₦airaland Forum

Something must be up. MRS gained 36% this week, and is the best performing stock of the week.

Sunrisepebble:
I thought they were delisting and moving to NASD? I’ve seen it moving up this last week perhaps they’ve changed their minds

Please is MRS still delisting? The following news report may indicate that MRS will be expanded into the DR's retail arm. They are reporting that there is a "cooperation" between DR and MRS which allows MRS to sell at lower prices. That will be massive if MRS remains listed.

https://nairametrics.com/2024/12/21/mrs-slashes-pump-price-to-n935-while-nnpc-outlets-sell-above-n1000/

chimex38:
They have rebuffed it in Episode 25
Check the trailer

That is why, especially for traders, you have to deal in sound stocks, or use very little amount of capital. Imagine if you had put 80% of your capital in Unity Bank just before the suspension. The unfortunate thing is that no body is giving out any info on what is happening, or what is going to happen, and when.

essentialone1:
We need to appreciate the Patience of all the Shareholders of Mutual Benefit Assurance Plc, and Unity Bank Plc. How have you people been coping?

Same way, that some people keep erroneously saying Transcorp gained 400%

Streetinvestor2:
Are you sure ucap is suppose to be on this list

If you really want to sell you have to offer it at -10% @324. Make the offer to remain renewable daily for about 3 wks.

Ginalex:
I put that price from the first day it touched 359, my trades never got executed o

I finally sold out at #324, with some profit but huge opportunity cost loss. The money is already working elsewhere.

Ginalex:
See ehn, it's the way I jumped in with significant portion of my portfolio. I've been made a long term investor against my will on top Transpower

Ahh! You mean you made 9 figure profit, and you didn't sell? That's the power of greed oo.

Streetinvestor2:
You are perfectly in order.In this business,you win some and lose some.Just try to win more is the way to be successful in the business. I have not sold my alhaji but missed 9 figure gain when it hit #80. It is so painful this yr

That Transpower is a killer. Just praying that those left in it get compensated when the big Ogas there finally decide to move the price up.

Ginalex:
make I follow your footsteps. I can't make Transpower mistake twice

That is why I think, for someone actively following the stock market and doing occasional buying and selling, like many of us here, one should not buy a stock and then keep it for 5 years just taking dividend. You should actively trade it, selling during occasional peaks and buying at lows. In the end the power of compounding will give you much higher returns. You may also avoid the long down trends like the one of Dangsugar.

DrAwo:
Remember that some people bought fundamentally sound dangote sugar at N80... They are crying today...

Sensible portfolio construction and adequate risk management are key to surviving in this market...

Predictable bonds are still very key in building a healthy portfolio and must not be ignored.

#Selah

Did you read the post? In my opinion, it is the redistribution to shareholders by cash and not by shares that is complicated. Anyway, let's see what the Board of Oando does. But I will be surprised if they opt to pay cash.

HesInMe:
Are we talking about the same thing? Cash is cash. No long story about repaying a debt owed to Oando in cash. It's the repayment by share distribution that is complicated.

How long do you think it will take to get an agreement on the price per share to pay? Will that require a meeting of the shareholders? You realize that they have to then disclose how much per share the debtor is paying. Will the shareholders now be given chance to accept or reject that price? How much administrative costs should be deducted? Where will the money come from? Who owns the shares after cash payment?

You see, all these questions, in my opinion, make the cash payment impractical.

HesInMe:
Huh? The cash is $325 million, whether the share price is N10 or N10,000.

Dis kain one chance. I'll take the cash any day.

mikeapollo:
I think Oando is already an Exploration and Production (E&P) company. That is why they have OPL and OML licenses.
The companies they acquired (Conoco Phillips and ENI/NAOC) were big time E&P companies.

The new oil blocks were won by some companies that are even smaller than Oando.

Virtually all the upstream companies are into E&P, although they may be doing partnerships or joint explorations with other major companies in order to minimize their risks and costs

💯

Oando will not go into exploration, which is costly and risky. They prefer buying ready made assets, or buying cheap government assets.

mikeapollo:
Thank God Oando was not listed among them! The noise would have been..............!

I think to say "massive sell-off " is an over exaggeration.

But for me, I think the way they drafted the AGM decision on the share redistribution in the Corporate Action announcement yesterday generated some uncertainties. As a result people don't know whether to buy, sell or hold.

Hopely, they will follow quickly with clearer statement of how it will be implemented, giving clear dates and share allocation ratios.

designking:
I swear... Wale run AGM, investors hit am with massive selloff.

Many felt investors didn't interprete the messages from the AGM properly but the truth is that investors are indifferent about this Oando. They are not just interested at the moment.

Even with the great ENI AGIP assets they acquired, they can't still raise the company from it ashes. The management team at Oando are politicians.

Aradel share price was seriously hit after listing on the NGX but they never ran to the media to weep up sentiment to sure up their share price. They maintained their cool and focused on growing their brand and today, they are back on winning ways.

megawealth01:
At least we will be aware of the true price value

💯

Don't forget NNPCL belongs to the government. They can slash theirs by 50% and it will not affect their personal pockets, as it is government's money. Dangote cannot win a price war with them.

