Welkom Yizani valuation disappoint on first trading day

A handful of investors in the Media24 Welkom Yizani BBBEE scheme who stood ready to sell when the scheme’s trading platform launched yesterday realised more than 50% capital return before costs from their seven years old investment. The few who managed to sell at R20.00 per share got a 100% return.

You needed to be an early trader for this gain. A 50% capital gain translates to an average of about 7.1% per year capital return and at 100% it adds up to an average of about 14.2% per year gain.

In its first day of trading on an over the counter (OTC) platform, Welkom Yizani saw about 75000 shares traded in 517 deals and with a total value of R1.2 million.

Earlier sellers were selling at levels above R15.00 per share. Then at 16:22 the share price declined to R13.00 and closed at R12.00. There was a deal done at R11.20 just before the close of the trading platform yesterday.

This proved a big disappointment for many of the investors who paid R10.00 per Welkom Yizani share in 2006. Some readers in this platform, ujuh.co.za, were seething with anger. One reader commented: “How can this share’s highest price be R19.00 today.” There were more comments expressing disappointment and showing obvious hope for a bigger capital gain.

These hopes could have been influenced by two factors. The first is the news of sterling performance by Naspers, the facilitator of the Welkom Yizani scheme. The second will be an unfair comparison to the capital delivered by the MTN Zakhele BBBEE scheme which came to market two weeks ago to deliver a 3.5 times capital gain on investment before costs. Investors in the MTN Zakhele scheme went in at R20 per share and the share price was hovering around R90 in the first two days of trading before trading was suspended due to technical glitches of its OTC platform.

The Naspers factor is best represented in comment made by a couple of readers who were screaming a “We was robbed song”. The readers communicated a view to this effect: The level at which Welkom Yizani shares traded in their first day was disappointing when compared to Naspers which has just breached the R1000.00 per share mark, having come from levels below R500 in 2009.

This view confuses the relationship between Welkom Yizani and the JSE listed media giant Naspers. The globalising Naspers is a partner with Welkom Yizani in print biased South African operation Media24. Naspers was left with 85% of Media24 after selling the 15% to Welkom Yizani in 2006 for BEE purpose.

Welkom Yizani does not have a stake at Naspers level but only at Media24 level. The growth reflected in Naspers valuation is largely explained by its non-print and to a large extent non South African operations.

This is clearly represented in the latest financial commentary by Naspers CEO Koos Bekker. “Naspers now earns the majority of its revenues, including associates, offshore instead of in South Africa, and from the internet businesses instead of pay television.”

Welkom Yizani investors also need to factor in the debt in the structure of the scheme. They invested into a share worth about R50.00 in 2006 but paid in R10.00 per Welkom Yizani share. Net Asset Value (assets minus liabilities) of the scheme reflects the high debt balance in the scheme. There is also the fact that Welkom Yizani operates in a largely matured print media industry. While the industry is showing signs of recovery in the latest Media24 financial result, its prospects can never be compared to those of new economy companies like MTN and other businesses in the Naspers stable.

Offcourse there is the fact that, when MTN Group did its BBBEE deal in 2010, it offered a stake at group level. This gave investors in the MTN Zakhele BBBEE scheme exposure to MTN Group foreign ventures. This makes sense given the fact that MTN Group was built on the back of South African support base. If you like you can say MTN Group was built on the back of the ‘blood and sweat’ of South African workers. As such, if there is any cause for protest against the Welkom Yizani scheme, it rests in the decision to keep BBBEE out from Naspers group level. But then Naspers is not alone in this practice.

News@ujuh.co.za

 

  • Thank u Welkom Yizani for ripping off the poor after 7 years u could have done better, we should have traded 2 years ago. It was a clever scheme to get our money. Bee sucks big time

  • Ive got NO word for what happened yesterday……. !!!! Fucking disgusted!!

  • The government must intervene. We have been taken for a ride

  • Where is this BEE commission they are talking about,. it could have been useful is such situiations where white capital hoodwinked the masses

  • Guys if u think yesterday’s trade stats were bad look at what is happening today, to see that some buyers are willing to pay R1 for the shares which are abviously worth more than that is a total disgrace and robbery! I wonder why Nasper and Media 24 had to extend the lock-in period if the share price would be so disappointing. I sincerely appeal to Media 24 to do somethiNg about the matter because seriously black people are not economically empowered from what is happening. They should focus more on returns on investments than on the number black investors they have.

  • What a rip-off! Shame on media 24 and Naspers for taking us for a 7 year ride! What a Black Disempowerment scheme!

