Is Beta Glass Plc. a good buy?

[chidiohaz]

Please anyone with Beta Glass Plc. financial knowledge? I want to buy into it, advice me pls.

[hispy99]

Originally Posted by chidiohaz

Please anyone with Beta Glass Plc. financial knowledge? I want to buy into it, advice me pls.

Beta looks like a good buy on fundamentals (PE is less than 14 I believe). However, there are 2 problems; the first is that the stock is not very liquid, I tried getting some units when it was around N14 and it was almost impossible. The second issue has to do with NAFDAC requiring beverage companies to phase out glass for PET. If this policy statement from NAFDAC is true and takes effect soon, then your guess is as good as mine as to what will happen to BETA Glass.

[BigSeun]

Apart from the good fundamental the stock possesses, the company might likely give bonus shares for this financial year. It's been quite a while, it gave out bonus.

[BigSeun]

The Company released her audited account, It was above my expectation.
EPS of 1.90 for a stock trading at N23.00
PE of 12X

This is the cheapest stock on the floor of NSE

[zainabusman]

Originally Posted by hispy99

Beta looks like a good buy on fundamentals (PE is less than 14 I believe). However, there are 2 problems; the first is that the stock is not very liquid, I tried getting some units when it was around N14 and it was almost impossible. The second issue has to do with NAFDAC requiring beverage companies to phase out glass for PET. If this policy statement from NAFDAC is true and takes effect soon, then your guess is as good as mine as to what will happen to BETA Glass.

They are also into PET as well. It made up 5% of their sales in 2006 and 12% in 2005.

The main problem is the liquidity like u said. Probably because of the foreign shareholder who wont sell.

[BigSeun]

Originally Posted by zainabusman

The main problem is the liquidity like u said. Probably because of the foreign shareholder who wont sell.

Another problem is the poor dividend policy of the company.

[zainabusman]

Originally Posted by BigSeun

Another problem is the poor dividend policy of the company.

Agreed. 15k does not cut it.

[Apache]

Oh! I didn't know there was a thread for this stock already. Almost opened a new one.
This I think is a good buy. They have issued shares of 499,972,000 (including bonus). They had a PAT of N866m for the last financial year. Assuming they grow PAT by 30%, we will have a Forecast EPS of 2.25
This gives you a forward PE of 8.9
Now looking at the prospects for this company, i don't think there's any other bottle or glass manufacturer in this country (or is there?). Even if there is, Beta glass controls a major share of the market with most multinationals such as Coca cola, Guiness, NB, consolidated breweries etc as their clients
With the volume growth from existing companies and the coming up of new ones like International breweries, you can begin to get my drift.
Add that to the fact that malta guinness just launched a new bottle.
I don't know the life span of these bottles but definitely, they will need to be replaced hence keeping htis company in business.
Same opportunities exist for the PET segment also
You can go through this annual report for some details

Disclosure: I just placed some orders for this stock, I don't know yet if my brokers got it

[Apache]

Originally Posted by zainabusman

Agreed. 15k does not cut it.

I agree also. I know they just refurbished their plant in Delta state. It's possible they needed monies for that hence their low dividend. Let's see how it goes for this year but I think the prospects are bright.

[tonidol]

Originally Posted by Apache

Oh! I didn't know there was a thread for this stock already. Almost opened a new one.
This I think is a good buy. They have issued shares of 499,972,000 (including bonus). They had a PAT of N866m for the last financial year. Assuming they grow PAT by 30%, we will have a Forecast EPS of 2.25
This gives you a forward PE of 8.9
Now looking at the prospects for this company, i don't think there's any other bottle or glass manufacturer in this country (or is there?). Even if there is, Beta glass controls a major share of the market with most multinationals such as Coca cola, Guiness, NB, consolidated breweries etc as their clients
With the volume growth from existing companies and the coming up of new ones like International breweries, you can begin to get my drift.
Add that to the fact that guiness just launched a new bottle.
I don't know the life span of these bottles but definitely, they will need to keep on producing for these companies.
Same opportunities exist for the PET segment also
You can go through this annual report for some details

Disclosure: I just placed some orders for this stock, I don't know yet if my brokers got it

Apache, l don't normally take your opinion lightly. Is the probability of a bonus your reason for placing an order knowing the o/s shares is low?

This stock in history has never clicked N30 mark before and it closed at N20 today. I need more enlightment here. I am so pained l missed out on Presco at the right price. Talk to me Apache please.

[zainabusman]

Originally Posted by Apache

I agree also. I know they just refurbished their plant in Delta state. It's possible they needed monies for that hence their low dividend. Let's see how it goes for this year but I think the prospects are bright.

Possible. They paid 50k a few years back. So they may revert to that in the future. I intend to place an order next week.

[tonidol]

Originally Posted by zainabusman

Possible. They paid 50k a few years back. So they may revert to that in the future. I intend to place an order next week.

Zainab, when is the yr end of this coy? Can you also confirm their o/s shares

[Apache]

Originally Posted by tonidol

Apache, l don't normally take your opinion lightly. Is the probability of a bonus your reason for placing an order knowing the o/s shares is low?

This stock in history has never clicked N30 mark before and it closed at N20 today. I need more enlightment here. I am so pained l missed out on Presco at the right price. Talk to me Apache please.

Though I must confess that i thought about it, I won't say it's the reason why i bought (or intend to buy as i never see confirmation). I have stated the reasons why i think this stock is a good one hence my buy decision.
Meanwhile, their year end is december

[BLUEMONEY]

Originally Posted by tonidol

Zainab, when is the yr end of this coy? Can you also confirm their o/s shares

End of Accounting Year -- 31st December.

No. of Outstanding Shares -- 454,520,000

[Apache]

Originally Posted by BLUEMONEY

End of Accounting Year -- 31st December.

No. of Outstanding Shares -- 454,520,000

You have not factored in the bonus which was given. remeber they gave a bonus of 1 for 10 in their last financial year 2007.

[BLUEMONEY]

Originally Posted by Apache

You have not factored in the bonus which was given. remeber they gave a bonus of 1 for 10 in their last financial year 2007.

thanks for the Reminder.