Oasis Insurance

[cooldudeng]

I was lucky to have bought before the TS, does anybody know about their right issuse

[riskreturn]

Originally Posted by cooldudeng

I was lucky to have bought before the TS, does anybody know about their right issuse

Can you please share with us the reason(s) why you think you are luck to have bought before the TS?

[hispy99]

Originally Posted by riskreturn

Can you please share with us the reason(s) why you think you are luck to have bought before the TS?

you read my mind....

[El-Kayode]

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.

OASIS INSURANCE Plc was placed on technical suspension by the NSE following the receipt of an application for a rights issue at N4.00k per share and an offer for subscription at N4.20k per share. This looks like a good one.

[riskreturn]

Originally Posted by El-Kayode

OASIS INSURANCE Plc was placed on technical suspension by the NSE following the receipt of an application for a rights issue at N4.00k per share and an offer for subscription at N4.20k per share. This looks like a good one.

I think otherwise, and you may scroll up for more on this. Unless the PO prospectus contains wonderfully robust projections, it is likely to be the sole most expensive PO in Nigerian history. But let us keep our fingers crossed for what the prospectus will contain.

[hispy99]

Originally Posted by El-Kayode

OASIS INSURANCE Plc was placed on technical suspension by the NSE following the receipt of an application for a rights issue at N4.00k per share and an offer for subscription at N4.20k per share. This looks like a good one.

Could you please explain why you thing it's going to be a good one? Maybe there's something I am not factoring here, because Oasis looks like a very very expensive stock right now.

[hispy99]

Originally Posted by riskreturn

I think otherwise, and you may scroll up for more on this. Unless the PO prospectus contains wonderfully robust projections, it is likely to be the sole most expensive PO in Nigerian history. But let us keep our fingers crossed for what the prospectus will contain.

very very robust projections.....that is the only way they can sell this offer.

[riskreturn]

Originally Posted by hispy99

very very robust projections.....that is the only way they can sell this offer.

I do not seem to agree with hispy99 that "that is the only way they can sell this offer". No matter how poor the projections are (even at a forward PO of over 100 times), there may still be over-subscription. How many potential subscribers know how to identify an expensive PO? They would only think that 4.20 Naira is not too high, considering the fact that, in some recent POs, the offer price was as high as 38.50 Naira (Zenith Bank). The fact that insurance stocks are now in the limelight is yet another factor that would make them subscribe for the PO.

[Tummy98]

Originally Posted by pumping

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.

.

Pumping and other gurus in the house,

Firstly, well done to you all for this wonderful informative and educative forum.

Going by Pumping's previous opinion on insurance companies' allotments, do you agree that buying from either primary or secondary market is not advisable and secondly is this opinion a general one on most or a few of the insurance companies

Your advise will be highly appreciated as am about to buy into Custodian at the primary market before it closes next week.

[hispy99]

Originally Posted by riskreturn

I do not seem to agree with hispy99 that "that is the only way they can sell this offer". No matter how poor the projections are (even at a forward PO of over 100 times), there may still be over-subscription. How many potential subscribers know how to identify an expensive PO? They would only think that 4.20 Naira is not too high, considering the fact that, in some recent POs, the offer price was as high as 38.50 Naira (Zenith Bank). The fact that insurance stocks are now in the limelight is yet another factor that would make them subscribe for the PO.

I may be wrong (I will be surprised), but let's wait for the offer documents. I project that the PE for 2009 FYE will be at worst in the mid-low 20s

[riskreturn]

Originally Posted by Tummy98

.[/I][/B]

Pumping and other gurus in the house,

Firstly, well done to you all for this wonderful informative and educative forum.

Going by Pumping's previous opinion on insurance companies' allotments, do you agree that buying from either primary or secondary market is not advisable and secondly is this opinion a general one on most or a few of the insurance companies

Your advise will be highly appreciated as am about to buy into Custodian at the primary market before it closes next week.

I do not know whether the PO of Crusader may be low-priced and I feel it should. I doubt if that of Staco would be low-priced, as the coy already hinted to shareholders that the price of what is good should not be cheap. I can almost pre-empt the PO of Oasis would not be low-priced. But all these are mere speculations, as we are yet to see their prospectuses and the projections contained therein.

Concerning the ongoing POs whose projections are already known, I had earlier bared my mind that Standard Alliance is expensive, although it has the advantage of being prone to minimal unabsorbed excess subscription (given the high volume involved). The PO of Custodian & Allied Insurance, apart from being highly prone to massive, unabsorbable excess subscription (in view of the rather negligible volume entailed), is even priced more expensive than the already expensive Standard Alliance Insurance PO. Once I saw the prospectus on Tuesday this week, I decided not to go near it - not even to take up my rights.

