Chams Nigeria Plc

[hispy99]

Originally Posted by crtide

Ladies and Gentlement
Find attached the CHAMS PP prospectus. It looks promising does it not?

crtide,

May God bless you...thx for this doc

[pesadilla]

thumps up crtide.
looks very promising as you said.keep it up.
i will bag-in this one.

[newton]

Ok guys. I'v looked at the doc. Its a fantastic offer no doubt. But then I'v got some questions.

per chams agm report they hav 100m issued shares as at October 2007, proposed (approved surely) bonus issue of 4 for every 1 held. So i'd expect 500m issued shares per offer doc.
However they hav 1.7b issued and fully paid shares pre offer (see doc), so where did the 1.2b shares show face from...

??? was it a 17 for every 1 bonus
??? was it a debt:equity conversion

[Babs_O]

Newton if you look at page 8 and 54 of the document (courtesy of crtide) carefully you will see the numbers add up as follows.

by 30-Jun-07
100,000,000 units of shares issued and paid.
between Jun and October 2007
72,060,000 units of shares issued and paid for additionally. Bringing total to 172,060,000. (Perhaps participating banks took position here with the new shares in a Private Affair)
by 24-Oct-07
Following the AGM they split the shares in 2. and then gave 4 for 1. Thus latest position of issued and paid stocks is
(172,060,000 x 2) +(172,060,000 x 2) x 4 = 1,720,600,000 units.

Despite all these the price to book at end of these splits and bonus was 2.7 pre-offer / 1.4 post-offer based on my calculation referencing the PP document. Also the PE are splendid.

My main question is how private is the offer. I am even thinking of opening a UBA stockbroking account just because of this offer, so as to be associated to an IV should issue of privacy come up?? Just worse case thinking.

[tfadiora]

As someone that has a million shares of Chams at last PP, I can tell you that if you are looking into growth companies, you cannot loose in Chams and if you are lucky (or should I say blessed) enough to be among the preferred investors, buy as much as you can afford and in about a years time, you will be sitting pretty comfortable on some Naira.

[Murphy]

Originally Posted by tfadiora

As someone that has a million shares of Chams at last PP, I can tell you that if you are looking into growth companies, you cannot loose in Chams and if you are lucky (or should I say blessed) enough to be among the preferred investors, buy as much as you can afford and in about a years time, you will be sitting pretty comfortable on some Naira.

@tfadiora,
Na God bring you for us oh. Pls any ideas to be amogst the CHOSEN, pls share with us. As you have been there already, you can mail me if you do not want to post it. I must be blessed this year in Jesus name.

[BigSeun]

Originally Posted by crtide

Ladies and Gentlement
Find attached the CHAMS PP prospectus. It looks promising does it not?

am finding difficult to download the file. Anyway out?

[pesadilla]

Originally Posted by tfadiora

As someone that has a million shares of Chams at last PP, I can tell you that if you are looking into growth companies, you cannot loose in Chams and if you are lucky (or should I say blessed) enough to be among the preferred investors, buy as much as you can afford and in about a years time, you will be sitting pretty comfortable on some Naira.

how can we get the letters to participate in this offer?
i dont want another honey to pass-me-by.

[Oladipo Johnson]

thanks for this info.

Chams is a pure goldmine. guys start making some cool, decent and legal naira...............what are u waiting 4.

See u at the top.

[TeeHay]

@ Ppl,
Anyone knows when CHAMS plans to be listed?? Make e no be paper money and dividend only person go dey chop??

[newton]

Chairman! Sure u want to make quick cash and ofcourse cool cash too. While the chams deal might take long, u can be sure that it is cool cash so u dont burn urself!
But then its abt ur investment options

[Debbie1010]

Originally Posted by tfadiora

As someone that has a million shares of Chams at last PP, I can tell you that if you are looking into growth companies, you cannot loose in Chams and if you are lucky (or should I say blessed) enough to be among the preferred investors, buy as much as you can afford and in about a years time, you will be sitting pretty comfortable on some Naira.

Thanks tfadiora for enlightening us some more on this CHAMS issue.
The Prospectus refers to a placement letter that one needs to have to allow one participate. Any idea how we can get that Placement letter? That seems to be the only issue right now as the receiving agents may not receive an Application without the placement letter.

[Apache]

Originally Posted by Debbie1010

Thanks tfadiora for enlightening us some more on this CHAMS issue.
The Prospectus refers to a placement letter that one needs to have to allow one participate. Any idea how we can get that Placement letter? That seems to be the only issue right now as the receiving agents may not receive an Application without the placement letter.

Wow! I think i missed that one. Debbie pls can you provide the page where this statement can be found in the pp document

[Ladi Jay]

UBA Global Markets should be the solution.

I'll contact them and get u posted.

We shall not miss this opportunity...placement letter or not.

[Debbie1010]

Originally Posted by Apache

Wow! I think i missed that one. Debbie pls can you provide the page where this statement can be found in the pp document

Check out page 4. "Notice to Invited Investors".

[alomabello]

From a friend:

Because of you, I read and analyzed the CHAMS prospectus. It's very good for me as it served to remind me of my MBA stuff again. These people contributing (from your last mail) are not analysts at all. They are more of speculators than investors. However, think of it, are we not all speculators in Naija market???

Anyway, if CHAMS is doing a private placement in the UK or US, nobody would have bought it. A critical look at the fundamentals of the company revealed that it has never performed well in the past or that its books are not good. When you analyse a comapny, try to concentrate more on the cash flow statement. A company's cash flow from operations reveals a lot. However, many people concentrate on balance sheet and profit & loss account, neglecting the cash flow statement. Looking at CHAMS cash flow statement showed that they only made money from operations during the half yr '07. Why should that be?? Why should they make positive money from operation the previous half year before asking people for money??? That I do not belief to be true?. Even the cash made from half yr. operations far exceeds what they have ever been made. Look at page 44: Look at cash flow from operations and net cash provided by operating activities 2002 to 2007. Obviously something is not right.

Look at the liabilities vis-a-vis the net assets from 02 to 06, 02 - 06 debt to total asset ratios had been as high as 52% while this was reduced to 32% in '07 (the year preeding private placement). Current asset had been much less than current liabilities all the previous years until '07 when current assets far exceeds current laibilities. I can only see an attempt to make the book look good everywhere I analyzed.

Having said all these, I will still buy CHAMS, because I do not know what makes the market move? Obviously, it's not fundamentals.

[riskreturn]

Originally Posted by Debbie1010

Check out page 4. "Notice to Invited Investors".

The relevant protions there read thus:

"The Private Placement Memorandum contains confidential information and is intended mainly for the purpose of giving information to a select group of prospective investors in connection with the Offer ...the Private Placement memorandum is neither a prospectus nor does it constitute an offer or invitation to the public to subscribe to the securities presented therein. Prospective investors to whom Placement Letters have been addressed for the purpose of making an investment decision in accordance with the terms and conditions contained therein only, may make an application. ... the information contained herein may not be re-produced or used by anyone in any circumstances not authorised or in connection with an offer or solicitation other than select group of investors tp whom Placement Letters are addressed."

While I am not a lawyer, I am of a "layman" view that the above is an emphasis apparently worded to meet the requirement of the Company & Allied Matters law forbidding non-PLC companies (including Chams Ltd) from inviting members of public to subs