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London, Malta and the different analysis of Maltacom’s share price!

Attitudes toward Maltacom shares on the two stock exchanges it operates on, the Malta Stock Exchange and the London Stock Exchange, appear to vary significantly, a discrepancy that seems to be based on either the advice handed out to investors or the way in which the company’s performance in analysed.

Maltacom Chairman Maurice Zarb Adami, speaking to MaltaToday, said that, while last Thursday and Friday saw a stalemate situation develop in Maltacom shares on the Malta Stock Exchange, the price of Maltacom shares listed on the London Stock Exchange had, in fact, risen. Although the price of Maltacom shares on the LSE is lower than that on the MSE.

Mr Zarb Adami explains that the scenario leads one to question whether foreign shareholders are being guided differently than Maltese shareholders.

In fact, while Maltacom’s share prices on the MSE continued to slump, those on the LSE continued to rise, with Friday seeing the equity in London regain its position held on 4 May.

Mr Zarb Adami emphasises that Maltacom issues factual company information over and above the frequency that is required by the MSE.

He adds that if there is any misinformation being spread as to the potential value of Maltacom shares locally, it is not because Maltacom fails to provide enough information to the market players.

The Maltacom Chairman adds that at the LSE, there is another type of shareholder who analyses with the same company announcements that are readily available to Maltese investors.
He explains, "A Maltacom shareholder should decide on whether to buy, sell or hold his investment after considering the information, which is made public by the company, and after following information that relates to similar companies and the sentiment of the economic environment we operate in."

Mr Zarb Adami adds that it is a known fact that Maltacom will soon be disposing of its shareholding in Vodafone Malta, something that has not been done before and a move that will be reflected in the future results of the company. Meanwhile, Mobisle Communications, which launched its Go Mobile service, will complete its first year of service during 2001’s fiscal year.

Accordingly, Mr Zarb Adami explains, the potential value of Maltacom shares depends on a number of factors and an investor should seriously consider the basic fundamentals of the company – including past results, declared projected activities and possibly other initiatives taken by the group in the telecommunications sphere.

Early last month Maltacom sent a letter to all stockbrokers active on the MSE for submissions relating to the appointment of a corporate stockbroker for the company. The letter had asked whether stockbrokers interested in the bid were currently engaged by any listed company to act as corporate stockbroker and whether they had been appointed to act as sponsoring stockbroker for a prospective issue of securities by any other company operating within the telecommunications sector.