Austin Laz PP

[ovuthethird]

Hello People: resmember the popular Austin Laz coolers, flasks and other products. Well, I hear they are about doing a Private Placement that should 'fly' sometime next month. Lets look out for the documents and Issuing House handling the Offer.

[bisodun]

For those who might be interested, attached is a copy of the PPM.

[hispy99]

Originally Posted by bisodun

For those who might be interested, attached is a copy of the PPM.

thanks for the doc

[blanka]

Guys, i think its time we took a good look at this PP, especially as the memorandum is here for us to read. I did read it, and took away the following observations:

1. The company is a serious family concern with the board packed full of the founder and his family, including his daughter in Madonna university! Mr.Austin L Asimonye,founder, has over 98% of the company ...But..i also read that there is a restructuring of the board currently ongoing

2. The company has been growing quite steadily over the years with increasing revenues and profits even if moderately..NOTE: no loses..

3. It is a bit suprising for me that the company is projecting to grow revenues from a 2007 figure of N536m to a 2008 projection of N3.8B when 1st QTR 2008 is just N156m! The same giant leap applies to the PAT forecast..Are these figures attainable?

4. what will drive the company to achieve these figures asuming it is achievable...Is it the aluminium roofing sheets market? I couln't clearly see one from the document...

5. However, lets be pessimistic and reduce the projections by 4...Meaning the forecast earnings yield for 2008 comes down to 7% from the 27% in the document..Is 7% earnings yield for 2008 good enough?

6. I think the div pay out ratio of 50% for a growing company as this is good...

7. Looking at the profit and loss account, there is a general reserve of over N345m, which was later converted to deposit for shares(as a post balance sheet item) in favour of the founder of the company...The first time i'm actually seeing this done, is it healthy?

8. The net cashflow position of the firm, though in the negative, is not a grave one...injection of cash from the PP will see the firm doing strong cashflows...

9. Finally, the products are identifiable and known...the key ratios like PAT margins are not bad...over 15% in most years(For a manufacturing firm its good), although others like ROA and ROE have been declining, the numbers still look good..

These are my observations...so guys in the esteemed house, is this one doable?

[nezvest]

Originally Posted by blanka

Guys, i think its time we took a good look at this PP, especially as the memorandum is here for us to read. I did read it, and took away the following observations:

1. The company is a serious family concern with the board packed full of the founder and his family, including his daughter in Madonna university! Mr.Austin L Asimonye,founder, has over 98% of the company ...But..i also read that there is a restructuring of the board currently ongoing

2. The company has been growing quite steadily over the years with increasing revenues and profits even if moderately..NOTE: no loses..

3. It is a bit suprising for me that the company is projecting to grow revenues from a 2007 figure of N536m to a 2008 projection of N3.8B when 1st QTR 2008 is just N156m! The same giant leap applies to the PAT forecast..Are these figures attainable?

4. what will drive the company to achieve these figures asuming it is achievable...Is it the aluminium roofing sheets market? I couln't clearly see one from the document...

5. However, lets be pessimistic and reduce the projections by 4...Meaning the forecast earnings yield for 2008 comes down to 7% from the 27% in the document..Is 7% earnings yield for 2008 good enough?

6. I think the div pay out ratio of 50% for a growing company as this is good...

7. Looking at the profit and loss account, there is a general reserve of over N345m, which was later converted to deposit for shares(as a post balance sheet item) in favour of the founder of the company...The first time i'm actually seeing this done, is it healthy?

8. The net cashflow position of the firm, though in the negative, is not a grave one...injection of cash from the PP will see the firm doing strong cashflows...

9. Finally, the products are identifiable and known...the key ratios like PAT margins are not bad...over 15% in most years(For a manufacturing firm its good), although others like ROA and ROE have been declining, the numbers still look good..

These are my observations...so guys in the esteemed house, is this one doable?

I wonder whether it is not better to invest in secondary market now than private placements. The prices in the market now is enough to compete with private placement prices. LOOK AT BPHB, Diamond, Sky Bank, Mutual Benefit, Nem, International energy, Are these ones not doing private placements in the seconndary market?

[Babs_O]

Originally Posted by nezvest

I wonder whether it is not better to invest in secondary market now than private placements. The prices in the market now is enough to compete with private placement prices. LOOK AT BPHB, Diamond, Sky Bank, Mutual Benefit, Nem, International energy, Are these ones not doing private placements in the seconndary market?

Starcomms has even fallen below some of the PP prices despite all the coding and restriction at getting on baord the PP. And with ECP pulling out those who did the PP have wasted time and money.

[Curious]

This is a great company with good numbers and a very focussed owner/manager. The company has been around for over 20 years and the guy (who is every bit a visionary) has diversified into roofing sheets and other products (some of which are patented in Nigeria). He also has some sort of cooler than can be set to heat or cool your food!!!. Such is the detail of the company that they do QUARTERLY audits of the their books!!!

Great product and whilst I've never used it, I know people who swear by it. The brand isn't that popular outside the Niger Delta area and that is one of the main reasons for the PP. Its to expand outside the region into the rest of Nigeria/West Africa.

The valuation for this company are also great, just look at the doc attached in one of the earlier threads. If you need to know more or wish to partake, send me a message.