Friday, October 22, 2010

Belize Telecommunication Company, BID and ASK share prices on IPO. Friday 22, 2010

October 22, 2010

Friday opening trades in Belize Telecommunications Company Ltd.

These are ONE DAY ONLY offering bids and must be consummated by telephone by BTL, or any private seller of BTL shares.. Business hours are 7:30 a.m. until 2 p.m. each day, Monday through Friday. Telephone: 660 – 6865

Payment and transfer of shares of BTL will be consummated at the BTL office in San Ignacio, Cayo District. All bids are GENUINE, backed by real money.

Friday October 22, 2010

BTL 556 SHARES, - BID .90 CENTS, -ASK $5 ( SPREAD IS $4.10 ) LAST SALE ??

BTL is a public telecommunications company in Belize offering telephone land lines, cell phone and internet services. It originated as a Colonial telephone company owned by the government. The company has the largest infra-structure in telecommunications in the country.

The company has 49,551,652 shares outstanding and is capitalized at 100 million shares with a par value of $1.00 So says the PROSPECTUS ON THIS INITIAL PUBLIC OFFERING.

The Government of Belize NATIONALIZED THESE SHARES being offered, and are now in the process of selling off a portion to the Belize public.

Due to the historical political manipulation of the company, and it’s status as a monopoly previously, this purportedly PUBLIC COMPANY is still being treated as a government possession. So far, the political requirements have been dictated at a selling price of $5 a share. TRUE VALUE is what buyers will pay for the shares. Current developments to do with BTL involve a number of law suits that will have to spend the next three or four years going through the court system and will end up in the Caribbean Court of Appeals. There is litigation over a number of loans, secret agreements with past politicians controlling the government and other factors.
The current Government of Belize is the United Democratic Party, under the leadership of Prime Minister Dean Barrow/Finance Minister. The sale of shares being offered to the people of Belize in this offering are basically dictated by him, as all BOARD of DIRECTORS and Management are political appointees from the NATIONALIZATION over controlling shares of the company.. For reasons of political manipulation, the asking price of $5 a share from the Belizean public, which makes the value of the company at this share price: $248 million in round numbers, per million. The recent offering price is .90 cents a share, which makes the actual value of the company on this FRIDAY, roughly worth $45 million.
The reason for the price discrepancy and wide spread, between the BID and ASK prices involve uncertainties about the future of the company, lawsuits and political outcomes.
The most recent event that has sent the share offering bids starting to plummet, is the news of the successful National Convention of the People United Party in Dangriga, last weekend. Potential Belizean buyers are very nervous about what seems to be a successful come back PUP convention. The re-approachment within the previous quarreling OPPOSITION PUP party and this success and obvious multi -million dollar financing, is guessed at coming from the interests of Lord Ashcroft, who traditionally milked the BTL company when he owned it, of hundreds of millions of dollars and was alleged to have swindled the government of the day under this same PUP in SECRET AGREEMENTS, artificial SECRET SUBSIDIES, PRICE FIXING, TAX BREAKS, and other media yellow journalism allegations on the local scene. True or not; the spectre of the PUP Convention resurrects fear in the buying public that should the PUP buy the next election successfully, LORD ASHCROFT will get his PUP to throw out the NATIONALIZATION of BTL and leave any buyers of shares in the company now being offered holding the bag and losing their money, or in a best case scenario, spending years in expensive court litigation getting their money back from the Government, or BTL and probably never. The share price offering started to decline since the television news advertised the successful PUP opposition party convention.
The dividend under the UDP controlled BTL nationalized share price is calculated at 2.4% approximately. In order to get the dividend returns previously taken out of BTL before nationalization, the stock price will probably drop into the penny stock category.
There are no stock brokerages within Belize and due to that factor and that newspapers in the country are basically once a week issues, keeping up with the sales of shares in BTL is difficult. Neither the company BTL, or the Government, are particularly concerned about freedom of information, or transparency. We have no public medium other than this to figure out what shares are actually selling for. These deals are usually SECRET in a political manipulated society. This is a case of BUYER BEWARE! Discounting the bad news is governing the dropping price offerings is my guess.

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