Monday, August 9, 2010

BTL to remain a CASH COW after sale for politicians?


Well I phoned BTL HQ a month or two ago for the annual report. They said they would mail it to me, but never did ( Box 276, San Ignacio ) That has been my experience with all my enquiries and dealings with the government run company of BTL. ( telecommunications ) They don’t answer anything and they don’t perform. I wouldn’t lend them a nickel.

They are talking about a PROSPECTUS and news comments quote the Prime Minister as saying no single person will have a majority share of the Board of Directors. Don’t know how they are going to do that? Doesn’t sound like a competitive public company? Sounds like a messed up government deal, like a private company.

That said: Are the shares of BTL going to be a fair deal? The answer so far, seems to indicate no! They are not going to auction the shares with a BID and ASK sale, but dictate the purchase price. That is a big strike against buying any shares.

Then there is the case of buying shares for the dividend. The top C.D. rate for banks is around 9.5 % interest. So BTL dividend would have to beat that amount, to make the shares attractive. I think you are looking at 12 % to 16% as being an expected dividend payout on a quarterly basis. Can and will they do that? Got no financial data to even judge the situation. Without that, why would you invest?

I expect government institutions will buy up most of the shares? Like Social Security. It sure looks like BTL will remain a CASH COW for political party hacks and family relatives, supplying services and Board seats.

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