GOIL’s 46th Annual General Meeting; What you should know.

The 46th Annual General Meeting of the Shareholders of Ghana Oil Company Limited (GOIL) will be held at the Auditorium, College of Physicians and Surgeons, Ridge, Accra on Thursday, 30th April, 2015 at 11:00 am for the transaction of the following business:

AGENDA
ORDINARY BUSINESS

1. To receive and consider the reports of the Directors and the Auditors and the Financial Statements of the Company for the year ended December 31, 2014.

2.To declare a dividend for the year ended December 31, 2014. (They better declare something substantial.)

3. To elect Directors to replace retiring Directors. (You guys should consider me when electing new directors.)

4. To re-elect Directors retiring by rotation.

5. To authorise the Directors to fix the remuneration of the Auditors.

6. To fix the remuneration of the Directors.

SPECIAL BUSINESS:

7. To authorise the Company to purchase and or hold from time to time as and when it deems it prudent such number of its own ordinary shares.

TEN LARGEST SHAREHOLDERS OF GOIL

TEN LARGEST SHAREHOLDERS of GOIL (as at 2013)
Shareholders
Number of Shares
Percentage Holding (%)
1 Government Of Ghana
128,889,623
51.10
2 Social Security & National Insurance Trust
46,699,835
18.52
3 The Quantum Group Limited
22,548,383
8.94
4 Hopefield Capital Limited
4,365,420
1.73
5 Scbn/Stanchart Mauritius Re
2,785,016
1.10
6 Mr. Daniel Ofori
1,091,138
0.43
7 Edc Stock Brokers Limited
849,420
0.34
8 Scbn/Elac Policy Holders Fund
845,124
0.34
9 SCGN/RBC Hyposwiss (LUX) Fund-Africa
456,000
0.18
10 Mr Victor Kwadwo Djangmah
412,440
0.16

WHY YOU SHOULD BUY GOIL SHARES

Today, I’ve decided to feature my good friend Boakye Ogyem as he expresses his thoughts and findings on GOIL.  I personally hold GOIL shares. Not much though.  Do you? What are your  views on GOIL and would you advise someone to buy GOIL? Do you agree with Boakye? Let me read your views on this stock.

WHY YOU SHOULD BUY GOIL SHARES BEFORE FIRST QUARTER 2015 by Boakye Ogyem
For quite a time now I have taken the stress upon myself to extensively scrutinize all shares listed on the stock exchange, all in the name of seeking alpha for my portfolio. My relentless effort in search of undervalued companies with strong earning fundamentals engendered the stock named GOIL, listed on the GSE. The rational for choosing this great company is listed below.

STRONG GROWTH PROSPECTS:
The current macro-economic variables bodes well for petroleum distribution companies in general, with the incessant power shortages undauntedly looming , it’s obvious that many productive economics activities will increase their consumption for oil to compensate for inadequate electricity. In fact gasoline percentage share of the national energy demand will surge in the upcoming years due to inefficient power supply. Secondly the expansion of GOIL market share in lucrative and unregulated industries such as aviation and fuel bunkering indicates that the company’s future prospects are great, after all apart from VIP BUS what other means can the high income earners travel to Kumasi /Takoradi in order to broker their deals safely and timely? Aviation, Currently GOIL has a 3year compounded Sales growth rate of 33.3% which shadows the revenue performance of all listed non-financial stocks on the GSE.

RETURN TO INCREASING PROFITABILITY:
Do you know that GOIL was experiencing a decline in profitability? Yes for almost three good years beginning 2009-2012 GOIL’s profitability measured with net profit margins kept tumbling from a high of 1.4% t0 1.18%. Currently, this company boasts of a profitability margin of 1.78% (evidenced in their third quarter 2014financial report), this indeed manifest that the company is not only increasing growth but rather churning more profit out of every single sales they make. Furthermore EPS growth for the past three years has shown an astronomical surge, displaying a compounded growth rate of 35%. This indeed is a great news, we have a company growing earning faster than sales which postulates that its really increasing its operational efficiency.

ATTRACTIVE VALUATIONS:
I’m personally of the view that this stock is currently undervalued and should experience a price surge coming early part first quarter, firstly the P/E ratio is unjustifiable relative to the industry’s P/E ratio which hovers around 16. Secondly the third quarter results of GOIL shows an increase in sales of GHC 1.1billion with an EPS of 0.079 for third quarter only. From the historical total leverage of 0.45 its clear that GOIL’s end of year sales will hit the region of GHC 1.6 billion , this will push end of period earning per share to 0.1145 which is almost 8% above the consensus end of year estimate of 0.105.Therefore applying a P/E ratio of 12 ,which is a fraction of what its peer rival TOTAL company is trading for, will results in a price of 0.1145*12= GHC 1.38 , this is a 31.4% surge in price if bought at today’s price of GHC 1.05.

DISCLAIMER: THOUGH THE EARNING PER SHARE ESTIMATE IS THOROUGHLY RESEARCHED BASED ON HISTORICAL THIRD TO FINAL YEAR REPORT ANALYSIS, IT SOMETIMES DO CHANGE EXPECIALLY WHEN MANAGEMENT DECIDED TO ISSUE ADDITIONAL SHARES. IF MANAGEMENT DOESN’T ISSUE EXTRA SHARES THEN EXPECT A PRICE SURGE EARLY PART NEXT YEAR THANK YOU.

