₦airaland Forum

emmanuelewumi:
That was what I could get on Oando website
Kindly send the screenshot of where we have the asset, liability and equity of the business

Here is the unaudited 2023 statement of financial position

emmanuelewumi:
The most recent result for 2022 June had Operating profit of N35 billion but Finance cost was N40 billion .

Ideally finance cost should not exceed 25% of the operating profit.

You are looking at old report
The last report was unaudited 2023 full year with operating profit of N214 billion and PAT of N74 billion.

thebargainhunte:
AGIP acquisition has not been factored in, it will definitely bloat the liabilities, but again, the sale of O and O assets to NNPCL will definitely help to reduce the liabilities. I am hopefully that things will get better from next year. I doubt O and O will recapitalise for now. The assets will definitely take care of the liabilities in a long run.

In the last AGM Wale was very proud, telling shareholders that he has turned around their company.
In another 6 to 7 weeks the bet will be clearer.

mikeapollo:
The rule of technical suspension during public/rights offer does not apply anymore. Go check the banks that are currently doing new subscription/rights offer. Their share prices are still moving up/down on the NGX. For instance, Zenith price closed today at N37.85 on NGX but their current offer price is N36.50k
Same will happen if Oando should do any new offer/rights issue.

Again, do you know the price at which the new/rights offer will be made? What if the price is N50 or N70? Cant I sell and make profit at that time?

In another 6 to 7 weeks the bet will be clearer

emmanuelewumi:
I won't advice you to make it a long term play until the picture is clearer, enjoy the capital appreciation and remember to book profit.

The company will be recapitalized and i won't be surprised if the current holders will own 5% of the recapitalized business

Check out the shareholders fund @ almost negative N200 billion

The argument in bold is similar to saying DANGSUGAR will be recapitalized due to negative shareholders funds of N64 billion reported in 2024Q2, Haba. When the company can easily generate money to make the SHF positive in a short while.

NGX has records of companies turning around negative shareholder funds from profit generated from operations without any cash injection from investors. The keyword is a turnaround and the catalyst for it being in place.

.

Oando may resume upward movement tomorrow or next tomorrow and close the week flat.

yMcy56:
My observations as well....
What's happening in the stock looks intentional and some asset managers might be involved here, there's the need to get their fill.....
I just don't want to talk much on this OANDO again.....make e no be say na only me dey here.
Na siddon look I dey now....😊

What happens when buying budget is exhausted. The price will fall down gradually. It's happened before. The only thing that can keep price up is release of good annual report. For now OANDO is a betting game on the NSE with potential high rewards. And like all bets a risk of loss of capital.

OANDO

By 11:45 am 840 transactions already executed, exchanging 20 million shares using N736 million
Health liquidity.
Stockbrokers should be enjoying transactions fees on Oando
Accumulation going on steadily and quietly by strategic buyer(s) with bid size 0.
Looks like offers are just being cleared quietly to maximize volume acquired with perhaps the purchase budget.

https://doclib.ngxgroup.com/Financial_NewsDocs/42020_FBN_HOLDINGS_PLC-_NOTICES_OF_ANNUAL_GENERAL_MEETING_(AGM)_-__ANNUAL_GENERAL_MEETING_(AGM)_AUGUST_2024.pdf

FBNH AGM rescheduled from 22nd August to 3rd September. That means dividend will not be paid as earlier proposed for 23rd August

currentprice:
15 - 16 is TA good support entry zone here...

can the on going capital raising allow it to reach the zone?

Time will tell

patience is the key no rushing

Averaged up UBA at N22 today. I am betting on any capital raising not less than N25 which may come up after a good interim dividend of 50kobo or even N1.0. Maybe I'm too bullish on the TOE and his mantra "The future of Africa is in our hands".

That TA support looks too low. Except there is very bad news on windfall tax / hair cut.

yMcy56:
Those guys have deep pockets and knows how to create liquidity if they needed a stock at cheaper price.....
They've been queing and couldn't get, so there's the need to create liquidity so they can also have their fill too.

See the way they stabilize the price of DS when it went on full offer for like 2wks or so that time......
So they call the shots in this market o.

So far, it's retailers that are trying to sell in market.....

Huge volumes.
41 million units of Oando changed hands at a cost of N1.8b today.
Last Friday was also huge with 52 million units changing hands at a cost N2.1b

Deep pockets have been coming now and then to pick up Oando units in the last 3 years. Perhaps this one will wane at this N40 resistance with prices falling back 50% after the deep pocket funds get exhausted. Perhaps not. We'll see how it goes.

