Nigerian Aviation Handling Company Plc (nahco)

[ghm]

NAHCO moved from N6 in November all the way to N42.52 yesterday (a whopping and incredible 608% appreciation).

It is like N1m turning to N6m in 4 months.

Could someone just give an insight into what this hoax is all about? What is the company's operation and why the sudden price movement? How far will it go? Can late enterants still benefit?

[paragon]

well the company is responsible for managing activities of most airlines like ticketing etc. the airline industry in Nigeria is quite big.Also, they are also reponsible for issuing licenses to countries that want to start operating in nigeria.

They paid dividend just 3 weeks after they were listed on the exchanjge last year, and thats what started all the hype. However, their financials is very good.

I will buy above N40.00

[c kenneths]

I will really not like to buy the stock above 40 naira. I consider it very expensive at that price, the financials may be very good but when short time traders will start selling, the price may come down a lot before making another upward journey.

[ghm]

For those who are interested in more information about NAHCO, I ran into their website and I am quite impressed about the information provided all of which I am ignorant of initially.

You can read more from http://nahco.com/index.htm

Cheers.

[bwalaman]

NAHCO is for real!!! I was fortunate to pick afew at IPO (5.5 naira)...(so I am smiling now). The secret is that 40% of NAHCO is Foreign owned! British Airways, Luftanza, Air France... NAHCO is basically a service company that processes baggage, check-in and several grounds operations for these airlines...Is it making sense? With that type of backing and considering that the Nigerian-European route is a profitable one NAHCO will continue to make money!!!

NAHCO has only one major competition SAHCO and NAHCO is light years ahead, with more international and domestic clients... So this is a monopoly of sorts...

While I would not buy it at the 44 naira it hit today, it is quite possible that this thing will hit 60 in 2007. I think these airlines are moping all share capacity to the point where they would have controling influence...

I think the next NAHCO will be NICON because NICON controls 15% of the insurance sector- next closest is less than 4%!!! (Check Vetiva Capital Management web site - look for their analysis on Insurance).

Closing I really have to thank this forum- you are democratizing and decentralizing investment tools!!! Thanks.

[Stockbear]

C kenneths, I understand that you would rather not buy this stock at N40, but have you considered the possibility that this stock is gathering momemtum and could see the value going to N60 and above? It has monopoly in its field of operations.

[ghm]

NAHCO moved gradually from N49 to N38 yesterday. However, this movement was not accompanied by mass sales as expected...
What do you think? Any clues?

[c kenneths]

Stockbear, I know the price will correct downwards so I will buy at around thirty something.

[Stockbear]

@ C Kenneths - You are a smart guy, I guess you know what you are doing

[bwalaman]

It is a market correction and some profit taking... HOLD.

[ghm]

NAHCO plans 1 for 2 bonus, shops for more capital
Posted Wednesday, March 14, 2007
The Nigerian Aviation Handling Company Plc proposes to excite shareholders with a bonus issue of one for every two shares already held plus a dividend for its year ended December 2006.

Plans for the company to raise additional capital from the capital market are also said to be underway.

According to a source close to the company, the full year results would be announced before the end of the month and might contain a dividend of N1 per share.

“I can’t say exactly how much dividend will be declared but giving its performance, I can tell you that the company has the capacity to pay up to N1,” the source said.

Going by its nine months turnover of N2.4bn and profit after tax of N304.9m for 2006, compared to N2.2bn turnover and N274m profit after tax for 2006, he said the public should expect an impressive full year results.

He also disclosed that the public offer would be significantly subsidised, adding that the price might not be above N20 per share. Meanwhile, NAHCO closed at N40.91 per share at the stock market on Tuesday.

The stock, which was listed on the Nigerian Stock Exchange in November 2006 at N5.50 per share, had climbed to this year’s high of N49.21 per share.

He explained that the dip in price was normal because the stock had reached its peak, having done well in terms of price appreciation.

