Last updateMon, 07 Jul 2014 9am

Back You are here: Home Business Stock Analysis


IF you told anyone that it is not wise to put the cart before the horse, you certainly will make sense even if it is all a cliché. The cart cannot come before the horse because it will be pulled by the horse and not the other way round. That is if you want to achieve your purpose of using the cart to move its contents from one place to another.
But do not bet your money on being correct for all situations. That is, that at all times the means for getting to a point in view must always come first before the end. This is because business start- up demands the opposite: Consider your objective first before attempting to find the horse that will get you there. This is because, in most cases, the objective determines and even sustains the means.

OKOMU Oil is worth watching closely this financial year. Come year end, it will either confirm a rather uncomfortable trend visible from figures since 2006 or put smiles on the faces of all by breaking with this to close with higher profit margin.
No doubt about it, last financial year (2010) was a very good one. The only cause for fear was that good as it was, it fitted well into a trend that expects this to be followed by another dip in fortune for the company this financial year.
In 2006, Okomu oil Palm's turnover had closed at N27408m with an accompanying profit before tax of N405.7m. The next year, turnover had increased marginally to N2807.7m (that is by 2.44 per cent) but this was accompanied by 62.8 per cent decrease in profit to N150.8m. This, in effect resulted in amajor slide of the company's profit margin from 2006's 14.8 per cent to 5.37 per cent.

Social Menu