₦airaland Forum

nitrogen: Well, all you just said up there are true, but one question is this? The loan from Oando plc converted to equity, where did Oando plc get the fund? 601m dollars?? that's huge....... meanwhile, financing fee on the 601m dollars will be paid by Oando plc, that will affect their bottom-line bigtime.

Please note that only $601m has been invariably made available by Oando plc for the COP deal, it still remains $599m, how will they get that? still loans from banks? which will definitely lead to more costs to be deducted from revenue.
By the way, them Oxygen boys, #respect.

One certain thing is that OER has what it takes to close COP deal ,"The Corporation has secured firm commitments for all of these facilities and expects to use the proceeds from these facilities to fund the COP Acquisition and repay certain existing loans"
Oando Plc converted some of it's working capital to finance the Cop deal,this would have hampered its operation in the downstream( the extent of this will be revealed by the FY 2013 result and H1 2014 result).
As I said earlier, some of the loan are linked to the eventual completion of the deal in terms of payment "
The loan will be repaid quarterly using the proceeds of sales of the Corporation’s share of crude oil, natural gas liquids and electric power from its various operations subsequent to the completion of the COP Acquisition. As at March 31, 2014, the loan had not been drawn. " page 18.
My conclusion is that Oando is highly exposed to borrowing . In the same vein ,they are in position to make huge profit from the cop deal, a revenue projection of $900m and gross profit of $540 m. It worth the while.

When 6.2million bid quantity is chasing 2.34million offer quantity you' ll have a price rise,Transcorp currently trading at NGN 5.93. 1.57 pm.

nitrogen: Hmmmmmmm! I will refer you to note 1.2 and the whole of note 8 in the report, meanwhile, check out the bolded, if the corporation is incurring losses, who is going to bear it? minority shareholders

Reference to page 4.3. Oando Plc made $1.2 billion available to OER at the rate of 4% when drawn and it also has a clause that the loan can be converted to equity,the losses incurred by OER is from such payment to OANDO Plc, why the astronomical nature of the exposure? I will say the Company has started incurring expenses without taking procession of the asset and possible revenue from the asset."On February 10, 2014, the Corporation signed a loan facility agreement with Oando PLC which included a financing fee of 4% of the amount covered by the $1.2 billion facility. The financing fee is due on repayment of the loan or conversion of the loan to equity; the Corporation also has the option to settle the financing fee in equity if the loan is converted to equity."
On loan repayment the the company negotiated favourable term of payment ,an increase of 1% in interest rate will increase payment by only $0.9m."Price risk: if the prices of crude oil decreased by 10% assuming all other variables remain constant, the impact on loss before tax from the changes in the fair value of derivative commodity contracts would be nil; and "
Most of the sales and loan deals are structured in a way it will not impact much on the company when prices of crude falls.
My question is that the loan given out by Oando Plc to OER now converted to shares belongs to whom? If the shares belong to Oando Plc ,expect some shares for every units held,the loan is from working capital of Oando Plc.

nitrogen: Egbon, you need to re-read that report

OER is not OANDO Plc, will OANDO Plc revenue be $32.16 million in 3 months(page 4), net loss of $32.348 million ,the loss was mainly financial expenses of $34.8 million (page 6). I repeat one of the main reason of incorporating OER is to serve as the platform for current and future acquisition. So we are still expecting OANDO Plc financial report.Oando Energy Resources Inc. (“OER" is a publicly traded company listed on the Toronto Stock Exchange (“TSX”) under the symbol “OER”. OER was incorporated under the laws of Canada. OER’s registered office is located at 3400, First Canadian Center, 350 7th Avenue SW, Calgary AB, T2P 3N9, Canada and head office is located at 1230, 112 4th Avenue SW, Calgary, AB, T2P 0H3, Canada. OER and its subsidiaries (together, the “Corporation”) is involved in the acquisition of petroleum and natural gas rights, the exploration for and development and production of oil and natural gas primarily focused in Nigeria, and São Tomé and Príncipe. The ultimate parent company is Oando PLC, who owns 92% of the share capital of the Corporation and is the ultimate controlling party. Unless otherwise noted, all references to the “Corporation” mean OER and its subsidiaries. Page 7 of the report.
All we are witnessing in the market is sheer ignorance of the state of affair of Oando Plc.

