Connect with us
nairametrics

Stock Market

Japaul Oil & Maritime Services plans to invest in gold mining

The company’s name will be changed from Japaul Oil & Maritime Services to Japaul Gold and Ventures Plc. 

Published

on

Japaul Oil & Maritime Services plans to divest into gold mining

Japaul Oil & Maritime Services has announced its plan to change the name of the company to Japaul Gold and Ventures Plc in a bid to delve in mining and technology business activities.

This was disclosed in a notice, which was signed by the Company Secretary, Micheal Edeko, and sent to the Nigerian Stock Exchange (NSE). According to the notice, Japaul intends to seek investors’ consent to raise additional equity capital up to N27 billion whether by way of Right Issue, Public Offer or Private Placement.

It stated, “We intend to seek the approval of our shareholders to increase the authorised share capital from 6 billion to 60 billion ordinary and/or Preference shares and carry out share reconstruction.

“The Directors be, and are hereby authorised to do all things necessary and incidental to the achievement and fulfilment of the above special resolutions including amending the Memorandum and Articles of Association of the company.”

READ ALSO: How to Profit from Directors’ Share Dealing Notifications

GTBank 728 x 90

According to the notice, the company’s 15th AGM would hold at the Japaul Corporate Head office, Ikeja, Lagos on July 29th, 2020. The consolidated statement of financial position of the company, as of December 31, 2019, would be presented to the shareholders at the virtual meeting.

What it means: If Japaul succeeds in increasing its share capital from 6 billion to 60 billion, it means bad and good news for investors.  It could be bad because it represents the issuance of additional shares, which dilute the value of investors’ existing shares.

The good news is that additional share may benefit investors in the form of increased returns on equity, through capital gains, higher dividend payouts.

Coronation ads

READ ALSO: Japaul Oil and Maritime’s share price is gaining momentum

Share reconstruction:  Share Reconstruction otherwise known as a reverse stock split is a process whereby a company reduces the total number of outstanding shares it has by cancelling out shares it does not need.

How it may affect investors: While some argue that share reconstruction does not affect the value of investors’ shares in a company, others insist that the exercise can turn to a nightmare for shareholders. The market may feel the fundamentals of the company is so weak they do not even apply any sentimental value towards the share reconstruction.

For instance, if Japaul share price changed from 23kobo, as at June 19, 2020, to 46kobo after a scheme of Share Reconstruction, the market may still feel the value the company is worthless and price it less. Therefore the company can drop below 46kobo or lower than the 23kobo it was trading before the reverse split.

READ ALSO: Binance, Bitfinex, Coinbase, Huobi receive about 40% of all BTCs

Jaiz bank ads

Meanwhile, the results of the company for the financial year ended in December 2018 showed that revenue fell from N1.9 billion in 2017 to N936 million in 2018. Losses, though lower year on year, remain dire. The firm made a loss after tax of N6.5 billion in 2018, as against a loss after tax of N13.2 billion recorded in 2017.

Stanbic IBTC

The company’s auditors, PKF, have flagged the firm’s growing concern assessment as a key audit matter. The group’s shareholder funds have been eroded to the tune of N34.6 billion, as at 31st December 2018. These have culminated from past operating losses in the last four years. Total indebtedness stood at N58.35 billion as at the 31st of December 2018 with a gearing ratio of 169:1.

The share price of Japaul Oil & Maritime Services closed at N0.23 on Friday, June 19, 2020. While its price earning ratio stands at 0.04, the earning per share and price to book ratio stands at 6.53 and 0.2421 respectively.

Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

1 Comment

1 Comment

  1. Anonymous

    June 22, 2020 at 7:38 pm

    I need information how to contact japaul oil and maritime company please.since year 2000 I haven’t been paid my dividends for shares.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stock Market

Slack gains 22% on Salesforce buyout offer

Salesforce is reportedly interested in buying Slack, the popular workplace for many leading firms.

Published

on

Slack gains 22% on Salesforce buyout offer

Salesforce is reportedly interested in buying Slack. The popular workplace for many leading firms like Amazon has sent shares of the smaller firm up over 22% at the most recent trading session.

In a report credited to WSJ, the companies could reach a deal within days and possibly by the time Salesforce reports its third-quarter financial results, Tuesday.

READ: Jumia sees competition from startups in growing African e-commerce market

The anticipated deal has got global investors excited as Slack shares gained over 37%, according to data retrieved from Bloomberg. Slack is worth $40.70 per share as of the time of writing, valuing it at around $23.22 billion.

Salesforce the world’s biggest seller of customer relationship software is led by co-founder Marc Benioff, a pioneer in providing software via the cloud through a subscription.

GTBank 728 x 90

READ: DPR approves new Liquefied Petroleum Gas guidelines for investors, operators

What this means

Slack is popularly known among many firms for its user-friendly interface. It empowers global businesses to embed workflows. Stock experts anticipate such a deal would be beneficial to the Salesforce family of products, which spans marketing, sales, service, and more.

