₦airaland Forum

easimoni:
@diva4eva, Look on the other thread for a response, my wrist is starting to ache!

@Wanaj0, thanks a mil for your Oando advice. I was about to bury a ton of money in that stock. I googled them based on your post and lo and behold! There is some info on the Johannesburg stock exchange that Oando is going to list 200M additional shares to exchange with Ocean and Oil. Granted they'll get some equity in other Ocean and Oil subsidiaries (which should add to Oando's bottom line), but them suppose tell us self. I still think it's a buy, but not a home-run like I thought a few days back. I owe you one.

Now my wrist really hurts!  

Ocean and Oil has no subsidiary per se. However, they own shares in the subsidiaries of OandO group. The exercise is basically to buy out the holdings of the other shareholders in teh subsidiaries and now have a group structure. Implication is that the percentage holding of Ocean and Oil in Oando will increase!!!!!! What an easy way to make money! I doubt whether Ocean and Oil actually paid to own the shares in the Oando subsidiaries. Basically Tinubu and his group are given themself BONUS shares!!!

Note that the additional shares will depress earnings so OandO will not be that fanstatic!

Personally, Oil marketing companies are not a good buy until there is FULL deregulation. OandO is well positioned for growth under a deregulated environment provided they can sort out corporate governance issues.

This article may help:

http://www.businessdayonline.com/?c=132&a=13784

moneybags:
This is quite enlightening. Since the merger was discussed and agreed with the Board, and a significant portion of the shares outstanding is owned by the Board (mainly Atedo Peterside) don't you think that Standard bank will be able to get up to 51% if shareholders like Peterside agree to sell? I'll be amazed if the merger doesn't go through, or what do you think?

It is about control. Peterside will not want to lose total control. Hence they will be expecting fringe shareholders to sell. That's why they are offering 11.74 or thereabout for a share that is 11.00. What's the incentive to sell for a gain of less than 1.00?

I see them trying to cajole others (especially Chartered Bank shareholders) to sell their stake to Standard Bank.

joshO:
On the Oceanic IPO, I won't hold my breath on Oceanic share certificates coming out anytime soon if the way they've handled the recent 1 for 4 bonus issue is anything to go by!

The 1 for 4 issue was announced in January, 6 months later, they are yet to pay that or the dividends . Or I'm I missing something?

Oceanic dividend already paid.

Certficates always take a long time. Even with teh e-bonus by First Bank, CSCS accounts were not credited until about 6 months down the line!

crazyT:
I noticed for the first time (this year) that Afroil dropped, I guess it's high time to check out? I bought it for 0.42 and it's some shade off #9 (about 2000%) abi wetin una say

Good try and sell some if not all and see what happens. I hope you bought up to 1million units there

easimoni:
If anything, Oando's profit margins seems to be increasing! I'd really like to know how/when new Oando shares will be issued. Can't seem to find any news to that effect. A response will be greatly appreciated (I just placed an order for a boatload of shares).

Afribank is in no man's land. They have been too busy fighting off a takeover to launch their PO. They will remain suspended until they finish the PO or indicate they will no longer pursue a PO. If they choose the first route, expect a lift no earlier than 4Q07.

IBTC will prob be lifted after the merger with Stanbic

IBTC merger is not that straightforward. It will only go ahead if Standard Bank is able to have 51% of the shares. IBTC directly will issue about 30% while the balance will be bought from shareholders. If shareholders refuse to sell to Standard bank at 11.74 then the merger will be suspended.

On Oando, new shares are going to be issued to Ocean and Oil. Ocean and Oil is the investment vehicle that Tinubu and his group use to acquire Unipetrol. There is also a mangement agreement that exists between Oando and Ocean and Oil. Tinubu and co are using Ocean and Oil to fleece Oando.

There is already a court ordered meeting to approve of that resolution.

Yes, Oando's margin is good. But without full deregulation don't expect much increase. With corporate gorvernace issues then the risk incraeses.

Just my two cents

stanchuks:
wannajo are you now telling me to leave it or sell it for now.because i see it being traded upon in the market

If you see a bigger FOOL that is willing to buy at market price, sell fast. I however doubt that. You may just have to hold on! Access above 12.00 to me is expensive.

Yes you see trades on the floor but they are mainly cross deals. Most are done below the market price!!!!!!!!!! That's part of the imperfections. Sometimes what you see is actually people merging their accounts together. That is people consolidating their holdings! No real trade. That's why your broker was unable to sell.

PapaBrowne:
Best performing stocks would depend on if you are a long term or short term investor.
For me, long term investmesnts are ok, but cannot be compared in anyway with day trading.

Peeps, you guys sound like you are so scared of risk.Only risk takers make big bucks.
I wouldn't buy most of the bank shares mentioned here. Zenith appreciated about 250% in over 2years.That don't sound like the best investment to me, except for big players buying in multiple millions.

