Oasis Insurance

[Babs_O]

Dear Senior Members. Ooh This respect Culture Sef Pumping done Say Make I stop am so I go cancel am.

The data I am referring too may be too simple for you. However since I can see 3 requests for it I will share it perhaps someone may find it useful.

I use IBTC spreadsheet, But I notice they had little info on Insurance stocks. Also the few ones on insurance is not as good/up to date like those on the Banks so I made a little research.

I found out that Oasis raised about 4m shares recently at N 0.7. And they were bold to list it at N 1.74 in Jul. Thus in December when I said Oasis was relatively cheap at N about 2.0 I was referring to the ratio 2.0/0.7 or 2.0/1.74. And at that time these two ratios were about the lowest. Thus it was going to be a matter of medium to long term for it to catch up with the rest of the insurance group. Listing at 1.74 also gave me the impression the management could be aggressive ??? and may most likely translate it to growing their business (pure speculation). They also have a nice website but they are currently low on business offices / turnover. One needs to watch this turnover closely and pull out if there are indications they are not deploying their SHF efficiently to capture more businesses. IEI is simillar in many respects and should easily reach N 10 in the medium to Long term from its current price of N6.

[Dragon123]

Thank you all for your useful comments on OASIS. I am however confused by the pumpings claim of 5bn shares and N120mn Q-3 PAT and Babs O 4mn shares. Can any one direct me to where I can get current data on these insurance stocks? The type of information I kept getting on these insurance stocks was that they would all hit a minimum of N10 by end of this year, if that was true I guess I should be safe with OASIS as a medium to long term investor. Or what do you all think about that?

[Babs_O]

Originally Posted by Dragon123

Thank you all for your useful comments on OASIS. I am however confused by the pumpings claim of 5bn shares and N120mn Q-3 PAT and Babs O 4mn shares. Can any one direct me to where I can get current data on these insurance stocks? The type of information I kept getting on these insurance stocks was that they would all hit a minimum of N10 by end of this year, if that was true I guess I should be safe with OASIS as a medium to long term investor. Or what do you all think about that?

Oasis according to SEC raised 4b (sorry not 4m) shares.
They had other shares before raising this.
Their current total shares according to NSE is 5b.

These are figures picked from the web I think they are fairly accurate from few cross references made. The sad thing is I spotted it and FSDH messed up and didn't execute my buy on time. Lucky you.

[Avocado]

Anyone able to confirm that the shares outsatnding for OASISINS is 5,003,506,791? Did they absorb any units per oversubscription?

.

[BigSeun]

Originally Posted by Avocado

Anyone able to confirm that the shares outsatnding for OASISINS is 5,003,506,791? Did they absorb any units per oversubscription?

.

The actual outstanding unit of oasis is 5,003,506,791 and not 4bn

[Emenyke]

Originally Posted by edwardaigbokhan

pls, i took part in the private placement of globe reinsurance and consolidated hallmark insurance but nothing has been coming from this companies.any information on this companies would be saving a worried mind. thank you all and God bless.

They are still undergiong the consolidation excercise, so i think i due time you will see them listed. They are alot of them in the queue.

You know how it was during the bank consolidation Era.

[Apache]

The Punch: Oasis Insurance to raise fresh funds

[Dragon123]

Originally Posted by Apache

The Punch: Oasis Insurance to raise fresh funds

My dear Senior Apache, what would you advise I do at this point with my OASIS stock? Take the money and run? Sell half, (it will cover my total investment) and reinvest it elsewhere? Stay put and weather the drops that started today? With this news from OASIS what would you advise? I 'll appreciate if other senior gurus of the house join in please.

[Apache]

Originally Posted by Dragon123

My dear Senior Apache, what would you advise I do at this point with my OASIS stock? Take the money and run? Sell half, (it will cover my total investment) and reinvest it elsewhere? Stay put and weather the drops that started today? With this news from OASIS what would you advise? I 'll appreciate if other senior gurus of the house join in please.

Truth is i don't know if i am in the best position to comment on this stock. I don't have much info on the history of this company and what their long term prospects look like. a safe route will be to sell half and wait a while depending on your entry point and how much in % that has been gained.
My SMN members can shed more light

[hispy99]

Originally Posted by Dragon123

My dear Senior Apache, what would you advise I do at this point with my OASIS stock? Take the money and run? Sell half, (it will cover my total investment) and reinvest it elsewhere? Stay put and weather the drops that started today? With this news from OASIS what would you advise? I 'll appreciate if other senior gurus of the house join in please.

I will advise that you lock in some profit. Of course, you may sell today and Oasis doubles in price in the next 2 weeks, but the reverse may be the case. Most insurance companies are overvalued and for Oasis I have a forward PE of over 170. It's advisable to lock in some profit before it dissapears before your very eyes.