My impression is that, after the cheap AIICO Insurance PO (and, probably that of Crusader Insurance), almost all POs by insurance coys will be over-priced as they would be riding on the back of the current (and, most likely, ephemeral, transient and short-lived) and unjustified positive sentiments in favour of penny stocks (insurance stocks inclusive). Agreed that the PO prices would still be comparable to, or even sometimes lower than, what is obtainable in the secondary market for other penny stocks in the same industry, expensive stocks are expensive stocks - whether blue chips or penny stocks. The risk is that, in about 5 months time when subscribers might anticipate to sell off his/her allotments, the hype and favourable sentiments may have gone and realistic pricing will have started. If this happens, the subscriber may not make gain on the investment - even in the unusual case of getting fully allotment. But if the sentiment still persists, gains can be made - but not of the type comparable to subscription for AIICO PO of last December.

Concerning the alternative of buying insurance stocks from the secondary market, I think it is advisable to wait until they start releasing their Q1 results in around April/May this year. The Q1 would give a rough indication of those fairly priced and those unjustifiably priced in the market. presently, the legs of humans and those of masqurades are mixed together.

[Tummy98]

Originally Posted by riskreturn

I do not know whether the PO of Crusader may be low-priced and I feel it should. However, I doubt if that of Staco would be low-priced, as the coy already hinted recently to shareholders that the price of what is good should not be cheap. I can almost pre-empt that the PO of Oasis would not be low-priced. But all these are mere speculations, as we are yet to see their prospectuses and the projections contained therein.

Concerning the ongoing POs whose projections are already known, I had earlier bared my mind that Standard Alliance is expensive, although it has the advantage of being prone to minimal unabsorbed excess subscription (given the high volume involved). The PO of Custodian & Allied Insurance, apart from being highly prone to massive, unabsorbable excess subscription (in view of the rather negligible volume entailed), is even priced more expensive than the already expensive Standard Alliance Insurance PO. Once I saw the prospectus on Tuesday this week, I decided not to go near it - not even to take up my very few rights.

My impression is that, after the cheap AIICO Insurance PO (and, probably that of Crusader Insurance), almost all POs by insurance coys will be over-priced as they would be riding on the back of the current (and, most likely, ephemeral, transient, short-lived and unjustified) positive sentiments in favour of penny stocks (insurance stocks inclusive). Agreed that the PO prices would still be comparable to, or even sometimes lower than, what is obtainable in the secondary market for other penny stocks in the same industry, expensive stocks are expensive stocks - whether blue chips or penny stocks. The risk is that, in about 5 months time when subscribers might anticipate to sell off their allotments, the hype and favourable sentiments may have gone and realistic pricing will have started. If this happens, the subscriber may not make gain on the investment - even in the unusual case of getting fully allotment. But if the sentiment still persists, gains can be made - but not of the type comparable to subscription for AIICO PO of last December.

Concerning the alternative of buying insurance stocks from the secondary market, I think it is advisable to wait until they start releasing their Q1 results in around April - June this year. The Q1 would give a rough indication of those fairly priced and those unjustifiably priced in the market. Presently, the legs of humans and those of masqurades are mixed or muddled up together.

thanks for your response. From the illustration above, i think i will prefer to buy non-insurance from the secondary market (when my cscs account is opened next week, hopefully!) as i earlier intend to buy 15k unit of Standard Alliance PO.
Best regards
Tummy98

[hispy99]

Q1 Results March 2008
2008(N'M) 2007(N'M) Change
T/O 160.303 40.683 294.18%
PBT 135.518 21.092 542.51%
PAT 81.31 13.28 512.27%

[billions]

oasis ins. result/analysis...proshare

Proshare News

[Henrii]

I think oasis is going bad bcos of suspension being place on it,and i dont think the suspension will be lift sooner,can someone plz tell me why is it like this,they have stay too long on suspension.

[BLUEMONEY]

Originally Posted by Henrii

I think oasis is going bad bcos of suspension being place on it,and i dont think the suspension will be lift sooner,can someone plz tell me why is it like this,they have stay too long on suspension.

they are planning to do an IPO..

[hispy99]

Originally Posted by Henrii

I think oasis is going bad bcos of suspension being place on it,and i dont think the suspension will be lift sooner,can someone plz tell me why is it like this,they have stay too long on suspension.

maybe they are afraid of the bears too

[billions]

OASIS INSURANCE PLC
UNAUDITED RESULT FOR THE PERIOD ENDED 30-06-2008
2008 2007
TURNOVER N521.353m N158.011m
PROFIT BEFORE TAXATION N196.257m N28.517m
TAXATION (N58.205m) (N11.406m)
PROFIT AFTER TAXATION N138.052m N17.110m

[hispy99]

Originally Posted by billions

OASIS INSURANCE PLC
UNAUDITED RESULT FOR THE PERIOD ENDED 30-06-2008
2008 2007
TURNOVER N521.353m N158.011m
PROFIT BEFORE TAXATION N196.257m N28.517m
TAXATION (N58.205m) (N11.406m)
PROFIT AFTER TAXATION N138.052m N17.110m

looks like this stock is on permanent TS

[BLUEMONEY]

Originally Posted by hispy99

looks like this stock is on permanent TS

they are among those that want to float an IPO but the so called one year rule i believe is causing the delay. this company is not among the sacred cows unlike NSL TECH.
Please the result released is for which quater ?????