  • what about us that dont have money laying around. why dont u. ppl reply to our comments. is ths wht we hav waited seven years for. hw do u ppl slp at nyt. have u thout abt us. some of us dont knw whr our next meal wil come frm and ws depending on ths money and nw u dissapoint us so badly.

  • stealing from the poor to give to the rich way to go welcome yizani 7 years just to see how incompetent you are or maybe you are just damn smart in fooling trusting investors i now own 400 worthless shares share certificate not even good enough to use as toilet paper u bloody …

  • Now we get no response from no one.you are suppose to assist us with the matter.i feel we have been robbed big time.even after yizani’s debt have been settled,they can’r even pay a flippin R150 per share.and this bid for selling your shares I think that is total bulldust.very clever Yizani.you not gona get very far.

  • What a disgrace why robbed the poor I took out a loan for 430 shares my interest was doubled that amount.
    Naspers and welkom yisani should face the music snd paid.the R50 per share to the investors or be arrested for fraud. I think all the investors should stop trading.
    This is not empowering but disempowering ……fatcats

  • this is very disappointing,it seems when it comes to bee shares it is always under valued ,shows how must they think of black people ,

  • What a …. Hoax.!!media 24 is net so kop in een mis met di yizani gemorste.

  • Thank you for nothing bee shares for the disadvantage The rich get richer and the poor gets poorer putting our trust in a big company like Naspers what a disappointment seven years of hoping what a waste . Thank for making us feels like fools and for trusting in your BEE promise

  • That’s why they want to make sure only black people buy shares!!! The think mos we STUPID!!!!!
    White people were excl from buying shares. We have racism under our own people ( or are they whites
    by whom we are ripped off) Suddenly phones are engaged. cant get through to them.

  • When I trade my Phumanathi shares two years ago, I didn’t have any problems selling.
    In no time I receive sms about a match and in 1 day received the money I sold my shares for

  • WHAT THE HELL is going on!!?? i cant get through to any one at Welkom Yizani after i sold my shares… I WANT MY DAMN MONEY you thieves !!!!!!

  • I think here is work for Thuli Madonsela
    This people are disgusting they shattered our dreams
    They owe us an explanation on national Tv

  • This must rate as the biggest rip off in the history of BEE. To wait for 7 years and shares being sold for R8.00. Who do they think we are? They extended the lockin in period , precisely to give the investors a chance to make a profit. The entire exercise has been a dismal failure. Where are the originators of this scheme. Can we have a comment from them . What did they seek to achieve when they set out. On the welkom Yizani website they indicated a proposed valuation of the share will be provided by independent sources and posted on their website. It transpires that there are only 2 valuations. The one is about R10/share and the other about R12.50. The balance of the valuations not listed. Is it because the valuation are below R8.00. Media 24 must claen on this one. Their silence thus far is deafening.

  • So are we just gonna leave it like this? This is not fair at all. We’ve been taken for a ride heavily and they really think we stupid.we all need to go to where their main offices are situated.this is sooo dissapointing.

  • Ja, I agree with you all especially with Pieter,Thuli madonsela must be given this task to investigate or rather all the remaining shareholders, let us stop trading and declare this share price as null and void .Let us also try to meet and discuss this matter in order to see if we can get both media and legal recourse to this.

    1, Naspers promised that a rand we invest will translate to R31 on maturity. A task team was formed by Naspers to assist black shareholders on this matter. Naspers reduced the debt owed by us to them by R300million and R21million(from the dividends) was also used to further reduce debt .To be asked to keep the shares for a further two years ,what was the reason behind, how does that benefit us now?
    haven’t we paid 70% al klaar of the R40 that we were borrowed for 10 years as we are sitting with the shares for seven years already.
    If one can compare this situation with Phutuma nathi where a trading opened at around R40.Why this is now different because both are under the same administration and parameters? The answer is not hard to find, this is daylight robbery. WE WAS ROBBED AND LET US STAND UP !!

  • They bloody well rip us off think Zille must help the eldely and poor.

  • On a day all humanity honours Madiba,the Black and disadvantaged are decimated by unscrupulous company called Naspers.I am afraid we are going to become even more poorer.Our hopes are up in smoke.I agree with the suggestion this scheme is handed to the public protector for thurough investigation.Heads must definately roll.This can not be business as usual because the scheme is a complete ripoff.If we have to live in the values of Madiba somebody well informed about these schemes should come forward to help us the helpless.

  • We should all get together and draw up some sort of petition and take these thieves to court. even put them in the papers.

    1. Hi shereen have you gotten any feedback with regards to this scam?

  • These thiefs are not responding to our plight and they would not want us to be in touch with one another to collectively voice our disgust and devise strategies to call for justice in this matter. I therefore propose we create a facebook group as an means to mobilise as many investors as possible. The livelihoods of so many poor people are at stake here. We cannot let this crime go uninvestigated!

