ARM Research”: Initial View – Flour Mills of Nigeria Plc Q3 19

By | ARM Research, Equity report, Flour Mills of Nigeria Plc, Research | No Comments

Earnings drown on higher cost and operating expense Yesterday, Flour Mills of Nigeria released its third quarter (FQ3 19) result for the period ended December 2019, which showed a 27.4% YoY contraction in EPS by 27.4% YoY to N0.69 following persisting pressure on margins from higher cost of sales (+7.3% YoY) and higher operating expense (+10.6% YoY). Accordingly, EPS over the first nine month of the year declined 40.4% to N1.93. Despite the downward adjustment to prices which started in FQ1 19, the company reported slight revenue growth in FQ3 19 (+1.4% YoY N130.9 billion) with management linking this to…

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ARM Research: Summary of News, 31st of January

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CORPORATE AND ECONOMIC CALENDAR Telecoms Data: Active Voice and Internet per State, Porting and Tariff Information – 6th February, 2019. Neimeth Pharmaceutical Int’l Plc: Annual General Meeting – 6th February, 2019. PUNCH FG targets $2bn from oil block licence renewal: The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, has said the Federal Government is targeting about $2bn from the renewal of oil and gas leases.   Refineries’ funding: NNPC, investors disagree on commercial terms: After spending over one and half years negotiating with financiers for the revamp of Nigeria’s refineries, the Nigerian National Petroleum Corporation on Wednesday declared…

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#ILoveMyFamily: This Landlord Wahala Must Stop!

By | ARM Savings plan, Savings Plan, Storyland | No Comments

We left our former place because the Landlord insisted we pay two years rent in advance at the expiration of our first year’s rent. We couldn’t afford it. I went to his house to plead but he said we pay or move out of his property. He was so arrogant and insulting. I left his place and went home to meet my wife, Chidinma. When I narrated my ordeal to my wife, she was furious. It dawned on us that it was high time we started making plans to own a house – the way most Landlords treat tenants in…

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5 Investment Principles to Use During an Election Period

By | Investment 101, investment principles, Nigeria election | No Comments

Okoro was busy talking to himself, murmuring in his room after looking at his investment portfolio and reviewing the current situation in the country. What do I do now? Election is coming up in 3 months – will the incumbent be retained, or will a new president be voted into power? There is so much uncertainty. Where do I keep the funds I intend to invest, and where do I transfer my existing investment portfolio to maximize returns? Okoro was disturbed. Just before the last election, he withdrew his investments from the stock market only to hear that there was…

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#ILoveMyFamily: (Episode 1): Welcome to Our World

By | Living Benefits Show | No Comments

My name is Lakunle. I am a husband, a father of two, and a salary earner. I married my wife, Chindima, the most beautiful woman in the world as far as I am concerned, five years ago when I started working. I met my wife during my National Youth Service Corps year in Enugu and we became best of friends. We had good plans. We shared our life goals and we were ready to take on the world. My two children, Nifemi and Chinedu, are very special to me. Nifemi is the older of the two. We had her on…

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Nigeria Strategy Report – H1 2019 Excerpts (Part 3)

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 Global Economy and Markets   In this morning’s cut-out of our core strategy document – The Nigeria Strategy Report, we review developments pertaining to the direction of FPI flows across emerging and frontier markets. In addition to delineating the drivers of portfolio flows over 2018, this section presents our outlook on drivers of FPI flows for 2019.   In our H2 2018 NSR, we noted that the confluence of sturdy DM growth picture and currencies, interest rate normalization in US, and ripple effect of escalating trade wars between US and China should temper the scale of portfolio flows into EMs,…

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Nigeria Strategy Report – H1 2019 Excerpts (Part 2)

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Global Economy and Markets We continue with the serialization of our core strategy document – The Nigeria Strategy Report. We review developments in MEA (Middle-East and Africa) climes over 2018. The section also provides insights on what we believe will be major drivers of both growth and overall investor sentiment over 2019.   In our H2 18 strategy outlook, we charted our prospect of stronger economic growth in the SSA bloc on the back of improved agricultural output and industrial activities from smaller regions even as growth in heavy weights, Nigeria and South Africa pick up, while our prognosis for…

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Nigeria Strategy Report – H1 2019 Excerpts (Part 1)

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Global Economy and Markets   Over the next few days, we will feature excerpts from our core strategy document – The Nigeria Strategy Report. The report communicates our understanding on key happenings in global and domestic financial markets over 2018 and provides our insight on what we believe will be the major themes underpinning investor sentiment over 2019. We begin the series with a look at the major themes that dominated the global economic and financial landscape in 2018 as well as our outlook for 2019.   Although the global macroeconomic clime has been hitting patches of turbulence over the…

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How to deal with the inevitable expenses of 2019

By | Investment 101 | No Comments

Some things remain constant with each year while some new situations welcome themselves regardless of our level of preparedness. Here are some things that will likely gulp your money in 2019 apart from your daily home expenses.   School fees – If you’re a parent, you must know that you will pay school fees thrice this year. The last one in September being of a bigger sum because your child will be entering a new class which will demand some financial responsibilities. Valentine’s Day – February still has 14th on it and the world will mark Valentine’s Day. Unless you…

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4 reasons to get life insurance policy this 2019

By | Living Benefits Show | No Comments

The topic of getting life insurance is one you may not want to talk about. But because it is important that you ensure the financial security of people that depend on you, it is worth dealing with. First, let us break down why you need one. If you’re a breadwinner, you need a life insurance Let’s be real, if you are the main financial backbone in your family and anything happens to you, your partner, children and anybody else that depends on you, will probably suffer financially. This is one of the major reasons people get life cover; to ensure…

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