AP Plc Share Price Uptrend – What is going on?

AP Plc’s Share Price Uptrend – What is going on?

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).

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 AP Plc Share Price Uptrend – What is going on?

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 2010.
And this is against a financial performance report of a net loss of N5.476bn and a
negative EPS of N5.07 – as contained in the Company’s Q3 2009 results.

What is going on with the AP Plc shares is a question on everyone’s lips.

Why is the AP Plc stock the only one within its sector experiencing such an up trend
when a cursory look at Oando Plc during the same period – and by the way, a better
run company shows that share prices have been declining? Is there any big news or
event in the horizon?

Questions are now being placed before the SEC and NSE in the open court because if
the regulators are really serious about curbing price manipulation, they should be
able to tell the investing public what is moving this particular stock at this time. Very
strange for a stock to have an un-abated 14 days up trend.

REFERENCES:
1. African Petroleum Plc – The Aviomoh Papers http://www.proshareng.com/articles/2115

2. The AP Investor Relations page http://www.proshareng.com/investors/company.php?ref=AP

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