Telkom a "difficult" company: Peter Nelson

[rpm]

Telkom a "difficult" company

Telkom CFO Peter Nelson, who announced his resignation Tuesday, said it was common knowledge that it was a "difficult" company

 

[Sting]

As suspected. Look who is left on the Board... no wonder he jumped!

 

[goselito]

good, hopefully the shareprice will continue falling.

 

[ingeon]

WARNING, [edit] Telkom [edit] Neotel.

What, the lesser of 2 evils
If we had a company with more balls in the ball park then maybe LLU would
have materialized already.

Second fixed line operator, huh... whats that !!!

 

[The_Unbeliever]

Do they know something that we don't?

 

[Dinorawr]

Can we say "bailout"?

 

[sunsoffun]

... this ship is going the same way as eskom. I guess us the tax payers are going to pay again in the near future.

 

[marine1]

T.I.S.A.

 

[Necksy]

I guess there's some dead fish in Telkom Boat that we donno of.... :-(

 

[davemc]

The share price shed 118c or 3.3% to 3356c hours after the announcement.

R35 per share.
Go back to July 2007, where it was R178 per share. (Sauce: http://mybroadband.co.za/news/Telecoms/481.html)

The revolving door of Telkom's board has not only shed tons of money through false bonuses and fake good-performance reviews (resulting in bogus salary hikes), but it has also now truly undervalued one of this country's great assets. It looks like this company is being set-up for a proper buy-out, and that is why financial peeps are bailing.

 

[SnowWar]

People are just milking the cow. Guess we all would do it.

- Become Telkom CFO / CEO
- Pocket your insane salary for doing next to nothing
- Pocket +- 10 Mil performance bonus for not performing @ all
- Resign cause you are bored of doing ****all, and the next guy in line is already demanding its his time for some milk! (there is a planned rotation)

 

[davemc]

<snip>Guess we all would do it.<snip>

Actually, I have pride in my work, and would NEVER milk a company, I earn my money.

 

[Sting]

Actually, I have pride in my work, and would NEVER milk a company, I earn my money.

As has Peter Nelson, which is why the analysts who know him have responded by dumping Telkom shares.

 

[davemc]

Share has dropped to R32.85.

"We have always maintained that the company looks cheap for a reason. There is a failure to execute and (they) seemingly have a government type mentality to failure just to shrug their shoulders," he said.

Sauce: http://www.fin24.com/Companies/Telkom-slides-on-talent-exodus-20100714

This really is beginning to sound extremely bad.
But, I know that those that control our government are not stupid, and it makes me wonder what on earth is really going on.
I am keen to see the details of the packages that were provided to the outgoing board members, but I am also pretty sure that dead-set secrecy is being maintained there.

Think about it, if you wanted a piece of the Vodacom and MTN billions of rands a month profit pie, and you were currently able to effect control of a company perfectly capable of competing, what would you do to get your hands on the company? Billions of rands clear profit a month in a self sustaining market, I mean seriously, people have been brainwashed into paying R2 a minute for calling a person, and they pay it, gladly.