₦airaland Forum

mikeapollo:
Yes, that is what gives superior returns and higher value to shareholders of Seplat.
My comparison is not based on the bottom line, but the top lines e.g. oil reserves, barrels of oil produced, turnover, number of OML/OPL etc.
In terms of bottom line, Seplat has been more profitable, has fewer number of shares, pays dividend consistently and has a more stable management.

I clicked send while still typing. I was trying to complete as follows

Long term Oando should be looking at N177 assuming SEPLAT price remain flat long term ay N3730.

Looking at number of shares, SEPLAT has 588 million shares while OANDO 12,431 million shares. That is for every 1 SEPLAT share there are 21 Oando shares. If one assumes they are roughly the same in Assets since they both had total assets of N3T in their 2023 financials. And assuming shareholders start benefitting at par from Assets in both companies. Oando price can be estimated to be SEPLAT share price divided by 21 based on these simple numbers & assumptions. At todays SEPLAT price of N3730 Oando's bench price goal is approximately N177

mikeapollo:
The issues that pulled back Oando were the various boardroom squabbles, shareholders and SEC issues.
Right now, in terms of the industry, oil reserves and productive assets, Seplat and Oando are virtually contemporaries .
Don't be surprised to see Oando going for four figures like Seplat, in the long term.

Long term Oando should be looking at N177 assuming SEPLAT price remain flat long term ay N3730.

Looking at number of shares, SEPLAT has 588 million shares while OANDO 12,431 million shares. That is for every 1 SEPLAT share there are 21 Oando shares. If one assumes they are roughly the same in Assets since they both had total assets of N3T in their 2023 financials. And assuming shareholders start benefitting at par from Assets in both companies. Oando price can be estimated to be SEPLAT share price divided by 21 based on these simple numbers & assumptions. At todays SEPLAT price of N3730 Oando's bench price goal is approximately N177

ositadima1:
I downloaded it and reviewed it that day, but I didn’t see where the revenue from Nigerian operations was stated. Ok, aside from that, you might be thinking their focus on green energy explains the sale, but it still doesn’t justify selling so cheaply if it’s worth more.

Hopefully, Oando will manage it better than the Italians, but that remains to be seen.

I guess most of them are selling because of reducing margins and the increasing peculiar challenges of Nigerian onshore operations. Local operators have reduced cost of operations with lower wages and far fewer expatriates. And are devising various means round the operational challenges.

.

zendi:
Oando cannot command the same sentiments in South Africa as in Nigeria because South Africans do not know crude oil as we do.
Is there anybody here who cannot point at one billionaire or more from his State who are rumored to have made it through the "lifting of crude oil" ?
Nigeria is a petro-dollar nation, SA is not, to my awareness. So many Nigerians who have grown tired of dreaming of laying hand on NNPC Term Contract to market crude oil, let alone grabbing an oil block, are seizing opportunity to snap up the shares of Oando while it's still affordable.
The South Africans, meanwhile, are probably disecting Oando through Ewumi-style forensic analysis and, seeing no dividends in the near term, are valueing it accordingly.

When Oando shall start dishing out dividends, it may be highly profitable for dividend hunters to to go and load it that place because I believe the payouts will be the same in currency equivalence giving that the buy out proposal for the attempted Delisting was the same 7.07 or equivalent.

It will be good to know the traded volume in JSE. Perhaps insignificant volumes. Which means big holders are not selling but watching. But perhaps a few holders for whatever reasons dispose as the need arises.

The picture from investing.com shows when thousands get traded in JSE when trades occur on a weekly basis if they occur. Millions change hands in NSE

Capitas7:
Fair one!
But I don't think someone who bought shares at $25 a few decades ago and still holds when valued at $600k would see 5% as satisfactory annual yield. With many 50-200 baggers, 5% won't be motivation to pile cash up. Moreover, many of the stocks that are giving us latecomers 1-4% dividends are probably returning 50% dividends on cost price for him. But that said, the rates on high yield savings or CD's are quite negotiable when your principal falls in certain brackets.

50-200 baggers .
Which stocks delivered that ?

Raider76:
Please what's causing this bull beyond Oando?

Perhaps the GDP numbers that came out is seen as a green shoot of better things to come.
Perhaps interest rates have peaked and are going down.

MARKETJJC:
OANDO =$1

On 11 March 2008 Oando closing price reached an all time high of N280. That's more than 16 years ago. The few that bought at that price and still holding will be grateful to see a turnaround to a $1 valuation in the next couple of years. Likewise every other person inside the party.

