moneybox africa pp

[BLUEMONEY]

Well i was at the NSE trying to Analyse the PP of Negris with a friend of mine who is a broker becuase the figures i was getting was far below the offer price. when a man that works with the Quotation and listing division of the NSE walked in and when he saw what we were doing and having concluded that the PP was expensive, advised that it will better for me to stay away from PP of companies that have not paid Dividend for 5 years (i have known this man for years and he hardly jokes on issues like this --- he was serious).
And my response was "BUT COMPANIES THAT ARE NOT LISTED ON THE EXCHANGE DONT HAVE TO PAY DIVIDENDS BECUASE MOST OF THEM ESPECIALLY THE START-UPS WILL HAVE TO PLOUGH BACK INTO THE BUSINESS FOR GROWTH AND THAT WE HAVE SEEN CASES WERE COMPANIES THAT HAVE NOT PAID DIVIDEND IN THE PAST WERE QUOTED".
His reply was that it is a new listing requirement and that it is one of the strategy of the exchange and SEC to protect investors from fraudulent companies and sanitize the PP climate since they cant stop these companies from doing PP and that companies that have filed apllication for listing may not be affected by this rule.
We all however came to the conclusion that this rule will only be effective "IF" the SEC/NSE implement this rule because we have seen situations whereby rules/policies were made but not implemented or partially implemented.

[polosco]

Originally Posted by BLUEMONEY

We all however came to the conclusion that this rule will only be effective "IF" the SEC/NSE implement this rule because we have seen situations whereby rules/policies were made but not implemented or partially implemented.

this new rule is bound to cause confusion as there is no well laid down procedure as BLUEMONEY says here some will be allowed as they have applied for listing b4 now, how do we know those ones frm those who have not, politics will surely enter into this to pass off some coys and leave others behind..............

[madeonline]

The new 5 year consistent dividend payment before listing rule is quite interesting and would bring sanity to the PP market IF FULLY IMPLEMENTED, however it would not stop the sale of worthy private placements. There are companies that are not listed and do pay dividend periodically. Infact, some have deliberately chosen not to be listed.

I am of the opinion that in as much as the new rule would reduce the tempo in PP patronage in the short term, it would encourage PP participation in the longterm as savvy investors would have the opportunity of comparing DPS for quoted and unquoted comapnies pretty soon.

Back to moneybox ... MoneyBox Africa - Enabling Possibilities ... I was privy to study the detailed document which contained everything in the teaser document (herewith attached in page 1) plus biz products (see website) and management profile - the doc. is kept private.

It is truly a start up with great potentials for ROI bcos of the ever expanding product market - GSM penetration and financial services. Investors willing to stake on high risk and high retun a.k.a start up coy/venture capital could take position and watch their wealth grow as the company grows.