In­for­ma­tion flow a con­cern

Finweek English Edition - - Market Place - Ed­i­to­rial@fin­

MTN fi­nally is­sued a real up­date de­tail­ing its ex­pected HEPS – the fig­ure is ex­pected to be be­tween 210c and 230c. This is lower than the mar­ket was ex­pect­ing and well down from the 746c in the 2015 fi­nan­cial year, which was the last year be­fore the Nigeria is­sue over­whelmed the tele­coms gi­ant. At around 12 000c, those who like the com­pany have a good en­try price. As I have writ­ten be­fore, I do not like the busi­ness model as MTN needs to con­vert into a data util­ity and it’ll be a painful process. But of more con­cern is that I’d hoped that new man­age­ment would treat share­hold­ers bet­ter in re­spect of im­por­tant in­for­ma­tion. But the first Sens trad­ing up­date sug­gests that maybe the old think­ing of less is bet­ter still pre­vails, and this is very bad for share­hold­ers. We need a free flow of in­for­ma­tion in or­der to make proper, in­formed de­ci­sions. ■ *The writer owns shares in Sho­prite and Capitec.

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