Capital oil

[ofonzo]

The indefinite suspension of these equities from daily trading at this time is a belated calamity. While this suspension is the right thing to do, it is late in coming and many "investors" will no doubt lose a lot of money in the process.
The whole function of SEC as a regulatory body is to ensure that only healthy companies are listed on the NSE.2 dummy companies have been traded on the market for well over 5 years after been moribund and SEC has just woken up to its responsibility? SEC is culpable.

The Nigerian Investing public should also bear some of the blame, because investors should do their due dilligence before making investment decisions. Don't just join the herd!


There may still be some non-viable companies out there on the floor, please watch out.

[solainvest]

I agree with you that it is a calamity waiting to happen but opportunities like this can make you a billionaire.

There are people called momentum traders who just ride on a bull trend. Imagine someone who go into capital oil at about N3 with N300 and exited at N12.

He will be smiling at the sidelines because he has since exited. He knows the company is without much fundamentals and will not wait until it gets to N50 some people hope for.

I hope opportunities like this come up when I am fully on ground. I will surely ride the trend.

[obiosky]

You want to be a one day billioniare or a sustainable one ?. If this type of transaction persist in the Nigeria market, it will erode investors confidence, and of course initiate capital flight which could crash the market, even the good blue chips wil go tumbling.

PLS LET SEC & NSE wake up unto their responsibilities.

[edwardaigbokhan]

Originally Posted by obiosky

You want to be a one day billioniare or a sustainable one ?. If this type of transaction persist in the Nigeria market, it will erode investors confidence, and of course initiate capital flight which could crash the market, even the good blue chips wil go tumbling.

PLS LET SEC & NSE wake up unto their responsibilities.

I totally agrees with you on this.

[hispy99]

Originally Posted by solainvest

I agree with you that it is a calamity waiting to happen but opportunities like this can make you a billionaire.

There are people called momentum traders who just ride on a bull trend. Imagine someone who go into capital oil at about N3 with N300 and exited at N12.

He will be smiling at the sidelines because he has since exited. He knows the company is without much fundamentals and will not wait until it gets to N50 some people hope for.

I hope opportunities like this come up when I am fully on ground. I will surely ride the trend.

Interesting, but let me ask you this....what if the SEC suspension came when the stock was @ N11 and you were waiting for it to reach N12 before you got out? So the person that got out at N10 is the lucky one. My point is that you can never know what the best time to get out is. The SEC could have suspended trading when the stock was even at N3 on the day you purchased it

[Yusuf]

Originally Posted by hispy99

Interesting, but let me ask you this....what if the SEC suspension came when the stock was @ N11 and you were waiting for it to reach N12 before you got out? So the person that got out at N10 is the lucky one. My point is that you can never know what the best time to get out is. The SEC could have suspended trading when the stock was even at N3 on the day you purchased it

For those who are yet to exit before the door was closed, well, hard luck. This should teach all of us a lession that there is always difference between and investor and a speculator.

Though the riskier the better, but I would have expected most investors to dump their holdings in those securities immediately the news of SEC investigating them started but, knowing Nigerians for whom we are, we still hope it will lead to something good.

Well, lets take heart and filter our portfolio very well for those stocks like this. The message is dump the rest and be more careful if you do not want to burn your finger.

[solainvest]

I think the opportunity to dump might have ended now that NSE will finally acknowledge receipt of a notice to suspend trading in the shares.

If the window opens on Tuesday, it will be a rare opportunity to dump and move on.

I think SEC should fine both NSE and stockbrokers who traded after SEC banned trading in any way on Capital Oil and Afroil.

This is a personal opinion.

[DEEINVESTOR]

I really dont know what is happening, the two stocks were still traded yesterday on the floor. NSE is claiming that SEC did not forward an official letter to them. meanwhile some non-informed investor or speculor are buying it, so funny.

[Dis GuY]

Originally Posted by solainvest

I think the opportunity to dump might have ended now that NSE will finally acknowledge receipt of a notice to suspend trading in the shares.

If the window opens on Tuesday, it will be a rare opportunity to dump and move on.

I think SEC should fine both NSE and stockbrokers who traded after SEC banned trading in any way on Capital Oil and Afroil.

This is a personal opinion.

exactly, everyone (the stockbrokers especially) have been blaming the SEC but they are still selling/buying.
the companies and the NSE should at least put out a press release/ recent financial report to show they are still functioning

seems capital oil and gas got immunity clause from NSE

[Gbike]

I think SEC and NSE should do more and seriously get a grip on the operation of the Nigerian stock market. Events such as this does not do much for market credibility and inverstors confidence.

