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Re: Nigerian Stock Exchange Market Pick Alerts by Streetinvestor2: 3:13pm On Aug 15 |
mikeapollo:ok.you are still repeating my initial stand.That the case of the 14 in court has not ended or determined. Though any judgment from it is no longer weighty on the remaining shareholders.That said the case of the 14 shareholders is still in court. Pls go read back my observation to your initial post on this matter. The finished case is that of second group which is the most important to other shareholders |
Re: Nigerian Stock Exchange Market Pick Alerts by mikeapollo: 3:14pm On Aug 15 |
emmanuelewumi: Read my post carefully! I am NOT targeting dividends from Oando. I am targeting capital appreciation from price rally when they release good results! There can always be price appreciation whether they recapitalize or not. I am also suspecting that they will recapitalize, but that does not detract from my strategy. |
Re: Nigerian Stock Exchange Market Pick Alerts by mikeapollo: 3:20pm On Aug 15 |
Streetinvestor2: I repeat: The request by the 14 minority shareholder for the buy-out of all the shares (which is what concerns all other minority shareholders like myself and people here on NL) has been thrown out. QED! Why should I be concerned with the other case coming up in (October) if it no longer affects me and my shares and that of all other minority shareholders in Oando? It is no longer material or important 2 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by Adinije(f): 3:21pm On Aug 15 |
emmanuelewumi:Ok, thanks |
Re: Nigerian Stock Exchange Market Pick Alerts by BabsO2(m): 3:22pm On Aug 15 |
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Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 3:24pm On Aug 15 |
Streetinvestor2: The problem is with the recapitalization that can turn 1 million shares to 100k shares. In order to avoid this shareholders will need to pump in more money, do you think shareholders who have not earned dividends in 8 years will be willing to do that? That is why insiders and their friends in politics will pump in the required capital injection which will dilute the holdings of the retail investors |
Re: Nigerian Stock Exchange Market Pick Alerts by mikeapollo: 3:27pm On Aug 15 |
emmanuelewumi: Are you looking for dividend-related gains, or capital appreciation on the NGX and sell off your Oando? That is what determines whether you should worry too much about dilution of shareholdings due to recapitalization. |
Re: Nigerian Stock Exchange Market Pick Alerts by Raider76: 3:28pm On Aug 15 |
emmanuelewumi: Please what can make those cowboys sign off that company? |
Re: Nigerian Stock Exchange Market Pick Alerts by KarlTom: 3:28pm On Aug 15 |
Brief rally in UCAP in the closing period of trading. Cross deals or Directors... |
Re: Nigerian Stock Exchange Market Pick Alerts by BabsO2(m): 3:28pm On Aug 15 |
emmanuelewumi: The argument in bold is similar to saying DANGSUGAR will be recapitalized due to negative shareholders funds of N64 billion reported in 2024Q2, Haba. When the company can easily generate money to make the SHF positive in a short while. NGX has records of companies turning around negative shareholder funds from profit generated from operations without any cash injection from investors. The keyword is a turnaround and the catalyst for it being in place. 2 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 3:34pm On Aug 15 |
mikeapollo: I don't think you understand what I am saying. Prior to capital restructuring there will be a technical suspension, so I don't know where one will get the capital appreciation if one did not book profit. With current outstanding shares of about 12 billion, it might be compresses to 1 billion and capital raising will be issued for about 10 billion shares. Hope you understand the type of dilution being referred. That is why when insiders want to take their company private, I no dey argue with them. I sell and move on. They know how to legally carry out what they have planned to do 3 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by Streetinvestor2: 3:34pm On Aug 15 |
Mpeace:some guys no agree me buy small unit to round off my existing unit at #495 and #500.Tomorrow is another day.Th Os is just too small 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by mikeapollo: 3:41pm On Aug 15 |
emmanuelewumi: The rule of technical suspension during public/rights offer does not apply anymore. Go check the banks that are currently doing new subscription/rights offer. Their share prices are still moving up/down on the NGX. For instance, Zenith price closed today at N37.85 on NGX but their current offer price is N36.50k Same will happen if Oando should do any new offer/rights issue. Again, do you know the price at which the new/rights offer will be made? What if the price is N50 or N70? Cant I sell and make profit at that time? 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by thebargainhunte: 3:41pm On Aug 15 |
BabsO2: AGIP acquisition has not been factored in, it will definitely bloat the liabilities, but again, the sale of O and O assets to NNPCL will definitely help to reduce the liabilities. I am hopefully that things will get better from next year. I doubt O and O will recapitalise for now. The assets will definitely take care of the liabilities in a long run. |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 3:43pm On Aug 15 |
BabsO2: The most recent result for 2022 June had Operating profit of N35 billion but Finance cost was N40 billion . Ideally finance cost should not exceed 25% of the operating profit.