SonofElElyonRet:
I've even told her that I'm not selling.. I bought at N18.50 so i can afford to be calm.. no way it's falling that bad.. probably N40 or N38 if it falls, before rebounding..

Perhaps it's an entity taking position and has expended its cash for now. If it reloads cash the journey up may resume. However it may pause purchases for a while if it seems many offers coming out. How far down the sellers will take profit who knows.

SonofElElyonRet:
I use this... good too.. sometimes little delay as well

https://afx.kwayisi.org/ngx/

Can see it's a loaded site also.

Good to see the wind behind Oando is still very strong pushing it to N40.60 Hopefully that will be the closing price for this week with the wind sustaining higher levels in coming trading days.

For those asking for a place to monitor prices live.
Apart from stock broker site or apps, a cheap place to monitor for free is https://www.investing.com/equities (there may be a 15 to 30 minutes delay in the live relay)

For example for Oando the current price can be see here https://www.investing.com/equities/oando-plc.
Can see the price is now N40.60 with a gain of N3.65 (+9.88%) compared to yesterday's closing.
One can search for other Nigerian stocks of interest through this page and save the pages for specific stocks on https://www.investing.com/equities.

megawealth01:
Foreign inflow into the NGX rises to $161.4 million in first half of 2024

https://nairametrics.com/2024/08/06/foreign-inflow-into-the-ngx-rises-to-161-4-million-in-first-half-of-2024/

Heard on Arise News this afternoon that foreign investors are keying into Nigerian Banks.

Perhaps after they push it from relative current lows, that's when some local investors will find em attractive and start buying at higher prices.

ProphetUtuocha:
The wind on Oando's back remains strong
The excitement continues

Good to see Oando cross N30 today.

That wind is like the exhaust of combusted air from the gas turbine of a jet engine delivering full thrust to gain altitude rapidly

Perhaps the wind will sustain a close at N40 this week.

Streetinvestor2:
That equally means he is being proactive against the dollars. That means he must have been investing in gold or something else.I read whr he is of the opinion that the dominance of dollars as the world currency can not be guaranteed going forward

Would be interesting to know if he is holding only USD cash & cash equivalents or buying exotic stuff like gold. My guess is USD cash and cash equivalents. Also that he still sees the dollar dominating over the next decade. Slight movements here and there. But not a major collapse.

vacanci:
If you failed to buy the global stocks today because you think global recession is imminent, then you have missed a big opportunity. Most of the US stocks opened very low today at mostly15% loss and are already recovering. From 15% loss to about 3 to 5% loss by close of trade. Some that entered today's low are already on about 10% gain. After hour prices for most US stocks are in green now.
The Japanese index that was shedding almost 22% later ended up at 13% and hopefully by tomorrow, recovery will be in sight.
I cannot see any global recession even for the fact that Buffet is stock piling cash. He has been doing that for couple of years. Everyone knows that Warren likes to keep cash. It's nothing new.

Buffet is the topmost Fundamental Investor. If he has been stock piling cash as you said, there is a very high likelihood a lot of stocks have unrealistically high PE's. And the risk of correction is high.

Agbalowomeri:
Gidigbo gidigbo

It's like telling Dangote refinery to pay capital gains windfall tax on the valuation windfall of N14T in comprehensive income logged as fx gains for the refinery in 2023 due to massive naira devaluation.

Bank mgt to announce position on windfall tax on Monday 12th of August.

Pesuzok:
Exactly my thoughts. But why did the banks not report the revaluation in their balance sheet and leave it out from their comprehensive income. The banks might have brought this upon themselves

Not sure if regulatory financial reporting for banks permit revaluation in their balance sheet for significant amounts brought by over a 100% devaluation of Naira with respect to dollar assets. But going forward I see the banks making ways to be less aggressive in reporting the gains. Won't be surprised if we start seeing re-statements of 2023 gains in 2024Q3 reports and 2024 FY reports.

sky2891:
https://punchng.com/tinubu-bank-ceos-hold-closed-door-meeting-over-windfall-tax/

They will likely explain to him (& Senators) that the alleged FX windfall is mostly revaluation of non cash assets like dollar loans given to Dangote for his refinery. It's like saying Dangote Refinery of $20 billion has moved from a valuation of 20x500=N10T to 20x1200=N24T that is Dangote Refinery has a windfall FX gain of N14T. What is being discussed concerning banks is like telling Dangote Refinery to pay a 70% Windfall tax on the alleged N14T Fx gain in this example. The tax is largely a goose chase. I hope the bankers will make the president understand this issue. The Forex gains that can be paid by banks is that realized in the Profit statement. And not the notional FX revaluation of assets in the Comprehensive income.