GOIL announces Bonus Issue

GOIL has announced a Bonus Issue in a ratio of 0.2 new shares for every one (1) existing share held; following its approval by shareholders of the company at its AGM held on the 25th July, 2013.
The qualifying date has been set for Monday, 9th December, 2013. Also for the purposes of trading on the exchange, the Ex-Bonus date is Thursday, 5th December, 2013. (This means investors buying GOIL shares on or after this date will not be entitled to the bonus shares)

Source: CBL Research

Week in Focus: How stocks performed on the Ghana Stock Exchange (GSE)

New week, new gains, new losses, the GSE did not show any clear direction. On Monday the Ghana Stock Exchange gained some ground as gains in CAL Bank and Mechanical Lloyd Company (MLC) offset losses in two other equities. The GSE-Composite Index closed at 1,036.48 points, from 1,035.97 points and the GSE-Financial Stock Index closed at 872.44 points, up 0.64 points from 871.80 points. A total of 0.35 million shares traded, a 51.39% decline from the 0.72 million shares traded at the previous session. The corresponding trade value was GHS0.10 million, 43.76% less than the previous session.
MLC dominated trading for the second successive session. Click for details.

On Tuesday, the banking sector affected the market indices as marginal losses in two banking stocks drove the both indices downwards. CAL Bank and Ecobank Ghana (EBG) recorded negative price changes. The GSE-Composite Index decreased by 1.17 points to close at 1,035.31 points, bringing the year-to-date return to 6.84%. The financial stocks index closed at 870.25 points, a 0.25% decline from the previous closing of 872.44 points. Compared to the previous session, Tuesday’s trade volume and corresponding trade value were 56.32% and 14.96% respectively less. Ghana Commercial bank (GCB) led the market in terms of value with 29.51%, while SIC Insurance led in terms of volume, accounting for 25.64% of the shares traded. Furthermore Guinness Ghana brewery limited (GGBL) was the sole gainer and it moved up by a pesewa to a year-high of GHS2.40.

Positive price changes in three equities on Wednesday, edged up performance on the local bourse. The GSE-Composite Index climbed 1.47 points to close mid-week trading at 1,036.78 points whiles the financial stocks index returned 0.09% to close 0.78 points higher at 871.03 points.
Now let’s look at the stocks that moved the market. Trading was dominated by UT Bank (UTB) in terms of volume, with 37.47% of the trade volume, and Ghana Oil (GOIL) in terms of value, with 36.55% of the turnover. GOIL closed at record-high of GHS0.55, up GHS0.01 from GHS0.54 whiles TOTAL Petroleum and UTB also gained.

The stock market on Thursday, declined as fall of GOIL’s stock price forced the GSE-Composite Index down, 0.39 points to close at 1,036.39 points. The financial index was not affect and it stayed flat. The trade volume and value declined for the fifth successive session as 0.09 million shares were traded for GHS0.04 million, 20.26% less than Wednesday’s turnover of GHS0.05 million. Trading was dominated by UTB, accounting for 52.38% and 35.75% of the trade volume and trade value respectively.

Trading on the bourse yesterday ended the week in silence. Activities on the exchange kept the indices stable. The GSE-Composite Index and the GSE-Financial Stock Index remained stable at 1,036.39 points and 871.03 points respectively meanwhile, Friday’s turnover exceeded the previous session’s by a marginal 0.29%. New faces for the week, like Ecobank Transnational Inc. (ETI) trades accounted for 47.58% of the shares traded, while Standard Chartered Bank (SCB) led the market in terms of value, with more than 50% of the turnover. Due to low activity in the market at the end of the week, no price changes were recorded for the day.

Looking ahead: Next week could begin as an active week for ETI, GOIL and SG-SSB since more Bids orders awaits Offers in the market. On the other hand, more Offers await Bids for CAL Bank and Mechanical Lloyd Company and this can best be confirmed affect the Pre-market trades on Monday. I hope next week restore high activity in the market.
Keep Investing and following this blog for the best.

Fan Milk and GOIL closed at year-highs again as Ghana Stock Exchange had no losers.

Trading results on Tuesday 7th, August 2012, as I captured in my post: ‘GOIL and FML closed at Year Highs,‘ revealed the trend of these two stocks. This trend continues as they reach new year-highs after 6 days. Yesterday, on the back of upward price changes in five equities, the GSE-Composite Index returned 0.16% today, bringing the market’s three-day losing streak to a halt.
The index closed at 1,028.35 points, up 1.62 points from 1,026.73 points. The financial stock benchmark also climbed 0.51 points to close at 865.79 points.
As indicated on the market, a total of 0.23 million shares were exchanged between 19 equities, for a sum of GHS0.29 million. The volume and value traded today declined by 60.05% and 31.18% respectively, compared to the previous session. GOIL led the market in terms of volume with 73.99% of the shares traded, while Standard Charterd Bank SCB dominated in terms of value with 43.76%.
Fan Milk and GOIL closed at year-highs of GHS2.63 and GHS0.53 respectively. Other gainers were PZC, SIC and TOTAL. No losses were recorded.

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Price Movement of the Best Performing Stock on GSE for the 1st Half of 2012. [ GOIL ]

Ghana Oil Company Limited, popularly known as GOIL records a 1 -Year -Return of 58.06% with current Price per Earnings ratio of 12.95% (trailing 12 months). Earning Per share trailing twelve months is 0.0378p and the current share price is 0.49p with market capitalization of GHS 102.99 million.  (Bloomberg). 

GOIL markets and distributes Petroleum products in Ghana. The company markets, gasoline, oils and lubricants. It recently changed it’s logo and positioned itself as an energy company.
Performance On Ghana Stock Exchange (Jan-Jul. 2012) below:
GOIL: Price Movement from Jan. to 11th July 2012 (Bloomberg)
.