  • I have been calling the 0860… number since Monday and am unable to get through. I’ve even send mails and am still waiting… I also had Phumanathi shares which yielded a substantial growth, unlike This!! This is a disgrace.

  • I AGREE WITH AISHA ABOVE….. LETS ALL GET THE BALL ROLLING SOOOOONEST!!! BEFORE THEY WIPE THIS UNDER THE CARPET!! I suggest the Facebook group….. then we suggest on a meeting place and time… THEN TAKE IT FURTHER!!! WHO ALL AGREE WITH THIS??

  • so now all the clever board members got nothing to say i challenge u to make a statement to explain your dismal performance you swindled us in order to get bee status

  • I am so disappointed at how Media24 is treating us the poor black people in this country by allowing us to invest in their hoax scheme. For 7 years we insvested our hard earned money and all we get is peanuts in return and since 2006 I have NEVER received any dividents.

    All i need is my money and they can chow that profit and drive exlusive cars in nthe expense of our hard earned money.

    THANK YOU MEDIA24 FOR CONTINUING EXPLOITING US

  • Yes let’s do this guys, I hope we tackle this issue and not just speak about it and do nothing,these thieves are certainly not above the law.so aisha this facebook group is a good idea.

  • Aisha could you please start the group…. we can take it from there………..

  • All share holders, we need to contact Malema!!

  • I got through to Welkom Yizani’s hopeless call centre about an hour ago…. i used the 0113215564 number, but now all of a sudden THATS unavailable aswell…….. PEOPLE WE NEED TO ACT ASAP!!!

  • They should be ashamed for ripping us off like this!!!! They must be called to book and to order!

  • I can’t flippin believe it. I just knew it was too good to be true. The …… directors and those involved in the scheme better explain to the millions of “so called stupid people or is it incompetent people” why their money is not worth anything now. I am not going to buy any NASPERS products anymore. I will just have to listen to the radio to keep me updated about world news. NO NEWSPAPERS or HUISGENOOT or YOU, you name it. Lets hurt them too…

  • This is daylight robbery, Can all shareholders please advise what is our next step. The Public Protector together with National TV needs to be involved in our decision as we need to expose them.For 7years these guys gave us false hope and all sorts of excuses about extensions of 2 years etc,
    Time and money wasted.

  • This is disgusting just daytime robbery big time. how could you do that to the poor and you don’t even bother to assist us in this regard. For seven years…. pissed off. do you ever position yourself in the positions I am in, waiting for money at the end nothing is happenig… that’s nonsense sies

  • A tale of two BEE deals. If one had invested in Phuthuma Nathi, they would have got close to TEN TIMES their money back (including dividends). If one had invested in Welkom Yizani, they just got their initial investment back. That’s the nature of investing, there’s no sure thing.

    These broad based BEE schemes use loads of debt to secure more shares in the underlying company. If the company does well and debt can be paid off, like Multichoice have done for Phuthuma Nathi and MTN has done for Zakhele, shareholders are very well rewarded. If on the other hand, the company doesn’t do too well, then shareholders can lose everything. Media24 isn’t performing well because in this digital age, advertisers aren’t willing to spend as much in print media.

    In any business, there’s always risks involved. That’s the nature of investing, sometimes you lose a bit of cash, and sometimes you gain hugely.

  • whats surprising me is the lack of info or articles that highlight this poor investment..i agree that the nature of investing is volatile but to tie up poor peoples capital for 7 years and end up with a loss is disgraceful to the parent company…why isnt this being publicized in the mass media???????

  • I am extremely livid. As single parent I was hoping that this investment would help towards giving my children a little nest egg. Wasn’t Koos Bekker of Media24 number 8 on the Rich list pulished recently in the Sunday Times? Can someone PLEASE explain why we have been taken for a ride like this. It is diabolical, to say the least.

  • With all due respect to everyone, i’m also invested in Welkom Yizani, also have investments in Sasol and Mtn Bee shares as well which performed better.

    Firstly : You must understand what the value of these shares is : ard R23 this is taking into account the debt that is being paid of.

    Secondly : The market determines the share price which could be at a discout to the value of the share or a premium

    Thirdly : You must understand the industry that you are invested in i.e. Media 24 – largely print media with a small portion being digital, they get most of their revenue from advertising and publishing, there are market share gain and loss you must take into account when investing and this is just not current trends but future trends as well – all this information is available to your disposal on the internet and financial statements.

