I dont mean to give the impression it concerns me greatly. My stake in SWT is relatively small part of portfolio now. I think SWT will go up in price, but not as much as it would if PTL was not involved. I, along with others, can see that the biggest winners of this are going to be the major shareholders of People Telecom. Not us. Who is that?
Ask yourself these questions :
Why is SWT ( our company) bearing the costs and not People Telecom ( their company)? It does say that Swiftels profit is affected by the merger, doesnt say People Telecom.
Why have costs been reduced, revenues maintained, but profit forecast dropped for SWT?
What are the chances that there will be writedowns for SWT, so that it devalues the present value of the company, pre-merger, and also makes the future with PTL look even better?
Do you trust forecasts, or actuals, that seem to be all over the shop since this PTL thing happened? You may, I dont.
And yes i am looking forward to the "rewards" - lets face it, SWT shareprice has been the same for the better part of the year while in that time they have more than doubled their customers, their capacity etc etc etc