Not a buy recommendation. Just a discuss. DYOR

Bagwa:
Oando Bid depth 48M

This two digit price no fit OANDO. Make them do make OANDO 3 digit stock quick quick quick.

jonnysessy:
Banks Interim dividend
When would CBN allow interim paying banks to release their results. I believe this would be a booster for banking recapitalization. But, the delay is too much now. The market needs news to spur it to greater height.

They better start releasing results (with good dividend payment action) in this last week of August.
They also need to start bringing interest rates on government bonds down to support businesses currently struggling from high finance cost. So that the economy (& stock market) can witness a boost from September and for the rest of the year.

BabsO2:
Happening right now as you told us yesterday.
Have dumpers at Km40 exhausted their holdings or on their way to clear the outstanding bid or raised their exit point ?

Higher Highs and Higher lows !

All offers that showed up today cleared before close of business. N1.3b changed hands today.

Closed on full bid at N43.50.

Bagwa:
OANDO FULL BID TOMORROW SIGNING CEREMONY FOR ACQUISITION

Happening right now as you told us yesterday.
Have dumpers at Km40 exhausted their holdings or on their way to clear the outstanding bid or raised their exit point ?

Higher Highs and Higher lows !

leparj:
Just reviewed an sms from Meristem
inviting me to FBNH AGM holding on
3rd Sept.
Like FBNH dividend will be slightly
delayed.
Was expecting it this Friday(24th Aug).

FBNH posted in the first half of this month on the NGX of the AGM date change which I shared here on that date and I noted we should not be expecting dividends this Friday again.

megawealth01:
You mean Oando now has a new management without Wale?

Dey play

megawealth01:
Wale should resign

After he turned around the company for a new jack to carry go. Dey play.

megawealth01:
Na so so cross deals dey OANDO today

Same thing they did this time last week

Looks more like a strategic buyer or portfolio manager or market maker mopping up available offers.

With 11,753,208 units changing hands in 268 trades that is an average of 43,855 units per transaction. Average transaction cost at N43.3 going rate for today is N1.9 million.

OANDO is surely one of the most liquid stocks on the NGX over the last 2 years.

Picture below: Bids on queue before trade open today at 10am not yet filled on the left. And currently executed trades on the right.

mikeapollo:
Really? Did he say that? I only remember him saying almost all the revenues of Oando are now in dollars.
Kindly assist with the full statement or video if you still have it.
This is big news if it is true. An indication that Oando could be competing with Seplat in the next few years or so.

See a snap of key relevant highlights of the last AGM transcript. In the Picture below. You may want to double check it with timings on the video

https://www.youtube.com/watch?v=98wb79Zyrzc

megawealth01:
Oooh we are waiting... How much is the interim?

Transcorp
Same 10kobo that was paid for final earlier in the year dished out again today.
That is 20kobo has been earned this year for a stock that was available at N1 and below for quite a white. What a great turnaround.

naturalflow:
Chai transcorp OMA,soft dividend!But wait ooh,how is transcorp selling at 10.9,while oando that can't pay dividend in the next 20years be selling at 40?

In the last AGM Wale was proud to say he doesn't see paying Naira dividends being a biggie, once he completes the Oando turnaround for investors since earnings are in $$$'s

Bagwa:
a new development that will drive oando to 3 digit will come in few days

Three digits OANDO price will be really nice this quarter!
Pray it comes forth speedily !
What a great Turnaround we are witnessing.

ositadima1:
You didn't listen to the video he was referring to. Try listening to it at 1.5x speed (eh get why). Dangote said it will be cheaper because of global competition. My reasoning is that in Nigeria, due to limited players, companies can set prices more easily. However, in the global market, you have to compete with other companies.

Also, from the video, my deduction is that DS may not even merge this year, as some of the rice mills will be completed later this year according to him. I don't see how a merger can happen without DR starting to make revenue(same as before).

Just thinking about the bolded note and question in the context of Operations Management. Not reviewing the whole speech.
Agree some speeches are better listened to at 1.5x speed. Akin to speed reading.

Mankind2024:
Lol.
Alhaji cited the airline /Aviation sector, and the telecommunication industries as his case study. He referenced Samsung handset price in Korea and Nigeria.
"A brand of Samsung 📱handset is cheaper in Nigeria than in Korea"
"TO INCREASE COMPETITION AT INTERNATIONAL MARKET "

Internationally companies pricing strategies. An importer will most likely pay an import tariff to break-in into a local market. Hence okay sometimes to compete internationally by reducing prices through marginal increase in production volume for export. With the Local market carrying more of the fixed cost of production and the foreign market products never priced below the variable cost of production. Simple economics of production where plant capacity to produce more can be exploited and other variables support the strategy.

megawealth01:
WOW... I always have my entries for dividend paying stocks that are on my radar...