    Most of you saying that you got ripped off, in 2009 the value of your shares was in the negative, Naspers decided to extend the trading period and write off a debt giving us more value on the share, i’m not saying don’t complain all i saying is get your facts straight and try and learn about your investments before you start pointing fingers – there are people who made good profits even in this share who sold at 20 rands and 17 rand.

    was just saying

    1. Hey Lebang,

      Do some homework yourself. Those that sold for R20 only lasted for a few minutes on the website. Those that sold for between R16 and R18 lasted for about 30 minutes. So very few have benefitted.In the main this has been a loss and the promised big pay day has been a diaappointment. Look at this way. Lets say you were allocated 430 shares @ R10/share. If you took your R4300 and invested in a fixed deposit at 5% per annum over 7 years , you will realise an amount of R6050.53( compounded over 7 years). Now if you sold your 430 shares on the first day of trading @ R16.50 /share you will realise an amount of R7095 minus approx R250 (fees) , a net of R6845. Many have thought that they made a huge profit. .Well clearly not so. Compare the 2 figures. Something to think about .

      1. I agree that if you had invested else where then you could have made a better return, but that’s the nature of investments you need to choose your investments just because it’s a BBBEE does not mean that your risk is eliminated, the only benefit most of these give black start up shareholder is the means to invest in a share with a small amount and the rest of the amount being financed via dividends from those investments.

        I’m not defending the company cause they benefited by getting a Good score card even though as investors the company did not reap such a great return.

        At the end of the day, no one promised in any of these BEE shares that they are guranteed to get huge profits and no one forced anyone to invest in welkom yizani.

  • I know this is very much disappointing to all of us but lets NOT stop trying, in an investment whatever that went down it will go up one day. NOT all of these BEE shares are a failure, so lets try and spread our risk as much as we can. not forgetting that a pipeline is filled up by single drops of water. When I look at the COMPOUNDING effect of the shares, even the big banks wont give you that return. Its only our kids that will benefit from these shares when we keep them and not look at the performance of the long term investment over a short period of time.

  • Thanks for your insightfull lessons on how BEE actually works Lebang and Nzamie – I now know how well-invested you are in the BEE market and that someday in future our kids will benefit. The reality is that (1) not all of us have the resources to buy stakes in all these schemes (as you obvously did) and (2) our kids are hungry now and schoolfees have to be paid next month (not sometime in a distant future). The reality is that some BEE groups are buying shares from the originally invested poor at a price less than they bought it for seven years ago. The question perhaps is who are these groups? Perhaps you can venture an answer.

    1. Ismail, if you’re struggling to feed your kids and pay their school fees, should you really be risking money in investing? Because that is what every investment contains, an element of risk. It doesn’t matter whose buying these shares at current prices, this is what is creating a market. If these buyers didn’t exist, you wouldn’t be able to sell to anyone.
      We’ve all been burnt in this deal. I’ll take it as a lesson as to what type of company I invest in future, and I’ll move on.

  • Hi Ismail

    I wish I had all the answers but I don’t – I do think you are right about that
    there some “black groups or individuals” who will take advantage of this situation and buy
    the shares below the 10 we initially bought these shares 7 years ago, and hold on to these shares and make a killing out of them.

    Coming to your questions, I would say that if u can hold on for another 3 months or so to see if the shares will recover then it most likely better than selling your shares now, if u can’t hold on for that long then wait till next year Jan 2014 and try checking the market consistently until it offers u a price better than 10 short term I can see the price going to 15 at the least – please note that there is no gurantee it might still go down at the end of the day u need to decide, I say hold on for a week or two – hope that helps

  • Very disappointing. I will never invest in bee shares again. Total mess.

  • This was for me not at all fair…but as investors we must start hitting them were it hurts the most do not buy there products and see how they compare stock prices at the end of the day… if no books are bought then no money are made… then when the court proceedings start on our marketing share and what it should have actually be worth from yearly market gain in sales… this mother fuckers would have to explain.

  • Supply and demand…that’s the fucking question…what happened to that annual average dividends…at it’s very inception they had shares valued at a certain market price… if that was the case then how did they not benefit from all of our shares added to there current shares in 2006…literally thousands of people bought into this idea they promised us… but is that the case… not the fuck at all… media24 kinda has us on hold…trying the most common bubble of the century… having us believe that they never made profits out of our money… well…lebang u fucking sound like an ass-licker giving us that sick incentive of firstly; secondly and so dumb thirdly…this fucking people had our money (in thousands) and used it for seven marketing years…don’t try and tell me that dividends wasn’t recorded and profits wasn’t made at an annual basis…no fucking way…just go to 40 on Heeringragt and see how the fucking mother fuckers have upgrades made to their building and how fancy the restaurants these people are eating out of…did we invest in worker’s luxury and building upgrades…or market share…I fucking bought magazines every single month just to help my investment grow…so don’t tell me as an individual that I do not know what the fuck happened over this seven years.

