Acorn Oil Pp

[newton]

Intersec = Intercontinental Securities. See link below

Welcome to Intercontinental Securities Limited - Contact Us

U can pick up a PP memo n submit there, though i'm waitin for mine to be mailed.

[ogo]

Hi Guys,

Got hold of the prospectus and I have attached it for your analysis. I think it is a good buy

[juliusdudu]

Originally Posted by ogo

Hi Guys,

Got hold of the prospectus and I have attached it for your analysis. I think it is a good buy

Thanks for the link. Intersec also just sent me soft copy. i think it is a good buy but still prefers chams.

[Apache]

Originally Posted by ogo

Hi Guys,

Got hold of the prospectus and I have attached it for your analysis. I think it is a good buy

Thanks Ogo. It's pple like you that make this forum invaluable

[newton]

Fantastic Ogo.

This is very import of networking!

[bolanle]

Has any heard about Acorn oil privater pp?Pls be on a look out for it

Pls what do u mean by d above? is it that d public offer is out. am new here, need to understand the terms

[chubby]

Newton

Plz clarify us, junior members on this subject matter

[newton]

Guys d prospectus has been posted on the Private placement section thread "Acorn Oil" by ogo.
Pls continue this conversation there. But for convenience find it below

[yusuff]

Thanks for the information .I am finding it difficult to open the prospectus attacment .can anyboy help me out

[juliusdudu]

Download it. it takes time or u mail to intersec as i was sent a soft copy from them.
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[pumping]

I don't quite get this. The projection is that PAT will increase from N2.98M in 2007 to N105.26M in 2008. Within 1 year even though more than half of the fiscal year is gone already?

[bishnoi]

Agree completely.

With no significant strategy planned for expanding business. The projections are completely out of air... no solid foundation.

[hispy99]

this is abacadabra financial projection..we all know that the downtream sector is very comepetitive with low margins. Margins won't improve except fuel prices go up. They must be magicians to be able to turn N4.4M to N154M in 1 year

[ogo]

Hey Guys,

I agree with you. It seems to be magic but who know what they have in stock for us already. Attached is a report from Intercontinenal bank and what they have to say about the private placement. They are given us a valuation of N4.76k based on the net asset per share

[hispy99]

Originally Posted by ogo

Hey Guys,

I agree with you. It seems to be magic but who know what they have in stock for us already. Attached is a report from Intercontinenal bank and what they have to say about the private placement. They are given us a valuation of N4.76k based on the net asset per share

I do not expect Interconticonental to say otherwise, afterall they are the underwriters Don't see how they can underwrite the offer and at the same time advise potential investors not to buy. They have to look for something positive to say...However, we all know how unpredictable the NSE is, Acorn might be listed at N2.80 and shoot to N10 in 6 weeks

[newton]

I quite agree wt u hipsy99,

The forecast projections EpS/DPS seems over the bar considering their current EPS position.
But then lets check d board - Gen Wushishi (UAC) / Dr Chris Kolade (boardroom guru)
Plus the fact that it'll be listed in the petroleum sector (Afroil / Eternal) hence it'll sell at about the lowest priced stock their whc is over N5.
I think its a risk worth takin.

[faoogoke]

Originally Posted by newton

I quite agree wt u hipsy99,

The forecast projections EpS/DPS seems over the bar considering their current EPS position.
But then lets check d board - Gen Wushishi (UAC) / Dr Chris Kolade (boardroom guru)
Plus the fact that it'll be listed in the petroleum sector (Afroil / Eternal) hence it'll sell at about the lowest priced stock their whc is over N5.
I think its a risk worth takin.

I agree that the fundamentals are in doubt but looking and two individuals on the board of the company and the fact that fundamentals don't run the market but sentiments, investors might just be in for a jolly ride.
And a big thanks to Ogo for the link.
If only Nigeria and Nigerian will operate like we do in this forum...

[Apache]

We seem to be throwing the fundamental and technical analysis to the winds in favour of sentiments. This reminds me of the herd mentality i had read about which led to the 1929 and 87 stock market crashes in which pple kept on buying anything that comes up because they believed the every stock will go up. Mind you, i am not predicting a crash (far from it) but rather when we begin to favour sentiments over analysis, then you know that something is definitely wrong. There's has been a lot of pps that have been coming on this forum in which the numbers don't just add up but we still give them positive reviews all bcos of sentiments.
While we know that PPs offer the most opportunities, they also offer the greatest risk which is why the importance of buying into companies that are fundamentally strong cannot be overemphasized. In this era of Oversubcription and returned monies, you will see a lot of IPOs and PPs of which a good number of them will be "Chaff - worthless". We will need to shine our eyes to be able to separate the wheat from the chaff which is where the TAs and FAs comes in.
Please can we get more analysis on this pp and leave sentiments out of it