Tuesday, October 19, 2010

Belize Government offers Belize Telecommunications shares AGAIN !


Opening public offering is for $5 a share. October, 2010

COMPANY: IPO BTL, NO OF SHARES bid 100,000, BID $1, ASK $5,

Shares of BTL which was nationalized are now for sale in Belize. The OPENING offering is at $5 asking. The opening offering bid is $1 par value.

Some restrictions apply: The sale is controlled by the Government of Belize.
This may be a forward looking statement, but the public offering of shares in BTL at $5 seems grossly overvalued. Expected dividend on cash investment is .024% at this price. Return on shares will be around 12%. The price of the shares creates the discrepancies.

Par value of the company is $1 per share. The price of shares over the last 20 years has fluctuated dependent on the amount of meddling in the company by politicians of both leading parties in Belize. The price per share has gone from $1 up to $3 and even $10 at times. There is no public record of trading in BTL shares in Belize. We cannot offer you a stock chart over the years. The same rules that apply in the USA do not occur in Belize. BTL shares have been a political football based on a monopoly both SECRET and declared at different times. Campaign financing for elections and a way of sliding manufactured legal work to politicians with law firms that enter politics has been the main problem.
The telecommunications company is well placed for growth with the population. The infra-structure is more complete than other companies. Only recently have two new ISP Internet Service Providers started offering internet for example. The two existing companies there were once ONE, under disguised ownership are SMART and BTL. So far in the history of Belize, political party meddling has thwarted the competitive nature of telecommunications development for the nation of Belize.
RATING: At $5 per share, the rating is C --, At $1 a share the rating is A++, A rating of these shares at .75 cents a share would be a Triple AAA rating.

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