software:


my money no dey go like that oooo

aftadocean:

Food for thought for all:

1. Transcorp is not a Giant. Reason; A Giant describes something that went through the normal process of growth but grew beyond normal, bearing in mind it had at its disposal the same measure of resources as its counterpart or peer.

2. If you are an ardent follower of the trends in the stockmarket, say you have been following the Nigerian stock market for the past four to five years, you would have noticed something:those stocks that appeared to have no future back then are playing big now eg Afroil,Eterna oil and Afrprint to mention a few. The lesson ; Every stock has a season of stagnation, retrogression and a season of bounty.

Having said this, Transcorp will still experience a season of bounty. I know this might sound funny, but that is the beauty of the business environment. When I look at a stock like AP today, I really marvel at what a single move by one person can do. I invested in transcorp and The truth is if I had more money, I would buy more.

PATIENCE my friends is what y'all need to play in any stock market. The price at which transcorp is trading on the floor today is the real price of transcorp, and might even get lower, on the otherhand, virtually all stocks on the floor of the NSE are overpriced. An average Nigerian investor follows the crowd, Stocks don't work that way. Remember NASCON? One day trading and bla bla bla, where is it today? It will still pick up o! but I can tell you that all those that went to the floor to buy that day are short term investors, and so are not too happy with the way the stock has turned out.

Last year, Quite a lot of people went to borrow money to buy FIRST bank. What happened? Money was returned massively at an extremely lower interest rate than the interst rate to borrow. Talk about bandwagon effect. Right now, everyone is doing insurance(Laugh!). Well for those who are just buying into the insurance sector, Pray and Be patient, 'because all those insurance stocks are overpriced.

For all transcorp investors, my advice is to be patient.

Nigerians are some of the most subservient and gullible people on the face of earth.
Transcorp? How anyone with half a common sense in modern economics and financial management could have bought into that ridiculous dream of a megalomaniac really does baffle me. It is simple incredulous but what can you expect from the generation of praise singers and “alagbes” that the Ota general had gathered around himself. Any person who is godless and vain-glorious in all human ramitification will always seek populist ideas to perpetuate themselves in whatever capacity they find themself in. Ndidi began to miss her mark when she began to cling to the powers that be and led that inglorious Corporate Nigeria agenda. When will our people learn? I am amassed.
Transcorp was just a multipurpose vehicle dreamt up to siphon government funds and property. Look at it from this
perspective if you will. Longe was dismissed essentially because he bought into an idea (GSM), he and FB Plc paid a dire price, yet the same powers that saw his vulnerability to novel ideas and his single mindedness seek to use him to perpetuate another mindless vision building on his need for Maslov theory of needs to be fulfilled. When people put themselves above the majority and only think of themselves what can you expect.
My friends were investing their hard earned monies in Transcorp and I vehemently told them they will regret it, and I am not surprised at the turn of event.
If Transcorp is falling today, it is just the beginning, let us wait and see what will happen in the days ahead, afterall this is Nigeria, and all of us "dey kempe"

ThisDay
FG, Transcorp Agree on NITEL Sale
From Juliana Taiwo and Onyebuchi Ezigbo in Abuja, 02.23.2008

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The controversy trailing the revocation of the sale of Nigerian Telecommunication Limited (NITEL) and its mobile subsidiary,
Mobile Telecommunication Limited (M-Tel) to Transnational Corporation of Nigeria Plc (Transcorp) was yesterday laid to rest
with the federal government and the management of Transcorp agreeing to bring in a new core investor. This was part of
the four-point agreement contained in a communiqué signed by the Minister of Information and Communications, Mr. John
Odey and the Group Managing Director of Transcorp, Mr. Tom Iseghohi after a meeting by both parties.

The two parties also agreed that the new core investor must be an industry top player with the requisite focus, technical
expertise, managerial experience and financial capacity necessary for turning around NITEL. A presidential source said
yesterday’s agreement tallied with what Transcorp had agreed with President Umaru Yar’Adua, prior to last weekend’s
bungling of the announcement by Odey on the intent of government for the telecommunications firm.

The communiqué reads: “The Federal Government and Transcorp representatives met this morning on NITEL/M-TEL and
agreed to do everything possible - following due process and rule of law - to resuscitate NITEL/M-TEL into a viable and
profitable world class telecommunications company providing quality service to the Nigerian public.

“To bring a new core investor that is an industry player with the requite focus, technical expertise, managerial experience
and financial capacity to take controlling shares in NITEL/M-TEL. The new core investor will emerge through an open and
transparent process.

“To reconfirm the earlier mutual agreement between government and Transcorp for both to relinquish shares sufficient
to give comfort and controlling interest to the new operator/investor consistent with the December 2007 agreement.”
The two parties said the decisions taken are in the best interest of the industry, stakeholders and the Nigerian people.

