Nigerian Aviation Handling Company Plc (nahco)

[bwalaman]

Time to reevaluate NAHCO… it remains good even after the bonus. The bonus was actually a stock split, but given the limited shares of NAHCO it will hit 50 by end of the year again, thus the bonus / split was really some sound management think.

NAHCO has been volatile since the split ranging from 26 – 39 Naira. It is back on the up swing…I suppose last week was the buy moment for NAHCO, still not late.

I believe NAHCO represents potentials for short term gains and long term growth…still a good buy.

[bwalaman]

Ground handling: Air France attributes success in Africa to NAHCo’s diligence

Kenneth Ehigiator
Posted to the Web: Tuesday, June 26, 2007

Air France has attributed its success in baggage handling in Nigeria to the efforts of the Nigerian Aviation Handling Company Plc (NAHCo), saying that accounted for the airline’s best result in Africa.

http://www.vanguardngr.com/articles/...826062007.html

[wanaj0]

Originally Posted by omoregie

NAHCO was underpriced during its IPO. With its few units outstanding and its large market shares of its operations, I think that its present market price is a true reflection of its worth.

NAHCO was seriously underpriced during the offer for sale (not IPO) by the FG. The PE was ridiculously low. However, there was a risk because the previous years account was 'qualified' by the external auditor. Actually, it was not signed.

Right now, I will advice people to JUMP out of NAHCO and move to another WINNING stock. NAHCO is now over priced. future earnings already factored in. The non liquidity of the shares has helped it also. With the PO that will change. Turnover/profit will not increase by 100%. With PH airport closed, profit may actually drop. Yes there is not much competition but also, the expansion will not be massive. Don't look at NAHCO based on the past, look at the future and see whether it can repeat the over 1000% returnd that it gave.

BTW, some of my money was refunded for the offer for sale. I beleived in it so much that I ordered big but alas, I was given less than half of what I requested for.

[owen1968]

I will advise caution in investing in NAHCO. I agree that it holds monopolistic sway in the Air travel service industry, but what it does not have is a lot of room for growth. My point is that air travel will not grow dramatically in Nigeria.

Also, the fundamentals that people are looking at especially its EPS is pre-IPO. Now the company has a lot more shareholders, a lot more cash, but little potential for growth.

I will not touch this one because nobody can predict when it will turn around and when it does it will come crashing. Don't forget that people who know that they are doing valued this stock at N6 less than a year ago? Please, what has happened to the airline industry to change that valuation. The only thing that has happened to the company is that it now has too much cash. Without room for growth, that cash becomes more of a curse than a blessing.