    1. i understand your frustration, i was just imparting the little knowledge i have so that people don’t make the same mistakes by blindly investing in a BBBEE share and think they are guranteed huge profits.

      If the same people invested in mtn zakhele they wil be singing a different song

  • I have traded on Monday 9th, but still no response from Yizani. I just need my money back. I can keep on making more money for this ppl.

  • I understand everyones frustrations. However i do not think its fair to accuse Welkom Yizani/Media 24 of any foul play. Show me a risk free investment in this world. This is something we need to understand as black investors going foward. I clearly remember the day when Welkom Yizani and Phuthuma Nathi were presented at the same time in 2006. Investors had an option of investing in one or both of the schemes based on their own assesment of which industry would perform well (digital or print media). If we want certainty in the returns on our investments then we should place our hard earned money in fixed deposit account with any of the banks. However if want to make strides in this financial economy tha we have been unfairly excluded from, then lets use this as lessons to make more informed decisions in future. Phuthuma Nathi for one seems to be doing well. Perhaps as suggested best to hang on to the shares rather than selling at a loss.

    1. Sol

      I could have not put it better myself

    2. Rubbish, we have been taken for a ride! They delayed the initial launch of trading over the counter in order to improve the performance. There’s nothing to show for that extra time they asked for! They should have given us our money back long time ago and not make us wait for nothing.

  • Guyz,

    Heres a JOKE of the year. Go and read the interview that Alex Hogg had with Ashoek Adhikari (GM of Media 24)
    . Google Alex Hogg on Welkom yizani . Click on Biznewz with heading “patient black investors ‘ .

    In the interviews adhikari completely sidesteps the massive slump in the share price taking about irrelevant things that investors already know. No reasons are given as to why these shares are doing so badly.

    In the middle of the interview he has the audacity to say that investors must take a long term view as they will be rewarded for investrment that media 24 is currently making. IS 7 YEARS NOT LONG ENOUGH TO HAVE MADE THOSE INVESTMENTS. DO YOU WANT ANOTHER 7 YEARS. WAKE UP AND SMELL THE COFFEE, MR ADHIKARI. SHOW US SOME COMPETENCE. From where the Investors sit we cant see any.

    Yelkom yizani must answer the following. Assuming an investor is sitting with 430 shares. What must such an Investor do , having held the share for 7 years and the price is R10 and below.

    I thing it is fair that the originators of the scheme should come forward and make a statement and not hide behind the “disclaimer”

    1. I agree with you bll!

  • What a daylight robbery,by u guys.probally Tata is turning in his grave by robbing poor people of their hard earned monies.right now my plans are ruined because of you and.my sons wont be going to a tertiary institution thanks to u. Thuli Madonsela please help, do it for our kids

  • Contact me regarding steps we will take. We must take them to court

    1. They should be taken to court for molesting the poor like this.

  • ……………WOW , thank you YIZANI you call this an investment ?????………………….BLACK ECONOMIC EMPOWERMENT , I was taken for a ride for 7 years ………………..

  • Ya ne James Sibange, j praat waarheid, (True that) ………………

  • Invested R10 seven years ago and I get back R10 today? That’s disgusting! You should hang your head in shame.

  • Dear traders
    I like the fact that we express ourselves about these investments but ultimately we must come to a solution.Small actions equal big results which means short – term pain equals long – term gain.The problem with the Time -for Money Trap is if you can’t trade the time,you don’t get the money.Earning a lot of money doesn’t guarantee financial independence,but when you adopt an investment strategy that works better for you.The majority of the millionares in this country didn’t inherit their fortunes but they invested in stocks,bonds,pension funds etc and most millionares don’t hit the million – dollar mark until they are in their 50s and 60s.It can take decades before compounding really kicks into high gear.Even to them it wasn’t easy but it needs some perseverance.This is the right time to BUY those shares and only SELL them when they are higher.

    1. This Welkom Yizani scheme has R28 debt per share. Media24 has not performed well at all and there’s more risks than opportunities. I wouldn’t recommend any close friends or family to buy these shares at current levels. I hope I’m wrong for all the investors who still hold on to these shares.
      Personally, I prefer Phuthuma Nathi. In a few months (June 2014), all the debt of that structure should be paid off, and every year subsquent to that, investors should receive nice, juicy, fat dividends. Hmmmm, dividends 🙂

  • It is very sad to see that so many people had their fingers burnt and in part due to a financial investment environment lack of knowledge. All investments carry a degree of risk depending on the type chosen. Fixed period deposits carry a guaranteed return in all banks at about 5% per annum. Moneymarket is slightly better than fixed because of a slight fluctuation in % return. When it comes to equities the investment risk is much higher & the returns if any are usually far better. In short the higher the risk ,the greater the chances of higher returns. It is important to understand that no one has the ability to control the Stock Market so any gains or losses are not the product of any manipulation.

