Dealing for the first time with over the counter share.Phuthuma NathiÃ¢Â€Â˜s net asset value was given by the experts as being in excess of R80.00, the share opened (8/12/11) around R25.00 and climbed to around R60.00 some three weeks later, but since then it has been dropping almost all the time and is currently around R35.00. I hold a big chunk and am getting worried as to how low this share can go, and if I must dispose some or wait. Any advice will be appreciated.
come on Simon ive been given huge amounts of grief here ..beyond waht i reasonable...allow me some retribution....you say nothing when it goes the other way..and people are throwing punches from behind....if u gonna dish it out be prepared to take it...dont just scurry and hide..I know your nose is still out of joint over the whole BIL thing but get it back in joint ...ppl are starting to notice.
absolutely agree as far as trading goes...I compete against no one or nothing but my targets and my previous performance. I have to ask though...why then have u been so gleeful at the small victories...uve been a real grootbek and used every opportunity to try and dicredit me...looks like you in competition to me?
OK, my 2c worth regarding Phutuma Nathi stock. I am not sure I would be comfortable with this kind of investment personnally. It is not traded on an open exchange - so the demand is created by a subset of the investment community. Institutions will not be able to touch it - and institutions create the biggest demand. Nor is Multichoice acting as any kind of market maker. So the share price is largely set by your fellow BEE investors, of which there are few, hence the illiquidity. You will have to rely on them to get excited and drive up the demand (and price) again. My 3rd problem with this type of investment, is who controls the rules pertaining to accounting practise. Since it is OTC and outside of JSE - are they bound by the same GAAP? Now with regards to PN1 and PN2 in particular, you are minority investors in a subsidiary of a very very large company. You have very little, if no say at all in how that company is run. At least with a stock on the JSE - the general shareholder community can exercise some say in the matter.
TO me the key issue will be what dividend they declare this year - the last one was 88 cents but that was not the full dividend as most of it used to pay the debt - now with the debt out of the way - i expect the dividend to be in the region of 400 cents - which if correct then i am prepared to buy at the 25-30 rand level as no other share will give this kind of dividend payout - as for capital growth - we need big BEE institutions to come in - that will drive the price up closer to the valuations - but we may have to wait for that and in the interim - if the divi - is there im prepared to hold on - any views on what the divi will be this year?
@kicc, not so sure big institutions would want to get in on Phutuma Nathi. I don't want to get into a debate on BEE right or wrongs, but the PN deal strikes me as a mechanism designed to keep the big BEE companies out of Multichoice. My own opinion on the