Transcorp, Dead or Alive?

[bwalaman]

Stockbear, thanks a million........

I noticed Top Five type trading volume of Transcorp recently.
But then if the IPO is 7.50 and the suspended price is at 9.71- this means people are not buying, but selling- otherwise they would buy the IPO ya???

[Stockbear]

@ Bwalaman - Buying public offers/ Initial Public Offers (IPO), is dependent on your investment strategy. Essentially, if you buy from the secondary market through stockbrokers you get your share certs immediately and you can sell the very next minute. This you cannot do with PO's and IPO's, because you don't get your certs for quite a while sometimes a year.

It's all a matter of preference. This topic has been covered at length by the guru's in our midst. Just check through other threads.

[giwababatunde]

Check their web page,www.transcorpnigeria.com/ipo/index.php, u will get every information you needed, their site is up and running.

Good luck.

[Stockbear]

Something sinks about Transcorp. They recently concluded their IPO and the price has dropped from tech suspension price of N9.71 to N8.34 and has been constant around this price range since the start of March.

Today I read in the BusinessDay that Transcorp shares are not being manipulated. Ok, fine. The speaker in question is a Senior manager in the Corporate Affairs Department of the NSE, Sola Oni. He says - the shares are still on technical suspension. Really?

If so why the price drop? Or am I missing something? Why did a recent publication also say the IPO was over subscribed? Was it? Really?

Let's watch and see how all this plays out.

[c kenneths]

My take about Transcorp, some institutonal investors and high net worth individuals who were persuaded to buy transcorp's private placement last year are now in need of their money and wants to divest to play the markets short term.

Whats more, they bought at 6.00 so the ve got some profits at above 9.00. So when the high priests of Transcorp noticed the large offload of the shares which consequently crashed prices, they quickly called for a time out !

This technical suspension is only meant to buy time and look for other investors that has appetite for the long term. That's their only way to stop the price slide, but is it right?, is it legal, is it ethical?, please does anyone have answers?.

[bwalaman]

Transcorp stinks! Period... Privatization is public sector to private sector, when the President starts to dictate how the privatization is done and has the head of NSE as the boss of Transcorp...common, are we joking or what?!

Never liked this and it still stinks! The NSE does not need this...

[Stockbear]

Would this be a good reason to patronise Transcorp, assuming this buy-in goes through?

Deleted due to copyright infringement.

[Stockbear]

Transcorp was not oversubscribed as initially reported. It can be deduced from info readily available. Consider that if the opposite was true, It would be all over the news. It would be news worthy.

On a much more gloomier note, as of the 5th of April, Trancorp was today lifted off technical suspension. The market was swamped with excessive supply volumes which sent its prices crashing to a maximum of 4.91%.

Currently, there is an excessive supply of approximately 75 millions units queued on the system waiting to be dumped at the next trading day.

[Stockbear]

I was right! See above post! The report published in ThisDay confirms that the second technical suspension was to prevent the free fall of prices and that it was undersubscribed by at least 70 whooping percent!

This is a serious blow! Despite the massive road show to Nigerians in diaspora.

I would like to see how this will be dealt with.


BT Terminates Agreement with Transcorp
• IPO undersubscribed
From Ijeoma Nwogwugwu in Abuja, 10 April 2007

Bullet Points:

• British Telecom (BT) has pulled out of its technical services agreement with Transcorp.

• In a letter to Transcorp, BT cited the unavailability of working capital needed to turn around NITEL and MTel, and the lack of adherence to corporate governance principles by the companies’ management and their boards as the reason for its decision to withdraw from the agreement.

• Analysts estimate that the Transcorp’s IPO may have been undersubscribed by as much as 70 per cent.

• Ever since Transcorp took over NITEL, and by extension its mobile subsidiary in November, the reconstituted boards of both companies have been enmessed in internal wrangling among its members, on the one hand, and disagreements with the British CEOs (Steve Brookman and John Weir) on how best to manage the companies on another.

• A two week extension granted by the Securities and Exchange Commission (SEC) to Transcorp which embarked on road shows to the UK and South Africa to shore up investors’ participation in the offer did not help matters.

