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Michael Olafusi

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Michael Olafusi last won the day on December 8 2016

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About Michael Olafusi

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  • Birthday November 26
  1. Why I Invest In Stocks

    I invest in stocks because I thoroughly understand them. I do my own stock analysis (I even built this tool and this one too to help others with their own stock analysis); I teach financial modelling; I do projects for investment houses (currently working on a VaR, value at risk, model for a foreign investment corporate client); I have made enough mistakes over the last ten years that I now recognize the common pitfalls and what works. Most importantly, investing in stocks is a vital component of any very sound personal financial investment plan. Many of us work hard daily. Even after spending the first two decades of our lives in school and are now working full-time, many of us still do Masters, Ph.D and professional courses. We are constantly developing ourselves in order to increase our earning power. And some of us succeed very well. You now earn enough to cater for all your needs and those of your dependants with still some money left. And this is where many of us fail to do things right. When you don't have a sound financial investment plan, other people's plans look good to you. You will easily fall for the real estate salesman's talk about buying properties. You will feel left out when your friends are doubling their money in the latest investment scheme. Even the FGN savings bond will look heaven-sent to you. No matter how strong-willed you are, you will always be facing immense pressure as no financial investment plan is like a vacuum and difficult to keep that way. One day, you will break and go for one of the investment schemes you see your friends doing. And more often than not, you will get burnt and swear off any form of investment. Then the vacuum-struggle cycle restarts. I would advice that you rather fix the issue properly and permanently. Learn about proper financial investment. Take baby steps to practice doing the right thing. You will make mistakes but when you start the right way your mistakes won't be of the sorts that bring you down. I started with mutual funds, having professional investment managers do the bulk of my financial investment for me. Then I slowly started investing directly in stocks myself, the proper way. Before then, I got burned in the 2008 crash when there were radio jingles, billboards and TV adverts on buying stocks and every listed company was doing a public offer. I still remember the First Bank advert of their public offer at N31/share. My dad got charcoals from it, everything he put in completely burnt. I lost all I put in Mutual Benefits Assurance (minus the dividends they gave me in 2008) and Finbank. So I was much more careful to do things right and learn the proper way of investing. From 2011 to now, I have gained a lot of practical experience in managing my own financial investments. I have seen my money go up and down over the years. At first, I used to feel sick when I see it go down (especially just after I put in my money) but now I am very much used to it and see buying opportunities during market downs. I am following the get rich slowly mantra. I have my own investment plan and it excludes any get rich quickly scheme. All the double your money in two months or in one year schemes have no appeal to me. No amount of real world evidence of how well your real estate or bitcoin or XYZ scheme is doing can entice me. Not that I don't believe they work but because I have my own solid plans that I am executing religiously. If they work for you, great. Mine also works for me, though less impressively but I am contented. I simply work hard at my profession (data analysis) and invest the excess funds I have in the stock and bonds market. I also keep enough to cover my four months living expense in a high yield cash account (savings account) for emergency needs. I do both Nigerian stocks and US stocks. Same with bonds. I totally understand them. I don't panic. I have more peace of mind seeing my money work for me in those investments than having them lay temptingly in my bank account.
  2. You can access the Excel file here: NSE Daily Trade Data The Market Highlights: The market was bullish today. The NSE rose by a whooping 2.10% (it has risen this high only five times this year and three of which were this month!). The market capitalization rose to N10.05 trillion and the index rose to 2,9064.52 The last time it got this high was on 1st of July, 2016 (almost a year ago!). Many stocks got to their 52 weeks high today: First Bank, Guaranty Trust Bank, Nestle, Pharma Deko, Presco, Tourist and Zenith Bank. The top gainers were: First Bank (10.14%), Oando (7.66%), Guaranty Trust Bank (5.00%), Ecobank (5.00%), Zenith Bank (4.99%), Flour Mills (4.98%), AXA Mansard (4.97%), Airservice (4.48%), Eterna (4.87%), PZ (4.76%), Jaiz Bank (4.40%), Fidelity Bank (4.12%) and Okomu Oil (4.11%). The top losers were: Mobil (-5.00%), Learn Africa formerly Longman Nigeria (-4.94%), NAHCO (-4.93%), Vitafoam (-4.92%), AFRPAINTS (-4.86%), Cadbury (-4.85%), NEM (-4.67%) and NPF Microfinance Bank (-3.82%). What do I think? I think this is just the beginning. Over the last 10 years, the economy has roared on and inflation has been double digits and company profits have been growing impressively but the stock market has been doing the opposite. Most companies are selling at huge discounts.
