ABC Transport Fundamentals

[Stockbear]

With the recent spate of events its apparent that ABC is here to stay for the long haul and seriously intend to do this whilst enriching themselves and investors alike.

ABC is worthy of our money. I would consider it a worthwhile investment. The gurus in our midst might consider doing some financial checks to backup this being a good investment.

The Punch
ABC breaks new grounds, attributes success to recapitalisation
By Agency Reporter
Published: Wednesday, 11 Apr 2007

ABC Transport has said it recently completed new terminals in Port Harcourt and Onitsha, and taken delivery of new buses to boost its operations.

The company said it also increased its staff strength by 250 to take care of the expansion of its activities.

The Managing Director, ABC, Mr. Frank Nneji, attributed the development to the recent recapitalisation of the company, which he confirmed as having tremendous impact on its business.

He spoke in Lagos on Tuesday, where he unveiled the year’s Travel and Win promo, a package to reward loyal customers, especially the regular travellers of its luxury buses. He said a lucky winner would take home a Hyundai Accent at a special ceremony to be held in May.

He gave the value of the Port Harcourt terminal as N150m, while that of Onitsha cost the firm N100m.

Insisting that the funds for the projects and the new buses were sourced from the investors, Nneji said, “What you are seeing today at ABC are the benefits of a well capitalised company.”

http://www.punchontheweb.com/Articl....20070411102531

This Day (Lagos)
ABC Transport Records Giant Strides
March 18, 2007
Posted to the web March 19, 2007

Nseobong Okon-Ekong
Lagos

The Cross River State Government has taken another giant step towards enhancing public service in the city of Calabar by inaugurating the Calabar Urban Mass Transit Scheme, as the Associated Bus Company Plc, operators of the ABC Transport, were appointed managers of the Scheme.

http://allafrica.com/stories/200703190907.html

The Guardian
Wednesday 11 April 2007
Associated Bus Company begins staff shuttle services
By Moses Ebosele

IN line with its ongoing expansion programme, the management of Associated Bus Company (ABC) Transport Plc, is to commence staff shuttle services for some firms in Lagos State.

Under the arrangement, ABC Transport is to enter into an agreement with some yet to be disclosed firms on how and when to transport their staff and interest from one location to the other.

http://www.guardiannewsngr.com/autowheel/article05

Daily Independent
Fidelity Bank Partners ABC Transport On Travelsonline
9th April

Fidelity Bank Plc has come to the rescue of inter-city travelers who have always contended with extreme challenges in making travel arrangements within the country with the introduction of Fidelitytravelsonline, an e-service solution that facilitates on-line bookings for passengers traveling in ABC Transport vehicles.

ABC Transport Plc offers time-sensitive departure schedules and appeals to discerning travelers within Nigeria and routes on the West African Coast to make use of the offered opportunity.

A product of the innovative partnership between the bank and ABC Transport Company Plc, Fidelitytravelsonline is a revolutionary product that gives intending travelers the unusual ease of making reservations and effecting on-line payments for travel tickets in the convenience of their homes, offices, cybercafÈs or the nearest Fidelity Bank branch.

http://www.independentngonline.com/?c=47&a=24423

[bwalaman]

It is difficult to assess ABC even if you look at their financial record for the simple reason that they are a pioneer in this sector…on the NSE. Remember combing throught their prospectus and it looked good and since then they have taken promising steps as well...

BUT...

Going by the standards of our roads, security on the road, maintenance mentality- one would have to think twice before buying. Going by the fact that road transport is the backbone of public/commercial travel-transport in Naija- it is a good buy. (note railway is practically dead and air is for the rich/top govt, some people take air travel allowance and jump into a bus!).

There are to many "ifs" which is not a reflection of ABC itself, but the operating environment.

Personally, I bought some- but it was more speculation than any particular sound/strategic judgment.

[dotunk]

ABC! thats a company i never expected to do good due to some personal reasons which may annoy some members if i say it. but i also compared it to Albarka air which never rose above its IPO price.

more so, they had only one issuing house... i thot that was suspicious.

well now its more than 100% increase but is it a volatile and liquid stock? anyone with info on this? i wouldnt want to trap my funds... it has happened many time so am watching my arse!