Penny stocks actually perform much greater.
Look at these:
February 19th 2007 PERIOD June 05 2007 % Increase
Afroil: 0.42 8.75 2080%
Costain: 2:12 21.90 1033%
Livestock feeds: 0.96 7.45 776%


All these results are in a period of 4 months . Compare to banking or any other major stocks.

Zenith 32.90 59.03 Less than 100%( although with good potentials)
First Bank 41.90 40.40 Negative
GTB 27.16 31.00 Barely 10%
PHB 5.43 27.69 The only great performer

My advice:
Observe the markets PROPERLY and look beyond Banking!!

NB
The percentage calculations are not perfect but are close.

Well you don't make money until you sell. Most of the highlighted stocks are difficult to buy, when you get them you will likely buy small volumes and when it is start to sell, you may have problems due to teh level of liquidity.

During a BULL market, even the foolish investor is making money. However, when you have a BEAR market, you need to be savvy so as not to go under. Most people assume that the Bull market will be on forever. That is not so! Just wait until you start to have corrections.

While penny stocks are good, go for penny stocks that are doing something, have a niche market, operate in a monopoly or going through some REAL restructuring! Not Afro Oil that is doing nothing!

stanchuks:
Hi All,
This is the 12th day i sent an order to my broker for the sale of my Access bank shares and up till today i've not heard anything concret from them, they keep telling me that their are so many people on queue for thesame sales order and keep telling that it difficult to sell because its on technical suspension, i don't know if anybody have any contrary view about it
Thanks

Which reasonable person will buy Access bank at the price that you intend to sell especially now that it is on Technical suspension. How I wish people get to undertsand that the prices of some stocks are moving based on the activities of the market maker/core investor. Once they move out of the way, you will be out and dry. That's why companies like Afro Oil, Wire and Cable, Afprint etc with no sign of productive activity are having price movement. Once the market maker stops the 'artifical' movemnet, try selling and see what will happen!

toyibanj:
WANAJ0,
Interesting point that you're making. Please suggest stocks that pass your litmus test since most stocks are getting overvalued and a correction is coming.
thanks

A lot depend on your investment philosophy, exit strategy, your age etc.

For me, I am buying Longman, Beta Glass, Diamond, Wapco and Wema. May and Baker is also being considered.

toyibanj:
wanaj0
Since you're knocking off Oando which most analyst rate highly. Which stocks qualify as been fundamentally sound. Just name a few and reasons. We're all learning. Thanks

I am not knocking off Oando. I am just pointing out the inherent risk there. If you are comfortbale with it, go ahead. The PE is attractive but that does not tell you the full story. OandO is highly leverage but are scared to come to the market now contrary to the initial plans.

Personally, I tend to look for UNDERVALUED stocks that the market is yet to recognise. They may not be fanciful but on the long run they will come out good. Note that I am not a money doubler.

Right now, WAPCO, LONGMAN, DIAMOND, BETA GLASS, MAY AND BAKER and WEMA are some of the stocks that I personally will go for.

Allcorrect:
@dollyp

Soori bout that,

@ all
access isnt impressing piple but lets remove sentiments here, if its an avenue to make some dough then Y not. Personaly i have some units of access, i mite just buy a few units and sell off part of what i presently have. Might probably get to N23-N25 even with the poor EPS, every man knows what works for him or her.

But again u must be savvy on an issue as this one. Look at FBN, they are currently doing their PO, but can You believe they have released the Audited report for March 2007 in JUNE.

Normally the result doesnt come until end of July or August. So they have released it so that You and I will fly and buy their shares. They have not said what they will give but i think the result is fair, but the effect of the last year 1 for 1 will definitely be felt in this result.

Nigerains, we sure are smart. Lets make the dough while we can. The BULL is hot.

What you have in their prospectus is UN-AUDITED RESULT (Management account) for year ending March 2007. The audited result will be released in July/August.

The Bull run is caused mainly by the FDI's and the Pension fund money. Note however that there will always be a correction. Then if you are not holding fundamentally sound stocks, you will get your fingers burnt!

Be wary of petroleum marketing stocks. Until you have full deregulation, you need to be careful. Oando like the other companies in the sector are having dwindling margins. What also makes Oando a bit risky is the hold that Ocean and Oil has on the company. Ocean and Oil is being used to 'ferry' money out of that company. Just look at the share dilution that is going to take place based on new shares to be issued to Ocean and Oil!

Yes, most stocks are getting over priced. The earnings does not guarantee the prices so expect a correction. That's why you need to stick to fundamentally sound stocks. It is so funny when I read people buying shares of companies that are not producing anything!!! It is in a bear market that you no good investors. There will surely be weeping and gnashing of teeth very soon.

They mail you a check (Dividend Warrant). Additionally, they can pay directly into your nominated account.

Minimum I learnt is now reduced now to 200,000 unit. So how do I get the form?

BTW, do you have the form for the Orient Refinery private placement also?

bolosh:
First Registrar is located at
Plot 2 Abebe Village Road, Iganmu
Tel: 7743309, 5851418.

Which broking firm do you work for? Thinking of getting some of Transcorp's shares. Do you have teh prospectus?