Daar Communications Plc & Investors – Implications!
Category: Investors NewsBeat
May 15, 2012 / Proshare Research
It was reported in the news today that Daar Communications Plc, on Monday, lost in its bid to ‘address’ the payment of the N7.5bn judgment sum handed against it in favour of Fidelity Bank Plc.
So what are the implications for shareholders? We present below some facts about this investment to guide a reasonable conclusion on the stock.
Facts on Daar Communications:
1.Company was listed in NSE on September 26, 2008.
2.The result of the Offer - In a statement, signed by the Director, Corporate Communications and Planning, DAAR, Mr. Johnson Onime, said under the terms of the offer, 290,030 applications for 1,829,478,000 units valued at N9.1bn were found to be valid and were accepted and processed accordingly.
3.The stock was listed at N5.25k.
4.The maximum price attained is N5.9k which was achieved on October 6, 2008 – the fourth trading session after listing. Previous days after listing stock were October 2, 2008 (SP: N 5.51k) and October 3, 2008 (SP: N5.78k).
5.Stock is currently trading at N0.50Kobo and since September 3, 2010 lost 90.48% since listing.
6.Company last declared an Audited statement for the year ending December 2010 on December 6, 2011 with a Loss After Tax of N1.6bln off a Turnover of N4.8bln. The audited statement for 2011 is still being awaited.
7.Company has not declared any dividends and bonus since listing on the bourse.
8.Believability Index: In its Public Offer statement, the company had forecast Profit After Tax (PAT) of N3.2 bln, N4.3 bln, and N5.8 bln in the year 2008, 2009 and 2010 respectively. Forecast Dividend per Share (DPS) for the same period was 30 kobo, 38 kobo and 50 kobo respectively.
9.There has been less communication with the market in recent times. The company is managing several internal and external challenges yet remains a credible and quality service provider with rich local content.
10.It would however appear that based on recent fundamental analysis, investors may not be too hopeful of an impactful recovery anytime soon.
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