The banks will make more profit than they have been making. Banks still do OMO, in fact the whole arrangement is to their advantage, less interest expense for them. Jim Ovia will need the money now. 200b PAT is not beans. They can afford to pay 50% as dividend.

Coolcash1:


I will donate my balls if Zenith pay that high...Any forward looking management will know that profit retention is key now for banks considering the harsh monetary policies emanating from the CBN especially with the authority banning banks from investing in TB.

No soothsayer need to tell you that the era of gargantuan profits by banks is gone....Q1-2020 result will justify it...

N3 final dividend may just be possible.

bigjay01:


in a nutshell please?

I am not invested in the company. I do not plan to do. It is not about sounding too optimistic but what the guy has done within a short time.

Coolcash1:


Relax bro. You are sounding too optimistic about this BUA guy. Take it easy o....

I like businessmen that are business-like. They know what they want and go for it.

emmanuelewumi:


I learnt BUA is also building a refinery in Akwa Ibom state

I agree with you Sir that the fight will be massive. The Edo Limestone deposit site fight a good referencing point. Good for both they are from the same region of the country.

emmanuelewumi:


It will be a big fight. I hope you remember what happened to International brewery, while to takeover the market from Nigeria Brewery.

Growth is currently limited in Nigeria, BUA must be ready to take the battle to the African cement market

N3 final dividend may just be possible this year. The excess dividend tax has been taken care of by the new Finance Bill. over 25b was paid the FG as excess tax dividend in 2018 financial year. That will definitely be an attraction.

Willie2015:


Zenith dont respond 2 much to yr end earnings...
Usual div of N2.50 already priced in...
Don,t see any other news...
Unless div increase to above N3.00... plus
Waiting patiently....

BUA is a one-man business like Dangote. I have seen him move his production capacity from 2m metric tons to about 8m now. Give him more years he will increase it and take more market share from Dangote Cement and Lafarge.

emmanuelewumi:


Do you think BUA cement can take on Dangote cement

I do not see it going below N21.

Willie2015:


Zenith coming bck to 19 - 20....
We will reload at that junction...
For dividend....

The merger of SA business with Wapco to form Lafarge Africa was never a mistake. It was deliberate. Whilst, I must commend their decision to spin-off this unit to give the Nigerian shareholders a sigh of relief. I am still not convinced that the business can take on Dangote Cement in the interim. One can test the waters with one hand if the FOMO is an issue.

PETERiCHY:



Pluto09

Thank you.

pluto09:



If you are really confuse spilt the money into two and buy the 2

I have looked at the two companies and both are buy for me.

However, giving the current market condition and the CP of both stocks, if I am to buy today JB will be preferred.

Zenith on a stand alone basis cannot go far in price if the general market condition is tepid. On the other hand, If JB declares a better than expected result, price can easily move up irrespective of the general market condition.

This is my personal opinion and I could be very wrong.

Note: The two stocks are in my portfolio with JB bought at a lower price than cp.

Thank you.

onegentleguy:


Divide the fund to 2 parts, put 60% of it in ZENITH and the other 40% in JULIUS BERGER.
...both are currently great coys with a fine foreseeable yield.

The latter' FY financial print(JB) will most likely come in real good.
They are presently on top of juicy contractual deals accross key states in the country.
In Port Harcourt, Rivers State(2 in Obio-akpo and 1 in PH LGA to be precise), the company is currently executing 3 gigantic fly-over bridge. ...with 70% down payment already secured from the state government.(the gov confirmed this)
Somehow, LARFAGE WAPCO is also a part of the contract.(they are the coy contracted to supply cement).
Duration is for 18 months but I expect that the cashflow should begin to reflect in their book starting from the next quarter.

Salah

The analysis paralysis that always goes on in my head will make me wait. When the value becomes glaring, I do not mind paying for it.

onegentleguy:



The probability of getting it at this price after Q4(FY 2019 in view) is nearer to zero than 1.
...u may most likely pay a premium for it then.

There is what we call buying into an assets VALUE TRAJECTORY.
LARFAGE WAPCO is one of the coys that currently have one.
The company is presently u with an opportunity to tap into value.

Trust u still recall the post above.

Julius Berger should be able to do above N2 naira in dividend payments. Between Zenith Bank and Jb, I am confused as to what to buy. JB can easily get to N35 to N40 on the strength of stellar 2019 than Zenith Bank. Someone should help me here, please.

What is pushing Mtn higher? People should remember that it has paid an interim dividend oooo

It Nestle overseas oooooo.

