If they stick to their guns, they are idiotic. It will hurt MTN badly if not kill them and result in job losses (not so much primary, but definitely in the secondary and even tertiary industries) and loss of tax revenue for Nigeria, not to mention loss of infrastructure...
The fine will be reduced massively and they will continue to make lots money in Nigeria and other markets, bigger issue is why it took management 5 hours to write a 5 line SENS. The news was all over twitter before we opened yesterday. Net result, I sold my MTN yesterday (have held since around 1998 and bought as recently as last month). But I only want to hold shares in which management respect shareholders, evidence here is that MTN management don't.
Emotional decision to sell, rather than to maybe wait for fact (what will they actually pay). Could even be an opportunity to capitalize on a market overreacting on something that is not cast in stone yet.
I do a lot of business with MTN in Nigeria. I doubt anyone can complain about 62m subscribers with ARPU's higher than South Africa. Nigeria made MTN. And I can also tell you that they deserve a lot of what is being metered out here. Their arrogance in Nigeria is astounding, similar to their arrogance in SA. Anyone who uses MTN will know how shocking their network quality is, and their lack of commitment to service quality is going to start to hurt!
does no-one here really notice that no-one here follows a methodology? a few here were talking about I will only sell on fundamental reason A,B,C and then suddenly it changes to I dont like them and emotion so sell.
#"reason why you dont get consistent investors over time"
@BC01, I was long at the end of yesterday after the rapid fall, sold long for a profit that could buy a bottle of Johnnie Walker Black. Based on the price action I am seeing and I am short at this stage.
not emotional decision to sell at all .. I but outstanding companies with outstanding management .. not good or great, only outstanding .. one of the simply rules that is always in place is outstanding management who have shareholders at the core of their concerns .. taking a day to issue a SENS is not within a mile of outstanding .. I never own companies with second rate management, the way MTN management handled the fine was at best shabby, I don't want shabby managers .. so I out, already utting the money elsewhere, plenty of options
an this not the first time I sold a co cause the company was slow to keep shareholders up to date .. that all said, price may go higher, maybe way higher, maybe best JSE investment over next year or ten .. I still don't want in