I bought most of my wapco at sub 17

Then started toppingup at sub 30 and that's where I hope it gets to before making bullish trend...

I'm really a very patient INVESTOR although I don't joke with gambling certain stocks for quick bucks that I use for real investments... (I just shared a deep secret free for those that can decode)...

The only lesson I learnt in this market was UCAP, till now I don't have a unit of it but I used to have millions of it that I bought around #2 but sold off at just 50% ROI which I divided to invest in TRANSCORP and their hotel... The transcorp family really thought me PATIENCE... I'm still holding them till date

We are watching...

Did simple analysis, Wapco looks fair. Let me see if it will continue growing as it seems it's down days are over.

I bet this will go up after release of results.

https://doclib.ngxgroup.com/Financial_NewsDocs/42037_UNITED_BANK_FOR_AFRICA_PLC-UBA_PLC_-_NOTICE_OF_DELAY_IN_PUBLISHING_2024_AUDITED_HY_FS_CORPORATE_ACTIONS_AUGUST_2024.pdf

NOTICE OF DELAY IN PUBLISHING 2024 AUDITED HALF YEAR FINANCIAL STATEMENTS

The Audited Financial Statements will be published upon receipt of the CBN’s approval.

Accordingly, no Director, person discharging managerial responsibility, employee with sensitive information, adviser, and consultant of the Bank and their connected persons may directly or indirectly deal in the Securities (Shares and Bonds) of the Bank during the Closed Period

Mankind2024:
If you had watched one of the recent video clips of Alhaji Dangote, you would have picked up on a point where he emphasized his readiness to export cement. He has already built an export terminal in Lagos for this purpose. He also hinted to Nigerians that the export price of cement might be lower than domestic prices. This point underscores the reason Emperor Femi Otedola cited for investing billions of Naira in acquiring shares of Dangote Cement.

Interesting. Why will export price be lower than domestic price for Dangote Cement.?
Perhaps due to further economics of scale by producing more units with the same fixed overheads. Perhaps not. Perhaps ripping off of the local market. Perhaps a mix of both.

megawealth01:
We plenty oooooo... I'm equally waiting to do top up at 30 or sub

I took profit somewhere and loaded WAPCO at N37.x this week. I took the decision to buy at whatever price just to get some units and see how it goes over the next twelve months.

undead:
My collegue Abdul-'Alim confirm market open, dont sell Oando, buy Oando.

Oando swinging to bid on market open.

yMcy56:
I'll ignore this.
You're entitled to your opinion.
You can at least see me referred to some pages of the FS.
If what you said is my approach to the market and stocks, my inability to follow herds mentality and trying to interprete in my own little way without depending on any Ogas interpretation for me; has worked in the past AND it's working perfectly well for me, I think I'll rather stick to it.
Thanks.
You guys can't just stand healthy oppossion and debates.

You are adding lots of value here. Best to ignore such low opinion from the ITK's. Peter Lynch with his simple approaches beat many who claim to know so much with his record of 5 baggers, 10 baggers etc.

Investment has both quantitative and qualitative aspects. You are definitely far above average in the quantitative approaches of FA and TA. And excellent in the qualitative approaches (which also support FA & TA decision making) with your narrations which makes this thread lively and valuable.

Bagwa:
in process

Thanks

emmanuelewumi:
That is why in this business one should be forward thinking and be able to predict with 80% accuracy the next move by management

Predict UBA capital raise will not be less than N25 whenever it comes. That dividend will not go less than N2.80 but will likely go up.

For turnarounds like Oando there are no firm (80% accuracy) predictions. High risk - High rewards. For those who entered earlier they currently have less risk with high rewards

emmanuelewumi:
They will be doing it for the banks who technically own the company at its current state

Each person with his bet. The beauty of the market .

Mr Time will do his thing.

mikeapollo:
No one should be scared even if Oando wants to delist. The least that they will have to pay to each shareholder is N49 per share if they decide to delist within the next 6 months.. And if they deliver good results by that time, the price may even go higher than that.

The con I hear from those flagging it is, delisting card may be off the table, that Wale can play other cards around cash injection if he wants to remain extremely greedy and squeeze out common shareholders . Time will tell .