Namibian Stock Exchange Welcomes Trustco

Trustco Holdings, a provider of legal insurance, distance education, small loans, and other goods and services too numerous to mention, will list on the Namibian Stock Exchange (NSX) on Wednesday, September 27. It is the NSX's first IPO since 2002.

Trustco projects startlingly fast growth in coming years. It estimates revenue increases of 47% and 42% in 2006 and 2007 respectively with net margins above 20%. Yowza!

But the company isn't being offered on the cheap. It's IPO price of N$3.20 per share represents a historical P/E of 21.6.

Local broker, Simonis Storm Securities, thinks this price is much too salty considering the prospect of competitors entering Trustco's high-margin markets. They're advising their clients to sit tight until shares fall to the N$1.85-2.20 range.