Reading the OER (Oando Energy Resouces) Financial Report this morning all it takes to complete the deal is available, but many equate the loss made by OER to that of OANDO PLC. The loss made by OER was as a result of the acquisition of COP,though I'm of the opinion that OANDO PLC may barely survive making loss . In nutshell there is no justification for the panic.

Dragonking: Something is definitely wrong with the oxygen boys. This is a company that claimed that the money was on the table and all they needed was ministerial consent in January. The drama continued as this company made some people to end up in the hospital while others were exchanging e-punches all for the passion

Now, the ministerial approval is given so what is really causing the delay and panic? Why is it that it is on offer? Do they know that some people bought high even at N33?

Hope some peeps like me wont get high blood pressure because of oando

Omo na to make money from the stock and gbe ja. I no fit shout

My only heartbreak is that I've taken position already on Oando because this is the time to buy and buy and buy.

If you want to sell your Transcorp ,there is the need for 3 million units,no supply currently on the floor, NGN 6.00 here we come.11,34a,m

Panic in the market,the Oando 25naira resistance is almost collapsing. cant be move,

Chibuking81: As Oando move down south, where will be the final bus stop, before moving up North again?

OANDO is a volatile stock and sometimes volatility may be hefty losses or gain,for my peace I've built in -20% in the immediate term.

Chibuking81: Anyone that sow seed, will wait for number of months before harvesting, without checking the farm on daily bases, but anyone that set a trap, check his trap everyday, to know how far. I do hear some people mention that they are only long time investors, but visit this forum on daily bases. Any day I decide to be a long time investor, I will sign out from this forum.

Many of us visit the site on regular basis because the forum is a fountain of knowledge,the best way to learn about stock is through practical means ,but if you are blessed with people with experience thank God.From the forum I learnt about online trading,real time trading,day trading(don't ask me how) ,long,short and medium term positions.
Why people do not appreciate the forum that much ,is the faceless faces behind those names we relate with on the daily basis,these are great men and women that breath stock.

Impressive half year result from Wema bank,pre tax profit of NGN 1.7 billion. Personal recommendation-HOLD.Fair value of share NGN 0.98. Do your due diligence ,all the above assertions cannot be guarantee as tools for making investment decision.

Different strokes,still buying Nicon Noga.

Imagine,trying to sell multilevel marketing to investor, orisirisi will never cease on nairaland,if it is worthwhile you will do it alone.

Moneysage: @Boss LI (sorry Elai) and Oga Kotlass: thanks for checking on me. My day-job and family exigencies has kept me in the sidelines. I wish I could be a trading-major like 4dchairman and charismatic insider like myjoy08 (this bruva still amazes me!)

@Dexterax: sure u know ur fan base is knowing no limit! OK, contunu!

@Toluway: Ur observations on kiDangSug and Diamond are apt. Time heals all wounds.

@Oga Feelamong: U inhaled some Oxygen at a fair discount amd launched into Hopeville. I hope we'll still see u around (cf. mercilicious)

@Born2bRich: I still miss The Analyst services...Hope u will oblige us key financial details - on request. (ft has been quite helpful)

@SWG-1: something tells me u are either for JOHESU or against them. (pls don't quote me)

@ALL: pls, what flash player do u use to view marketwatchng on your Android device?

Gracias

You are welcome sir.

awojidesyl: Hello Nairalanders, please kindly spare a minute to take this survey on First Bank's services. We would like to know where First bank excels and where it falls short. First 10 responses will get a 500naira recharge card each. Simply send an email when you are done taking the survey to olumuyiwa@etuodi.co.uk Thank you.
https://www.surveymonkey.com/s/23DRMQ6

U need deliverance from evilspirit.

Josh121: I just wish it not month end am expecting more , oando oh oando please don't run away from me

THE MAN WAITING FOR BLINK OF CRAB EYE WILL STAY LONG BY RIVERSIDE.

Dexterax: It appears the oxygen tanks have been punctured!