[mulinga]

Information from their prospectus indicate they have a GPS system for tracking their buses-a good detterent agaisnt theft. However, Chief Nneji the founder still has controlling interests-raising issues of corporate governance. Also they are heavily leveraged-high gearing increasing financial risk for prospective investors. In summary its a high risk, high return stock due to their pioneer status

Originally Posted by bwalaman

It is difficult to assess ABC even if you look at their financial record for the simple reason that they are a pioneer in this sector…on the NSE. Remember combing throught their prospectus and it looked good and since then they have taken promising steps as well...

BUT...

Going by the standards of our roads, security on the road, maintenance mentality- one would have to think twice before buying. Going by the fact that road transport is the backbone of public/commercial travel-transport in Naija- it is a good buy. (note railway is practically dead and air is for the rich/top govt, some people take air travel allowance and jump into a bus!).

There are to many "ifs" which is not a reflection of ABC itself, but the operating environment.

Personally, I bought some- but it was more speculation than any particular sound/strategic judgment.

[eriksbmw]

I totally agree with Bwalaman............its a high risk high yield stock....meant for the brave at heart.

A friend of mine made over N2.5million on this stock.

Personally i think its too late for me to buy......the stock can move either way depending on the operational environment....I should have gotten into bed while it was still warm !

[juliusdudu]

Gurus in the house pls, can someone supply me with fundamentals of ABC Transport because I consider the stock quiet penny but i have no idea of their fundamental.
Will it be a good buy?

[pumping]

Originally Posted by juliusdudu

Gurus in the house pls, can someone supply me with fundamentals of ABC Transport because I consider the stock quiet penny but i have no idea of their fundamental.
Will it be a good buy?

Associated Bus Company
Projected EPS: 13k
Projected Earnings Yield: 4.35%
Projected PE ratio: 22.98

This is based on Q-3 PAT of N143.62M and 1.507B outstanding shares.

[Betiku Franklin Olugbenga]

Originally Posted by pumping

Associated Bus Company
Projected EPS: 13k
Projected Earnings Yield: 4.35%
Projected PE ratio: 22.98

This is based on Q-3 PAT of N143.62M and 1.507B outstanding shares.

So, is it be a good buy?

[pumping]

Originally Posted by Betiku Franklin Olugbenga

So, is it be a good buy?

It is a good buy if you are in long term and you do small volumes. Short term, there is a premium on the price. The PE ratio was below 18 just a few weeks ago.

[Cedar]

Originally Posted by pumping

It is a good buy if you are in long term and you do small volumes. Short term, there is a premium on the price. The PE ratio was below 18 just a few weeks ago.

Hi,
i would like you to explain what you mean by '... if you do small volumes.

[pumping]

Originally Posted by Cedar

Hi,
i would like you to explain what you mean by '... if you do small volumes.

The value of the stock sold on the floor in a single day is relatively low. Many days, not even up to 100K units are sold on a trading day.

For a stock that costs only N3, if you want to buy N3M worth then this can be a problem. You will also have a problem if you are trying to sell a large volume at once.

[chubby]

Like how many volumes will be appropriate for a start, owing to the explanation above?

[justice bende]

Gentlemen,
ABC transport seems to be on the rise. I ve been watching the stock from the sideline for quite a while. But from what is happening now it appears I ve watched for too long as the price is moving up steadily.
In this era where stocks jump up and never come down to where it jumped from, dont you think it deserve some attention?
Lets delibrate please!!!

[riskreturn]

Originally Posted by justice bende

Gentlemen,
ABC transport seems to be on the rise. I ve been watching the stock from the sideline for quite a while. But from what is happening now it appears I ve watched for too long as the price is moving up steadily.
In this era where stocks jump up and never come down to where it jumped from, dont you think it deserve some attention?
Lets delibrate please!!!

But that is how virtually all "penny" stocks have been moving sky-wards. ABC Transport stock is not an exception. So, I think the movement in ABC Transport stock is just the general sentiments driving other "penny" stocks and I feel you are too late to buy it now, as there seems to be future downside market correction risk (unless, probably, you enter and exit within about a week to reduce the risk of being caught up with the rather inevitable market correction). That is my opinion.

[Avemercy]

for short term it's a good buy

[justice bende]

Originally Posted by riskreturn </