Mass Telecom Innovation Ltd

[faoogoke]

ALL,
The gist is that this company has commenced a pp and that it would close today. Perhaps it may be extended. Let's snif for more info. The web site is Welcome To MTI Nigeria

[richestowealth]

Originally Posted by faoogoke

ALL,
The gist is that this company has commenced a pp and that it would close today. Perhaps it may be extended. Let's snif for more info. The web site is Welcome To MTI Nigeria

I thought it said March 14th? The Punch: Market turnover nosedives by 67%I called the company it just rang and no one picked up. Still sniffing myself.

[anekwlc]

Originally Posted by richestowealth

I thought it said March 14th? The Punch: Market turnover nosedives by 67%I called the company it just rang and no one picked up. Still sniffing myself.

Who knows what they do? They sounds like a telecom company looking for and executing contracts . We need to read about them first. Please post any information you have about them. We realy need to be careful about the PP this time

[lumidii]

This is the MTI PP memo in pdf format.

[riskreturn]

Originally Posted by lumidii

This is the MTI PP memo in pdf format.

But why are the projections so unattractive? Given the projected end-2008 earning per share of 5 kobo (increasing to 7 kobo in 2009), the offer price should not be more than 50 kobo. I gues they must have made a mistake (probably, a typo) in writing up the projections - probably they missed out a zero at the end of the figures. This is because it is inconceivable for the shares to be offered at a forward P/E ratio of 54 times (i.e., 2.7 Naira offer price divided by end-2008 earning per share of 5 kobo)! In addition, the "issuing houses" or promoters are hardly known - hence, with little to protect or worry about (vis-a-vis well known issuing houses) concerning their name or reputation. I am greatly worried about this PP.

[Davog]

Originally Posted by riskreturn

But why are the projections so unattractive? Given the projected end-2008 earning per share of 5 kobo (increasing to 7 kobo in 2009), the offer price should not be more than 50 kobo. I gues they must have made a mistake (probably, a typo) in writing up the projections - probably they missed out a zero at the end of the figures. This is because it is inconceivable for the shares to be offered at a forward P/E ratio of 54 times (i.e., 2.7 Naira offer price divided by end-2008 earning per share of 5 kobo)! In addition, the "issuing houses" or promoters are hardly known - hence, with little to protect or worry about (vis-a-vis well known issuing houses) concerning their name or reputation. I am greatly worried about this PP.

Bros i bow oooo, this is too much.

[Davog]

This PP is very good, but pls lets be careful.
The owners knows who they want and have already done an inhouse allotment.
For me this one is gone, thank you for the Info .

[lumidii]

I was actually excited when i heard about this PP about a week ago, but the poorly put-together memo just put a damper on that initial excitement. The prospectus is ridden with errors and inconsistencies, and even the substance which should be the business plan/model is not well laid out. YR2006 wasn't too good for them despite the volumes in business. The N1billion owed by Nitel, and the N1billion+ owing to banks won't help matters.

This company is really battling with liquidity squeeze. Telecoms is a money-spinner no-doubt, but these guys haven't really shown what specific opportunities they are tapping into. The top three telecom companies have refrained from sharing/outsourcing sites/masts/plants due to corporate distrusts and egoistic reasons. The business prospects seem a bit vague to me.

The accountants couldn't even get their own assessment of Going-Concern ability of the company right. Abi na African Petroleum dey do PP? Surely, it can't be that expensive for the accountant/auditor to the placement to get an adobe pdf software- even a free version could have done a proper job. The memo hasn't done justice to the potentials that may lie in this company. Telecom savvy members may share their own views of the memo, or what they can gather about the prospects of the company.

Just my own observation, what do i know anyways!

[paullyonline]

They probably dont just want to raise any body's hopes and drum up unecessary excitement. I think this is only for the very 'discerning investor'.
Count me out sha.

[richestowealth]

Originally Posted by lumidii

I was actually excited when i heard about this PP about a week ago, but the poorly put-together memo just put a damper on that initial excitement. The prospectus is ridden with errors and inconsistencies, and even the substance which should be the business plan/model is not well laid out. YR2006 wasn't too good for them despite the volumes in business. The N1billion owed by Nitel, and the N1billion+ owing to banks won't help matters.

This company is really battling with liquidity squeeze. Telecoms is a money-spinner no-doubt, but these guys haven't really shown what specific opportunities they are tapping into. The top three telecom companies have refrained from sharing/outsourcing sites/masts/plants due to corporate distrusts and egoistic reasons. The business prospects seem a bit vague to me.

The accountants couldn't even get their own assessment of Going-Concern ability of the company right. Abi na African Petroleum dey do PP? Surely, it can't be that expensive for the accountant/auditor to the placement to get an adobe pdf software- even a free version could have done a proper job. The memo hasn't done justice to the potentials that may lie in this company. Telecom savvy members may share their own views of the memo, or what they can gather about the prospects of the company.

Just my own observation, what do i know anyways!

You are spot on. The errors just made the stuff to look like crap. I bet you it'd still be oversubscribed.

[anekwlc]

Originally Posted by richestowealth

You are spot on. The errors just made the stuff to look like crap. I bet you it'd still be oversubscribed.

If you read down their PP Memo posted here, you will see that this coy is a Telecommunication contracting firm that suppose to be building telecommunication infrastructure for companies and telecom service provider if they win the contract. They did not mentioned any big contract they have now or they are currently servicing rather they stated that your money will be used to pay up some Loans and expansion (not sure what they want to expand because they did not mention any existing infrastructure).
From what I read, I do not think that they can even meet up with the unattractive projections.

[Fishbone]

I really appreciate the opinions concerning this PP. If it wasn't for it, I will be scrambling now on how to respond. From these little mistakes you can get a big picture on management e.t.c. Guys keep it up

[El-Kayode]

great job guys!

[bolanle]

Great guys, this info are really of use, if not new beginners like me will just rush in b/4 realising what is going on

[ChukyOOI]

Latest on the MTI PP activity: Currently ongoing from 03/03/2008 for 2 weeks at N2.70 per share. I'm looking out for more information. Regards.

[Tokstide]

Originally Posted by anekwlc

If you read down their PP Memo posted here, you will see that this coy is a Telecommunication contracting firm that suppose to be building telecommunication infrastructure for companies and telecom service provider if they win the contract. They did not mentioned any big contract they have now or they are currently servicing rather they stated that your money will be used to pay up some Loans and expansion (not sure what they want to expand because they did not mention any existing infrastructure).
From what I read, I do not think that they can even meet up with the unattractive projections.

Based on the projections in the prosectus and your analysis i have decided to bail out fast.Thumbs up for you guys.

[Tokstide]

Originally Posted by anekwlc

If you read down their PP Memo posted here, you will see that this coy is a Telecommunication contracting firm that suppose to be building telecommunication infrastructure for companies and telecom service provider if they win the contract. They did not mentioned any big contract they have now or they are currently servicing rather they stated that