NGN 25.70 and plunging!

Currently the demand surpass the supply,the clossing figure may be above NGN 26.00. We are not wittnessing the dumping of shares has predicted by the nay analyst.

passwelle: @4dchairman and @securi me and my own are also on OYO #untilOandoperforms

Thank GOD the golden egg is still alive,just need some fattening up.

securi: You remind me of Micheal Jackson song, 'you are not alone, l am here with you' Bros l am 90% on oando l loaded abt 600k units so no going back, anyhow o ma ja sope ni. Am ready to wait till Dec 2015 for it to click N100. Am in and fully in and ave told my family that no luxury aside normal upkeep and schl fees, we are all on OYO until Oando perform.Not easy but wetin man go do.I no go come go kill myself (mi o le wa lo para mi)

I salute ur courage,it is well.

''I don buy one way ticket to the land of prosperity via desert,is either I make it or not ,all my portfolio is in those two stocks."That was my post some days ago,truly I"m kneck(chin in reality) in the Oando play,it is tedious,sapping,nerve recking and gloomy,but above all I'm enjoying it. It reminds me of my school anthem "...backward never,forward ever,great ***".Sorry,I'm thinking aloud.

I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
― Warren Buffett
“Games are won by players who focus on the playing field –- not by those whose eyes are glued to the scoreboard.”
― Warren Buffett.

Comsol: Do you mean the release of result and the deal sealing? Again for me, what I foresee is releasing the result (I hope is not what I'm thinking) then comes the storm and thereafter the deal sealing which activates the rush. This might be a real strategic move by the cowboys themselves.

I'm just thinking aloud sha.

Again #wetinIsabi

That's what my script says Comsol.Season 4 ,part 1. I will rather get my timing wrong than be caught unaware when the stock will go viral.

The timing of the result is strategic,the storm before the rush.

U

courage89: While I agree with you that Oando is undervalued, partly based on the strength of the cop acquisition, their industry's fundamentals, tax advantages and other local and international prospects. I think its too premature to be estimating the fair price of 1unit of the company. There are a lot of side dealings going on with the oxygen boys now, that its so diffdifficult to predict their number of outstanding shares, debt level or other under the table deals that might flaw reasonable analysis. I will wait till I see their fy result.

spot on.

courage89: In your analysis, what's your assumption of total outstanding shares and debt?

Total debt exposure of US$ 1.2 billion taking into consideration the recent debt conversion to stocks.

Dexterax: Good. So how did you arrive at your price range for a security after your due consideration of 'sentiments'?

My conclusion is that riding on the wave of positive investor confidence in the share,the valuation might be about 15-25% above its intrinsic value. Can you kindly complement the discussion with your own valuation.

The failure of many analyst lies in the inability to realize the fact that there is the psychological aspect to investment decision . Attaching numerical value to such behavior is almost impossible,but does that negate the fact it exist?

Dexterax: And emmm in btw, your valuation range is too wide. You're obviously creating a lot of room for error margins in order to be right. I don't buy it.

Oga Dexterax , I'm trying to factoring in sentiments ,that led to the range . This link will be an interesting read .http://etheses.dur.ac.uk/3382/ THE ROLE OF INVESTOR SENTIMENT IN ASSET PRICING.

http://businessdayonline.com/2014/06/demand-for-oandos-shares-go-viral-on-cop-deal-approval/ . Which side were you ? Some made history ,others watched the making of history and some were busy analyzing history. Probably the best opportunity to be part of history.

Oando is grossly undervalued. An in depth analysis of assets of oando and shares outstanding reveals gross undervaluation. Factoring in newly issued shares,debt and the multiplier effect of the COP deal ,I arrived at a valuation of 65-80 naira. Comments are welcome.

securi: Bros, not only you o, I am now abt 90% Oando. No 2 way l am riding with Oando till km 100 even if the journey will take me to next year, l won't settle for less and l can see that coming true soon.All evilspirits in this forum cannot stop it.

I'm 60% Oando and 40% Transcorp,I can't see myself selling at any price,the dividend is enough for me. The monent I see investable funds ,medium term trading commences .