₦airaland Forum

oando is carrying me to where I no know o. wahala wa o

Sunrisepebble:
My opinion on this company changes on the daily. Note I own Oando but purely for speculative purposes.
The financials are really not good at all. It is a serious loss making business. The FY profit is largely due to the huge FX gain in Q1 and tax credits in the subsequent quarters. Finance costs are wiping away all the operating income. The business could easily make a loss in this Q1

Yes, what you said is largely true.
They just need to raise some equity funds to eliminate or significantly reduce the finance costs.

The main factor attracting investors is the quantum of Oando's crude oil reserves, over 1 billion barrels.
Even at 50% recoverability and conservative estimates of USD50 per barrel and N1500/$, that should give N37.5 trillion naira which is in far excess of their liabilities and operating costs over the foreseeable future.
Hence, in the worst-case scenario, even if Oando should go under today and is to be acquired by another company today, the value per share cannot be less than N1000!

But I am not sure if oil companies are allowed to revalue their reserves and recognize the revised values in their books

Makanjuola89:
oando is carrying me to where I no know o. wahala wa o

Why are you worried or in a hurry?
Your handle says it all ''Ma kanju ola'! Dont be in a worry or hurry for wealth/riches.
Leave Wale and his tricks to God

mikeapollo:
Any news or hints about Wale or Oando?
I thought people appreciated Wale's gesture of redistributing the shares to all shareholders. Another tranche is due on Jun 30th.

I have no news about the company. I am ordinary investor hoping for a turn around in that company. I think he wants to mop up the shares at a cheaper rate without considering that the company has not paid dividends for the past 10 years.

mikeapollo:
Why are you worried or in a hurry?
Your handle says it all ''Ma kanju ola'! Dont be in a worry or hurry for wealth/riches.
Leave Wale and his tricks to God

Leave wale with his/her money ke for this economy, makanjuola may have to kanju oooo, ijafara may lewu oooo, wale bad pass you you all oooo..
If you don't understand Yoruba na oyo ooo..

heeeeeeee my father, come and see men and ladies of honour doing justice to issues here while some are crying ebi npa wa out there.

Please i need your help ooooo, who is going to teach me or which guru here i can always be following his/her advice, yes i know that DD is required but at least that will give me a good direction on where to start from. thank you. I will really appreciate.

oh yes, i have been reading the pages, but kai, they are much o. I believe as I am reading the pages, I can also be coming up gradually with advice from the gurus here. Thank you in advance.

thebargainhunte:
I have no news about the company. I am ordinary investor hoping for a turn around in that company. I think he wants to mop up the shares at a cheaper rate without considering that the company has not paid dividends for the past 10 years.

We should just hope for good results for Q1 2025, otherwise, the price could hit below N50.

mikeapollo:
We should just hope for good results for Q1 2025, otherwise, the price Could hit below N50.

when the redistributed shares start to show, you might get it at sub #50 or below.

thebargainhunte:
when the redistributed shares start to show, you might get it at sub #50 or below.

That is true ooo, but anything around N50 will be mopped up immediately!

mikeapollo:
That is true ooo, but anything around N50 will be mopped up immediately!

Except he comes up with a good news then. Imagine where the second batch of the share redistribution would send the price to. This is a calculated move by him, he wants all the shares to himself.

mikeapollo:
We should just hope for good results for Q1 2025, otherwise, the price could hit below N50.

Panic retailers selling.....
More opportunities to load in my opinion.

Someone said the remaining shares for distribution might ikely not come as bonus again after June qualification.
It may come as dividend instead.......

I still see this selloff as opportunity to load more, for those who still have spare funds.......and of course, bargainers are loading.
The quantities on offer aren't that much.

I still don't see how OANDO and ETERNA will be trading at similar or closer value...

yMcy56:
Panic retailers selling.....
More opportunities to load in my opinion.

Someone said the remaining shares for distribution might ikely not come as bonus again after June qualification.
It may come as dividend instead.......

I still see this selloff as opportunity to load more, for those who still have spare funds.......and of course, bargainers are loading.
The quantities on offer aren't that much.

I still don't see how OANDO and ETERNA will be trading at similar or closer value...

It will, if he doesn't create that trust. People are seeing Oando as a ponzi scheme.

thebargainhunte:
It will, if he doesn't create that trust. People are seeing Oando as a ponzi scheme.

Leave OANDO since you didn't buy.
I've seen your posts that you were quick to be posting when it's shedding....
I hope you'll be here to make counter posts once it reverses up.....
Maybe it's you that's seeing OANDO, AGIP as Ponzi scheme, I wouldn't know.

I laugh at the bolded, "some"? Have you seen the level of borrowing on the balance sheet? Its not just some they need o
The debt load was about 2.76 trillion and finance cost was N232 billion last year. If they want to reduce their debt by 50% they'd need to raise 1.4 trillion

mikeapollo:
Yes, what you said is largely true.
They just need to raise [b]some equity funds [/b]to eliminate or significantly reduce the finance costs.

The main factor attracting investors is the quantum of Oando's crude oil reserves, over 1 billion barrels.
Even at 50% recoverability and conservative estimates of USD50 per barrel and N1500/$, that should give N37.5 trillion naira which is in far excess of their liabilities and operating costs over the foreseeable future.
Hence, in the worst-case scenario, even if Oando should go under today and is to be acquired by another company today, the value per share cannot be less than N1000!

But I am not sure if oil companies are allowed to revalue their reserves and recognize the revised values in their books

Coolcash1:
NS means Nascon.

