₦airaland Forum

@4Wheel

I am no expert but all the technical indicators seem to indicate a downturn in the price of Eterna Oil at the moment.
You need to keep a close eye on it and buy when it levels off or bottoms out.

I have no doubt Fola Adeola will be interested in doing an AP with Eterna Oil but you need to keep your ears very close to the ground and shine your eyes - to use Nairaland language, for the earliest signs and buy. When this happens the technical and fundamental analyses won't matter.

AKTopgun over to you.

Samstone4

@Nairalanders

Don't see myself buying any of the AP offer or rights.
The astronomical rise in its price in the last 2 months really stretches it!!
What is the development in the Petroleum marketing sector to warrant the sudden high rating?

I have booked a place on the Acorn train as my entry into that sector at a much cheaper price and with much greater scope for growth.

I know Acorn was rubbished here but my contact with the company has led me to give them the benefit of doubt on some of their forecast.

Acorn pp was closed down prematurely due to oversubscription and I had to use very long legs just to get my application in. Did hedge my bet a little due to the sentiment at Nairaland by buying less than I was inclined to originally.

Will await the AP prospectus and see their forecast - how realistic will it be?

Samstone4

@MyPeace.

Condolences on the loss of your sister.
May her soul rest in peace.

Sorry can't advise about the registrars names but think somebody already gave you that for Dangote Flour .

The best strategy is probably to be patient and hope the warrants are sent to her last known address. If this is done, I am sure her husband can find a way to encash.

Otherwise things will have to be done by the book. The letter of administration for the estate will have to be sorted out before her husband or heir can go to the registrars for the companies to collect.

Goodluck.

Samstone4

@Nairalanders

Here's the latest from Proshare:

"The Nigerian Stock Exchange has today placed the price of African Petroleum Plc on technical suspension following the receipt of an application for offer for subscription of 199,070,721 units at N250 per share and rights issue of 262,929,279 units at N230 per share."

Explains the extraordinary rise in the price of AP. Talk about price manipulation!

Samstone4

@Nairalanders

Breaking news Re: Transcorp

Here's the latest culled from This Day newspaper:

"Contrary to the earlier claim  that the sale of  the Nigerian Telecommunication Limited (NITEL) had been reversed, only the ownership structure has changed , with Transnational Corporation (Transcorp)Plc, made to shed 41 per cent of its holding.
Confirming this yesterday in Abuja during a question and answer session after receiving the management of Suburban Telecoms, Minister of Information and Communication, Mr. John Odey disclosed that rather than an outright revocation, the configuration of the shareholding was only altered."

This agrees with my source as fellow Nairalanders were duly informed. He has never failed me with the latest on Transcorp.
As a shareholder I am quite content with this arrangement provided there is adequate compensation for the the rest 41%. Would have preferred the stake was more like 20-25%.

This should cheer some of us up this morning.

Now for the changes at the top.

Don't forget "Samstone4 for Chairman Transcorp"

Samstone4

@Iyke-D

Where did you get the information that Andy Uba is back as Anambra governor?

Samstone4

@SDeck, Loma, Yodi, NBA etc

I think it is very telling that Hannity on Fox news channel a few days ago asked Republicans in Texas to do their duty by voting for Obama on March 4th.

This suggests what I have always suspected that a lot of "independents" and Republicans are voting for Obama in the hope that he will be easier for McCain to defeat. Having said that I have a very cynical America based Nigerian friend who is convinced Obama is the real deal and thinks he has very good chance.

For those who don't know, Hannity is the right wing presenter on Hannity and Colne.

Samstone4

@Beginner

The 1% is just for your brokers.
There are also SEC fees and some others. Don't have them at hand. It wil usually some to about 4 to 5% in total for buy and sell. For me it is 1.83% for buy and 2.12% for sells
Hope of some help albeit not detailed.

Samstone4

@Nairalanders

Hear that Transcorp now to seek refund of money paid for Nitel from government. That should be no biggie.

What will be better is for Transcorp to keep a stake in Nitel and get refund for the rest, as is likely. This way everybody is satisfied - WE THE OWNERS OF TRANSCORP, the anti-Obasanjo enemies of Transcorp, the unions etc.

My main concern is that the leadership of Transcorp is so hopelessly compromised that they cannot play hardball with the government.

Those who sold their shares in the company prematurely after urging the public to buy at 7.50N should not continue at the helm.

Vote for Samstone4 for Transcorp board. I will represent the interest of the talakawas. The revolution has begun.

Samstone4

@Napolean, Wanajo, Nairalanders

I think it is very likely that there will be an amicable resolution of the Nitel issue.

Beyond the headlines, what seems to be happening is that Transcorp will retain about 10-15% of Nitel while the Government will also reduce their share to probably about 25%. This has always been the likely outcome except that transcorp wanted to retain control and then was to get about 25%.

