Oando stock price is rising sharp. what do you think, is this the time to buy oando stocks?

Dec 27 (Lagos) - Share of Oando Plc closed at a new one year high today of N 19.97 per unit at the Nigerian Stock Exchange in Lagos. The stock hit these levels on almost volume of 6.9 million units which is less than half the volume as its a daily average 90 day volume. OANDO was higher by 5.11% today adding to gains of this week.

The last time this stock saw these levels was on April 12 2012 when it declined from N 21 per unit to N 19 per unit. Shareholders of this company has long suffered and only now they seem to be recovering a little bit. That is specially true for long term investors of this company who have seen their stock continuously decline from N 120 levels in April 2010. The value destruction in this stock over the past 3 years has been huge.

There is a new momentum in this stock backed by the anticipation of the completion of the Connoco Phillips acquisition deal which is expected by the end of January 2014. This deal could create the biggest Nigerian owned oil company that is fully diversified in the oil and gas sector.

There is also optimism from the Oando Marketing subsidiary which has signed a deal with a German bank to provide capital to micro finance banks in the country to lend to low income householders to enable them to buy Oando's N 800 LPG cooking gas cylinder and shift millions of householders away from cooking on kerosene fuel.

There is also big optimism the gas to power sector that OANDO operates in. The company already owns a gas fired power plant in Lagos with a huge pipeline across the state. Company is also completing a huge pipeline in the eastern part of the country. The Oando Energy Resources could emerge a power company in future as there is plenty gas supply in Nigeria that can be used to provide electricity to people of the country. While some argue that cost of gas power is significantly higher compared to traditional sources, it is also a fact that the traditional sources of power have failed to consumers for so long.

While all this seems good for the company, many analysts continue to doubt all the progress that the company is saying that it is making. Maybe the dilution that occurred during the rights issue is playing on the minds of some of those analysts. It may also be the reason different analysts in the country have opposing views of the stock of this company.

Analysts at FBN Capital In Ikoyi have a price target of N 19.80 for OANDO.

Analysts at Vetiva Research in Victoria Island maintain at outperform rating and a price target of N 19.24 per unit for OANDO.

Analyst at Asset and Resource Management Limited (ARM) in Ikoyi have a 'sell' rating on the stock with a price target of N 16.05 per unit for OANDO.

So investors have a lot to consider before the decide to buy into this or watch from the sidelines. It is a decision that has to be made carefully as where this is going is anybody's call.

http://www.easykobo.com/News.aspx?id=4946

yes BUY...its going up. check the comments on that link some top analysts are commenting there. i too will buy even if its 10k.

sboga: yes BUY...its going up. check the comments on that link some top analysts are commenting there. i too will buy even if its 10k.

even @30 it's worth buying, check their peers in same sector, consider its price at 2010, and consider what they are set to achieve. This stock will experience an unprecedented rally once the cop-deal is signed

Before you put money in a company's stock,its imperative you don't just follow the crowd for the sake of investing or because you have loose cash.Great value investors warn against buying stocks because the price is going up. In fact,its because its going up that you must take a step back to understand the fundamentals of such company.Because the truth is,the true value of a company's stock will in the mid-long term find its bearing.If its overpriced due to sentiments,news,etc,something must give way,its either the company grows its earning fast to meet the stock price or the price comes crashing to meet the fundamentals.
Do the fundamentals on Oando,check the earnings growth over the last few years,check the P/E ratio,and Earnings yield.
Analysts have targets,must earn and are human beings,therefore make errors,and unfounded assumptions.And remember,paranalysis leads to paralysis.Be bold.

Oando is arguably one of the most interesting stocks of the times. From all indications, it will continue to rise but nobody knows for how long. I believe a lot of people will smile on this one and many others who cannot sell on time will cry seriously!

The best time to buy shares are wen dey r low, cos d law of diminishing returns will always apply, it may rise a bit further but may decline after a while. Google Warren Buffets rule of stock investment.

An Investment Conclusion Reached by an Analyst at a Time when People had zero belief in Oando, around the time when the stock was linked with IBORI, when people were dumping it..Hahahaha http://www.proshareng.com/news/20938.html


Based on current market price, trading multiples and present value of future performance expectations, we are of the opinion that the stock of Oando is oversold at the current time as it trades at a risk-adjusted discount of 25.01% to our estimate of its target price of N14.75, is cheaply priced and has a strong medium-to-long-term growth potential. With the stock down 10.48% and 15.38% year-to-date and year-on-year respectively, we believe the broader market is displaying dissatisfaction of unmet expectations given the firm’s recently released financial results. Whilst we accept that the firm’s broad financial performance in the first two quarters of the year leaves room for doubt and has made investors panic, lose some confidence and consequently price in pessimism into the stock, we are of the view that a turnaround is imminent. In our experience, all stocks have their ‘downtime’ which precedes a strong fundamental mean-reversion to intrinsic value. Although Oando is currently passing through its downtime and has thus attracted negative market sentiments, we believe this period is temporal and the stock will eventually mean-revert to its intrinsic value which we have estimated as being above its current market price. We view current levels as providing a buying opportunity into sub-Saharan Africa’s second largest integrated energy provider that not only has the strongest presence in Nigeria’s midstream and downstream petroleum subsectors, but also possesses the potential to surprise the market to the upside when its various investments begin to yield positive returns.