    In 2006 I initially bought 1000 Welkom Yizani & 1000 Phuthumanathi shares. I was restricted to only 430 Welkom Yizani shares and got my 1000 Phuthumanathi shares. I was given another opportunity like every participant to divert my original Welkom Yizani unsuccessful purchase of the remaining 570 shares to buy additional Phuthumanathi shares which I did.I can only be grateful to the Scheme Administrators because I was steered away from a poorly performing Welkom Yizani to a successful Phuthumanathi.

    This serves to confirm that in life you win some & lose some. It is unfortunate that the majority of the scheme participants are crying foul which can also be ascribed to a below average of understanding financial instruments. This is probably a wake up call for people to familiarise themselves with the financial environment and acquire knowledge which incidentally is available for free from the JSE through people like Mike Brown,Takalani Nyelisani as well as Chanells 410 & 412 in DSTV including Personal Finance in the Saturday paper.

    I feel for those who feel hard done by and sincerely hope that the value of the Welkom Yizani shares will soon commence a steep climb to the top in value.There is an old cautionary statement which reads thus “never invest funds you cannot afford to lose” In conclusion I must point out that I am not taking sides with Scheme administrators but purely stating my views as I see things.

    1. Correction,
      In my posting on 23/12/2013 I listed Mike Brown instead of Simon Brown as one who works with Takalani Nyelisani in educating people on financial literacy as JSE appointees.The error is regretted & I wholeheartedly apologize.

  • All the BEE schemes started trading at a R10 to R12 2years ago and look at the price now.Yizani is now only trading for 13days.

  • What is the next step guys….Pls lets work on something together

  • I’m disappointed at welkom yezani shares this is total rip off . Their phones are always ringing without any answer. I will never buy these schemes anymore. Please just refund me back my money.

  • Hi
    In November 2006, i bought shares at Welkomyizani, now they are telling me they cant find me in their system. I have contacted the call centre 4 times, every time promising to call me back, but they never, i have submitted all my details 4 times to their e-mail but i am getting no response. Can anybody suggest a better place to report this matter.

  • Its a shame, disgusting, stealing from the poor. My heart is teared apart after waited for 7 years for nothing. But I know my redeema lives, my tears will never fall down for nothing.

  • What are the directors of Welkom Yizani doing about the current state of affairs on their share price. Surely they have a responsibility towards their shareholders or are they the ones that is buying the shares at these ridiculous prices. They, who ever they are, must hang their heads in shame and refund the company all of their director fees of the last 7 years.

  • I will never ever buy the books again. This was a rip off. 7 years for nothing. we helped when u needed help most. sis very angry.

  • I think ds needs speakout, this people must just pay us what we dersve,.in 2011 they told us that they are extending ka 2years due to RECESSION, now this??

  • This people must b exposed really!!

  • Here are a few lessons out of this story:

