Oando Plc remains one of the jewels of the stock market at the moment. True value in real terms estimated at around R10 a share is currently traded at levels around R1.80 - R2.00 and in some weeks lower. It offers one of the most attractive div. yields in the market (even more than my residential property ROI for the last 8 months) If you study the Nigerian story, this economy is rock solid and is positioned to overstake S.A's GDP by the next decade and growing at the rate of close to 9% per annum. Oando's revenue was up +50% (ending 30/06/2011) and Gross Profit to $220m (R1.7b) from $187m If you believe in the Africa story, if you believe in the Oil story and study the underlying company performance, then this is a BUY BUY BUY.
Lol. For those who do business in Nigeria, you will all know how difficult it is to invoice in US$. All kinds of hoops and controls you have to jump through. Now, if memory serves, I seem to remember some complicated dividend scheme favouring certain categories of shareholders (a sort of pref share type arrangement). Not exactly the most transparent company out there - and probably reflected in the share price.
they pay a div. every year and you get all the bonus shares as well,if you take the div of 14c and a 1 for 4 bonus share issue,it gave you a div of +/- 64c depending on what share price you are using to calulate the bonus share. i watched a interview with the ceo on cnbc and things really sound good for oao in the next 2-3 years. they are also bringing in a third oil rig,within this year.they really have to look at their div. policy,instead of issueing bonus shares.then you will see everyone jump into this share and make it more liquid.
Oando has not missed a dividend payout since 2006 and last paid in Aug last year (2010). They withheld to fund a third Rig which will give them more profits through consolidation of functions. The Management team are heroes on the continent. People generally shy away from the share because of S.A's perception of local expats. Unfortunately, this is a misconception as the Nigerian people are one of the most strategic in their business principles in Africa. That's why they are ahead in the Economy. Liquidity is affected by the perceptive barrier. Let's watch this one.