Coronation ads

READ: Microsoft Teams’ rival, Slack shares drop on withdrawal of full-year billings guidance

However, at the time of writing of Salesforce fell around 5% as some investors in the American-based SaaS pioneer were not so delighted about such synergy or perhaps worried about the price that would be required to bring such business to Salesforce fold.

READ: Ripple adds Bank of America to payment network

Continue Reading

Spotlight Stories

Bamboo says USD Wire Transfer option is no longer available for deposits

Nigerian based Popular stock broking application, Bamboo, informed its users on Wednesday that it will no longer allow USD wire transfer options for deposits.

Published

on

Nigerian based Popular stock broking application, Bamboo, informed its users on Wednesday that it will no longer allow USD wire transfer options for deposits.

Bamboo offers investors a platform to invest in stocks listed on the New York Stock Exchange and NASDAQ. Users can access these markets by depositing dollars in their wallets, or Naira which will then be converting at the prevailing exchange rate (which is usually closer to the parallel market exchange rate).

The company notified its customers via the application’s notification feature leaving the option to fund wallets with United States dollars to USD domiciliary deposits or cash deposits.

“The USD Wire Transfer option is no longer available for deposits. However, you can still make deposits through USD domiciliary transfers or other channels. We apologize for any inconvenience caused.”

(READ MORE: How to own your home in 5 years without a mortgage)

GTBank 728 x 90

The company also sent an email stating in part as follows;

“We will like to inform you that our USD Wire transfer option is no longer available for use due to regulatory reasons. Effective immediately, no transfers made to our Silvergate or BBVA accounts will be received. We encourage you to use our USD Domiciliary Transfer option on the Bamboo app, or any other payment method you prefer.  We sincerely apologize for any inconvenience this may cause you.” 

The company did not provide further information detailing which regulator may issue the instruction to stop the service.

Coronation ads

What this means

USD Wire transfers allow investors who have domiciliary accounts in the US to transfer dollars to Bamboo’s corresponding account in the US. It also allowed its users to transfer directly from Nigeria to their US Dollar accounts. This helps investors avoid some of the local USD transfer restrictions from one domiciliary account in a bank to a third party account in another bank.

The is often convenient for investors who have dollars abroad and want to avoid the hassles of sourcing forex locally. Whilst no reason was provided for the regulatory requirement, Nairametrics believes it may not be unconnected with several unscrupulous.  activities associated with wired transfers or a Nigerian regulators trying to block a loophole which would allow investors transfer fx out of the country from their domiciilary accounts.

 

Jaiz bank ads
Continue Reading

Stock Market

Dangote cement post a 52-week high, investors gain N224 Billion

FLOUR MILL led 36 Gainers against 11 Losers topped by TRANSEXPR at the end of today’s session

Published

on

Dangote Cement pLC

The Nigerian Stock market kept its bullish momentum on at mid week’s trading session. The All Share Index gained 1.25% to close at 34,769.00 points, as against +0.64% recorded yesterday. Investors daily gain stood at N223.8 Billion.

  • Nigerian Stock Exchange capitalization now stands at N18.176 Billion. Its Year-to-Date (YTD) returns currently stands at +29.53%.
  • Nigerian bourse trading turnover on Wednesday finished fairly impressive as volume ticked up by 19.02%, as against -35.67% downtick recorded on Tuesday. TRANSCORP, ZENITHBANK, and ACCESS were the most active to boost market turnover.
  • MANSARD leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.
  • The Market breadth closed positive as FLOURMILL led 36 Gainers as against 11 Losers topped by TRANSEXPR at the end of today’s session – an improved performance when compared with the previous outlook.

READ: Nigerian stocks record gains, investors gain N132.8 billion

Top gainers

  1. FLOURMILL up 9.84% to close at N27.9
  2. JBERGER up 6.94% to close at N18.5
  3. DANGSUGAR up 5.90% to close at N20.65
  4. DANGCEM up 2.60% to close at N205
  5. AIRTELAFRI up 1.90% to close at N535

READ: MTN Nigeria, GTBank drop amid profit-taking

Top losers

GTBank 728 x 90
  1. TRANSEXPR down 9.38% to close at N0.87
  2. OANDO down 6.55% to close at N2.71
  3. INTBREW down 5.76% to close at N6.55
  4. CAP down 2.93% to close at N21.5
  5. UBN down 1.69% to close at N5.8

Outlook

Nigerian Stocks were fired up on all cylinders as the bulls increased their buying pressure across the market spectrum.

  • Stock bulls were not short of good macros, as crude oil prices touched $48/barrel for the first time since March, coupled with recent macros coming from COVID-19 vaccine makers revealed the worse will soon be over.
  • Dangote Cement’s share price reached its 52 week high, amid significant buying pressure seen lately from institutional funds. Also, other NSE30 stocks pulled off notable gains.
  • Nairametrics recommends you seek the advice of a registered stockbroker when choosing stocks to buy, as recent price patterns show cyclic returns often prevail.

Coronation ads
Continue Reading