oando

[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.

[c kenneths]

I guess you have to visit the registrars that issued the certificates in the first place, they will tell you what to do. All hope is not lost.

[dejacrue]

oando has just sealed a deal in d shell/nnpc joint venture.they 've bought shell stake(49.81%) in d joint venture with d govt(shell oil upstream exploration ltd-offshore oil licence).this will certainly rub off on their fortune.as d recommendatn is BUY OR HOLD.info is from a reliable source.

[SpecNomics]

Interesting you mentioned this dejacrue. I entered Oando around N82.95 in November, without knowing why there was movement, but speculating that it was going to move up on the basis that it broke its resistance price at that time.

It will seem some chaps knew about this piece of news, if its true, more than a couple of months ago. The issue now I guess is, is this information Priced in?

Personally, its more comfortable to go with the trend, on that note I will buy a small token, maybe 25% of the capital I plan on investing, and if it shows a profit, consider buying more.

[chidianosike]

Originally Posted by SpecNomics

Interesting you mentioned this dejacrue. I entered Oando around N82.95 in November, without knowing why there was movement, but speculating that it was going to move up on the basis that it broke its resistance price at that time.

It will seem some chaps knew about this piece of news, if its true, more than a couple of months ago. The issue now I guess is, is this information Priced in?

Personally, its more comfortable to go with the trend, on that note I will buy a small token, maybe 25% of the capital I plan on investing, and if it shows a profit, consider buying more.

Oando yr.end result looks impressive, they've grown PAT by 25.33% giving them a PE of 31x. offered 6naira dividend and 1 for 5 bonus. with a long time for closure of Register. If this doesnt drive the price brethren then i dont know what will. The challenge may be its already high share price having closed at 200naira on friday.

[hispy99]

Originally Posted by chidianosike

Oando yr.end result looks impressive, they've grown PAT by 25.33% giving them a PE of 31x. offered 6naira dividend and 1 for 5 bonus. with a long time for closure of Register. If this doesnt drive the price brethren then i dont know what will. The challenge may be its already high share price having closed at 200naira on friday.

gained the full 5% today, closing at N210

[BLUEMONEY]

Originally Posted by hispy99

gained the full 5% today, closing at N210

with the way the market is behaving, i mean bearish, i wonder if this bonus and dividend will impact much on the price unlike in a bullish market. well i am keeping my fingers crossed since the closure date is still far.

[SpecNomics]

A stop loss would not be a bad idea for entering Oando at this stage in the rally. There is no reason to be sceptical, its possible that the law of round numbers could make the stock go upto N300!!! : )

You can take the view that if Oando breaks N250, and the price then falls below this mark you would enter and play for exiting at N282 and over! A stop loss is quite necessary and would help you assess your return:risk ratio and judge how much risk your taking for the expected return.

BlueMoney's assertion, I guess, can be backed by the fact that Oando's PER (circa 35) and Earnings Yield (2.86%) are within the sector avg., therefore or else you think they can attain ratios similar to that of the scetor leaders (in which case these ratios can be squeezed further, bear in mind that Mobil's PER is circa 56, Chevron's circa 50, AP circa 38), your return:risk ratio should shed light on whether or not the trade is worthwhile.

[tunery]

it appear dat d mkt has an axe to grind with OANDO. I believe the result is good enough to bring the price to about =N=250 TO =N=260. Well I am willing to buy at the present price- CAN U GET A SELLER FOR ME

[hispy99]

Oando Signs PSC, GMoU on OPL 236


THISDAY ONLINE

[cecemontero]

Originally Posted by hispy99

Oando Signs PSC, GMoU on OPL 236


THISDAY ONLINE

Hello hispy99, does the oil block Oando acquired from Snepco has anything do do with it's downstream..... cos I'm kinda perplexed. If it has, I guess Mobil, Total and Chevron should be more than N500 now. Pls can U throw more light on how the OPL affects the current price. Many thanks for the info though