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Why is it a massive buy?
Just a casual massive buy at the ask.
Having a look at it now, that 10p may come more sooner than later. I think even I'd be tempted to buy at that price.
A couple of reasons: 1) They are still holding some legacy investments in Botswana and Zimbabwe that they paid way too much for. 2) Why pay these idiots money when you can just get direct exposure to Nigerian Banks.
Basically this was a lazy and naive business started by Bob Diamond, a first class douche who has no idea about Africa or its Banking systems. The terrible reduction in the share price since inception reflects this. I'd maybe buy in at 10p!
Could anyone help me on this one - how much of Union Bank (UB) does ATMA own, is it 25% or 50%?
M/C of UB is currently c$570m so 50% is $285m with ATMA trading at a current M/C of $190m.
Other than pricing in the prospect of high future ATMA HoldCo overhead and running costs, any reason why current value of ATMA is at such a significant discount to current UB market cap? (Without taking into account any value for the non-UB shares owned by ATMA). Any guidance appreciated and apologies if my maths is wrong or I am missing something
At this point not much tbh :) Like I've said previously; asset wise, it's very promising, but they need to reduce the boards pay significant to align more to shareholders. For them to be receiving 6 or 7 figure salaries just to buy more Union Bank shares makes no sense. Yet the share price is now sub $1. I'm still tempted to buy, but would make more sense buying Global X Nigeria or directly buying union bank shares rather than through this middle man
This is one of those companies which look incredibly attractive asset wise (net assets around £500 million ), market cap £170 million. But I refuse to buy this until management salaries are significantly reduced. Considering most of it's income is from Union Bank, a person may as well cut out the middle man and directly buy shares of the bank. Also Union Bank is also overly priced when compared with other Nigerian banks.
what makes it look attractive?
Further ATMA declines to almost a dollar a share. This is starting to look attractive to me again. Looks like a good opportunity sub a dollar
It doesn't make sense how a company with these kind of assets is trading so low. I would suggest reducing management base salary and exchanging it with share linked bonus payments. That would increase management's incentives to prioritise shareholder value and possibly induce the introduction of a dividend
I'm glad that I haven't followed the advice of some which was to buy some of the these and hide them away for 10 years. The only thing you'd come back to is a big fat zero. I think Bob is finding that it was easier to take a big bonus for what soon became dubious results at Barclays. It's a lot harder being a real finance entrepreneur and buying up a large chunk of the most poorly run Bank in Nigeria won't lead to much.
approaching year high 3p
ATMA looks to be an interesting recovery play from lows perhaps. Breaking to new recent highs today on the chart after having flatlined at lows for a few months. Bob Diamond (ex Barclays CEO) at the helm and he bought $1.5m of stock in the Feb placing so has skin in the game. Most recent results hinting at an upturn in the business and a bullish outlook: "We expect to deliver a significant improvement in earnings in 2017 as we execute on our cost savings and revenue growth plans. We also expect reported and adjusted earnings to continue to converge as one-off costs fall away. We are targeting reported earnings for 2017 of more than double the level achieved in 2016." http://www.investegate.co.uk/atlas-mara-limited--atma-/rns/q1-interim-management-statement-for-2017/201704270709475104D
diamond eying up panmere gordon http://news.sky.com/story/ex-barclays-boss-diamond-to-stun-city-with-panmure-gordon-bid-10804031
whats going on?
The reason for the shareprice fall is explained here: Reported equity at period end was $639.4 million, a decline from December 2014 of $43 million, largely due to $40.3 million of foreign exchange translation losses driven by the strength of the US Dollar versus African currencies, particularly with regard to our assets in Nigeria, Botswana and Zambia. Implied book value per share at 30 June 2015 was $9.13. The book value of the share fell to $9.13.... Most Banks now are valued at a discount to Book Value. So this is why it is around where it is. The share will always have issues with its US$ Balance Sheet, African LCY and shareprice quoted in GBP. I would add to grow a billion dollar loan and deposit book the way they have is impressive. This is a share to tuck away and hold. Any fall in the US$ or GBP for that matter will see a natural move in share price. As will the opposite!
Anyone know where you can buy ATMA shares? Not listed in UK or Int stocks by my Broker!
Anyone know if this is paying a dividend yet??
Thanks Bigel. I've been reading through previous posts, RNS and press all looks v interesting even with risks that Africa bring. Can't understand why SP has halved since float even allowing for evolution taking place, must have good prospects if Diamonds backing it. Will keep an eye on this now but not sure I'm convinced enough to invest just yet. GL
I've been following for a while as I think that this could be a cracking share to hold for 10 years + I'm just biding my time waiting for that trend to reverse (and some others to hit their targets to sell). I guess the trend will always be negative whilst they are spending money with no profits to show yet but I think as taking a key position in one of the major growing markets over the next generation I don't think you can go too wrong here. I take today as positive btw, another step and that's the problem, the market likes jumps not steps.
Read interesting article around today's news and was surprised to see SP trend - anyone have any views on this? Thanks
Thanks
Copydeck: ATMA is quoted in USD.