Advice for local Telecom investors

Friday May 16, 2014 Published in Letters to the Editor
"Small investors should exercise due diligence and ask what they’re getting for their money," says this letter writer of locals looking to invest in a slice of Telecom Cook Islands. 14040719 "Small investors should exercise due diligence and ask what they’re getting for their money," says this letter writer of locals looking to invest in a slice of Telecom Cook Islands. 14040719

Dear Editor, For those wanting to become shareholders in Telecom, here is some maths that would help shed some light (marama) on a $1000 investment.

The following calculations are based on TCI’s selling price of $23 million for 60 per cent shares. 

To calculate your share: Divide $1000 by $23 million then multiply by 100%, which equals 0.0000435.

To calculate your return on investment or ROI, for example on a $3 million profit. Multiply $1.8m (60% of profit) by 0.0000435 equals $78.26 a year or $1.51 a week. 

Some things to consider: At this rate, it could take 13 years before you start making any direct profit on your $1000 investment. If Government introduces competition, the value of your shares could fall.

Small investors should exercise due diligence and ask what they’re getting for their money. BTIB can help with this and explain the maths. 

Moe Taruia

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