emmanuelewumi:
The growth of Aradel is organic, apart from the private equity investors who converted their loan to equities about 6 years ago. Compared with the counterpart that has engaged in numerous capital raising exercise.


Imagine 50k invested in Aradel in 1995 and 50k invested in Unipetrol now Oando in 1995.
Probably worth over N2 million for Aradel and probably worth 5k for Unipetrol

It is management quality and sincerity that creates wealth for shareholders on the long run

emmanuelewumi:
The growth of Aradel is organic, apart from the private equity investors who converted their loan to equities about 6 years ago. Compared with the counterpart that has engaged in numerous capital raising exercise.


Imagine 50k invested in Aradel in 1995 and 50k invested in Unipetrol now Oando in 1995.
Probably worth over N2 million for Aradel and probably worth 5k for Unipetrol

It is management quality and sincerity that creates wealth for shareholders on the long run

jonnysessy:


Interim dividend or even the final dividend is the icing on the cake of every investment. While capital appreciation is the main thing. Where is your location so that i can join you taking my own chilled Hero.

mikeapollo:


What was the share price for Unipetrol (Oando) and Aradel in 1995? Have you considered the number of units 50k could buy in 1995 and if all the dividends received were reinvested over the years. Was Aradel on the NSE in 1995?
Aradel may have the upper hand though because of the current price

mikeapollo:


What was the share price for Unipetrol (Oando) and Aradel in 1995? Have you considered the number of units 50k could buy in 1995 and if all the dividends received were reinvested over the years. Was Aradel on the NSE in 1995?
Aradel may have the upper hand though because of the current price

SonofElElyonRet:


That'll be the day

drotba:




Wema

0125780364

emmanuelewumi:


Let us come down to 2006 Oando public offer was almost N100, I bought Aradel in 2016 for roughly N200.

It was sold Over The Counter so the share price will be cheaper than the other one quoted on NGX .
Shareholders of the other company from 2004 till date will tell you they experienced wealth erosion in the last 20 years

If Oando returned minimum of 10% capital appreciation per annum from 2006 to 2016 the share price ought to be over N200 after 10 years and about N400 in 2024.

Unipetrol was more expensive than Nestle in 2003. I remember buying Nestle and African Petroleum now Ardova for N20 each

Aradel paid dividends consistenly in the past 20 years , compared to the other company that didn't pay for almost a decade

emmanuelewumi:


Let us come down to 2006 Oando public offer was almost N100, I bought Aradel in 2016 for roughly N200.

It was sold Over The Counter so the share price will be cheaper than the other one quoted on NGX .
Shareholders of the other company from 2004 till date will tell you they experienced wealth erosion in the last 20 years

If Oando returned minimum of 10% capital appreciation per annum from 2006 to 2016 the share price ought to be over N200 after 10 years and about N400 in 2024.

Unipetrol was more expensive than Nestle in 2003. I remember buying Nestle and African Petroleum now Ardova for N20 each

Aradel paid dividends consistenly in the past 20 years , compared to the other company that didn't pay for almost a decade

emmanuelewumi:



The key word is fair and God fearing leaders.


By the way Unipetrol now Oando was far bigger than NDEP now Aradel in 1990.

It started as a small consulting firm of geologists and geophysicists. By the way the founder has a PhD in Geology, in his early 80s and now retired .

The company did not miss dividend payments in the last 20 years

Mpeace:
Minus fx gains, gtco still topped them all.
Wetin Access dey do sef. Only one billion from core banking in six months.

Cc; Nairametrics.com

megawealth01:
OANDO discussion again?
Let there be no vawulence

OakPearl:


That very first line is where wealth resides.
Warren Buffet once said “Honesty is a very expensive gift, don’t expect it from cheap people”.
That Aradel leadership quality is one critical litmus test we must try to find for long term stocks, irrespective of one’s short term “gambles” with any other jijo stock.
NIDF felt similar to me when they declared an extraordinary dividend from assets sold last December, effectively paying dividends 5 times in the last financial year instead of 4 times.

emmanuelewumi:
State of matter, we have gases, liquid and solid.

In the stock market we can make money out of thin air, especially if it a growth stock that doesn't have fundamentals, not profitable, operating in a high competitive sector.

If care is not taken the money made out of thin air can escape back into thin air or evaporate.

So we need to condense the gaseous money to make it liquid, by converting part of the paper profit to cash to handle emergency and other unforeseen circumstances.


If not , our case will be like the guy who turned $88,000 to $400 million within 12 years and went back to ground zero.

The next stage is to solidify the money by investing part of the paper profit into income generating assets like real estates, personal business, well managed dividend paying stocks, REIT and fixed income investments.

BabsO2:
Mr Time and Chance play their cards too.
Oando must have over paid for ConocoPhillips in hind sight as it wrecked its cash flow.
Won’t be surprised if dividends is restored soon.

BabsO2:
MH for overpriced Aradel

emmanuelewumi:



Forward PE is roughly 15.


Made PAT of N104 billion in H1, assuming it will make N208 billion for the full year

That will give about N47 EPS

BabsO2:


A PE of 15 implies an investment yield of 6%
Many shareholders would rather take profit than buy more.

KarlTom:
They are buying everything up-and-down...

emmanuelewumi:



It is okay for a growth stock.

Which EPS are you using for Oando. PE.

Remember Geregu, Transcorp Hotel and others have PE of about 30

yMcy56:

Na you talk this, na you start am again...
What if you don't reply on Pa Emma's post?
The last time he started it as well....
Let's allow O & O breathe...

KarlTom:
They are buying everything up-and-down...

Ginalex:
well, I get where you're coming from... Especially the forex loss part. But I don't want to believe it'll continue like that forever, especially with the backward integration strategy in mind (the increase in biological asset figure from 7+billions to 18 billion YOY). This is asides the merger talk (which may come like a thief in the night)... At least we can confirm that Dangrice has started rice production... . My time horizon is 1year sha... In as much as I prefer dividend paying stocks, I don't mind with sugar

emmanuelewumi:
The growth of Aradel is organic, apart from the private equity investors who converted their loan to equities about 6 years ago. Compared with the counterpart that has engaged in numerous capital raising exercise.


Imagine 50k invested in Aradel in 1995 and 50k invested in Unipetrol now Oando in 1995.
Probably worth over N2 million for Aradel and probably worth 5k for Unipetrol

It is management quality and sincerity that creates wealth for shareholders on the long run

BabsO2:


A PE of 15 implies an investment yield of 6%
Many shareholders would rather take profit than buy more.

Sunrisepebble:
I tend to agree. I had plans of holding the stock till NGX but if I can get #1k (20k) per share then why am I still holding on to the stock when I have more than 4x? I feel a lot of people will have the same opinion if it reaches that #1,000. It is now overvalued