oando

[Audu Yakubu]

How do we explain why uptill now the share price of this security has not grown above its IPO level

[Audu Yakubu]

Originally Posted by Audu Yakubu

How do we explain why uptill now the share price of this security has not grown above its IPO level

Is there a management issue

[Taipan]

Hi. If u have any Oando shares, I'l advice u 2 hold bcos its a good buy. Like any other stock in the market, Oando is being affected by technicals i.e. market mood swings. But I can assure yuo that b4 dis year is over, the price will shoot-up. Oando has a good and visionary management and a lot of intrinsic value that hasnt been reflected in the share price, but it will. Infact, my real advice to you is to buy more right now if you have the cash; you wont regret it. Remember, the secret to making money in the market is to buy low and sell high. Uninformed investors usually wait for a stock to appreciate in value and then rush after it, so they get suckered because this is when the smart guys are selling. Get smart!!!

[Stockbear]

Do the analylsts in the house have anything to say about this?

[B]Oando Offers Bigger Dividend From Soaring Turnover, Profit



Despite the inelastic price of petroleum products during the recently concluded year, energy conglomerate, Oando Plc, last weekend gave its shareholders cause for cheer, with the release of its audited result.

Observers, however, noted that the turnover of N209.20 billion reported for the year represents a N15 billion decline from the nine-month sales revenues of N224 billion. This "anomaly" is yet to be explained by the Wale Tinubu-led management
of the company.

you can get the full gist by following the link below

http://independentngonline.com/?c=78&a=24056

[Stockbear]

There is room for growth with oando!

The Tide
Oando leads gainers’ chart
Tuesday, Apr 24, 2007

Oando Nigeria Plc led other seventy four (74) stocks that appreciated in price last week with a gain of N12.07 to close at N88.77 per share.

The Petroleum Market Subsector Company in the same week under review took the second position on the subsector’s chart with 1.45 million units of shares valued at N122.15 million in 303 deals, though, the oil subsector chart was led by African Petroleum Plc with 1.84 million units of shares valued at N117.0 million in 261 deals.

Afroil Plc emerged number three (3) on the petroleum marketing subsector chart with 1.27 million units of shares valued at N1.997 million in 28 deals, contributing to the subsector total of 5.9 million units of shares valued at N326.73 million in 1,010 deals.

The number of stocks that appreciated in price dropped from seventy-six (76) in the preceding week to seventy-four (74) in the week under review.

Nestle Nigeria Plc which took second position on the gainers chart recorded a gain of N7.51 to close at N307.50 per share, even as it traded 302,996 units of shares valued at N91.8 million in 169 deals.

http://www.thetidenews.com/article.a...olumn=BUSINESS

[y.p.c]

Oando has moved into the uPstream Oil & Gas industry with at least 1 block. Capital investment in such ventures requeres billions of dollars and this venture is somewhat top on Oando's priority list.

Years back Kupolokun (NNPC GMD) put a policy in place that all petroleum product improter should have an asset base of ($2m - or some high figure of the sort). Naturally , this affected a lot of indiginous players including the company I worked for back in 2003. The major players remained... Mobil, shell, Vitol, Hyson, Trafigura etc.

With access to such a lucritive business (which was a major part of their business protfolio, profits dwindled). This affected teh company since its IPO.

Even running to the JSE did not prove as worthwhile as it should have been.

One would also recall that some key staff left, including the new MD of Eterna. With a management reshuffle, there were holes in the company.
Jite O (the quiet one of the trio). Most considered him the background brains of the business. sources say that a lot of monet is spent on recruiting ex-harvard expats in the management of the business, which comes with a high price tag.

Going back to their focus in the upstream, which is a Capital intensive / long term investment, expect Oando's price to lay low for a while, at least till they strike oil. Than, and most likely, only then will you see prices soar.

Oando is not a short term gig but a medium/long term investment. Thsi investment is for your children rather than you.

[Avocado]

y.p.c.: Interesting news. Whether Oando is in the prospecting business for the long haul or not couldn't be concluded yet; the prospecting business isn't for the faint-hearted. Do you know which of the blocks they got allocated? Id there some source for this news item? Thanks!

Audu: what was the (I?)PO value and when was that out?

.

