It all started with an e-mail from a foreign subscriber to the service, a private equity investor who asked the question – Is someone compensating AP or on what basis is the share appreciating? Here we go again!

 

 

Source: http://www.proshareng.com/investors/company.php?ref=AP

 

We then asked our technical analysts to look into the movements in the AP Plc share prices and at the end of the exercise, we could not rationalise what was driving the uptrend of a company that:

 

1. Has not yet released its financials for 2009 financial year end;

2. Has relieved the CEO, Financial Director and Company Secretary of its duties;

3. Had its Chairman declare that he was staying in exile due to threats to his life;

4. Has a petition against it at the SEC and NSE;

5. Has a petition of its own against some individuals over unpaid shareholding: and

6. Has a case of price manipulation ongoing and yet unresolved.

 

There appears to be no fundamental basis or market information on what is driving the share price of African Petroleum Plc.

 

 

The up trend in AP appears very suspicious.

 

If you look at towards the end of the decline, 4 million shares were dumped (primarily some investors gave up because they could not bear the pain any longer).

 

                                                                         

However, the price has been going up on more than the average volume (i.e., average volume through July 15th was 423,000).

 

The stock price has moved upward by 54.81% in eleven (11) trading days from N21.20 it closed on August 20th to close at N32.82 as at September 6th with net loss of N5.476bn and a negative EPS of N5.07 according to the Company’s Q3 2009 results.

 

What is going on with the AP Plc shares?

 

Source: Proshare