Investing in DANGOTE IPO and the economy of Burkina Faso is a different case. For DANGOTE IPO, do look at it as an angle of investing alone. The important question isn't simply "Is Dangote Refinery a good company?" It's "At ₦525, am I buying the company cheaply enough relative to its future cash genRead more
Investing in DANGOTE IPO and the economy of Burkina Faso is a different case.
For DANGOTE IPO, do look at it as an angle of investing alone.
The important question isn’t simply “Is Dangote Refinery a good company?” It’s “At ₦525, am I buying the company cheaply enough relative to its future cash generation?”
That’s where I’d want to examine the prospectus carefully: earnings, debt, refining margins, crude supply, capacity utilisation, taxes, FX exposure, capital expenditure and the valuation relative to projected free cash flow.
DANGOTE could potentially have a good return with if the proposed expansion and operation went well. And know it isn’t a get rich quick.
For Burkina economy, A country’s economy can grow rapidly without the average investor necessarily making a high return.
You need a mechanism through which you actually capture that growth listed companies, bonds, mining companies, private businesses, infrastructure, currency exposure, etc. Burkina Faso is also exposed to substantial security, commodity-price and political risks. The IMF specifically identifies security conditions and commodity/energy shocks as downside risks
How Can Investors Evaluate Country Risk Versus Company Risk When Investing?
Investing in DANGOTE IPO and the economy of Burkina Faso is a different case. For DANGOTE IPO, do look at it as an angle of investing alone. The important question isn't simply "Is Dangote Refinery a good company?" It's "At ₦525, am I buying the company cheaply enough relative to its future cash genRead more
Investing in DANGOTE IPO and the economy of Burkina Faso is a different case.
For DANGOTE IPO, do look at it as an angle of investing alone.
The important question isn’t simply “Is Dangote Refinery a good company?” It’s “At ₦525, am I buying the company cheaply enough relative to its future cash generation?”
That’s where I’d want to examine the prospectus carefully: earnings, debt, refining margins, crude supply, capacity utilisation, taxes, FX exposure, capital expenditure and the valuation relative to projected free cash flow.
DANGOTE could potentially have a good return with if the proposed expansion and operation went well. And know it isn’t a get rich quick.
For Burkina economy, A country’s economy can grow rapidly without the average investor necessarily making a high return.
See lessYou need a mechanism through which you actually capture that growth listed companies, bonds, mining companies, private businesses, infrastructure, currency exposure, etc. Burkina Faso is also exposed to substantial security, commodity-price and political risks. The IMF specifically identifies security conditions and commodity/energy shocks as downside risks