  3. You can access the Excel file here: NSE Daily Trade Data
  4. You can access the Excel file here: NSE Daily Trade Data
  5. I have problem with saving money. If I have more than N300,000 in my regular savings account, in 24 hours I will have a dozen different ideas of what to do with the money. Trying to permanently solve this problem was what motivated me to become a professional stocks investor some years ago. The only account I allow more than N300,000 in is my emergency account which I don't touch except there is an emergency. And my regular savings account? One good side of being a data geek is that I am excellent at budgeting. I have my expenses perfectly modeled and I always keep just what is sufficient for three weeks in my savings account. My income cycle is two to three weeks, being an entrepreneur in the consulting space. From what is due me, every extra above what is sufficient for four weeks, I put in my investment accounts which house a mix of Nigerian stocks, Nigerian bonds, US stocks, US bonds, Gold and two Nigerian equity mutual funds. So what stocks am I invested in? Nestle Nigeria: Over my investing years, I have analysed intensely the financial records of all the investment worthy companies on the Nigerian Stock Exchange from as far back as 2005 and none has an impressive one as Nestle Nigeria. Excellent cash flow management, lovely mix of debt and equity funding, satisfactory revenue growth rates and strategic positioning in their industry. Every year, I go through their annual reports and as long as the story has not changed for bad, I close my eyes to all the price fluctuations it is forced through on the stock market. Total Nigeria: Last month I sold Mobil and bought Total. I had made a good profit off the price surge in Mobil shares after the NIPCO acquisition and Total looked like a bargain in comparison. Total is the largest downstream oil company by revenue in Nigeria. Now they are trading at a deep discount compared to Mobil. So I saw more potential returns in deploying to Total the money tied in Mobil. Dangote Cement: It can be very difficult to love Aliko Dangote after hearing all the special perks he got from government to build the Dangote empire but one thing I can't deny is that he is a result-generating business man. I read the annual reports of many listed companies but none is as interesting and less generic as Dangote Cement's. I have learned some business strategies from reading the chairman's report while other companies' tend to have the usual soul-less talk about the macro economy and vague talk of their impressive performance (even when they make a loss). Reading last year's and the intelligent analysis of the African cement market with the company's detailed big strategy, it was like Dangote Cement is just getting started. He is the quintessential owner-manager who goes all length to make his business successful. Zenith Bank: I bought it after I panicked and sold my First Bank shares when they were taking too long to publish their last year annual reports. Now I am planning to buy First Bank shares again and try not to panic anymore. But I don't intend selling my Zenith shares either. Zenith Bank is doing impressively well, like GTBank but without the terrible customer experience GTBank is sharing. One almost sure way of ruining my day is having to do anything in a GTBank branch and if you ever need to get an issue resolved you can be sure that you'll get more inhuman policies thrown at you than the feeling of having another human being helping you. They've got solid walls between the employees and customers. See how easily I veer into giving damaging remarks about GTBank. That's how powerful the negative effect their lack of good customer relations leave on me. So I won't touch their stocks even with free money. My non-stock owning US Bonds: I sold off my S&P 500 ETF last year December and put half the fund into US Bonds. I believe the US stocks are close to experiencing a market correction. Vanguard Total International Bond Index Fund ETF: This is where I put the other half. It is a collection of non-U.S. dollar-denominated investment-grade bonds. Gold ETF: Two months ago I panicked and sold my Emerging Market Stocks ETF, putting the fund into Gold ETF. The Emerging Market Stocks were getting too positively correlated with the US equities market this year. So I decided to put it in the negatively correlated (to US equities) Gold ETF. Nigerian Bonds: Through Stanbic IBTC Bond mutual fund, I have some money invested in Nigerian bonds. I avoid the Money Market funds as I believe I will get better long term returns elsewhere. And how is my strategy of not saving but investing working out? I think very well. At least, I am more prudent in managing my income and immune to binge spending. Also, I have made some good gains in the stock market. What tools do I use in my Stocks analysis? Well, the annual reports of thelisted companies which I have nicely archived here; this lovely Power BI stocks analysis dashboard and the Nigerian Market Data office app.