Mpeace:
But only a profit making company can repatriate or export $. Mtn has not made profit since this govt took over so they cannot export $. It shouldn't therefore be said that they are not good for the economy.

Who said MTN services is not good for the economy or needed by the Nigerian Economy. Don't mix business model of long term sucking $$$'s away from Nigeria with valuable Telecoms business service delivered.

Unbalance is the key issue I am raising. It needs a counter balance by injecting money in a $$$ generating subsidiary like Cocoa, Palm oil (like PRESCO) or whatever Nigeria can export to generate $$$ stream for their foreign shareholders.

Mankind2024:
Oh, ye defenders of MTNN, you forgot to mention the truth - that MTNN is now being run on depositor loans taken from Nigerian banks despite the huge revenue figures. Where were you when MTNN siphoned $15 billion from the Nigerian economy? Nigeria did not collapse. Nothing will happen; no one is indispensable. MTNN remains a forex guzzler. I have never seen a company that loves our forex reserves like your beloved MTNN.
Long stories change nothing. I accept the truth that MTNN is undesirable yet unavoidable.

MTN has a business model of taking profit out of Nigeria in $$$'s from the naira it generates from users in Nigeria.
MTN must have repatriated the original dollars it invested in multiples. But because it's a foreign concern that generates no dollars as it exports nothing out of the country to generate dollars, MTN as it is today, is not good for the economy. As it will need the dollars businesses who have export streams that generate dollars. Most of Nigeria's dollars come from crude oil sales. MTN will always be in need of sucking this dollars away. To solve this problem, MTN needs to start a subsidiary that can generate dollars from Nigeria's comparative advantage. Perhaps it should invest in Cocoa or Palm Oil (like PRESCO) for export. Without something like this MTN, will continue to put pressure on the relative little $$$'s Nigerian companies generate.

Good to see major improvements in Nigeria Stock market investment Systems. I just took my Fidelity Bank Rights on the NGX platform. And the process for taking it up on the NGX site is excellent!!!. https://invest.ngxgroup.com/

Good to see Oando breakthrough N20

thebargainhunte:
https://leadership.ng/dangote-refinery-resells-both-imported-local-crude-oil/

What prompted this?

They could be reselling the crude they already bought instead of refining for any of the following reasons
* Problem with the refinery. Some units may not be working properly ?
* Cutting losses as the cost of some of their key refined products (Petrol, Diesel or whatever) exceed current market prices.
* Playing out a strategy. (what could this play be about?)
*

Mpeace:
Then why tax them if they are not monotized. Will the banks pay the said tax buy selling those assets or from the small money wey them fey follow give us the usual peanut.

50% Tax on 2023 Bank Forex Gains

I am still surprised at the whole thing.

A bank that has foreign instruments in dollars, mostly in subsidiaries outside Nigeria plus some dollar assets on loan to Nigerian companies like Dangote Refinery. Is the government saying they should sell some of those assets to generate cash for tax?. Those of their foreign subsidiaries or those of the main Nigerian subsidiary in order to create cash to give government. Sounds senseless.

Perhaps it's un-invested liquid assets of the banks that will be grabbed for calculating the tax. To me it's like calling Dangote to come and pay forex gain tax on his refinery because the refinery cost $18b which translates to Naira 9T in 2023 Q1 but became N18T in 2024Q4 with a notional FX gain of N9T now to be taxed at 50%. More clarity needed as some greedy politicians must be mistaking the FX gains of banks as raw cash. They may push the banks to find it more attractive to declare FX losses which will be very very bad for the already weak economy.

Mpeace:
If they are to tax fx gains, they should as well allow dividends to be paid there from. It is not profit if shareholders do not benefit from it

Those fx gains are not cash flow. They are FX assets that have a translational gain in Naira. Those fx financial assets may even be tied more to foreign subsidiaries of these banks. To monitize it into naira will even require selling of the financial assets.