    1. Diversification: always spread your investment capital amongst a few options as opposed to putting ALL your eggs in one busket! If you have R10k to invest buy at least 3 stocks, R100k then 5 stocks, R1m then 10 stocks,etc! That way some might work and some might not and in the end you will at least brake even. Nothing is Guaranteed! To go all in one stock is no different from gambling!
    2. Long term mindset: the long term in the investment world is 10 yrs. 7 yrs is the top end of medium term. Admittedly there are investments that do well in even less time than this! But then go back to 1 above!
    3. Rules always apply: this structure was always meant to run until it unwinds! If you exit somewhere before the end you where always going to insure some penalty. Even your simple Bank Fixed Deposit incures some penalty when exited prematurely. Same here, these shares are worth more than the R10 they are currently trading at. My view is the Nett Asset Value of this scheme is in the region of R20 per share!!! The discount currently incurred is a reflection of the waiting period to maturity as well as the state of the asset itself. Print media is not a future business! As for the period to maturity, the new owner needs to be compensated for “running the last mile” of your race as it where, especially considering that there is ZERO Dividend coming out of this vehicle in the 5 yrs. there are many other structure I could put my money in and get both Capital Growth and Divs, eg Sasol BEE yet I would be entering these at a discount too, all be it lower than the 50% suffered by the Wozani shareholders. Sasol trades at about 25% discount.
    4. Never play the stock market with money you can’t afford to loose!!! Investing in the stock market is NOT too dissimilar to starting a business. Some projects will work out some wont. The key difference is that with starting your own business you are somewhat in control whereas with the stock market you have much less control. So to reduce the lack of control risk go back to 1 above! Always use money you can afford to work away from without too much pain in both cases. Never mortgage your home or children’ education for gambling in the stock market, no matter how much a sure thing the investment promises to be!!!
    5. There will always be winners and losers no matter which way you look at it! Those who can wait till the end will be better off! Those who can buy more right now will do even better, this is because the debt gearing as well as the discount leverage will have unwinded by the end of the term!!! Those with better INFORMATION will always do better than all, always assuming they use their infor advantage. Naspers had better infor at the beginning of this structure, that is the reason why they limited the access of this structure ONLY to the SA Print business as opposed to doing a Naspers wide offer that would have exposed the investors to their more promising assets like their more fututistic investments in China, ie. Tencent! In the 7 yrs the Naspers wide share performance has moved from around R250 per share to current levels of R1170 per share. My numbers are subject to correction, but you get the picture.
    6. The stock market has no emotion!!!! When I buy shares in the stock market the question of how poor or rich or desperate or not the seller is has NO bearing on my decision!! All I want is the best price for my cash and thereafter I cross my fingers and wait the required period for my investment to hopefully deliver!!!! If it does not deliver then thats my loss, I simply go to the AGM and vote Management out or I sell and move on. No amount of renting and raving will ever change the outcome!!!! Always remember that I was NOT forced to buy these shares, it was my own choice based on infor available to me at that time and having used my best calculations to choose one counter over another. Clearly we could have invested directly into Naspers at the time and obviously we would have done much better. Incidentally some of us did invest into Naspers BEE indirectly a few years earlier when we bought into what was then Nail! When it unbundled it released Naspers shares and MTN shares. Hindsight is a perfect science!!!!
    7. A smart man teaches the following: be greedy when others are fearfull and be fearfull when others are greedy!!!! Warren Buffet, to the uninitiated is the top Guru in investment strategy! Read into this what you will.

    My closing remark on this debacle is there is no point in crying over spilt milk. Take your lessons, after all you have paid heavy school fees, look ahead and ask yourself one question ” how do I use these lessons to move forwards and turn this situation into an advantage?”!!! The stock market can be VERY rewarding indeed, in fact there are very few areas of Capital formation I know off that are better. Having said that, the best investment you could ever make is investing in your own abilities and skills! This will generate a lot of cash flow and some equity, at the back off which the stock market would be your next best friend!!!

    Go ahead and enjoy 2014 and beyond! You have earned learned a lot since your last foray into the investment wirld, even though you might not appreciate the lessons yet.

    Take care of yourself.

    D.

  • And so Mr D, you are going to totally ignore the fact that this thing was sold as a political reparation of sort. That factor makes this investment extraordinary in its promises and expectations there of and renders your fundamentalist view totally irrelevant. Had it not been sold as a political reparation of sort this scheme would not have drawn the numbers and the character of investors it has drawn.
    Im sure you are aware of the fact that a great number of people in this scheme are financially vulnerable people who in the normal course of events would not have ventured into this space. Bar the sensibility of your view, a political solution is required here. Do you disagree?

  • Sir/Madam,

    I am glad to see that you acknowledge the fact that my views are based on fundamentals, which by definition could never be ignored or rendered irrelevant as you seem to suggest. The fact that ALL of BEE is based on some kind of “political reparation of sorts” does not suddenly make gravity a non issue as it where. Employment Equity is some form of reparation as an example, does that mean that the chosen candidate is NOT expected to perform to acceptable standards? Would that not amount to window dressing?

    I am not insensitive to the fact that these shares where sold to people who mostly would not normally participate in the risky venture of stock market investing. I also accpt that there is a serious lack of awareness and basic appreciation of the key fundamentals of investing in stock. Thus my earlier contribution to this debate, where there is an attempt to look at this debacle as a teachable moment as opposed to an endless complain session.

    Also, it is critically important to highlight the fact that the underlying asset has a Nett Asset Value (NAV) of more than R20 as we speak!!! The real reason why people are experiencing a loss is because they are selling prematurely. I can guarantee you that if everyone stopped selling immediatly the share price would creep closer to the NAV! Even at R15 per share a lot of the educated money would still buy these shares because of the discount applicable at that price, being about 35%. PLZ NOTE THAT AT A DISCOUNT OF 35% THE LEVERAGE ON YOUR BALANCE SHEET IS ACTUALLY 54%!!!!! So, put simply I WOULD BUY THESE SHARES EVEN AT R15 per share, which would amount to a 50% increase on the current price. The reason these shares are selling at R10 is because there are more sellers than buyers, ie . the economic “fundamental” of demand and supply! There is that concept again, FUNDAMENTALS!