  6. You can access the Excel file here: NSE Daily Trade Data
  7. You can access the Excel file here: NSE Daily Trade Data
  8. You can access the Excel file here: NSE Daily Trade Data
  9. You can access the Excel file here: NSE Daily Trade Data
  10. You can access the Excel file here: NSE Daily Trade Data
  11. You can access the Excel file here: NSE Daily Trade Data
  12. You can access the Excel file here: NSE Daily Trade Data
  13. You can access the Excel file here: NSE Daily Trade Data Board Security Day's Volume Open Price Close Price Price Change Change % 52 Week Low 52 Week High EQTY 7UP 12,445 99.75 99.75 -5.25 -5 74 159.9 EQTY ABBEYBDS 1.19 1.19 -0.06 -4.8 EQTY ABCTRANS 0.5 0.5 0.5 0.5 EQTY ACADEMY 100 0.5 0.5 0.5 0.69 EQTY ACCESS 25,728,054 7.58 7.21 -0.37 -4.88 4.3 7.69 EQTY AFRINSURE 0.5 0.5 0.5 0.5 EQTY AFRIPRUD 1,356,718 2.8 2.76 -0.14 -4.83 2.2 3.31 EQTY AFROIL 20.71 20.71 EQTY AFROMEDIA 0.5 0.5 0.5 0.5 EQTY AFRPAINTS 2.47 2.47 2.47 2.47 EQTY AGLEVENT 60,000 0.69 0.69 -0.03 -4.17 0.68 1.17 EQTY AIICO 898,150 0.56 0.54 -0.02 -3.57 0.5 0.85 EQTY AIRSERVICE 101,751 4.46 4.46 -0.23 -4.9 1.7 4.97 EQTY ALEX 9.27 9.27 -0.48 -4.92 EQTY ARBICO 4.56 4.56 -0.23 -4.8 4.79 4.79 EQTY ASHAKACEM 110,020 11.4 11.4 0.44 4.01 9.03 21.03 EQTY ASOSAVINGS 2,000,000 0.5 0.5 0.5 0.5 EQTY AUSTINLAZ 2.19 2.19 0.1 4.78 EQTY AVONCROWN 4,330 1.09 1.09 0.05 4.81 1.04 1.38 EQTY BECOPETRO 0.5 0.5 0.5 0.5 EQTY BERGER 3,426 6.17 6.17 0.29 4.93 6.08 8.3 EQTY BETAGLAS 5,200 45.88 45.88 -2.41 -4.99 28.88 48.29 EQTY BIGTREAT 0.5 0.5 EQTY BOCGAS 2,000 3.35 3.35 3.35 3.89 EQTY CADBURY 1,949,797 11.09 10.65 -0.44 -3.97 7.04 20.5 EQTY CAP 32,070 34.7 34.7 1.65 4.99 27.3 40 EQTY CAPALBETO 95.49 95.49 EQTY CAPHOTEL 3.65 3.65 3.31 3.7 EQTY CAVERTON 0.92 0.92 0.64 1.65 EQTY CCNN 886,450 5.02 5.01 -0.11 -2.15 4.04 8 EQTY CHAMPION 855,405 2.11 2.15 0.04 1.9 1.94 5.13 EQTY CHAMS 2,000 0.5 0.5 0.5 0.5 EQTY CHELLARAM 3.5 3.5 0.09 2.64 EQTY CILEASING 10,000 0.73 0.73 -0.03 -3.95 0.5 0.76 EQTY CONOIL 22,860 31.59 31.59 -1.66 -4.99 18.1 42.6 EQTY CONTINSURE 892,690 1.21 1.2 -0.04 -3.23 0.9 1.34 EQTY CORNERST 150 0.5 0.5 0.5 0.52 EQTY COURTVILLE 0.5 0.5 0.5 0.5 EQTY CUSTODYINS 263,818 3.41 3.41 0.16 4.92 