Chibuking81:

Nestle are also taking the same part

None of this was envisaged at the beginning of the year 2019, we may have to patiently wait for opportunities like this in 2020 if at all they will surface.

austinkenneth:
2019 seems to have been the year of special situations (mergers and acquisitions). Money was made chiefly from deals. Anyone who manged to play just 2 of these right was made for the year.

1. Access-Diamond merger
2. Dangote flour take-over
3. CCNN-BUA cement merger
4. UACN unbundling
5. Lafarge restructruing
6. Continental Re take-over

It seems it is mainly mergers and acquisitions and deals, more than fundamentals that drives gains.


CAN ANYONE SUGGEST WHAT MIGHT BE THE TOP DEALS GOING FORWARD INTO THIS YEAR?

Well said, Sir. Maybe that is why I do not make too much money in this market. I always wait to see the end before I consider putting my money into action. Lafarge Africa may be the revelation stock for the year 2020, but I will wait to see the Q4 before I make any move to buy it.

pluto09:

I do not yet understand the excitement around Lafarge Africa. The repayment of loans it has made this year was down to the rights of 89b and I think about 10b from operations. The implication is that the balance of the 64b loans as at September 2019, how will they be able to pay this asap. The operating profit before tax is not robust enough to pay the loans asap. The coy has to find a way to generate more revenue than it is currently doing. However, this should not deter anyone from making money from the company as there are plenty of sentiments around it. The declining revenue should also be a source of concern to the shareholders.

currentprice:


bro add vitafoam join it a good stock to have. depend on how much u plan to invest sha.

though WAPCO will make u rich if all things be equal by the time they release result

let me vuuuuum to the other side, it time to BUY oyel

Very confusing to me. My accounting knowledge is rusty I believe.

Agbalowomeri:


It is the merger terms na
Dangflour was selling far less when it was bought over
It's like BUA buying CCNN over; instead of money they have used shares to pay

The delisting of 1 unit of CCNN at N17.3 and relisting same as 1 unit of BUA Cement at N34 is not normal. people are not complaining because it favours them. I hope nobody will complain when a stock is delisted and relisted with a lower value. This does not make any sense to me.

The NSE is not deep enough. Limited investment opportunities.

emmanuelewumi:


They don't have unlimited fund, but it will go a long way. They are currently hunting for better yield, dividend paying stocks with a minimum dividend yield of 10% will be on their radar.


N500 billion PFA fund in the market can cause a month long bull run, even N200 billion can cause a month long bull run .

At a minimum Investment of N5 billion per trading day

He wants to cash out from there.

bigjay01:


If I have the opportunity to put my money where he does. I will grab it with both hands. He sure know how to extract untouchable values from 9ja.

Am waiting for him to list DIL in London 2021/22?

Do not put in your cash in any stock with a long term view in this market of ours. Whenever you see a stock do 100% or more, chances are that same stock will still come back to that original level. Occasionally take profit and grow the stock portfolio of your children.

bigjay01:


Next generation? In this part of the world?
My only guess is Dangcem. Roll with Aliko.
The man knows how to make money from Nigeria.

On top of 33b shares.

yom2:
. Did u not see their CEO on channels say that they are expecting a 65bn PAT?

The authorities had opportunity to see the financials of OBU cement and CCNN. The combination of both will definitely create a share float problem
and should not have been allowed to be listed under any disguise. CCNN before this combination had share float problem. It is good for the shareholders sha.

Mcy56:

How sir?
Is CCNN not part of BUA group before/again?

Very odd combination

Mcy56:
Good thing about BUA and CCNN merger was the 1:1 conversion. Chai! Na cool loot be that.

Nothing. I am not Mr market but I only believe that there is still room for growth

Willie2015:


And if it did not go far
What will you do ?

That is the point. Gtbank that is still going to go far.

Toluway:

Cant sell gt at #32. Nothing to fear.

And if it does not come down to this level in the next 2 months what will you do?

Willie2015:
Download 10% of my GTB @ N=32.70...
With entry price of N=28...
Dis Bull fit get K -Leg....

My Boss. I just dey try help our people ni ooo.

emmanuelewumi:


They are different, UBA created wealth for shareholders when United Capital, Afriland and Africa Prudential Registrars we're spun off

You are not correct Sir. My eyes are not dirty oooo. Just telling people so that they can open their eyes clearly before they click that buy button.

Coolcash1:


Oju ti dirty of course....