According to market operators, its price will pick again from the end of this month when the company announces its improved results for the full year.

Meanwhile, it was learnt that the funds to be realised from the public offer would be utilised for business expansion, the Calabar airport project, procurement of modern equipments to enhance better services and to generate greater returns on investments, among other things.

On the prospect of the public offer in view of the line up of offers by the banks, a broker said that the stock has a good chance.

He said, “The public will embrace it. I can tell you that some people are even hoarding the ones they have now. Investors know how to diversify their investments. They understand that you can make more from these smaller companies than the bigger ones.”

“Some of the things people consider before investing in a company include the good management, the shares of the company in the market and history of good returns on investments. Besides, there are going to be many public offers this year.”

Currently, NAHCO is the only ground handling company listed in the aviation sub-sector of the NSE.- Punch

[bwalaman]

I put in a good chunk in this company in 2005 and have researched it well- if it indeed goes to IPO at 20 or below 25 naira it is a good buy.

If you factor in all the "Regional" perspective- towards ECOWAS and greater AU that Soludo is advocating (re: initiatives like the AFC) companies like NAHCO, Dangote and the Pharmaceutical Sector stand to gain enormously.

Any company that can leverage / mirror Nigeria'a political prowess in the sub-region stands to gain. What we (Nigeria- by extension the NSE) are lacking in Africa now is the economic edge beyond oil. Fortunately, thanks to people like Soludu and Ngozi (former Minister)- we are thinking of Nigeria’s economic position on the continent and the world).

No surprises here- it is expected that NAHCO does well, the corporate governance, management and transparency issues are taken care of by the heavy foreign exposure imbedded in the company.

[dotunk]

This is a stock i took for granted. The prospectus was GOOOOOD but i thought it wont be liquid for me to dispose off when i wanted to. I guess i was wrong. I have watched the stock grow from N5.5 to N44. Too bad for me.

What C kenneth doesnt realise is that for a stock like NAHCO, it has the potential of going past this N40 price. When i look at the date the last post from c kenneth is, am sure if he knew what NAHCO is about to do, am sure he would buy at more than N40.

Lets analyse, you buy at say N45, you get N1 dividend and 1 for 2 bonus. The price is corrected down as follows. N45 - N1 = N44

N44 x 2/3 = N29.33. Now you have 50% more than you had and the price is going to bounce back. Remember they are the only serious company in their feild.

And then they wany to come to the market at a price <N20 in the coming months. so for those that already have, i recommend a HOLD postion and possibly BUY

[Stockbear]

More revenue, more profit and the eventual smile on investors' faces

The Punch
NAHCO to extend operations to Tinapa, West Africa
By Rasheed Bisiriyu
Published: Wednesday, 25 Apr 2007

The Nigerian Aviation Handling Company Plc has announced plans to extend its operations to centres in the West African sub-region.

The Managing Director of the company, Mr. Bates Sarki Sule, who dropped the hint in an interview with our correspondent in Lagos on Monday, also said that NAHCO would soon hit Calabar to be part of the Tinapa project.

He said the firm would extend its operations to the new terminal building at the domestic wing of the Murtala Muhammed Airport, Lagos.

The company, he added, would diversify into courier services, travels and tours.

He recalled that the company had commenced moves to raise its capital base from N150m to N500m to meet the current and future challenges.

He said that the increase was in accordance with the directive from the Nigerian Civil Aviation Authority.

http://www.punchontheweb.com/Articl....20070425316750

[richestowealth]

Can anyone tell me the closure date for the 3 for 2 bonus and dividend payment date? Never mind
. The directors, therefore, announced a dividend of 30kobo and a bonus of three-for-two. Its register will close on May 16, while the payment date has been fixed for May 25, 2007.

[bwalaman]

Two months, said it would hit 60- this has come to past...Time to reevaluate the situation...

What would the adjusted share price look like?
Does the adjusted price represent a buy opportunity?
How long will it take the adjusted price to hit 60 again?