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Re: Nigerian Stock Exchange Market Pick Alerts by BabsO2(m): 3:43pm On Aug 15 |
mikeapollo: In another 6 to 7 weeks the bet will be clearer |
Re: Nigerian Stock Exchange Market Pick Alerts by Streetinvestor2: 3:43pm On Aug 15 |
[quote author=emmanuelewumi post=131521836] The problem is with the recapitalization that can turn 1 million shares to 100k shares. /quote]If my BE is #10 and this happens. Then the new guys after injection push the price to #200.It will still be ok for people who bought at low like me based on my maths. I don't think I will wait for it to happen if I see any movement towards that direction....lol |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 3:45pm On Aug 15 |
mikeapollo: Is Zenith having a capital restructuring. You should use Unity bank as an example because the capital will be restructured 2 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by mikeapollo: 3:46pm On Aug 15 |
emmanuelewumi: Oando cannot do any capital restructuring to reduce the number of shares in the short term. That would be share buy-back , which is similar to the share buy-out that has been blocked by the Court, at least for now. |
Re: Nigerian Stock Exchange Market Pick Alerts by BabsO2(m): 3:47pm On Aug 15 |
thebargainhunte: In the last AGM Wale was very proud, telling shareholders that he has turned around their company. In another 6 to 7 weeks the bet will be clearer. 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by mikeapollo: 3:49pm On Aug 15 |
emmanuelewumi: Oando cannot do any capital restructuring to reduce the number of shares in the short term. That would be share buy-back , which is similar to the share buy-out that has been blocked by the Court, at least for now. What they can do is rights offer or new offer for subscription, or they go private. They are looking for money, so why would they do a buy back that would require them paying huge money to shareholders |
Re: Nigerian Stock Exchange Market Pick Alerts by ndept: 3:56pm On Aug 15 |
emmanuelewumi:Remember that Wale and Boyo owns about 60% of Oando shares. Therefore, any decision taken about all shareholders will also affect their holdings too. Will they allow their shares to shrink alongside other minority shareholders? What I personally thought was that Oando will release good results over the next one year that will return the company to profitable ways, vis-a-vis positive equity. Thereafter they will then go for right issues which will be allocated to family and friends at more than N100 per share, while the proceeds will be used to pay the debt owed by the company to AFREXIM et al. |
Re: Nigerian Stock Exchange Market Pick Alerts by Streetinvestor2: 3:56pm On Aug 15 |
emmanuelewumi:I believe this high finance cost is because of interest from bank for the first acquisition. I thought I read somewhere it has been renegotiated or restructured.How about if they decide to go the way of special placement to recapitalize as per Tinubu instead of bringing new people on board |
Re: Nigerian Stock Exchange Market Pick Alerts by BabsO2(m): 3:59pm On Aug 15 |
emmanuelewumi: You are looking at old report The last report was unaudited 2023 full year with operating profit of N214 billion and PAT of N74 billion.
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Re: Nigerian Stock Exchange Market Pick Alerts by mikeapollo: 3:59pm On Aug 15 |
emmanuelewumi: Unity Bank is being acquired by Providus Bank; that is why the shares are being restructured. Oando cannot be acquired by any other company for now. So the scenarios are different! The worst that can happen is for Oando to get some big investors to pump in money and buy more shares or they acquire convertible loans that can be converted to equity shares in future. 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 4:07pm On Aug 15 |
mikeapollo: So what will you call the people that might inject up to $500 million for the recapitalization of Oando 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 4:09pm On Aug 15 |
BabsO2: That was what I could get on Oando website Kindly send the screenshot of where we have the asset, liability and equity of the business |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 4:13pm On Aug 15 |
ndept: They have the financial muscle to increase it from 60% to 90%. No be for this market we dey when they increased their holdings from 10% to the current level through financial engineering 2 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 4:14pm On Aug 15 |
Insiders and retail investors are playing different games 6 Likes |
Re: Nigerian Stock Exchange Market Pick Alerts by Streetinvestor2: 4:15pm On Aug 15 |
BabsO2:Why is the cost of sales this high. Is it what is obtained in that sector or inefficiency on the part of management. This result is promising if it comes out this way as audited 1 Like |
Re: Nigerian Stock Exchange Market Pick Alerts by mikeapollo: 4:18pm On Aug 15 |
emmanuelewumi: They will call them strategic investors. The company Oando will just issue more shares to them, but it will not be too high to make Wale lose control. They don't have to reduce the shareholdings of current shareholders in order to do that. In fact, Wale himself and a few other executives can provide the money or arrange with a lender. All they would need is authorization at AGM. Like I said, they can also raise convertible loan stock which can be either repaid gradually or converted to equity in future as situation demands. Restructuring like that of Unity Bank means an entirely different company is taking over and Wale and other executives would likely lose their shareholdings percentage and control of the company! Can you allow to lose control and ownership of Oando if you were to be Wale, the CEO? |
Re: Nigerian Stock Exchange Market Pick Alerts by emmanuelewumi(m): 4:22pm On Aug 15 |
mikeapollo: What you don't know is that Wale will be among the strategic investors. Insiders and retail investors are playing different games. Profit after tax can be misleading, try to dig deeper for the company's owners earnings. 3 Likes |
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