Okomu Oil

[davanchy]

Hello, does anyone know if Okomu Oil is a good stock to hold because the result declared by the company was not impressive and it is kind of affecting the share price. Should I hold or sell? Please I need someone's advice.

[billions]

OKOMU OIL PLC
UNAUDITED RESULT FOR 1ST QUARTER ENDED 31-03-2008
2008 2007
TURNOVER N1.786b N924.364m
PROFIT BEFORE TAXATION N899.312m N263.124m
TAXATION (N10.000m) -
PROFIT AFTER TAXATION N889.312m N263.124m

[tonidol]

Originally Posted by billions

OKOMU OIL PLC
UNAUDITED RESULT FOR 1ST QUARTER ENDED 31-03-2008
2008 2007
TURNOVER N1.786b N924.364m
PROFIT BEFORE TAXATION N899.312m N263.124m
TAXATION (N10.000m) -
PROFIT AFTER TAXATION N889.312m N263.124m

Hope these guys are not playing with figures. How come taxation is just 10M. Are they planning an offer or something.

I will like to know the o/s shares for this coy. Who can help pls?

[billions]

Originally Posted by billions

OKOMU OIL PLC
UNAUDITED RESULT FOR 1ST QUARTER ENDED 31-03-2008
2008 2007
TURNOVER N1.786b N924.364m
PROFIT BEFORE TAXATION N899.312m N263.124m
TAXATION (N10.000m) -
PROFIT AFTER TAXATION N889.312m N263.124m

I hv 0.48b to be d O/S....this result is too good to be true if 0.48b is correct.

Does anyone have another figure for d O/S ?

Thx.

[hispy99]

Originally Posted by billions

I hv 0.48b to be d O/S....this result is too good to be true if 0.48b is correct.

Does anyone have another figure for d O/S ?

Thx.

Just so you know...this company declared 3Month PAT of N263M in 2007 and then N139M PAT full year.

[tonidol]

Originally Posted by hispy99

Just so you know...this company declared 3Month PAT of N263M in 2007 and then N139M PAT full year.

Who is fooling who then? Are they planning an offer?

[ntom]

Originally Posted by tonidol

Who is fooling who then? Are they planning an offer?

maybe that is the new in thing it happen with redstar since no body will query them what can we do lets just they look

[Apache]

Originally Posted by billions

OKOMU OIL PLC
UNAUDITED RESULT FOR 1ST QUARTER ENDED 31-03-2008
2008 2007
TURNOVER N1.786b N924.364m
PROFIT BEFORE TAXATION N899.312m N263.124m
TAXATION (N10.000m) -
PROFIT AFTER TAXATION N889.312m N263.124m

I wasn't really surprised with this result though Hispy is right in indicating that okomu is not consistent in delivering good result within a financial year.
the thing is that this is the year for any company that is into comodities. hence the likes of Okomu, Presco and all those cocoa processing companies should post good results this years cos of the high prices of comodities globally.
For instance, those that work in FMCGs that manufacture soap (of which i work with one) will attest to the fact that cost of soap noodles (the major raw material for soap production) has been hitting the roof and palm oil is a source of soap noodles, so the likes of Okomu and Presco must be having a field day of profit. It was one of the reasons why i recommended presco to pple that sent me PMs erlier in the year on what stocks to buy. Note that Okomu is into Palm oil and rubber production.
I am toying with the idea of entering this company (definitely at below N20) but will definitely jump out as soon as i hear the comodity prices are on the decline. At least, let me benefit from this global madness.
If they are able to conmsistently grow at over 200% for this financial year, we might be looking at a PE of less than 3.
Are you thinking what i am thinking? (like my intelligent friend used to say to his partner in that famous cartoon - Pinky and the Brain)

[hispy99]

Originally Posted by Apache

I wasn't really surprised with this result though Hispy is right in indicating that okomu is not consistent in delivering good result within a financial year.
the thing is that this is the year for any company that is into comodities. hence the likes of Okomu, Presco and all those cocoa processing companies should post good results this years cos of the high prices of comodities globally.
For instance, those that work in FMCGs that manufacture soap (of which i work with one) will attest to the fact that cost of soap noodles (the major raw material for soap production) has been hitting the roof and palm oil is a source of soap noodles, so the likes of Okomu and Presco must be having a field day of profit. It was one of the reasons why i recommended presco to pple that sent me PMs erlier in the year on what stocks to buy. Note that Okomu is into Palm oil and rubber production.
I am toying with the idea of entering this company (definitely at below N20) but will definitely jump out as soon as i hear the comodity prices are on the decline. At least, let me benefit from this global madness.
If they are able to conmsistently grow at over 200% for this financial year, we might be looking at a PE of less than 3.
Are you thinking what i am thinking? (like my intelligent friend used to say to his partner in that famous cartoon - Pinky and the Brain)

I agree wit you that commodity prices have been on a tear, but commodity prices have been rising for a long while now. Rising prices did not save Okomu from declaring a dismal FY result in 2007.

I must confess that when I saw the PE (less than 3 now), I was tempted, but knowing the history of how this company usually reports 1 or 2 unimpressive quarters, I put my temptation in check (difficult sha, cos i'm still tempted ). You also need to consider the future direction of commodity prices. Most economies in the developed market are slowing down, so we need to consider the effect of this slowdown on future demand.

[billions]

Originally Posted by hispy99

Just so you know...this company declared 3Month PAT of N263M in 2007 and then N139M PAT full year.

Thanks for ur response,i know abt d negative profit trend of d company in 2007 but i dont know if d trend was there in 2004,2005 and 2006.

I will wait till d 2nd quarter result comes out b4 making a decision.

[hispy99]

Originally Posted by billions

Thanks for ur response,i know abt d negative profit trend of d company in 2007 but i dont know if d trend was there in 2004,2005 and 2006.

I will wait till d 2nd quarter result comes out b4 making a decision.

This is what I could pull up for 6M, 9M and full year. The "XXX" means missing data.

6M 9M Full Year
2004 XXX N756M N664M
2005 XXX N592M N701M
2006 N446M XXXX N395M

[billions]

Originally Posted by hispy99

This is what I could pull up for 6M, 9M and full year. The "XXX" means missing data.

6M 9M Full Year
2004 XXX N756M N664M
2005 XXX N592M N701M
2006 N446M XXXX N395M

Thx once again,...Okomu oil is a company to approach with great caution.

[billions]

The market decided to react +vely to d result...d price increased by 4.22% today.

[billions]

Okomu Oil Palm Plc released its nine months results for year ended September 30th, 2008. Turnover increased by 89.62% to N4.49 billion, while PAT increased by 367.46% to N1.756 billion from N375.5 million in the corresponding period of year 2007.

[Michael]

Originally Posted by billions

Thx once again,...Okomu oil is a company to approach with great caution.

But no need for caution if you already own Transcorp!

[hispy99]

Originally Posted by billions

Thanks for ur response,i know abt d negative profit trend of d company in 2007 but i dont know if d trend was there in 2004,2005 and 2006.

I will wait till d 2nd quarter result comes out b4 making a decision.

Same trend; they declared 3M result ~ N900M and then 6M result ~ N1.8B. I won't be surprised if full year PAT is less than N1.8B.