We the consumers will be the winners though. In fact, I believe the coming of DR has already helped us. Without it fuel could be selling for over #1,500 by now, if we are left with only NNPCL and the import cabals. And definitely, whatever work the PHR is doing now will not be there without the DR coming on stream.

mikeapollo:
Good.
Alhaji may spoil market for NNPCL and make them go bankrupt if they don't stop their attacks on his refinery.

I think Oando carries a huge political risk.

Streetinvestor2:
I see greater opportunities in oando if the management decides to be sincere and act properly with all they have as assets with time

If wale had managed the filing station alone well.it would have been competing in price presently
with arade...just an example .I know he has sold that .Mr time will decide from next yr results.

What will you say if ph refinery is handed over to wale as per politics after any fake bidding. Anything is possible in naija politics.Do you think if government truely want to let go of ph refinery management. It will be outsiders. Of all these oil and gas companies in naija presently who do you think stands at highest preferably contender if not Oando.....na my street assumptions I dey talk.

It is sad that a government is fighting it's best businessman.

chimex38:
DR no dey waste time to rebuff any statement of political gimmick

Aradel

So you want to reap where you didn't sow. If you missed the opportunity just move on.

GeeKudi:
I would even prefer they delay the announcement of the new qualification date so that these impatient investors can bring down the price for those who know the true value of what is coming to load more.

Ok. So one is bonus and the other share redistribution. But the point being discussed is only one regarding the likely effect on SP when minority shareholders are suddenly given. what appears to be free shares, which they may dump on the market. This is the same in both cases.

megawealth01:
Abeg no compare the two for now... Na different situation jare

I am glad that no cash payments will be contemplated, because I can imagine all sorts of complications.

mikeapollo:
You don't have to worry about the clause ''shares or cash equivalent''. That is a standard clause or language that is used when communicating this kind of resolution. Every company uses the same clause when they want to distribute bonus shares. Cash payments can only be for dividends.
Oando does not even have the cash to pay right now and they specifically stated ''shares redistribution'' in the notice of AGM and it was confirmed and passed at the AGM. So no cash payment at all.

I think the dates will be announced soonest.

But paying in installments doubles the cost and wahala of doing this. Those that want to sell will always sell. Just recently UCAP did it, and there wasn't any sustained rush to sell. I think these amendments were the wish of the management.

GeeKudi:
That clause was actually from the shareholders at the AGM. The popular opinion for adopting it was to prevent the flooding of the market with excess shares without notice.

Without that clause, OANDO would have been trading at #50 this morning.

Yes. This "shares or cash equivalent " and "dates to be determined from time to time" get ebi oo.

mikeapollo:
It seems the qualification date has not been fixed yet, going by Oando's ''Corporate Actions'' publication dated today 18-Dec-2024

Peace, my Oga.

HesInMe:
I made the comment. I was responding to the comments others made about the potential issuance of a "bonus," which turned out to be misleading. The official plan has now been clarified (@ositadima1 posted a detailed transcript). No harm intended. I be Oando shareholder o.

It's the qualification date that is the koko. If it had already passed yesterday, no rally.

mikeapollo:
Don't expect any huge response from the market.
The new developments in Oando would only reflect in the market price after some time. It will not be immediate.
The normal price fluctuations will happen but those who appreciate the new developments will key in for long term benefits. The market usually sheds price during Dec/Jan window

Thanks Sis. I new that the bonus isn't going to cause any dilution as no new shares will be created. Just wanted to pin the guy who made the post saying it is "dilutive". Some people like making careless and emotional statements that lead others to lose money.

yMcy56:
* Nothing like share dilution.
* No new shares created.
* Bonus is still from existing Outstanding Shares
It's more like a trade by barter......."You owe me money, you don't have means of paying, then opted to pay me with what you have (Shares), I agreed to collect and let the matter slide; then I decided to distribute the shares to my loyalists" 😊

That's my understanding of it.

I think investors should start treating OANDO like an investment henceforth, just like Street said.
It's a new dawn for OANDO!
Buy and keep for better price appreciation (or possible future dividends) in near/future terms.
Ire o. 😊

https://doclib.ngxgroup.com/Financial_NewsDocs/42714_OANDO_PLC-OANDO_PLC__CORPORATE_ACTIONS_DECEMBER_2024.pdf

Please what exactly do you mean by these bonus shares being DILUTIVE?

HesInMe:
Win-win ke? If I owe you $1 million, and instead I offer to pay you either a) $1 million in cash, or b) $1 million equivalent in Oando shares at today's valuation (as bonus shares, which are dilutive) which option would you choose?

How is this even legal?

Since these are not new shares created, I believe there should be no dilution, and no price adjustment?

Sunrisepebble:
I was just about to confirm. Yes, It’s 1 for 2, heard from a broker friend of mine

In fact, there is practically no country like in Nigeria where even the government collects payment for domestic services in $, the citizens can freely buy foreign currency in the street and put it in their bank accounts, and the central bank feeds the black market.

Agbalowomeri:
They get paid the naira equivalent. I really don't know whether any country exist that operates a dom account system for foreign currencies?

Dom accounts are an anomaly sincerely