Investment Guide

Investment Guide February 03, 2009 Fast Moving Consumer Goods (FMCG) A sportswoman of Resilience Investment Thesis a: Low Interest Rate Exposure. The FMCG area exhibits a mode prescribe exposure to the cash drain effect of broad(prenominal) interest rate environment, typical of what currently operates in the Nigerian financial sector. The peer average of interest bearing debt to comeliness ratio stands at 0.46x. 1.60 x Interest Bearing Debt-to-Equity Ratio 1.40 x 1.09 x 0.92 x 1.20 x 0.80 x 0.40 x 0.00 x 0.00 x DANGSUGAR DANGFLOUR FLOURMILL NASCON NBC 7UP NESTLE 0.00 x 0.00 x 0.00 x descent: Company Reports, Meristem Research However, we are upbeat, using this metric, on DANGSUGAR, NASCON, NBC and NESTLE as they remain the least vulnerable to ascension cost of funds, exhibiting relatively high safety margin with an roughly zero interest bearing debt translating to superb interest rate coverage. Investment Guide NSE Tickers 7UP DANGFLOUR DANGSUGAR FLOURMILL NASCON NBC NESTLE February 03, 2009 Interest Bearing Debt/Equity 1.40 x 0.92 x 0.00 x 1.09 x 0.00 x 0.00 x 0.00 x Interest Coverage 4.1 : 1.8 : 14921.1 : 5.5 : 272.1 : 11.3 : 299.2 : 1 1 1 1 1 1 1 look Average 0.49 x 2216.4 : 1 Source: Company Reports, Meristem Research b.

Prices oversold beyond justified level of exposure to frugal cycle. NSE Tickers MRQ Price (NGN) 7UP DANGFLOUR DANGSUGAR FLOURMILL NASCON NBC NESTLE 2008FYE 2008Q3 2008Q3 2008Q1 2008Q3 2008Q2 2008Q3 36.00 7.08 11.10 13.64 2.96 22.47 120.70 P/E Ratio (x) forrard Trailing (2008/09e) 11.47 x 9.10 x 6.01 x 3.48 x 4.53 x 7.95 x 10.53 x 10.43 x 7.38 x 5.38 x 4.27 x 4.54 x 6.65 x 8.71 x BVPS(NGN) 2007/08FYE 14.09 8.86 2.16 13.44 1.57 17.43 11.80 2008/09e 15.99 9.82 2.62 15.36 1.80 19.45 14.57 P/BV (x) 2007/08 2.55 x 0.80 x 5.13 x 1.01 x 1.88 x 1.29 x 10.23 x 2008/09e 2.25 x 0.72 x 4.23 x 0.89 x 1.64 x 1.16 x 8.28 x Peer average 7.95 x 6.65 x 11.80 14.57 1.88 x 1.64 x Source: Company Reports, Meristem... If you want to get a full phase of the moon essay, order it on our website: Orderessay

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