oando

[afolabi27]

Originally Posted by eniyanman

Wow, the rights issue is not been underwritten. Apparently, no financial institution accepted to underwrite it (Ventures Africa quoting Financial Mail). Oando has a credibility crisis. To survive, Wale and co may have to go.

I agree absolutely, and the fact this is not yet considered as a "restitution" to salvage their image and signal to the market of their renewed commitment to good corporate governance speaks volume.

I am amazed at how many brokers are shying away from the rights themselves while "recommending" to some investors.

In as much as the issue of poor corporate governance is not discussed by Oando themselves, I would rather take a bet with fuel subsidy and Eterna oil.

[wanaj0]

Originally Posted by goldsun2

i'd been imagining if they have an underwritter for the right issue

The brokers have learnt not to underwrite nonsense after the AP saga.

I am interested in seeing the value that the analysts will see in OandO to make it a BUY! Proshares own was so funny! They claim Tinubu is on the board of many blue chip companies but they did not mention one of such.

OandO will need an Ololo for this rights issue.

[Oracle]

Originally Posted by Ozone

Oga nosa2 it is called the more you look the less you see(optical illusion) otherwise known as boju boju economics. The Barrister 'Wale Tinubu led management team of legal gymnasts are masters of the art of deception.

People should take their time and read the Oando thread starting from May 2010. We tried to dissect their new venture then(Upstream) and warned that it's a high capital investment with uncertainties involved. But they didn't heed.

[afolabi27]

Originally Posted by knightofdelta

Based on figures alone, Oando is one of the best stocks to hold on the exchange. Based on figures alone, the only stock I will hold is Oando. The analysis done by Proshare is okay, based on figures alone. And if Oando has indeed advertized on Proshare website before, then I will take the analysis with a pinch of salt.

Anyway, I have nothing to contribute to Oando again, for now.

Don't get tired easily, let's even go into this financials and let me be bold to say Oando is in a terrible mess at the moment, and this is a deliberate creation of the current management.

There are 4 key parameters to watch in analyzing financials. Liquidity ratio, Profitability ratio, Gearing ratio and Management efficiency in utilizing its assets or Assets turnover ratios.

On Liquidity ratio, Page 10 of the Analyst report on Oando disclosed a negative working capital of #36bn, almost 70% of the net proceed of this offer.

On Profitability, please see the quote on page 14, "the current EPS seems to have placed Oando below the sector average as regards to results presented so far in the sector. Also, the EPS growth revealed a declining trend in the earnings performance of the company." further, the ROE has perpetually been below inflation. (see page 14, line graph)

on Gearing ratio, the "independent analyst" did well by not including a balance sheet in the presentation, I took extra time to check the Rights offer document to put total liability at #308bn or total interest yielding borrowings at #204bn compared with a pre-offer capitalisation of #27.2bn. Alternatively you may be generous and use the subjective book value of shareholders' fund at #92.4bn as at 31/12/2011. At best you have a 4:1 debt-equity ratio or worse of 11:1 ratio.

Sir KOD, what did you see in this financial that make you think anybody did any good job promoting this offer?

I make a bold statement again, this company is a good candidate for bankruptcy and its deliberate. I am now certain that it will be a big mistake to buy any investment without thorough analysis.

Oando now is only good for speculative investment in my opinion.

[hispy99]

Originally Posted by knightofdelta

Well, the OandO (not Oando Plc) are willing to buy the rights off you fro free. They offered me the nonsense and I told them I will sell at market price minus N12. Maybe that's why the stock took a hit after running up for a few days?

free? these guys no like to use dem own money pay for anything

[hispy99]

Originally Posted by eniyanman

Wow, the rights issue is not been underwritten. Apparently, no financial institution accepted to underwrite it (Ventures Africa quoting Financial Mail). Oando has a credibility crisis. To survive, Wale and co may have to go.

Oando extends begging bowl to shareholders - FM

No institution has stepped up to underwrite the issue. Many large emerging market fund managers, including those of Mark Mobius's Templeton Emerging Markets Group and HSBC, have dumped most of their Oando stock in the past few weeks.

[iknnamdi]

Mr Horlads pls check your private box. I did send a message.

Thanks

[Salida]

Originally Posted by hispy99

Oando extends begging bowl to shareholders - FM

So are we sentimental now? The handwriting was on the wall from day 1.

[Salida]

Originally Posted by afolabi27

Don't get tired easily, let's even go into this financials and let me be bold to say Oando is in a terrible mess at the moment, and this is a deliberate creation of the current management.

There are 4 key parameters to watch in analyzing financials. Liquidity ratio, Profitability ratio, Gearing ratio and Management efficiency in utilizing its assets or Assets turnover ratios.

On Liquidity ratio, Page 10 of the Analyst report on Oando disclosed a negative working capital of #36bn, almost 70% of the net proceed of this offer.

