Saturday, June 26, 2010

Calculating the value of Belize Telecommunications company


Good article in the GUARDIAN government party newspaper this week, on BTL and the TRUSTS involved with shareholdings. The title is WHAT IS BTL VALUE?
The government does not really tell you. They do say, one time back in history that some Belize shareholders and Ashcroft himself bought about 8,216,00 shares at that price of $3 per share. The Guardian newspaper estimate is that BTL is worth around $148,656,000. I think they are off their rocker myself. I estimate the value without the ACCOMODATION AGREEMENT guaranteeing all losses and guaranteed profit margin that ASHCROFT squeezed out of former Prime Minister Musa ( Ashcroft allegedly knew where the skeletons were buried in the political party according to the rumor mill and newspaper reports of that time ). Anyway I doubt BTL is worth more than .15 cents to 65 cents a share right now. SUNSHINE HOLDINGS interest is probably about .05 cents a share. BTL is now a PENNY STOCK.
No one knows yet how many shares are outstanding and available. I myself, wrote to both BTL BOARD and the MINISTER OF FINANCE to offer to BROKER and be MARKET MAKER for BTL SHARES coming up for sale. From a development of Belize viewpoint, that is always a business I wanted to start, as a STOCK EXCHANGE. Belize cannot really get any investment capital until they have a stock exchange.
Knowing the political system in Belize I never expected to be even considered, as these sort of people simply solicit ideas and then farm them out to relatives and family. So I never went into operating details. Without experience based on the profit motive and not on a government salary, such a venture cannot be successful from a Development of BELIZE point of approach. My feeling is they will make a mess of it.
The essence is that we will NEVER KNOW the true value of BTL in closed shop sales, with fixed pre-arranged prices. Only in the market place at auction can you get the true value set. I’d hazard a guess that right now, BTL is a company that can show a net profit of $8 to $12 million a year. At a fair share price set by stock market auction, I am interested in $100,000 worth of shares myself. But at a rigged FIXED share price probably will not buy any. Wish I could get some backers with a few million dollars. What I want is control of the BOARD OF DIRECTORS through a majority shareholding. Without that, the company is probably not a good investment for anybody.
BTL has gone down in value a lot, also the dividends and profits have gone down too, as they meet competition in the market place. It could still be a good investment to develop the country with, and grow with the population. I don’t expect them to do profitable anymore, as good even as a small local bank for annual net profits. At least not for years to come.
The AMANDALA newspaper gave a good coverage of the multiple shareholders that were ballyhooed back in ASHCROFT and MUSA diddling days as two TRUSTS. The big one used for lying, cheating, scheming propaganda was the SUNSHINE TRUST holdings of shares. Supposedly for the benefit of the BTL employees. According to the article in the newspaper, I interpret; SUNSHINE TRUST was a charade, a big farce. Back in the beginning I said so, it was about CONTROL of voting rights, not about beneficiaries.. Ostensibly SUNSHINE TRUST holds 23% of that time; shares in BTL. Those shares are worth pennies on the dollar nowadays.
Using the price of shares back in the hey day of BTL machinations as a collusion between former PM Musa, the valuation of this back then years ago, was around supposedly $34 million at $3 a share. Nowadays at .15 cents a share if you are lucky, that would actually put those shares at a price of .05 cents each. BTL is now a PENNY STOCK. The way the SUNSHINE HOLDINGS TRUST was set up, the shares it holds were bought by loans from BANKS. The newspaper articles have referred to a Bank held by Ashcroft in Turks and Caicos if memory serves me rightly, and another Bank in Trinidad I believe? With shares bought by loans and a TRUST controlled by Ashcroft’s man in BELIZE, Dean Boyce, the voting control of the BOARD OF DIRECTORS of BTL was ensured, but the debt or cost of the shares was passed on, to any beneficiaries as a future cost. This SUNSHINE HOLDINGS actually has nothing, if anything, only overpriced swollen debt values and the all essential voting rights of course, before NATIONALIZATION. The article in the AMANDALA this weekend do not tell us how many shares are allegedly owned by SUNSHINE HOLDINGS TRUST, but at .05 cents a share, can’t be worth much today. I’m not at all clear when they talk about the SUNSHINE HOLDINGS and the BTL Employees Trust what and who they are talking about.
There is a lot of harping coming from the ASHCROFT camp and representatives about values and compensation. Only a true stock exchange market bid and ask operation can set a true value on the shares available in BTL. Anything else is a charade. It is of course advantageous for Dean Boyce the man for Ashcroft in Belize to holler and yell stuff like they had a $600 million offer for BTL one time, or they sold some shares to minority stockholders at $10 a share another time. They are setting a RED HERRING paper trail, for future litigation. I always thought BTL was a PUBLIC CORPORATION and if it is, I guess we have no auditing, or reporting requirements like WALL STREET, to put information about the company in the OPEN. Printed weekly in the newspapers as to BID and ASK prices and transfers of shares. This telecommunications company has always been treated like a privately held company. In my experience in North America this would be against the law. I suppose we have no such laws in Belize? Which makes it a ROBBER BARON paradise here in Belize.
From what I gather reading the weekend GUARDIAN article, the beneficiaries are the BTL employees. Since it is apparent this is a REVOCABLE TRUST, whatever the name they use, this part is a charade. The entity was used solely to buy shares and borrow money to buy shares and give the voting rights to the BELIZE BANK, an ASHCROFT owned entity. The GRANTOR, or what this legal language calls a PROTECTOR is the BELIZE BANK. The PROTECTOR can change TRUSTEES, change beneficiaries and do anything they want at all. This is not an IRREVOCABLE TRUST, which means it is simply a financial instrument to manipulate share holdings and debt and BTL dividends. That’s my opinion of it anyway? It is a lot of gobblygook, but from the newspaper article, the BTL employees TRUST is owned by SUNSHINE HOLDINGS, which is owned half and half by the BTL EMPLOYEES and the other half by DEAN BOYCE, Ashcroft’s reputed man in Belize. The BELIZE BANK as PROTECTOR under the described articles, say they can change this without notice at any time. A thinly disguised attempt to cover one man owning everything.
The government of Belize however, say they now own SUNSHINE HOLDINGS, by NATIONALIZATION, which owns the BTL employees TRUST. So DEAN BOYCE and the BTL EMPLOYEES actually own nothing at all. There is effectively no BTL EMPLOYEES TRUST anymore, if there ever was one?
The government owning SUNSHINE HOLDINGS by NATIONALIZATION, therefore now owns the 23% Shares of BTL controlled by the TRUST. How actually the PROTECTOR, the BELIZE BANK would come into this, with the ability to change the playing field under the articles I don’t know. But since NATIONALIZATION I would presume the PROTECTOR is now the Government of Belize and can do anything they want with those shares. Transferring them to another legal entity would be probably a good way of getting rid of the litigation prospects from ASHCROFT legal entities. You would leave a bankrupt SUNSHINE HOLDINGS, which would not have the assets to pay off any loans owing banks.

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