[dotunk]

Oando has prospects weather you like it or not... medium and long term.

1st Qtr results

Oando Plc Q1 31 March 2007

2007 2006 Growth

Turnover (N' Bn) 46.949 41.327 13.60%
Exceptional Item (N' Bn) 0.276
PBT (N' Bn) 1.340 0.851 57.46%
PAT (N' Bn) 1.073 0.636 68.71%
PAT After Minority Interest (N' Bn) 0.837 0.614 36.32%

[y.p.c]

Originally Posted by Avocado

y.p.c.: Interesting news. Whether Oando is in the prospecting business for the long haul or not couldn't be concluded yet; the prospecting business isn't for the faint-hearted. Do you know which of the blocks they got allocated? Id there some source for this news item? Thanks!

Audu: what was the (I?)PO value and when was that out?

.

Oando have participating interests in OPL 278. Partners are Camac Intl, Firts axis Oil & gas and Allied Energy Resources. The group won the block in the controversial 2005 bid round. A signature bonus (sign on fee) of $25m was paid.

[c kenneths]

Ill consider Oando a good buy presently for the reported increased profitability, although market sentiments seem to be very much against the oil marketing sector generally.

Like someone remarket early, the stock is a long term buy.

[dotunk]

right you are!

[whatsup]

What do you do with a share that has dropped below IPO price and you are tired of waiting 3 years to see what is going to happen.

Is it time to sell and move on or wait and see

[Taipan]

I bought Texaco sometime in 2004 around N180 and after waiting in frustration for 2 years (the price had fallen to N100), I sold it last year at N105. Well 2 mths after selling, the price had risen to N150 and higher now. Thats my regret.
It all depends. If the company is a good one, hold on to it cos it's bound to rise. Dont kill the goose that lays the golden eggs; investing long term is called value (fundamental) investing. Unfortunately, because of our generally bullish market, most people havent had a chance to learn it. We're all caught up in the greed of short-term profits and we'll pay for it!
By the way, if you're talking about Oando, I'll advice you to hold on to it as if it's all that you have.

[adeniyia]

Hey guys,
For all you gurus, I've got a question. Do you think its a good idea to sell Oando now? Just a background. I bought the freaking IPO in 2004 at 97.50. Ever since I've been torn between selling and not selling by hoping and hoping and hoping.
I guess I'm kind of running out of patience now. Maybe I should just bite the bullet now by seeling the damn thing and move on.

Response appreciated.

[Dankem]

Hello,

I am as confused as you are. I also got the shares at thesame price and so far it has gone so low. I have been trying to monitor the trend of events concerning the Oando share at the stock market and it has not been that impressive, loosing most of the times more than what it has gained. I do not want to sound pessimistic but the downward trend may continue, and may be, Oando need a change of management and policies to be able to compete favourably in the fast growing oil industry as those companies that came after have overtaken it. However, I will want to read the opinion of the experienced investor on thia matter as well.

[Apache]

hi Guys,

you see, i have a problem with Oando and i think they are not transparent enough. i had written to the proshare analyst sometime in march this year on some inconsistencies i had noticed in their result and this was his reply. (you can see the mail i had sent initially at the bottom, just underneath his reply)
unless someone can explain this to me.





--------------------------------------------------------------------------------
From: info@proshareng.com [mailto:info@proshareng.com]
Sent: 31 March 2007 09:53 PM
To:
Subject: Re: Oando Full year report - From the Chief technical Analyst


This happens all the time. Most interim reporting for companies is not very thorough. In interim financial statements, companies might report revenue that sometimes include unearned revenue, items shipped but not yet received by the customer, etc. Note: Items shipped and not yet received by the customer might not be considered true revenue especially with respect to petroleum products.(Shipping terms usually apply to this type of product). I have audited companies that have reversed from revenue, and accrued large amounts of shipment which they estimate were still in-transit to their customer at the end of the quarter. (The reversal will increase inventory in-transit, reduce revenue, reduce costs of sales) - (This last comment is for you only)



Also, at fiscal year ends (FYE) , companies do a more in-depth review of their revenue transactions to net out from turnover items that are dilutive to revenue. Some of the items that might be used to adjust turnovers at FYE include but not limited to cash discounts due to clients, customer rebates, accounts receivables deemed uncollectible (i.e., bad debt), revenue unearned as of the last day of the fiscal year.