3 4.11 EQTY CUTIX 59,367 2 2 -0.04 -1.96 1.35 2.13 EQTY CWG 2.54 2.54 2.54 2.54 EQTY DAARCOMM 0.5 0.5 0.5 0.5 EQTY DANGCEM 2,097,390 173.3 165.01 -8.29 -4.78 149.26 203.96 EQTY DANGFLOUR 2,678,495 4.3 4.19 -0.22 -4.99 3.38 6.12 EQTY DANGSUGAR 1,047,225 7 6.76 -0.35 -4.92 5.71 7.2 EQTY DEAPCAP 0.5 0.5 0.5 0.52 EQTY DIAMONDBNK 59,198,975 1.05 1 -0.05 -4.76 0.78 2.47 EQTY DNMEYER 0.87 0.87 -0.04 -4.4 0.67 0.99 EQTY DUNLOP 0.5 0.5 0.5 0.5 EQTY EKOCORP 2,000 3.05 3.05 -0.16 -4.98 3.21 3.37 EQTY ELLAHLAKES 4.26 4.26 EQTY ENAMELWA 27.87 27.87 -1.46 -4.98 EQTY EQUITYASUR 0.5 0.5 0.5 0.5 EQTY ETERNA 493,238 4.09 3.89 -0.2 -4.89 2.13 4.09 EQTY ETI 15,318,219 9.78 9.5 -0.28 -2.86 7.02 18.42 EQTY ETRANZACT 5 5 4 6 EQTY EVANSMED 0.5 0.5 0.5 0.5 EQTY FBNH 538,320,869 4.15 4.01 -0.14 -3.37 2.95 4.69 EQTY FCMB 45,459,401 1.11 1.1 -0.01 -0.9 0.92 1.87 EQTY FIDELITYBK 38,099,853 1.03 0.98 -0.05 -4.85 0.76 1.47 EQTY FIDSON 2,194,918 1.92 1.92 -0.1 -4.95 0.89 2.67 EQTY FIRSTALUM 2,100 0.5 0.5 0.5 0.5 EQTY FLOURMILL 3,655,384 20.34 19.33 -1.01 -4.97 16.2 24.54 EQTY FO 1,622,252 52.93 50.29 -2.64 -4.99 42.66 231.51 EQTY FORTISMFB 2.7 2.7 0.12 4.65 EQTY FTNCOCOA 0.5 0.5 0.5 0.5 EQTY GLAXOSMITH 260,355 14.7 16.03 0.76 4.98 13.54 23.22 EQTY GNI 0.5 0.5 0.5 0.5 EQTY GOLDBREW 0.81 0.81 -0.04 -4.71 0.85 0.85 EQTY GOLDINSURE 0.53 0.53 -0.53 -100 EQTY GUARANTY 75,154,022 31.02 30 -1.02 -3.29 16.91 32 EQTY GUINEAINS 5,000 0.5 0.5 0.5 0.5 EQTY GUINNESS 176,490 69 69 2.94 4.45 59.51 115.58 EQTY HMARKINS 0.5 0.5 0.5 0.5 EQTY HONYFLOUR 845,118 1.28 1.27 -0.01 -0.78 0.91 2.15 EQTY IHS 3.8 3.8 3.8 3.8 EQTY IHSNGPREF 2.25 2.25 EQTY IHSPREF 3.08 3.08 EQTY IKEJAHOTEL 1.8 1.8 0.02 1.12 1.63 2.69 EQTY INFINITY 1.47 1.47 0.03 2.08 1.47 1.47 EQTY INTBKPREF 13.5 13.5 EQTY INTBREW 2,695,444 20 20 14.92 20.25 EQTY INTENEGINS 0.5 0.5 0.5 0.5 EQTY INTERLINK 3.61 3.61 -0.19 -5 3.8 3.8 EQTY JAIZBANK 110,900 1 1 -0.05 -4.76 1 1.47 EQTY JAPAULOIL 0.5 0.5 0.5 0.5 EQTY JBERGER 13,038 37.87 37.87 -1.99 -4.99 34.83 50.93 EQTY JOHNHOLT 0.6 0.6 -0.03 -4.76 0.61 0.82 EQTY LASACO 10,000 0.5 0.5 0.5 0.5 EQTY LAWUNION 166,941 0.8 0.8 0.01 1.27 0.5 0.8 EQTY LEARNAFRCA 0.88 0.88 0.03 3.53 0.58 0.89 EQTY LINKASSURE 1,468,100 0.52 0.52 