    As for your question on whether a political intervention would be appropriate or not in this case, my humble request would be to understand how you see this working out? What do you really want the Government to do? Can you imagine what would happen if the Government where to be seen to be interfering with free market forces?!! Do you honestly think it would be viewed ONLY in a limited sense of this particular scheme? What happens next time another group of “ill informed people” argue that they have been hard done buy? Where do we draw the line? Who do you think would suffer the most if the SA Stock Market where to collapse because of a perception of Government interference? How quickly do you think that that act would launch us towards the Zim crisis?

    By the way, the best position to take in this case is to hold your shares till maturity as you had originally intended doing. Only at the end of the process will you experience the FULL unwind of the gearing as well as the leverage that is currently at play. If you can buy more even better for obvious reasons!!

    I am fully aware that some might view my position as an insensitive one and maybe even removed from every day reality! The truth of it does not change though no matter how unkind it may strike you. The best one can do is fully educate themselves from the experience and approach these matters with a bit more wisdom next time. I can assure you that I have learnt my fare share of lessons from this experience. No better teacher than first hand experience, therefore do not waist it by turning you back of the venture. In time you will get rewarded!

    We need to reduce our reliance on Government assistance/intervention particularly on matters that should be within our control!!! Anything else is failure to grow and frankly is suicidal!

    Again, take care of yourself! Nobody else will.

    D.

  • Im going to ignore your troubling reference to employment equity as I see no relevance here.
    I take it we can agree that the matter at hand is not anything close to a normal market. Therefore the problem, if you see one, can never be solved using normal tools as driven by market fundamentals. But then I must say I’m astounded, petrified by your view that political solutions are naturally contra to the workings of the market, more so given the fact that this is said post the financial crisis where political interventions have been the order of the day.
    If intervention of the scale seen after 2008 could be tolerated for normal markets why not here where the source of the problem is deliberate misrepresentation. Why not let the FSB or the BEE commission etc look at this situation.
    The problem as many of us see it can actually be fundamental in nature (not to be comfused with market fundamentalism), a problem of cost of capital that is out of touch with the underlying asset being financed let alone the hopes of the investors. This is a problem of bankers who devised a money making scheme and titled it BEE. I bet you that if this kind of a thing was happening to the monied people they could have made enough noise for the FSB to jump in which would be a political intervention.

  • Friend, I have enjoyed the exchange. Lets agree to disagree. All I’m worried about is the misleading indication that Government can or will do anything about this. They won’t, partly because the responsible people in Gov have an understanding of economic fundamentals that is significantly higher than that exhibited in this debate so far- from all sides. To think that because a transaction is given a BEE theme it suddenly escapes economic principles is naive to say the least.

    As for you claim of misrepresentation, I’m not a lawyer but it would be amusing to listen to you make the case! I have no problem with anyone looking into this but I as an investor or anyone else for that matter would be better served in following basic stock market principles to this situation.

    Back to basics, tomorrow Zakhele reopens finally. Free advice, use the lessons learnt from the Yizani experience and regain your advantage. The opportunities are there and the rest of us will sure be taking full advantage using the very basic principles I have been referring to since my initial engagement. Next Monday comes Yebo Yethu and there too will opportunities abound and if you are not standing by waiting for BIG BROTHER to intervene you will be rewarded for playing your hand well.

    Good luck out there, it can be very tricky if you allow yourself to be mislead. Do your home work and most importantly remember that there is ZERO emotion in the market!

    Take care of yourself.

    D.

  • Die is net a storie. 7 years for nothing please GOD have mercy on us.

  • Please make sure that all (at least Cape Town) shareholders come to the AGM on 01/09/2014. And then lets hear what they have to say for themselves straight in our faces.
    If you google “naspers media24 welkom yizani” there are quite a few articles from when the trading started and a couple after that, but not much more. Remember Naspers in strong in internet and print media. They are controlling a lot of the media and of course do not print anything against themselves.

  • I wonder what is the secret of listing Novus the part of Media24 instead of listing Media24 straight on JSE? If they can list on JSE Media24 maybe will boost Welkom Yizani share price on OTC . The way see it, they are running away. Naspers doesn’t want to help Welkom Yizani share price.

  • I am one of poor SOUTH AFRICANS,exploded by Welkom Yizani/Media24,through the help of our” trusted” bank. Can’t our government step in help us get our money back? For 7 yrs! Really? We were happy, hoping to get out of poverty. Little did we know we were taken as bunch of fools!

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