[Dragon123]

Originally Posted by hispy99

I will advise that you lock in some profit. Of course, you may sell today and Oasis doubles in price in the next 2 weeks, but the reverse may be the case. Most insurance companies are overvalued and for Oasis I have a forward PE of over 170. It's advisable to lock in some profit before it dissapears before your very eyes.

Thanks Hispy, thanks Apache, I appreciate your advise, "lock in some profit" I totally agree. Too much long throat can be dangerous in this game!

[hispy99]

Confirmation that Oasis is going to do a PO soon. For those that do not want to have their investments tied down during TS, it might be a good idea to consider locking in your profit soon

The Punch: Oasis to raise capital base to N5bn

[riskreturn]

It looks as if Oasis Insurance stock price at 5.07 Naira has been put on a technical suspension today, suggesting its plan to go for a PO.

It would be interesting to see the offer price, given the fact that the end-2007 P/E ratio at 5.07 Naira is 184 times and the fact that end-September 2007 P/E ratios for each of Crusader Insurance Standard Alliance Insurance (at their respective technical suspension prices) is 38 times.

[BigSeun]

Originally Posted by riskreturn

It looks as if Oasis Insurance stock price at 5.07 Naira has been put on a technical suspension today, suggesting its plan to go for a PO.

It would be interesting to see the offer price, given the fact that the end-2007 P/E ratio at 5.07 Naira is 184 times and the fact that end-September 2007 P/E ratios for each of Crusader Insurance Standard Alliance Insurance (at their respective technical suspension prices) is 38 times.

No, it was adjusted for dividend of 3kobo and not technical suspension.

[riskreturn]

Originally Posted by BigSeun

No, it was adjusted for dividend of 3kobo and not technical suspension.

BigSeun,

Thanks for the clarification. It is not until this morning before I too observed that the fixed price yeaterday was only due to dividend mark-down.

riskreturn

[pumping]

Originally Posted by riskreturn

It looks as if Oasis Insurance stock price at 5.07 Naira has been put on a technical suspension today, suggesting its plan to go for a PO.

It would be interesting to see the offer price, given the fact that the end-2007 P/E ratio at 5.07 Naira is 184 times and the fact that end-September 2007 P/E ratios for each of Crusader Insurance Standard Alliance Insurance (at their respective technical suspension prices) is 38 times.

You're so right. Their offer documents must make very interesting reading.

I think with the negative sentiments for insurance stocks at the moment, some will find it very hard to sell their offers. Coupled with the issue of returned money from very strange allotment formulas, they may be staring at under-subscription in the face.

I certainly will not go near any insurance PO.

[riskreturn]

Originally Posted by riskreturn

It looks as if Oasis Insurance stock price at 5.07 Naira has been put on a technical suspension today, suggesting its plan to go for a PO.

It would be interesting to see the offer price, given the fact that the end-2007 P/E ratio at 5.07 Naira is 184 times and the fact that end-September 2007 P/E ratios for each of Crusader Insurance Standard Alliance Insurance (at their respective technical suspension prices) is 38 times.

Eventually, the Nigerian Stock Exchange (NSE) today placed Oasis Insurance Plc on Technical suspension (at 5.43 Naira per share and end-2007 P/E ratio 0f 197 times) following the receipt of their application for a rights Issue at N4.00kobo and an Offer for Subscription of N4.20kobo. It would be interesting to see what the projected end-2008 performance, as per PO prospectus, would look like.

[hispy99]

Originally Posted by riskreturn

Eventually, the Nigerian Stock Exchange (NSE) today placed Oasis Insurance Plc on Technical suspension (at 5.43 Naira per share and end-2007 P/E ratio 0f 197 times) following the receipt of their application for a rights Issue at N4.00kobo and an Offer for Subscription of N4.20kobo. It would be interesting to see what the projected end-2008 performance, as per PO prospectus, would look like.

I won't be surprised if the projections are very very aggressive; it has to be for people to find the offer interesting. If the current PE multiple is 160x, I wont be surprised if the prospectus says that they will tripple/quadruple PAT for current FYE in order to make their multiples more palatable

[pesadilla]

oasis is entering the market at worst time,there are lots of better priced,solid insurance coys one can pick up in the secondary market and move on,no tashere allots,no cert verific wahala,no returned money.buy today, in the next 2 to 3weeks,the bears will be gone and you will be smiling to the bank

[zainabusman]

Originally Posted by pesadilla

oasis is entering the market at worst time,there are lots of better priced,solid insurance coys one can pick up in the secondary market and move on,no tashere allots,no cert verific wahala,no returned money.buy today, in the next 2 to 3weeks,the bears will be gone and you will be smiling to the bank

Why are u so sure the bears will be gone in 3 weeks? Do u think we have bottomed out?