The government will be stupid to maintain that it has reversed the whole sale as no company will buy for other than a giveaway price knowing that Transcorp will sue and will be very likely to win the case! I don't think Yaradua is a stupid man.

I think what is going on is a battle for who controls the sale and an attempt to placate the stakeholders who have clamoured for Nitel to be taken back.

Happy days are round the corner for those of us still there.

Samstone4

@ Obalende

Technical suspension is usually of unspecified duration.

If for the purposes of going to the market for public offer it is usually lifted sometime after the offer closes.

If for any other reason it is lifted when the reason for it no longer exists.

Trading in the shares can continue at the price at suspension unless it is a FULL suspension in which case trading in the shares is banned completely until lifted.

Samstone4

@ Obalende

Technical suspension is usually of unspecified duration.

If for the purposes of going to the market for public offer it is usually lifted sometime after the offer closes.

If for any other reason it is lifted when the reason for it no longer exists.

Trading in the shares can continue at the price at suspension unless it is a FULL suspension in which case trading in the shares is banned completely until lifted.

Samstone4

@Napolean

As you're online now can you please comment on what is going on at Transcorp?
The recent bull run and the sudden development with Nitel, although some of us were aware that Transcorp will be left with 10-15% of Nitel. The minister's interview with Reuters seems to confirm this figure.

Is the government dancing to the gallery by the pronouncement?
Is there a Northern agenda, as it is perceived that transcorp is a southern company? I know some of the activities of the Transcorp leadership we hear have been very unethical.

What's your take?

Samstone4

@Wanajo

Thank you.
Please give me some idea how long the verification takes.
Mine usually takes many months with FSDH.
What is your experience.
Do not want to complain if it is everybody's experience.

Samtone4

@Windy, Wendy

How goes the gale today?

I note that FSDH Securities are you brokers.

Please tell me roughly how long it takes them to verify your certificates and have them on CSCS. This has been an area of dissatisfaction for me.

Samstone4

@Nairalanders

Transcorp placed on technical suspension.

What a surprise!

Promotion beat me to it by 32 seconds!!

Samstone4

@Iyke-D, Nairalanders

The link you provided to Reuters cover of Transcorp/Nitel story confirms my original information that Transcorp will retain about 15% stake in Nitel. I suspect that this is the correct position and not the headlined "Reversal" touted.

Let's see what tomorrow brings. Yaradua's "due process" etc

Samstone4

@Nairalanders

Government's reversal of Nitel sale to transcorp is contrary to my recent information. This was that Transcorp will be left with about 15% with the new buyer owning the rest and some shares from government's holding. This would have been a good thing provided the right amount was paid for it.

It may yet be good for the shareholders if the correct sum is refunded to Transcorp swiftly enabling the deployment of the funds in other areas.

It is an embarrassment that a project touted as "100% Nigerian" has failed in this banner venture.

We will now have to wait to see how the moneybags who invested at 1N per 1N share react on the NSE. We will know tomorrow.

Monsieur Napolean, comments please.

Samstone4

@Nairalanders

Latest from Mr Transcorp:

Some of the bones of contention on the board include:

1] Original investors selling more shares bought at 1N per IN share than the agreed proportion. The restriction was to have been in place for 2 years after listing on the exchange but the greed took over and "peeps" - to use a Nairalander word, started selling their loot and selling us "Talakawas" - the ordinary shareholders, down the Mississippi.

2] The renumeration of some of the senior employees and consultants were deemed excessive especially as no published record of profits!

Ironically, these items and the fall out may actually explain the recent recovery of the shares on the NSE and may indeed signal a buy. My reason, the greedy founders who were flouting the agreement not to sell can no longer do so with impunity and may be forced to take steps to retrieve the share price and placate us masses.

If my analysis is correct you will see continued surge in Transcorp price.
Else we the mob are going to "storm le Bastille", as mon ami, le Monsieur Rogue Trader - currently in a padded cell and dreaming of marrying Carla Bruni - will say.

Bon Chance

Samstone4

@Nairalanders

Once more with feeling - like James Brown or somebody like him used to say - "does anybody have information about Japaul allotment of additional rights?"

Has anybody confirmed the "story" about conversion of returned money to equity via private placement?

Does anybody care? Is anybody there?

Samstone4

@Napolean

Do you have the lowdown on the developments at Transcorp?

Samstone4

@Krrush

Forced to resign one day. Force yourself back next day.
You never know.

Must warn I don't know what is going on in details right now.

Samstone4

@Krrush

Thought the impetus for the rise in Transcorp was the imminent resolution of Nitel problem even if it is the sale at a good price. This development is just another possible explanation, if the moneybags are fighting for control of the company.