[juliusdudu]

capital oil and Afroil are now on full technical suspension. this was the breaking news on morning show on AIT this morning but despite this announcement, trading still went on.
Only God knows why people still trade despite all the crisis with the stock. Pls who are the people buying this stocks?

[Gbike]

What would it really take to enforce the TS for this 2 companies. Its unbelieveable that they were still traded on today.

[solainvest]

It has been finally placed on full suspension. What this means is that no trading activity should take place on the shares.

I see a trend of people wanting to sell outside the floor but this will be almost impossible because it cannot be crossed either.

I hope members of the house have divested fully from these 2 stocks. I see a wait for a minimum of 1 year if the companies were actually not in operations.

My advice, if it is possible sell at a discount and move out!

[Apache]

Originally Posted by solainvest

It has been finally placed on full suspension. What this means is that no trading activity should take place on the shares.

I see a trend of people wanting to sell outside the floor but this will be almost impossible because it cannot be crossed either.

I hope members of the house have divested fully from these 2 stocks. I see a wait for a minimum of 1 year if the companies were actually not in operations.

My advice, if it is possible sell at a discount and move out!

Report also says that Afroil oil have already submitted documents to the NSe addressing the issues raised by SEC. Let's see how this one plays out

[idowu_k]

Just thinking aloud on the full suspension of trading in shares of Afroil and Capoil in the stock market. Shouldn't the NSE/SEC make public the outcome of their investigations to let the public know whether the two companies are actually guilty as charged? What is the position of the regulatory bodies on the other two suspected companies? Is the investigation on them not yet concluded? If so, what's responsible for the delay? Afroil and Capoil were probably unfortunate to have being used as scape-goats. Discerning investors have all the while being suspecting foul plays in the unjustified price appreciation of some moribound companies and on many occassions, have openly expressed their fears. It has now become public knowledge that some newly enlisted and moribound companies had in the recent past device strategies to deliberately created artificial scarcity of their shares which impacted heavily on investors' demand and in turn, moved their prices northward. The regulatory bodies should "nib the practice in the bud" by instituting a broad-based investigations to cover all companies in the stock market. Such actions would attract the participation of more investors, both local and foreign, into the Nigerian stock investment.

[Goddey]

PETER OBIORA
Proshare NI
March 27, 2008 at 20.60 GMT

LAGOS - The Nigerian Stock Exchange (NSE) today, at a parley with capital market correspondents laid out the rationale for its actions subsequent to the public order announcing the suspension of Afroil and Capoil by the SEC.

“The delay implementing the SEC order was rooted in the need to comply with well laid down procedures for handling such developments…..the much needed due process guiding the exchange”. Ndi Okereke-Onyiuke, Director General (DG) of the NSE said.

Explaining further, Prof. Okereke-Onyiuke said that “as a mark of respect for our partners in progress - SEC, I wouldn’t want anybody to misinterpret me, today Afroil Plc and Capital Oil Plc has been placed on full suspension, not technical suspension” she said.

“We did not receive a letter from SEC. The Director General (DG) SEC, Musa Al-Faki and I had a full meeting yesterday evening; he came all the way from Abuja and we meet” Onyiuke said.

“The Stock Exchange is not a government agency, if we put a suspension on a company without any reason, the company can take us to court” she said.

“If SEC says we should suspend a company, because of certain reasons, we will now come to the floor with the letter from SEC, that is a document tenable in court, if we don’t have a document and we are taken to the court, how do we defend ourselves” Onyiuke said.

The DG of NSE says the Stock Exchange cannot act upon hearsay; until they get a letter from SEC, “it was only yesterday that we got the letter and held a meeting with the DG SEC subsequently concerning this issue” she said.

She also disclosed that Afroil has just submitted a full report on their business dealings to the NSE for scrutiny.

[Goddey]

December 11th, 2007 Filed Under Stock Market News

By Tunde Brown
The need to stay competitive and retain market share, if not expand it, remains one of the focal issues in organizations across industries. The first decade of the 21st century, within the Nigerian business environment, has seen so much of proactive measures on both the side of the players and the regulators.
Nigeria’s first indigenous petroleum marketing company to be quoted on the Nigerian Stock Exchange, Afroil, recently completed the first phase of its expansion programme. The company, whose stock emerged leader in the petroleum marketing sub sector in terms of capital appreciation this year so far, took delivery of fifteen customized tankers to carry out the planned aggressive marketing of petroleum products. It as also added three new petrol service stations under its direct management, while establishing third party bulk trading partnerships with six other retail outlets.
Afroil’s chief. Alhaji Isiaka O. Sanni, explained that the acquisitions and partnerships were part of a strategic move to save cost of operation, reduce delivery price, ensure a better loading schedule to ultimately benefit customers through competitive pricing.
The share price of Afroil op