Time dotCom needs more TIME?

After 2 days of suspension and an announcement, Time dotCom (TdC) slides 18% to RM0.63 today. In conjunction with that, TIME - the mother of TdC - also join-in to close down 16% to RM0.435.

Actually, what is so bad about the announcement? Prior to the outcome, both counters jump up in anticipating of good news. Anyway, it looks like investors are jumping blindly before this.

The announcement by TdC:-

• Buy Global Transit Communications (GTC) for RM106 million, the wholesale Internet service and back haul provider
• Buy Global Transit Ltd (GTL) for RM105 million, which owns 10% of trans-Pacific submarine cable
• Buy AIMS Group for RM128 million, owner of network-neutral data centers in the region
• Capital repayment of 2 sens-a-share

To finance the acquisitions, TdC will pay RM90.9mil cash and the rest in new shares. The deal was expected to enhance TdC's earnings straight away, transforming TdC into a regional telco player, and over-taking other competitors.

Why still falls after such a good news?

No one knows the main reason behind. And, Finance Malaysia makes the first comment regarding this, and the main reason was - No More Story. In other words, all the good news have been factor-in before the announcement, and as such, No More Story will be bad news for this company. The last investor who jump in will be the hardest hit.

It was not surprise, because the deals involved so many parties and people, the so called "insider news" would have leaked out much early. Investors keeps on pouring in their hot money to participate, but, the smart one has started to cash out.

By looking at the deal carefully, there was new shares being placed out.

The question is at what price?

And, how to determined the price?

Ah...ha... According to it, the price of new TdC shares that will be issued to the vendors of the companies is 72.3 sen each, based on the 5-days volume-weighted average market price of TdC shares. You get what I mean? If the shares shot up and traded actively before the announcement, the price of new TdC share that will be issued would become higher.

Good Luck on your next target...

What Malaysians really want from Telcos?

Recently, a little bit of whirlwind is happening in the local telecommunication industry, when Malaysian Communications and Multimedia Commission (MCMC) awarding the 2.6GHz spectrum to mobile telcos.

Why battling for the spectrum?

Without spectrum, mobile telcos will not be able to expand their digital business. That's why many quarters are lobbying hard for the precious spectrum allocations. The latest one is the 2.6GHz spectrum.

Who is the winner?

Surprisingly, all the 8 existing wireless players and 1 newcomer (see picture below) get 20Mhz block each. The only newcomer is a company linked to tycoon Tan Sri Syed Mokhtar Albukhary.

Controversial part...

Unlike practices did by other global governments, there is NO tendering process being called. No tender, No contest, No transparent, No competition. In the end, No benefit to rakyat.

All these years, Rakyat has been suffering from high telephone bills comparing to other nations. Furthermore, the service and coverage is not up to international standard. To name it specifically, our broadband and Internet connections is suck given the price we are paying for. Achieving high-income nation status with current speed and price? Sure will failed...

What Malaysians want is better coverage, lower price, higher speed of Internet services to connect with the world out there. How are we going to do business online with the world? Dear telcos and MCMC, please think about it, for the benefit of Rakyat (YOU and Me).