We heard that the initial astronomical rise in AP was due to Otedola and some others trying to gain the upper hand by acquiring as many as possible shares on the floor of NSE. With any luck something like that could happen at Transcorp to the benefit of the Talakawas (Hoi Poloi) - the masses - like us.

No guarantee though just a wish and a speculation. If I get any serious indication that might be the case will get back.

Samstone4

@Nairalanders

Breaking news!

The transcorp wahala I mentioned in an earlier posting is public.
Odimegwu has resigned from the board and Ja'afaru due to resign as well as the company secretary.

Don't know if this has anything to do with the present daily maximum gain of transcorp on the NSE.
Hope it does another AP during their fight for supremacy and flies beyond expectation and other rationale.

Will try to get the full gist from my contact and get back.

Happy hunting.

Samstone4

@M.Rogue Trader

Je suis tres bien. Merci.

Great to hear you're back in your familiar environment of a secure padded cell, as long as they allow you to write your usual contributions. S'il vous plais.

I'm sure AKTopgun will ensure you get the proper medication.

I see your hedge funds have been unleashed on the NSE during your short bail release. Hence the quick reverse of the Elephant bull run. Not so? - as my French teacher used to say.

Au revoir mon ami.

Samstone4

@Temmie

Not very savvy at this link thing.
It's on the guardian newspaper's site:

www.guardiannewsnigeria.com

Try it.

Samstone4

@Nairalanders


This breaking news:

SEC probes six firms over alleged shady deals
The Securities and Exchange Commission (SEC) has begun investigations into the activities of six companies over allegations of price manipulation and other sharp practices aimed at ripping-off investors. The Commission, in a statement on Thursday signed by Lanre Oloyi of its corporate affairs department, gave the names as African Petroleum Plc (AP); Big Treat Plc; Afroil Plc First Aluminum Plc; Capital Oil Plc; and IPWA Plc. SEC vowed to deal decisively with any operator found culpable of price manipulation or insider dealing. It reminded all operators that insider dealing was a criminal offence in the capital market and urged them to always operate within the confines of the rules to ensure transparency and integrity of the market.[color=#990000]

Some of our favourite stocks here in Nairaland are affected. Trust my BT will weather the storm.

@Wanajo, K2, All

Not disagreeing with Napolean.
Just stressing the need to have inside track with private placements and not jump into just any ole one.

He certainly sounds convincing as a persn who really admires what we are doing here at Nairaland and wishes to help us along by advising that not all is as seems in stocks and shares.

What he says will be very useful to many.
It is certainly entertaining - like that Monsieur Rogue Trader currently out on bail and could be anywhere. Wonder where Monsieur is now.

Samstone4

@ FO2, Nairalanders

Time for me to interprete for FO2. Again!

Me thinks, as we say in Brixton, he refers to Napolean having more than one name and personality on this site.

FO2 please confirm solution to this riddle.

Samstone4

@Nairalanders

Don't get blown away completely by what Napolean is saying - kind and truthful they may be.

Private placements are good but do bear in mind that they are not as well scrutinised by the authorities as IPOs so the risks are that much higher.

Some of us are aware of how long since IGI started their PP - 2006 - they have promised to list this year. Some don't intend to list and don't promise to do so you will have the problem of liquidity.

Also there are now monies being returned regularly.

If you have a strong contact in the issuing house or the company doing the placement it can be a "sure banker". You must have money to tie down for many months or years.

Having read the latest write up, he does seem very sympathetic and here to help but bear in mind my points.

Re: Japaul.Any info on the additional rights allotment?
Samstone4

@Crazy T

I suspect Transcorp has convinced government of the need for it to divest 25% of its (i.e government's) stake to enable transcorp get a technical partner to run Nitel.

Transcorp's previous insistence was   that Transcorp will still control the company although not certain if this remains the case. This was a contentious point with Vodacom.

You can imagine a situation where a minority investor, the government, was controlling Nitel with more directors on the board. Government was calling the shots but wanted transcorp to put up the money!

Even if transcorp loses control it may still be positive news if the new investor pays a good price for their stake and are competent. This will however detract from my main reason for investing in Transcorp: "100% Nigerian" and a world beater that has the wherewithal to take on the multinationals.

Samstone4

@Goldenson, Wanajo, etc

Seems Japaul PO allotment is in today's Punch.

Roughly:

50,000 and less will get full allotment

50,001 to 200,000 get 19.24%

200,001 to 500,000 get 5.5%

500,001 to 1,000,000 get 2.2%

etc.

I assume it will be on an escalatory scale. Thus if you apply for, say, 270,000 you should get:

50,000 + 19.24% of 150,000 + 5.5% of 70,000.
This is my assumption.

Samstone4

@Otunba Wanajo

Please post more details on Japaul allotments, including additional rights - if you have the info.

Thanks.

Samstone4