Items that might be use to adjust PAT include but not limited to reduction to cost of good sales, adjustment to depreciation expenses, adjustment to SG&A, any extra-ordinary income which might have resulted from sale of an asset, income tax adjustment, etc.



However, looking at the info you sent to proshare the adjustment to revenue was N15 billion, that is a little to much. Does it mean the Oando did not generate any revenue for the 4the quarter?.

If the company reported N224 through the 3rd quarter, we should expect somewhat of higher revenue for the FYE. If Oando had mistakenly overstated inventory during the interim periods, and wanted to correct the overstatement, the adjustment would have affected the COGS not the top line revenue.



You observation was very correct, I wish most financial analyst in Nigeria will take the time to analyze the financials these companies submit to NSE. The question should be forwarded to Oando for explanation. I checked their site for the FYE 2006 financial statement you were referring to, but did not find it.



----- Original Message -----
From:
To: info@proshareng.com
Sent: Friday, March 30, 2007 7:59 PM
Subject: Oando Full year report


Dear Proshare,

Please help clarify.

I just saw the Full year 2006 result of Oando and it i noticed something that i would like you to explain to me.

In their 3rd quarter result released to the NSE, they reported a turnover of =N= 224 billion in the 3rd quarter and a PAT of about =N= 2.3 billion.

But in their Full year report, they had reported a turnover of =N= 209 billion and a PAT of =N= 2.79 billion.

Please how is it possible that there turnover reduced between the 3rd quarter and the Full year, while the PAT increased over the same period.

Regards,

[Yusuf]

[QUOTE=Apache;4843]hi Guys,

you see, i have a problem with Oando and i think they are not transparent enough. i had written to the proshare analyst sometime in march this year on some inconsistencies i had noticed in their result and this was his reply. (you can see the mail i had sent initially at the bottom, just underneath his reply)
unless someone can explain this to me.




Naija Na wa!

I also bought at this price (97.5) though very small quantity. It has been my worst perforing investment since the purchase. But my brother, if you know you can still live without the money, I will advise to still take some little risk as there are so many thing going on which I think will be in favour of the company. I will give detail as soon as they are available.

[wanaj0]

[QUOTE=Yusuf;4859]

Originally Posted by Apache

hi Guys,

you see, i have a problem with Oando and i think they are not transparent enough. i had written to the proshare analyst sometime in march this year on some inconsistencies i had noticed in their result and this was his reply. (you can see the mail i had sent initially at the bottom, just underneath his reply)
unless someone can explain this to me.




Naija Na wa!

I also bought at this price (97.5) though very small quantity. It has been my worst perforing investment since the purchase. But my brother, if you know you can still live without the money, I will advise to still take some little risk as there are so many thing going on which I think will be in favour of the company. I will give detail as soon as they are available.

Well policy sommersault as per full deregulation affected OandO and other petroleum marketing companies.

Right now, OandO is still one of the best positioned Petroleum Marketing companies. They have good assets and they are diversifying.

Two major concerns are the huge debts and secondly the way Ocean and Oil (owned by Tinubu and Co) are milking OandO dry!!!! The way the structure is, even if OandO is making a loss, Tinubu will still be making money from technical fees etc being paid to Ocean and Oil. Don't know what Ocean and Oil does for OandO.

Hopefully the restructuring will deliver benefits for the shareholders and not only to Ocean and Oil.

[ABALI]

Oando still has good prospects. Its half year is good though on a lower TO. At FYE they can comfortably manage to pay at least 5.00 dividend. Judging by a projected EPS of 7.0 based on projection of 4b PAT at FYE, the company is good for as much as N140.0. I am going to be a bit cautious and expect arise to at least 110.0 before its FYE. If you have the cash, I wld suggest you take up an equal amount of the number of shares you bought at N97.5 at the current price of 73-74 and down your average to N85.25 or better still buy twice the amount and average at N78.6. Then you will be better positioned to exit should you wish to once you cross your average and alittle more for the cost of funds.
Just aSuggestion. But a damn good one!

[OSAGIE ERNEST ASIBOR]

Please I Can't Find My Certificate Any One With Useful Info On What Nest To Do.