On Profitability, please see the quote on page 14, "the current EPS seems to have placed Oando below the sector average as regards to results presented so far in the sector. Also, the EPS growth revealed a declining trend in the earnings performance of the company." further, the ROE has perpetually been below inflation. (see page 14, line graph)

on Gearing ratio, the "independent analyst" did well by not including a balance sheet in the presentation, I took extra time to check the Rights offer document to put total liability at #308bn or total interest yielding borrowings at #204bn compared with a pre-offer capitalisation of #27.2bn. Alternatively you may be generous and use the subjective book value of shareholders' fund at #92.4bn as at 31/12/2011. At best you have a 4:1 debt-equity ratio or worse of 11:1 ratio.

Sir KOD, what did you see in this financial that make you think anybody did any good job promoting this offer?

I make a bold statement again, this company is a good candidate for bankruptcy and its deliberate. I am now certain that it will be a big mistake to buy any investment without thorough analysis.

Oando now is only good for speculative investment in my opinion.

There are many pointers in the rights prospectus and the report by the "Independent Analyst" if only people will take their time to read between the lines. Anyways, I don put this rating on Oando: "OVERANALYZED".

[Babs_O]

Originally Posted by afolabi27

Don't get tired easily, let's even go into this financials and let me be bold to say Oando is in a terrible mess at the moment, and this is a deliberate creation of the current management.

There are 4 key parameters to watch in analyzing financials. Liquidity ratio, Profitability ratio, Gearing ratio and Management efficiency in utilizing its assets or Assets turnover ratios.

On Liquidity ratio, Page 10 of the Analyst report on Oando disclosed a negative working capital of #36bn, almost 70% of the net proceed of this offer.

On Profitability, please see the quote on page 14, "the current EPS seems to have placed Oando below the sector average as regards to results presented so far in the sector. Also, the EPS growth revealed a declining trend in the earnings performance of the company." further, the ROE has perpetually been below inflation. (see page 14, line graph)

on Gearing ratio, the "independent analyst" did well by not including a balance sheet in the presentation, I took extra time to check the Rights offer document to put total liability at #308bn or total interest yielding borrowings at #204bn compared with a pre-offer capitalisation of #27.2bn. Alternatively you may be generous and use the subjective book value of shareholders' fund at #92.4bn as at 31/12/2011. At best you have a 4:1 debt-equity ratio or worse of 11:1 ratio.

Sir KOD, what did you see in this financial that make you think anybody did any good job promoting this offer?

I make a bold statement again, this company is a good candidate for bankruptcy and its deliberate. I am now certain that it will be a big mistake to buy any investment without thorough analysis.

Oando now is only good for speculative investment in my opinion.

GBAM. Gbam. GBAM.
My sentiment is now tilting from HOLD to SELL and flee.

Many of us playing the NSE need to go to school to learn how to do a thorough analysis of financial statements. And not look only at PE and P/B and dividend yield. Thanks for this forum for filling my investment analysis gap.

[Proshare]

Originally Posted by wanaj0

the brokers have learnt not to underwrite nonsense after the ap saga.

I am interested in seeing the value that the analysts will see in oando to make it a buy! Proshares own was so funny! They claim tinubu is on the board of many blue chip companies but they did not mention one of such.

Oando will need an ololo for this rights issue.

i find your comment on the company's recommendation quite inappropriate. The last time i checked, you do not have to accept anyone's judgement on a stock or its approach. In our case, we have done this since 2006 and i am not sure anyone has taken our report and found out we made a false or 'paid for comment'. The executive summary and opinion should afford any discerning and true investor the benefit of a viewpoint. In our case, we write from an investor perspective that takes most of the analysis available (i.e. The buy recommendations from meristem, bgl & others, especially those unrelated to an offer) and provide an edited summary for publication. It is not in my stead to engage on comments related to companies so commented on but there comes atime when reason must replace prejudice. If you call out the firm, do the proper thing and do what discerning professionals would do - highlight issues that was missing, misrepresented or could provide us with a deeper insight into the position taken. You comments are out of order and as an investor/shareholder, you ought to know better on how to engage on a decision. 'fa

[Proshare]

I must thank you for highlighting the contradictions in those who challenge the proshare report. If we were detailed enough to highlight the issues requiring attention including the review of our believability index on forecast vis-a-vis result but decided to take a look forward than finger pointing (albeit without data to corrobate such); we would fail ourselves. As the ceo of the firm, i am convinced that the decision to move into the upstream industry is a game changer to the dynamics around the oil &gas sector of the companies listed on the nse. At an elementary level, the perspective we provide should be one of the information/resource to enable you view the rights offer...challenging the report does no one any favours because at the end of the day, it is just one firms view.....and our track record and sustainability should indicate that we have conviction in the report issued. I recommend that people read the basis of why we encourage risk friendly shareholders to consider taking up the rights in oando. Thank you for the opportunity to clarify our position

[goldsun2]

Originally Posted by Salida

There are many pointers in the rights prospectus and the report by the "Independent Analyst" if only people will take their time to read between the lines. Anyways, I don put this rating on Oando: "OVERANALYZED".

oando don hear wen

[Proshare]

Originally Posted by Babs_O

GBAM. Gbam. GBAM.
My sentiment is now tilting from HOLD to SELL and flee.