However, Transcorp’s Vice President, Communications, Adedayo Ojo, explained that no agreement was reached on the
percentage of shares to be relinquished to the new core investor. He said another meeting would soon be held during
which both parties would agree on what percentage that will go to the new core investor.

Also yesterday, workers of NITEL besieged the Radio House premises, venue of the Transcorp/FG meeting, where they
condemned alleged efforts by Transcorp to retain its interests in NITEL. The workers numbering several hundreds chanted
solidarity songs, demanding Trascorp hands-off NITEL.

In a letter addressed to the President Yar’Adua and distributed to newsmen, the protesting workers said Transcorp
should back out completely and should not benefit from the restructured transaction planned for NITEL “because it has
not shown any competence in the management of a telecommunications company.”

They urged the federal government to sue Transcorp for acquiring NITEL under falsehood and violating the terms of the
agreement which they entered into with the federal government. Following last weekend's mis-communication by the
Minister of Information and Communication, four reputable telecom firms, Telkom and Vodacom, both of South Africa,
Orascom of Egypt and France Telecom were reported to have already indicated interest in taking over the troubled
national carrier.

aftadocean:


aftadocean, food for though for u:

You were right on your first point that Transcorp is not a giant but it can be pointed out that the optimism expressed in your last two points can is doubtful based on your first point. In line with your analogy, consider that most of the "giant" companies that transcopr aspired to be like did not start out as multi-product companies but as companies focusing on one specific product in one specific industry. If I am correct, Samsung or Sony started out producing basic transistor radios and over the years expanded its product base while remaining in the same ICT industry. So they have one competence and create innovative products based on that competence- also their expansion into other industries are thus related to their original core competence.

Now look at transcorp: what specific induustry competence did it premise its creation on? Even now what is the company's specific industry competence? Rather it set out to be a "Jack of all trades" and no matter how creative the marketing the rule is that such a move makes one a "master of none". Now it is that lack of competence that is coming back to haunt it as it does not have the competence to manage an telecoms business that it received on a platter of gold. This lack of competence also makes it impossible to attract the kind of huge capital outlay required in industries like telecoms, power and oil and gas. No matter who your backers are, financiers will not just give you money because Jim Ovia or Dangote is on your board but the look at the numbers and competence and sadly transcorp has none of those - that is why their IPO was massivley undersubcsribed and insitutional investors did not invest heavily. So it was a great idea but a flawed business model. It has taken some real corporate giants 100s of years to get to where they are today and transcorp wanted to create that on day 1. impossible as u can see from the NITEL case.

Now because of this flawed model, i do not think it is right to draw comparison between the price swings (e.g. stagnation and bounty as u say) of transcorp and that of NASCON, eterna, etc. These are businesses which have clear competences but had expereince stagnation due to management problems or insufficient capital. Their specific product-focus makes them good targets for coroporate turn arounds and that is why they are all ding well now on the market. Transcorp's problem is one of a poor vision/strategy/model and I assure you that as long as those problems remain, its share price will remain flat. After all, information is what drives the price.

Food for thought for all:

1. Transcorp is not a Giant. Reason; A Giant describes something that went through the normal process of growth but grew beyond normal, bearing in mind it had at its disposal the same measure of resources as its counterpart or peer.

2. If you are an ardent follower of the trends in the stockmarket, say you have been following the Nigerian stock market for the past four to five years, you would have noticed something:those stocks that appeared to have no future back then are playing big now eg Afroil,Eterna oil and Afrprint to mention a few. The lesson ; Every stock has a season of stagnation, retrogression and a season of bounty.

Having said this, Transcorp will still experience a season of bounty. I know this might sound funny, but that is the beauty of the business environment. When I look at a stock like AP today, I really marvel at what a single move by one person can do. I invested in transcorp and The truth is if I had more money, I would buy more.

PATIENCE my friends is what y'all need to play in any stock market. The price at which transcorp is trading on the floor today is the real price of transcorp, and might even get lower, on the otherhand, virtually all stocks on the floor of the NSE are overpriced. An average Nigerian investor follows the crowd, Stocks don't work that way. Remember NASCON? One day trading and bla bla bla, where is it today? It will still pick up o! but I can tell you that all those that went to the floor to buy that day are short term investors, and so are not too happy with the way the stock has turned out.

Last year, Quite a lot of people went to borrow money to buy FIRST bank. What happened? Money was returned massively at an extremely lower interest rate than the interst rate to borrow. Talk about bandwagon effect. Right now, everyone is doing insurance(Laugh!). Well for those who are just buying into the insurance sector, Pray and Be patient, 'because all those insurance stocks are overpriced.

For all transcorp investors, my advice is to be patient.