Nairametrics| Imagine you had N1 million and decided to buy Forte Oil shares at N12 only to sell it about two years later for N158. That invested would have turned your N1 million into N12 million. This was exactly the case between 2013 and 2015.
Forte Oil is now trading at N46.5 a price range that was more synonymous with 2013 when it was still at the early stages of one of the most intriguing share price appreciation in Nigeria’s history. The drop in its share price in the last 6-9 months can also be described in the same light. For a lot of shareholders, the experience has been bitter and no one has perhaps felt the brunch more than Femi Otedola, the billionaire owner of the company.
The latest Forbes billionaire list which we understand is craved by Nigerian billionaires excluded him for the second straight time. Mr Otedola is no longer a billionaire, at least in dollars. Ironically, his exclusion is sparking a feeling within some investors that the smart money may soon point in the direction of Forte Oil. For the integrated oil company, their charismatic Chairman is not just a leader, he is also one to be trusted if capital appreciation is your forte.
He makes things happen?
Mr Femi Otedola like most past and present billionaires on the Forbes list derive their net-worth from the valuation of their holding in equities, real estate and other assets that can independently be valued. With Forte being one of his major assets, there appears to be a positive correlation between when the Forbes list will be published and a spike in share price. We explained this once in article published in October 2016.
At N47 and a price earnings ratio of 21x, the outlook for Forte oil’s share price may once again appear bullish. To get back to the Forbes list, he must either hope that his share price commences another bullish ride or that his shareholding increases or maybe both. The current share price serves these purposes well and if you trust your instinct like you trust his influence, then your stars may well be aligned with the gods of 2013 – 2015.
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