BTCL investors who have been on the edge over the dramatic fall of the share price are now on cloud nine following surge of their stock. The company’s share price tumbled to as low as 85 Thebe which resulted with some feeling that the corporation sold them a dummy and tricked them into buying the shares.
Financial results, top appointments
Since the company announced its half year results in December, the share price started an upward surge. Further excitement was further added when the company appointed Anthony Masunga the substantive Managing Director after acting on the position for some time. That followed a board shake up that resulted with the former FNBB CEO Lorato Boakgomo Ntakhwana taking over as new Board chairperson from Daphne Matlakala who decided to step down. While the share price surge is good news to investors who have seen the value of their company diminish, wiping their investments away, and officials at Megaleng House – BTCL headquarters – were this week ecstatic the company has bounced back to value. “We are happy that the company is valuable as reflected by the rising share price,” BTCL spokesperson, Golekanye Molapisi said in an interview. Molapisi said the recovery of the share price is good news to investors who have seen the price struggle for quite some time. During the announcement of the company financial results in December, the company Managing Director, Anthony Masunga told the media and analysts that they would do all they can to see the price rising again. Research Manager at Motswedi Securities, Garry Juma said the bouncing back of the share price is due to the market sentiments as the company has announced profits on its half year results together with the dividend that the company declared at the time. The company had seen its profits go up 19 percent to record P88 million from P74 million in the previous corresponding period.
BTCL had also declared a dividend of 3.6 Thebe per share which followed the 5 Thebe that was declared a few months earlier during the full year results.Juma said they always saw the turnaround coming and had advised investors not to dispose the shares. Another reason that he said would see the share price maintained to valuable levels is the coming on board of institutional investors such as pension funds. He said their arrival will cushion BTCL share price and for this more growth is expected on the share price. Doubts over the value of BTCL shares began to sweep in just few months after BTCL listed when its share price started a free fall from 135 Thebe a share going down all the way to 85 Thebe. But December period as well as the early days of the New Year proved to be the good days of the company as investors are beginning to show confidence in the stocks. Compared to the 85 Thebe that was seen a couple of months ago, BTCL was on Friday trading at 105 Thebe per share.