• Capital market operators are of the view Transcorp grossly underestimated the capacity of the market to absorb another major public offer right on the heels of the Dangote Sugar Refinery Plc IPO.
According to a market analyst, “the timing for Transcorp’s offer was obviously not right. It came at the end of the year when most investors were cashing in to raise money for the yuletide season. Besides, it came immediately after Dangote’s IPO which had soaked up most of the investible funds in the market.”

• The undersubscribed offer is already impacting on Transcorp’s share price which has been on a downward spiral since the technical suspension on the company’s shares was lifted twice by the Nigerian Stock Exchange.

• Without prior notice to stock brokers, the Exchange placed another technical suspension on the shares, which was ostensibly done to stop the free fall. However, the official explanation given by the Exchange for the second suspension was that it had done so to enable the Issuing Houses to the offer conclude collation of returns.

• Since trading resumed last week, Transcorp’s shares slumped again, closing in at N7.93 kobo a share by end of trading last Thursday.

http://www.thisdayonline.com/nview.php?id=75176

[bwalaman]

If it looks like a skunk, walks like a skunk, stinks like a skunk... and then stinks again...

..it is TRANSCORP...

I just hope this does not lead to market confidence issues- remember who is the "Boss" of Transcorp?

[c kenneths]

Bwalaman, small small dey yab those people now! haba, but on a serious note, those poeple at Transcorp seems to have gotten something wrong somewhere. We did invest in that offer and I only believed it is not going to be a quick in and out. Especially when I read in their prospectus that they are not likely to pay any dividends for at least two years. We are taking solace in the fact that its for the long term so whatever happens in the interim is not our concern, so dont cry for us, believers of Transcorp, for that will be acting more catholic than the pope.

[paragon]

even beyond not beyond not paying dividends for 2 uyears, the company does not have fundamentals. people bought on sentiments, and sentiments that is not backed by fundamentals would not last.

well, let those who have lost money see it as tuition fee for learning.

[Stockbear]

With all the negative news and 75 million odd share waiting to be dumped as at Tuesday's trading day, only 947,316 shares exchanged hands leaving the stock to close at N7.54.

Miraculously (if such a thing exists in the stock market), the stock has closed at N9.71 after trading 3,011,808 shares. Today's low/high price was the same N9.71 how miraculous can this be for Transcorp Something does not add up. Dare I suggest insider trading? And all this in 69 trades only!

Let's see where all this is leading to

[c kenneths]

Do I attribute this glaring manipulation of Transcorp's share price today to lack of manipulating expertise or is it an attempt by somebody to insult our collective sensibilities, all aimed at stage managing a developing problem ?

What kind of miracle will add 2.71k to a stock price of 7.54k, this insider abuse is too much to stomach.

I am beginning to agree with the people who says Transcorp stinks.

[drtonyo]

Listen: Ladies and Gentlemen, if you want to be mega-rich, just buy some shares in TRANSCORP now before it is too late!!! who knows OBJ may assume it's chairmanship post handover.
By the way, the price of transcorp has been adjusted back to #9.71. GOODLUCK

P.S. stop wasting time condeming transcorp..... position yourself to start making money before the price hits #30 cheers

[Stockbear]

If we are to believe the last post above, then maybe we should all rush in and pay our dues to Transcorp But then again, considering the unsound foundation of Transcorp (based on wrongdoings, may be this is all part of everyday doing business in Nigeria), how can it stand?

Then again are we not talking about Nigeria where anything is possible, provided you wield the power?

After recent events with the Transcorp share price rising from a temporary grave, I would equally believe and not too surprised to hear that the IPO was oversubscribed!!! Now this would be truly miraculous My opinion is based on events leading up to now.

Based on these same recent events, the current wait on the (SEC) and (NSE) can only be explained as Transcorp buying up its own shares. If this does not happen it will take a true miracle for Transcorp to rise from a very deep grave, which by the way was self-inflicted.

[jazmil]

Heres the official explanation why Transcorp's stock price was adjusted:

http://www.thisdayonline.com/nview.php?id=75308

Something is very wrong somewhere.