Agbalowomeri:


So they won't pay for their right issue in UPDC?
Where would the money come from sef?

Uchetoba:
Infact the right issue of UPDC makes the whole unbundling thing more protitable for UACN shareholders.
The debt that UPDC own UACN will be converted to UPDC right.

Agbalowomeri:


Is that the strategy?

Uchetoba:
You see I really have your time today.
The only thing I'm not going to do is post the numbers from my research about the unbundling untill I have bought enough UACN for myself.
Any other question?

Uchetoba:
Infact the right issue of UPDC makes the whole unbundling thing more protitable for UACN shareholders.
The debt that UPDC own UACN will be converted to UPDC right.

Uchetoba:
You see I really have your time today.
The only thing I'm not going to do is post the numbers from my research about the unbundling untill I have bought enough UACN for myself.
Any other question?

Agbalowomeri:


I only asked a question which wasn't meant to be sarcasm
I am aware UACN paid a one-off write-off for UPDC in 2018 financial year
I asked if that is the only way they plan to settle their own portion of the right issue

onegentleguy:
Yet another perspective to the VALUE proposition in UACN(weighted against its subset, UPDC and UPDC REITS)

Aside the thing about comparing their ALTMAN Z-SCORE(which I highted in the past), there's a bit more.

...a brief;

1st off; according to the proposed unbundling, the shareholders of UACN are to get stakes in UPDC and UPDC REITS post rights issuance to updc shareholders, which is expected to raise near N16B to offset the bridge loan taken from UACN.

3 benefits;

1) Given that the allotment of shares comes post rights issue by UPDC, the shareholders of UACN are totally exempt from any impact of a likely equity dilution.

2) UACN will get a good boost from the leverage(approx N16B) accrued from the rights.
Again, UACN will also indirectly benefit from all the restructuring initiative of the unbundling, including an asset allocation with a current mkt value of near N9B to UPDC(plus an interest payment of over N20B accrued to updc in the reits)

3) The unbundling and 'gifting' to current shareholders of UACN also means they'll immediately partake of accrual gains and future EV(enterprise values) of the subsets, updc and updc-reits.

Using the sum of all parts(SOTP) valuation technique(an indicative tool used to guage the likely value of the subsidiaries/constituents that form a holding company when been sold/spun off or divested from), we can further look in on the inherent VALUE passable to the group.(UACN)
...The idea is to break up the 2 subsets away from the holding coy/conglomerate, and try to value them seperately.

Using this technique(adjudged from the benefits with the subsets updc and updc-reits EV, RoIC, EV to EBIT, OS, PEG and P/B) as well as its current financial status in view, and adjusting for risk, I have a re-adjusted FVE of approx N18.25 for UACN.
...this is assuming zero% growth to YE.(Assuming that UACN makes zero earning in H2, 2019)

Away from the proposed unbundling, the group is also looking to spun off from its hotel business arm, updc hotel(UHL) to aide more leverage.(assets classified as held for sale/distribution to owners in view)
...and a total revamp of its quick service restaurant arm(UAC restaurant) to further boost earnings.

VERDICT: UACN remains a strong BUY for us !!
While short term price prospect is uncertain(due mainly to the current volatility in the mkt), medium term prospect is STRONG and with a lot of drive.

My advice: Just follow ur instinct.

No further comment on UACN !!

Agbalowomeri:


I only asked a question which wasn't meant to be sarcasm
I am aware UACN paid a one-off write-off for UPDC in 2018 financial year
I asked if that is the only way they plan to settle their own portion of the right issue

DOLLARTEX:
upward movement on a daily.go gt go gt.

Uchetoba:
This UACN thing will be like what happened when UBA was devesting from Afriprud, Ucap & Afriland property. About 2 weeks to the day they were going to allot the shares of the three companies for free to investors, the price of uba started crumbling very fast from over N7 to around N4.5. When I saw the price at 4.5 I quickly sold all my NEM at N0.8 cause I but the NEM at N0.55, so I plunged all the money into UBA not knowing what was about to happen lukily for me that was about two day to the D day. About three days after buying I saw that the price of uba started ralling and I also noticed that two new companies has been included in the price list and the two are also ralling. To cut the long story short, I later called my then analogue stockbroker to send a copy of my cscs stmt of acc to my email, they did and I saw afriprud and ucap in my cscs stmt then I called my stockbroker for explanation then they told me those were giving to me by uba bc cbn had told all banks to divest from their non banking subsidiaries. Later again I checked my P.O Box and I also saw the share certificate of afriland property.

Those that sold there UBA before the D day I'm sure they cried HAD I KNOW.

Please let them continue to sell their UACN I havn't bought enough. I even need it to fall to like N4 so that I can buy more and more b4 the D day.

OakPearl:


When we discovered this sleeping giant and ran commentary, all you did was talk down this stock.
How things change.

BullBearMkt:
Will Guaranty Trust Bank Re-test 26.80 Support Level?
From creating a higher-high, the stock price is now heavily declining and there is high probability of the stock re-testing between 26.50 and 26.80 before making any upward reversal attempt.

chart: https://uk.tradingview.com/chart/GUARANTY/ZsgJkD0v-Will-Guaranty-Trust-Bank-Re-test-26-80-Support-Level/

PLAN YOUR TRADES AND TRADE YOUR PLANS

OakPearl:


Oga I no large oh...small boy like me.
Me na long term value investor like Benjamin Graham pattern oh.
If I try spot value from a distance I buy till I beleful at a specific price range.

I been think say I go find such for MTNN and Airtel but their numbers before listing no be am at all, so I just jaa. I remember my several opinions and tashere fundamental analysis I been do on both that time.

UACN fit my strategy wella, so na continuous loading at pull backs till I reach the promised land.
This one go dey poo steady for me like others.
#Patience

Uchetoba:
So because UPDC promised to allot the units of UPDCREIT to its shareholders after the right issue that is why they are buying the shares instead of allowing it to fall freely as it suppose.

Let's look at it this way, after right issue is completed the pro rata allotment may not give you more than 1unit of UPDCREIT for every share UPDC held.

But come to think of it,

What if they did not get the regulatory approval?

What if they change their mind later?

For now I'm very cautious about UPDC and UACN.
Until they do the final announcement regarding the right issue and the unbundling I can only buy UACN @ N4 and UPDC @ 60 kobo.

BullBearMkt:

...GTB at critical level for reversal. All needed now is the BULL POWER (volume)

Agbalowomeri:


He now thinks he is doing one wonderful analysis and hiding it Lol

stcool:


Sorry my Oga...wanted to quote the young man below

valentinenwoko:
I need TA analysis of CONOIL plc

Agbalowomeri:


self-service to your rescue

valentinenwoko:
Agboalowomeri: Please explain your comments.
BullBearMkt: Sir I need TA analysis of CONOIL PLC.