Which of these public offerings makes more sense?

[RethinK2.0]

For the next 6 months of the year, it is being rumored (and many of the rumours are very well founded) that the Capital market is said to be bombarded with wave after wave of public offerings.

The names popping up include Access, FCMB, Fidelity, Skye, PHB, Wema, Diamond, Japauloil, Dangote and his portfolio amongst many others. Many more names are being drawn up daily.

If we take a period of 12 months to 24 months, which of these offers would generate more value? Which of these companies will make the best use of the money in terms of earnings? Which of these companies will enjoy the most support or trust from investors, hence appreciate higher? On the contrary, which of these companies will be back again in 15 months asking us for more money? Which of the managers, ceos, board of directors is more result oriented and can deliver? Which companies have the most potential?

Diversification is an option but even then if you diversify over 10 public offerings, your average performance will be significantly lower than someone who diversifies and invests in the 3 best performers.

So gurus, investors, brokers, ppl...what do you think? Which offers stand up in your mind as a better bet? Lets reason together...

During public offerings, issuing houses and stockbroking firms will market and market and bullshit and say anything just to get their commissions so lets reason before they begin their drumming.

[mikennadi]

I think Japaul oil and access bank PO look like the best 2.
I have confidence in Japauls management team to deliver value to shear holders and as far as Access bank, it might look a bit expensive but with their profit and revenue growth in the past quater and projected growth, I think the stock will see N40 in the next six months or less.

[balaliyu]

Im engaged in the Upstream Oil Industry and I know that the Nigerian Content drive by the Federal Government is beginning to positively impact Nigerian businesses that are ready - like Japaul. The recent engagement of Glo Nigeria by Shell is a more visible example of what is beginning to change in this sector.

Japaul is at that stage where the big oil majors are willing to partner with them towards the provision of Vessel & Marine service, plus they have the Cabotage law as an enabling legislation to support expansion in business opportunities. Already they ahe some juicy contracts in their kitty.

There are a number of offers expected no doubt, but with Japaul at N3.95...I think it will mor elikely stabilise somewhere about N6-7 in less than 12 months--after the usuall price swings following TS & eventual listing. I doubt that any other offer will be able to swing such % return quickly - probably Dangote Flour - but then the public will more likely get desired allotment from Japual than Dangote Flour.

What then are the risks to Japaul? The biggest I see is the Niger Delta crisis, which unfortunately took a very bad turn over the last 2 weeks, with the Militant siege in PH. If this is sutained, you will have the oil majors relocating and focusing operations in deep offshore. Will they still need Maritime services - Yes, moreso Japaul is 'home-grown" and is not considered a Militant target...all the same they have to develop have a good crisis management strategy long term to mitigate that risk.

Overall - I see more potential in this stock and willing to stake in It. Open to your views.....Thanks.

[c kenneths]

Balaliyu, thanks for the scoop, am learning more towards investing in Japaul, I tend to be wary of that sector before,am getting more confident now.

[RethinK2.0]

Btw Japaul oil's offer is out...supposed to run from 13th aug to 10th sept..
future view appears to be the main underwriter...dunno why

[balaliyu]

ReThink - I truly doubt that the offer is out. I think its planned for later this month/September. Relax - you will get to know....

[RethinK2.0]

well the application form is out and on their website and it says the offer is aug 13 to sept 10.

I tried to find out more and someone said its postponed to sept like u said.

Have a look at their website: Japaul Oil and Maritime Services Plc.