company has been posting good earnings lately..., the latest eps is 47kobo from 29kobo.the conpany has also divisified into leasing of oil equipment, therefore boosting its earnings. after a comparative analysis, i realized that c&i is cheap and a good buy at the crrent market price... guys.. lets invest with numbers....any other views?

Having very good future prospects is one thing, but cheap??? I don't agree. CILeasing has a projected PE of over 32 currently. It is expensive now.

A good stock to have but a reasonable price for now is N6 and not the current N7.50.

That said, if the stock price refuses to fall, what gives??

[newton]

Quite right pumping. More than ever there's need to time entry into stocks that have good future prospects else u'll just join the wagon of folks pushing up the price when its goin up. I remember picking up some c&i leasing units early in the year @ N1.10k. I think identifying future earnings spinners wd work beta 4 us all!

[Taipan]

Originally Posted by pumping

Having very good future prospects is one thing, but cheap??? I don't agree. CILeasing has a projected PE of over 32 currently. It is expensive now.

A good stock to have but a reasonable price for now is N6 and not the current N7.50.

That said, if the stock price refuses to fall, what gives??

I dont believe that there's anything like 'the price refusing to fall'. Water will always find its' level (or isnt that how they say it?). All that is required is patience and steel nerves.
But that aside, if indeed the price refuses to fall, there are always other stocks out there. No matter how good a company's prospects are, if you buy high, you're just being one of the masses who are bound to get slaughtered sooner or later.
I try to look for stocks that are so cheap that even with a very marginal price increase or none at all, my earnings are still guaranteed- not many of them out there though. (You wont catch me buying stocks with PE above 20. I target the 0-15 range.) But again, since water ALWAYS finds its level, such stocks are bound to rise up to at least the market average sooner or later. Mr Market may be blind and over-euphoric, but he's smart enough that with time, he'll recognise value.

[chineduz]

Originally Posted by hispy99

My brothers and sisters on this forum...

I have heard a number of people say good things about this company and I have decided to take a look myself. However, I cannot find financials on this firm on my own (they have a website, but everytime i try to connect to it, I fail) or from my broker. Anyone with financials of this company in the house or a link to where I can get the financials? I promise to share my observations with the house if the financials are detailed enough to permit a thorough analysis.

I was wodering if you had any luck with this chase. I am thinking about picking up the stock but have not got much to decide on. Would appreciate if you could share some of your findings. Cheers

[Goddey]

Check this website, they have all of their financial statements posted. Go to the INvestors Relations link.

Welcome to C & I Leasing

[chineduz]

Originally Posted by Goddey

Check this website, they have all of their financial statements posted. Go to the INvestors Relations link.

Welcome to C & I Leasing

Thanks, Good job and keep it up!

[hispy99]

Originally Posted by chineduz

I was wodering if you had any luck with this chase. I am thinking about picking up the stock but have not got much to decide on. Would appreciate if you could share some of your findings. Cheers

This was a while back, but I decided not to buy in the end. I was obviously very wrong

[Goddey]

It is not too late, I only bought some in feb and really happy I did.

[chineduz]

Originally Posted by hispy99

This was a while back, but I decided not to buy in the end. I was obviously very wrong

You may not be wrong at the time considering that the market is very dynamic being what it is and a lot of factors influencing it, more so when it comes to NSE which does not particularly fit into the text book description of stock trading. I am going to buy it next week and heavily at that, one big risk but in any case a loss I can afford if it went the other way. Thanks for your reply. Cheers

[rose]

Just saw a notice of extra-ord meeting by this company to seek the approval of shareholders to raise money from the capital market. it is dated 27-03-08. it is in Thisday Newspaper of today. This implies that they will soon be in the market for a PO.

[knightofdelta]

The financial analysis of the company revealed that in their 3rd quarter results released on the floor of the NSE for October 2007 showed that they grew their profit after tax by 228% within a year from N85 million to N279 million. That means they were able to make good use of the money they raised from the market in June 2006 when they increased their shares by 1.4 billion. Their current ratio increased from 0.68 to 1.7 while their quick ratio rose from 0.67 to 1.69. That simply means that if they have to pay off their liabilities at once for some extraneous reasons, they will still be in business. At the current market price of N14.35 the projected full year PE is 77, which is quite high.

My interpretation of C&I Leasing financials is that it is a growth stock and that they have discovered that their marginal revenue is still high but not as high as it was when they first came to the market in 2006 considering the number of shares they want to issue this time around; just 1 billion compared to the initial 1.4 billion. Despite their incursion into the West African sub-region and acquiring the license as the only Suzuki franchise in Nigeria for their auto brands, they still have room for expansion and know they still have the capacity to make more money and diminishing returns have not set in on their financial capital. Despite the massive increase in number of shares in 2006 by 233%, the return on equity was stable at 0.28 based on the 3rd quarter results, which means that they are yet to finish tapping into their capacity for increased production.

I bought some units last year and was planning to sell but with the news of a public offer in the offing, I will increase my stake in the company for the medium to long term this time around. The price is likely to increase before it goes on technical suspension (a good time to sell) and then struggle for a while just like First Inland bank and Fidelity bank are doing (a good time to buy back for the long term).