Local asset managers are falling over each other trying to sell their shares in Turnstar Holdings, but there are no buyers – Sunday Standard investigations have revealed.
This publication has raised an analysis report by one of the local asset managers stating, “ Before the release of the news relating to the Dubai property, we had noted a deterioration in fundamentals including the properties, vacancies, and strategy, amongst other things at Turnstar. Moreover, we had noted a continued deterioration of corporate governance controls, which are common amongst founder-led companies within our markets. Whilst the portfolios currently have an overweight exposure; this is against our under weight target. We have been in the market to reduce our holdings in Turnstar over the last two years with limited success as the volumes we need to sell are significant for an illiquid market. The findings of the legal report have validated the concerns we have carried concerning the company.” This view is shared by a number of asset managers which have invested in Turnstar Holdings.
Sunday Standard reported earlier this month that asset managers who have invested in Turnstar Holdings have lost an estimated P500 million between 2018 and 2022 as the Botswana Stock Exchange (BSE) listed company’s shares plunged by 44%.
Two of Botswana’s Forbes five richest men, Satar Dada who invested in Turnstar Holding through his company Associated and Development Investment Corporation Pty (LTD) and Gulaam Abdoola who invested through GH Holdings lost about P200 million during the period.
Turnstar Holdings shares have dropped from P330 a share in 2018 to P185 as at earlier this month, wiping close to P700 million in the value of the listed company’s ten biggest investors – and the bleeding continues.
Around the same time international investment analysts issued a serious indictment against Turnstar Holdings’ future share price, recommending that current investors should sell their stock in the BSE listed company and warning potential investors against buying the stock.
Investing.com a financial platform and news website which is cited as one of the top three global financial websites in the world which offers market quotes, information about stocks, futures, options, analysis and commodities assigned Turnstar Holdings’ stock a “strong sell” rating. With a “strong sell” rating, Investing.com is essentially recommending that the entire Turnstar Holdings’ stock be removed from shareholders’ portfolios to mitigate further losses.
When reviewing stocks, Investing.com investment analysts usually provide recommendations, which include buy, hold, or sell. A “strong sell” is a serious indictment of a company’s future share price, which recommends current investors sell the stock and potential investors do not buy the stock.
Sunday Standard can reveal that 12 Investing.com investment analysts unanimously assigned a strong sell rating for Turnstar Holdings shares based on Moving Averages (MA) while none of them recommended a “ buy”.
The moving average (MA) is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. The average is taken over a specific period of time.
Seven Investing.com analysts also assigned a strong sell rating for Turnstar Holdings shares based on Technical Indicators while none of them assigned a “buy” rating.
Under Technical Indicators, the analysts used patter-based signals produced by price, volume and/or open interest of a security to predict future price movements.
In an apparent bid to allay investor fears and stop the stock free fall, Turnstar Holdings paid out strong dividends last week. This however seems to have had a negative effect.