0.5 0.54 EQTY LIVESTOCK 503,550 0.89 0.89 -0.04 -4.3 0.58 1.26 EQTY MANSARD 20,431,156 1.64 1.55 -0.02 -1.27 1.45 2.6 EQTY MAYBAKER 1,358,056 1.34 1.28 -0.06 -4.48 0.8 1.34 EQTY MBENEFIT 0.5 0.5 0.5 0.5 EQTY MEDVIEWAIR 59,600 1.54 1.54 0.07 4.76 1.43 1.57 EQTY MOBIL 340 315.4 315.4 -16.6 -5 155.96 385 EQTY MORISON 1.65 1.65 EQTY MRS 865 37.08 37.08 -1.95 -5 31.93 45.51 EQTY MTECH 0.91 0.91 EQTY MTI 0.5 0.5 0.5 0.5 EQTY MULTITREX 5,000 0.5 0.5 EQTY MULTIVERSE 3,100 0.5 0.5 0.5 0.5 EQTY NAHCO 994,152 3.1 3.09 -0.16 -4.92 2 5.95 EQTY NASCON 779,604 8.4 8.3 -0.1 -1.19 6.33 8.7 EQTY NB 6,494,405 149.95 145.03 -4.92 -3.28 112 164 EQTY NCR 7.89 7.89 0.18 2.33 7.71 9.46 EQTY NEIMETH 1,041,024 0.55 0.53 -0.02 -3.64 0.53 1.13 EQTY NEM 2,204,366 1.02 1.03 0.01 0.98 0.7 1.26 EQTY NESF 524.59 524.59 -27.61 -5 EQTY NESTLE 62,514 834.99 834.99 34.99 4.37 570 855 EQTY NIG-GERMAN 3.44 3.44 -0.18 -4.97 EQTY NIGERINS 0.5 0.5 0.5 0.5 EQTY NIWICABLE 100 100 99.5 19,900.00 0.5 0.5 EQTY NNFM 5.8 5.8 -0.21 -3.49 6.01 6.32 EQTY NPFMCRFBK 5,500 1.37 1.37 0.89 1.44 EQTY NSEASEM 1,195.56 1,195.56 1,136.56 1,218.38 EQTY NSECNSMRGDS 23,344,495 696.97 719.26 22.29 3.2 560.83 774.04 EQTY NSEI EQTY NSEINDUSTR 6,775,559 1,739.79 1,696.76 -43.03 -2.47 1,430.17 2,228.54 EQTY NSELOTUSISLM 10,732,895 1,832.17 1,820.93 -11.24 -0.61 1,561.86 1,988.33 EQTY NSLTECH 0.5 0.5 0.5 0.5 EQTY OANDO 8,942,933 9.07 8.62 -0.45 -4.96 3.54 10.5 EQTY OASISINS 0.5 0.5 0.5 0.71 EQTY OKOMUOIL 273,081 51.9 50.05 -1.85 -3.56 29 52.51 EQTY OMATEK 0.5 0.5 0.5 0.5 EQTY PAINTCOM 0.62 0.62 -0.03 -4.62 0.62 0.99 EQTY PHARMDEKO 9,245 2.05 2.05 -0.03 -1.44 1.62 2.08 EQTY PNG 7.28 7.28 EQTY PORTPAINT 2.01 2.01 0.01 0.5 1.38 2.5 EQTY PREMPAINTS 9.88 9.88 -0.51 -4.91 EQTY PRESCO 711,001 47 47.25 0.25 0.53 35.02 48 EQTY PRESTIGE 0.5 0.5 0.5 0.5 EQTY PZ 920,160 17.3 18.16 0.86 4.97 11.04 23 EQTY REDSTAREX 5,000 4.41 4.41 0.21 5 3.9 4.8 EQTY REGALINS 0.5 0.5 0.5 0.5 EQTY RESORTSAL 0.5 0.5 0.5 0.5 EQTY ROADS 6.93 6.93 0.33 5 6.6 6.6 EQTY ROYALEX 100 0.5 0.5 0.5 0.5 EQTY RTBRISCOE 8,208 0.5 0.5 0.5 0.5 EQTY SCOA 3.59 3.59 -0.18 -4.77 3.77 3.77 EQTY SEPLAT 42,195 402.74 400 -2.74 -0.68 240 425 EQTY SIMCAPVAL 103.24 103.24 -103.24 -100 EQTY