Many of us playing the NSE need to go to school to learn how to do a thorough analysis of financial statements. And not look only at PE and P/B and dividend yield. Thanks for this forum for filling my investment analysis gap.

I am the CEO of Proshare and I quite like your insights here. as I have shared today on the forum, we published an edited summary for which we often place emphasis on our opinion and in this case the executive summary. I personally recommend that you review the executive summary again and inbox me at ceo@proshareng.com what makes the report not an independent one. Reading through most of the thread here, i sense that the believability index of the firm remains an issue and i can relate with that, yet experience has thought me that when a rights issue is on (and given the reported shareholding structure) the simple decision remains a take or trade decision. Beyond that however, I truly believe that Oando plc going into the upstream sector changes the dynamics and as one discerning investor in-boxed me, the measurement parameters has to change. that i will readily take on board. I have found going through this thread informative in some instances, especially where data have been used to support the argument. that is welcome and commendable. Going forward, lets engage on the basis of data and we can all rub on each other positively. Once again, thank you. My holiday experience here has been worthwhile.

[afolabi27]

Originally Posted by Salida

There are many pointers in the rights prospectus and the report by the "Independent Analyst" if only people will take their time to read between the lines. Anyways, I don put this rating on Oando: "OVERANALYZED".

Originally Posted by goldsun2

oando don hear wen

Na so, the Indians say, "ti ina o ba tan l'aso, eje oni tan l'eekan" As long as some lies and deceit are out there, with some "independent analyst" recommending BUY, but sugarcoating some caveat, then, we on this forum will not stop at further enlightenment, analysis and criticism.

We no be mumu here O, and I am glad we have the CEO of Proshare on this forum, the time is near to start speaking the "6 and 7 codes and standards" and whether these have been violated or not by professionals who should know better.

[knightofdelta]

Originally Posted by Proshare

I am the CEO of Proshare and I quite like your insights here. as I have shared today on the forum, we published an edited summary for which we often place emphasis on our opinion and in this case the executive summary. I personally recommend that you review the executive summary again and inbox me at ceo@proshareng.com what makes the report not an independent one. Reading through most of the thread here, i sense that the believability index of the firm remains an issue and i can relate with that, yet experience has thought me that when a rights issue is on (and given the reported shareholding structure) the simple decision remains a take or trade decision. Beyond that however, I truly believe that Oando plc going into the upstream sector changes the dynamics and as one discerning investor in-boxed me, the measurement parameters has to change. that i will readily take on board. I have found going through this thread informative in some instances, especially where data have been used to support the argument. that is welcome and commendable. Going forward, lets engage on the basis of data and we can all rub on each other positively. Once again, thank you. My holiday experience here has been worthwhile.

I am glad that you came out to tell us that Oando is a very risky investment. I repeat, the corporate governance of Oando is nothing to write home about; nothing.

I would like to know if Oando had ever placed an advert on Proshareng.Com before.

[Proshare]

Originally Posted by Salida

So are we sentimental now? The handwriting was on the wall from day 1.

The chart published by FM should have been juxtaposed against the NSE ASI. The historical absolute vs. relativity argument allows data to be used to support any position, hence the more qualitative approach we took. Now, lets take a deep breadth and look at the purpose of investing in a non-bearish market with a rights issue. the concerns about the company can be extended to most or other stocks on the bourse with the exception of a few fundamentally steady firms. the issues related with a company cannot be divorced with macro issues affecting the sector - it comes down to risk perception, current position and value judgement. At the end of the day, we can look towards developments on the Nigerian bourse and acknowledge a shift in market sentiments and react individually based on personal judgment. Thank you for this info.

[knightofdelta]

Originally Posted by Proshare

The chart published by FM should have been juxtaposed against the NSE ASI. The historical absolute vs. relativity argument allows data to be used to support any position, hence the more qualitative approach we took. Now, lets take a deep breadth and look at the purpose of investing in a non-bearish market with a rights issue. the concerns about the company can be extended to most or other stocks on the bourse with the exception of a few fundamentally steady firms. the issues related with a company cannot be divorced with macro issues affecting the sector - it comes down to risk perception, current position and value judgement. At the end of the day, we can look towards developments on the Nigerian bourse and acknowledge a shift in market sentiments and react individually based on personal judgment. Thank you for this info.

The statement in bold does not in anyway justify poor corporate governance in any company.

[goldsun2]

Originally Posted by afolabi27

Na so, the Indians say, "ti ina o ba tan l'aso, eje oni tan l'eekan" As long as some lies and deceit are out there, with some "independent analyst" recommending BUY, but sugarcoating some caveat, then, we on this forum will not stop at further enlightenment, analysis and criticism.

We no be mumu here O, and I am glad we have the CEO of Proshare on this forum, the time is near to start speaking the "6 and 7 codes and standards" and whether these have been violated or not by professionals who should know better.

alot of company will learn from oando precarious situation

[knightofdelta]

Sir Proshare, once again, I'd like to know if Oando had ever placed an advert on Proshareng.Com.

Thank you.