Transcorp Moved !

The suspension was lifted today and it dropped the expected 5%. Expect the 5% daily drop to continue for at least another week. The people who bought pre-IPO will be dumping.

Let's see one interim result and maybe I'll get in below N5.

Transcorp unveils transformation plan, lists shares

The management of Transnational Corporation Plc, on Thursday, unveiled a transformation plan that would make the company Nigeria’s multinational with an annual revenue of between $5bn and $10bn and with market capitalisation of between $30bn and $60bn.

The Managing Director, Transcorp, Mr. Tom Iseghohi, who spoke during the listing of the company’s shares in Lagos, said to realise this target, the conglomerate would deploy strategic imperatives such as right focus, structure, people, tools, process excellence and superior results.

Speaking to market operators and stockbrokers after the listing of over N2.899bn ordinary shares of 50 kobo each sold during Transcorp’s Initial Public Offering in February, he stressed the need to enlighten the investing public on the company’s operations.

By its listing, the technical suspension was officially lifted, meaning that investors who had already started receiving their share certificates could now trade in the stock.

Iseghohi expressed optimism that following the implementation of its transformation plan, the value of the equity would, in 24 months, grow to a minimum of N50 per share on the floors of the Nigerian Stock Exchange based on a price earning ratio of seven.

In his review of performance, he listed accomplishments recorded by the company from June 2007 till date to include 70 per cent restoration of NITEL backbone, restoration of M-Tel in 16 cities of Nigeria and the consummation of a technical partnership deal that could attract revenue worth N35bn with CISCO Incorporated, Dimension Data and Cable & Wireless.

He said, “In addition, Transcorp has secured N13bn funding for NITEL’s fibre optics network as well as the completion of the conceptualisation phase of a real estate mixed use development in Ikoyi that is expected to deliver N10bn positive cash.

“The company has demonstrated dynamism and immense capital raising skill by closing some high profile deals in the past two years. In 2005, it bought 51 per cent stake in the Abuja Hilton; a year later, it paid for 51 per cent of NITEL thus taking over the mobile telecommunication arm.

“We have also asked the banks to restructure the loan facilities from short term to long term as this would reduce the pressure in doing business, just as the about N29bn debt owed by some NITEL subscribers are being strategically recovered.”

Describing it as the new Transcorp, he said that the new management team was committed to meeting the expectations of investors in the shortest possible time in form of dividend payout and bonus issue before 2010 . The company, he said was also committed to capital appreciation.

While admitting that the company had suffered a fractured image due to lack of information on its operations, he pledged the team’s readiness to correct the negative perceptions through positive value and performance.

“The management team believes in the future and prospect of Transcorp. Some of us have staked our career and image on it because we understand its technical fundamentals and will continue to stake our funds in it,” he said.

Source:
The Punch
Friday, August 31, 2007

A market cap of $60B by 2010 means each of the 21.5B shares would have to be worth N350 by then. Even half of that is N180.
Even though we should make investment decisions largely on an analysis of a company's past performance (of which Transcorp has none), the growth potential of this company is so large, it might be worth putting 10% of your portfolio in it just to see where this could all go.

The current market cap of this company is only ~N200B (and dropping). But surely the assets are comparable in value if not more. A GSM license is worth, what, 40B? bottom line is they'll likely make a loss in the next fiscal year, but after my other stocks mature, I'll definitely give Trashcorp, I mean Transcorp, a look. Contrarian investments have been known to work.

Yes, Transcorp moved. But it is only going in one direction-DOWNWARDS.

By the time those who bought the private placement at N3 (and who also got a stock split, effectively doubling their shares) start selling to take profit, the price of Transcorp will be lucky not to drop below N5.

For now, nothing to boost Transcorp's price.

The potential for this company to be great is not doubt , yeah they have lots of debt to contend with , but don't forget that they have renegotiated with their bankers to stretch there loans for the longer term , so this might give them some space to make some profits for the company .
    i will be watching developments carefully, and i think that new guy at the head there , that tom he seems to know what he is doing and from what i have read about his profile , he seems to be the right man for the transcorp job .

I believe transcorp do hold a lof of prospects for both the country as a whole and its investors. U guys remember that the company is built on a dream of a Nigerian trans corporation and i believe this sentiment will appeal to Yaradua, not forgeting that obasanjo is still a major share holder in the company. Transcorp has a lot to proove and i believe this present management will work wonders, what nigerians need is to see the company moving forward and i am sure they will out of patrotism rally round the company. it will definitelt generate alot of interest if it can cross its present negative perception. definatelty a good buy for the long term investor. But as they say, let the book judge.