SKYEBANK 9,150,838 0.51 0.51 -0.01 -1.92 0.5 1.42 EQTY SKYESHELT 100 100 EQTY SOVRENINS 0.5 0.5 0.5 0.5 EQTY STACO 0.5 0.5 0.5 0.5 EQTY STANBIC 1,905,542 26 25.65 -1.35 -5 12.82 27.56 EQTY STARCOMMS 0.5 0.5 EQTY STDINSURE 0.5 0.5 0.5 0.5 EQTY STERLNBANK 3,177,032 0.71 0.75 0.02 2.74 0.67 1.75 EQTY STERLNRIGHT 57.49 57.49 EQTY STOKVIS 0.14 0.14 EQTY STUDPRESS 2.09 2.09 -0.1 -4.57 EQTY TANTALIZER 100 0.5 0.5 0.5 0.5 EQTY TEXACO 0.5 0.5 EQTY THOMASWY 0.52 0.52 -0.02 -3.7 0.54 0.58 EQTY TOTAL 40,155 269.98 268.9 5.9 2.24 150.41 345 EQTY TOURIST 3.8 3.8 0.15 4.11 3.5 3.68 EQTY TRANSCOHOT 800 5.29 5.29 0.25 4.96 4.77 5.56 EQTY TRANSCORP 29,708,840 1.19 1.14 -0.05 -4.2 0.66 2.13 EQTY TRANSEXPR 100,950 0.79 0.83 0.79 1.82 EQTY TRIPPLEG 1.18 1.18 -0.06 -4.84 1.24 1.53 EQTY UAC-PROP 741,359 1.84 1.84 -0.05 -2.65 1.62 4.51 EQTY UACN 2,209,018 15.51 15.05 -0.46 -2.97 12.02 22 EQTY UBA 10,825,400 7 6.65 -0.35 -5 3.4 7.5 EQTY UBCAPRIGHTS 0.01 0.01 EQTY UBN 60,873 5.19 5.19 0.04 0.78 3.7 5.78 EQTY UCAP 3,128,358 3 2.92 -0.08 -2.67 1.74 4.06 EQTY UHOMREIT 42.96 42.96 -2.26 -5 EQTY UNHOMES 2.87 2.87 -0.15 -4.97 3.02 3.17 EQTY UNIC 0.5 0.5 0.5 0.52 EQTY UNILEVER 334,554 36.21 36 -1.45 -3.87 27.81 50.01 EQTY UNIONDAC 0.5 0.5 0.5 0.5 EQTY UNIONDICON 13.45 13.45 -0.7 -4.95 11.31 17.35 EQTY UNITYBNK 13,355,767 0.58 0.6 0.02 3.45 0.5 1.26 EQTY UNITYKAP 0.5 0.5 0.5 0.5 EQTY UNIVINSURE 0.5 0.5 0.5 0.5 EQTY UPDCREIT 10 10 10 10 EQTY UPL 3.83 3.83 -0.2 -4.96 3.61 5.15 EQTY UTC 0.5 0.5 0.5 0.5 EQTY VANLEER 9 9 -0.09 -0.99 9.69 9.69 EQTY VITAFOAM 1,157,890 2.34 2.3 -0.04 -1.71 1.64 4.9 EQTY WAPCO 3,969,578 49.49 48.1 -1.39 -2.81 34.47 77.96 EQTY WAPIC 6,272,120 0.5 0.5 -0.02 -3.85 0.5 0.56 EQTY WEMABANK 3,559,818 0.51 0.5 0.5 0.88 EQTY ZENITHBANK 106,355,062 19.08 18.13 -0.95 -4.98 13.1 19.08
  14. Exchange Traded Funds (ETFs) on The Nigerian Stock Exchange

    Hi Methodman, You are welcome! To buy the New Gold ETF, you will need to have a stock trading/brokerage account and make a purchase order through that account. Below is a screenshot of what the process looks like from both my Meristerm stock brokerage account and ARM stock brokerage account.
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