Taking forward prospects into cognisance, we are of the opinion that the recent drop in the stock’s price does not exactly reflect the quality of the firm’s fundamentals. We believe the time to take a BUY position in the stock is now, given its depressed price. In our view, any attempts to completely exit the stock at current levels will amount to substantial regret in the future. Using behavioural analysis, with probabilistic combinatorial optimization, we estimate such regret coefficient to be in the open-bounded neighbourhood of (0.63, 1.0). A regret coefficient estimates the degree of irrationality that captures the likelihood that a regret-averse investor who prematurely exited a previously undervalued stock will take substantial positions in that stock at a future time, even when the stock is no more undervalued. A coefficient between 0.60 and 1.0 signals that investors are almost sure to pay an unjustifiable premium at a future time for an undervalued stock they once exited.

Do not disregard Analysts' Counsel!

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i feel like swearing for my secondary school economics teacher!!!

Ok

Oando is already falling as traders are taking their profits it ll surely fall wella next week, massive sale of oando stock expected by traders in d coming week which cud see oando fallin to below 20 naira. Dnt buy until it starts rising again, unless u wan burn ur fingers

Greedy investors r always losers in d stock market.

I hope Naira land does not start affecting the stock market

Short the stock

Lol, when it was time to buy everyone was abusing stockmarket,

I see 2008 repeating itself soon.

FYI, I bought below 11 naira, when the market was quiet

divinelove: Oando is already falling as traders are taking their profits it ll surely fall wella next week, massive sale of oando stock expected by traders in d coming week which cud see oando fallin to below 20 naira. Dnt buy until it starts rising again

A negative of 0.07 doesn't mean it'l drop below 20naira..i doubt ur analysis..don't 4get dat pple will still continue to buy nextweek due to d cop deal..I hope smepple don't get their fingers burnt

If it is at a three year high, its best to sell now. Stocks value get really high before it goes really down. Don't push your luck, sell your stock and make the profit.

When the price drops then its time to buy because it will eventually get high again.

bornagain1509: i feel like swearing for my secondary school economics teacher!!!

lol,i feel ur pain, cant understand all wat dey are sayin,am jst like hun ?*confused face*

Pls someone should direct me on how to buy the stocks

Time to sell.

nigerianescorts: I hope Naira land does not start affecting the stock market

My thoughts exactly. These sort of threads on the FP could cause mass hysteria.

bornagain1509: i feel like swearing for my secondary school economics teacher!!!

na pesin say make u no read?? Swear ni

I bought Oando at 11 naira. Oando will still get to 50 naira before April.


BUY BUY

I advice investorz who have alrdy bought to start seln by next week.i remember transcorp shares.dnt be a greedy investor cuz t myt stil decline soon.so many investors wil get their fingerz burnt

Sell sell sell sell

propzncribz: If it is at a three year high, its best to sell now. Stocks value get really high before it goes really down. Don't push your luck, sell your stock and make the profit.

When the price drops then its time to buy because it will eventually get high again.

Nah!
Oando will still go up and reach 50 naira.
There is a massive cop deal coming.
BUY BUY NOW.

Time to buy

PAGAN 9JA:
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Pagan f00l u are sick, keep posting this pics and your life will be a life of mockery. Idi0t

Buy buy buy..don't sell..COP deal is concluded..buy buy

How come all the scandals with ibori did'nt affect their stock price? It was so bad that they had to hire tony blairs wife to defend them in london court. I don't think they are in the clear yet!!

datovid :


A negative of 0.07 doesn't mean it'l drop below 20naira..i doubt ur analysis..don't 4get dat pple will still continue to buy nextweek due to d cop deal..I hope smepple don't get their fingers burnt

Anybody buying oando nw must b buyin high, oando ll fall wella again only to appreciate after d cop deal if dt goes thro. Am waiting for oando below 20 naira by mid january. If u bought below 15 offload and enter again at cheap price, n stop lookin at paper profit fall apart, greedy traders r usually losers in d market