If you know you know.

I am seeing NASCON

But seriously, if the share redistribution can easily be changed to cash "dividend", then can we say that the possibility of its being canceled all together cannot be ruled out? I think we should just take things as they come. Three years is a long time.

yMcy56:
Panic retailers selling.....
More opportunities to load in my opinion.

Someone said the remaining shares for distribution might ikely not come as bonus again after June qualification.
It may come as dividend instead.......

I still see this selloff as opportunity to load more, for those who still have spare funds.......and of course, bargainers are loading.
The quantities on offer aren't that much.

I still don't see how OANDO and ETERNA will be trading at similar or closer value...

Sunrisepebble:
I laugh at the bolded, "some"? Have you seen the level of borrowing on the balance sheet? Its not just some they need o
The debt load was about 2.76 trillion and finance cost was N232 billion last year. If they want to reduce their debt by 50% they'd need to raise 1.4 trillion

Lol! I know they need huge equity injection. But who knows, they may have other plans
You can imagine the kind of profits that Oando would declare if the current huge Finance costs are reduced to barest minimum, all things being equal!

yMcy56:
Leave OANDO since you didn't buy.
I've seen your posts that you were quick to be posting when it's shedding....
I hope you'll be here to make counter posts once it reverses up.....
Maybe it's you that's seeing OANDO, AGIP as Ponzi scheme, I wouldn't know.

I pray that the shareholders will benefit in all these. I don't wish the company bad, I really want it to succeed like others. I will also praise the same company when things start going on well.

sterlingD:
I am seeing NASCON

Sold Nason last week at 40 bought DS at 36, will see how it goes.

ojeysky:
Sold Nason last week at 40 bought DS at 36, will see how it goes.

DS result might land next week and I am not anticipating a good one.

Raider76:
But seriously, if the share redistribution can easily be changed to cash "dividend", then can we say that the possibility of its being canceled all together cannot be ruled out? I think we should just take things as they come. Three years is a long time.

How would you expect Oando, a cash starved company that needs cash badly, to now declare cash dividend to shareholders in lieu of free shares that had been relinquished to the company and lying idle?
The share redistribution cannot be cancelled because it has been approved at AGM and sanctioned by the SEC., hence it is legally binding on Oando to oblige.
Truth is, this serves as a form of ''bonus'' or reward to loyal shareholders, and also relieves Oando of the pressure to pay cash dividend over the next 2 years when the company is in huge debt and needs all the cash for its operations.

There is something pushing sugar either the news about merger is somewhere or there is an improved result somewhere.

We watch in 5D but I pray a bad results is released, I want it at sub 32-33.

thebargainhunte:
DS result might land next week and I am not anticipating a good one.

Based on the volume of trade, there might be an improvement in their result.

Heishere:
Based on the volume of trade, there might be an improvement in their result.

Definitely, average volume for the past two weeks is 2m, the market isn't stupid.

Also looking at buafood results, there is higher chances that there is an improved result as buafood record 72% return in sugar segment.

thebargainhunte:
Wale really wants to punish some people. Una go chop share redistribution at sub #40

Wale no do anybody.

Wale is running Oando with his God-given sense and you should be running your pfolio with yours.

I forfeited tranche 1 and sold off my Oando on 6th Feb at 71.50.
This was to dodge the stampede out of Oando that I knew would ensue after qualification date.

When tranche 2 comes we shall know how to play that one.

yMcy56:
.....

I still don't see how OANDO and ETERNA will be trading at similar or closer value...

Both are united in losses at the moment

zendi:
Wale no do anybody.

Wale is running Oando with his God-given sense and you should be running your pfolio with yours.
I forfeited tranche 1 and sold off my Oando on 6th Feb at 71.50.
This was to dodge the stampede out of Oando that I knew would ensue after qualification date.

When tranche 2 comes we shall know how to play that one.

Good, clever move.
I did not sell, but waited to benefit from tranche 1 because I will be getting close to a million shares from the redistribution!

Nigeria has been officially confirmed by opec to have met her approved production. Though the government claims they are doing beyond that and the budget is based on over 2M barrel for 2025.The government has target of 4 M by 20230.
And street sense does not tell you oando will beat many stocks here in appreciation in future.
God give me money to be increasing my afolabi units. Who are the guys increasing this oil production maybe na farmers into the business...lol.

Just checked Market for today and surprised sugar is above #40. We wait to see what is coming soon

Makanjuola89:
oando is carrying me to where I no know o. wahala wa o

Well, depending on your risk appetite, you dey just a click away to carry urself out and go where you know Oo OR you try learn the new direction/destination as eee day carry you go where you no-know

eee no easy

Streetinvestor2:
Nigeria has been officially confirmed by opec to have met her approved production. Though the government claims they are doing beyond that and the budget is based on over 2M barrel for 2025.The government has target of 4 M by 20230.
Any street sense does not tell you oando will beat many stocks here in appreciation in future.
God give me money to be increasing my afolabi units. Who are the guys increasing this oil production maybe na farmers into the business...lol

ProphetUtuocha:

A ''Prophet'' is to speak! We are all ears.
Say something!
This your smile get as e be!

mikeapollo:
Good, clever move.
I did not sell, but waited to benefit from tranche 1 because I will be getting close to a million shares from the redistribution!

Your own is director-dealing.

You should be cheering the Tinubu name on this forum and not disparaging it as you often do.

And I'm an Igbo man.