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Safaricom Half Year 2010/2011 results review
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Much Know wrote: I don't see a youngster who spends most of his time on facebook(which he automatically logs in through safaricom live) opting for zain or yu, i dont see myself changing simcards or carrying two phones, one for Mpesa, another for sms and switching again to call. @Much know We have until January next year to see if zain will switch to 3G+ as they have promised We have until next year in December to see if zain creates their 17500 zap outlets like they have promised( By the way zap is cheaper than MPESA) I think if these come to pass then all your problems will be solved so remind me again why you have to stay with SAFCON??????????????Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 1/3/2007 Posts: 18,215 Location: Nairobi
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Talked to someone on safcon... Ati, coz I have to let everyone know my new number... Ngai fafa... I don't want calls from most folks who have my number! At least the 'missed' calls have dropped as well as the annoying 'Please Call Me' since Zain forced everyone to drop to 3/- Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 3/10/2008 Posts: 68
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guru267 wrote:Much Know wrote: I don't see a youngster who spends most of his time on facebook(which he automatically logs in through safaricom live) opting for zain or yu, i dont see myself changing simcards or carrying two phones, one for Mpesa, another for sms and switching again to call. @Much know We have until January next year to see if zain will switch to 3G+ as they have promised We have until next year in December to see if zain creates their 17500 zap outlets like they have promised( By the way zap is cheaper than MPESA) I think if these come to pass then all your problems will be solved so remind me again why you have to stay with SAFCON?????????????? ...and when that comes to pass, safcon will NOT be making losses. in fact they will still be making healthy returns, only greatly reduced to justify a share price of say 2bob, lol! the problem with safcon as an investment is that of irrational exuberance during the IPO. 200b was an extreme exaggeration of the real (lon-term) value of this company. the shareholders still holding the stock (remember mobitelea collected kitambo!!) will have to pay for that irrationality. those who will come in after the correction then can hold the stock for long-term coz in my opinion this should finally become a blue chip (doubling share price from 2 bob in 2011 to, say, 4 bob in 2015). my humble opinion.
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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kanda wrote:mwanahisa wrote:We stand to gain a lot more as investors than as customers, and the company we can invest is Safaricom.
that is not true!! just because you feel that way doesnt make it true. do the math first! i think what you mean to say is that you are afraid of losing money coz of your heavy investment in an unsustainable business @kanda. I just could not let this pass, lest it be misconstrued as the truth. If you look at my post no. 28 on the thread titled "Safaricom Half Year Results ...", you will see my declaration that I have 100 Safaricom shares. If that is a massive investment, so be it. Now back to my argument, I have been spending about Kshs 6,000 on my communication costs a month including data. Saving 50% of this cost yields 3,000. On the other hand, if I buy 10,000 shares at a price of 4.50 and sell it at 4.95, I make a net gain of 2,515.50 assuming a commission rate of 2.1%. Now, I can conceivably do this more than once a month and I could even increase the investment (by a facor of X where X could be 10,100 etc). It therefore stands to reason that I would be more concerned about my ability to make money by trading on Safaricom than the savings I make on my communication costs, which are limited. Of course, one can counter this by the fact that Safaricom is not the only counter that one can invest in, which I agree with. Mine was only to try and explain why some folks on this counter support Safaricom so vigorously. Naturally, I take exception to kanda's insinuation that my argument is based on my huge investment in Safaricom. At the moment that investment is inconsequential.
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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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the two things going for safcom is Customer Loyalty..the same was going for Bharti Airtel in India for a while.. but eventually.. +Cheaper calling rates by competition..sustainable over the long run (airtel is doing in kenya what compe did to it in india" + Cheaper mobile money transfer.. ZAP + More Data providing at cheaper rates.. Orange soon going 3G+ while they recently doubled data transmitted per shilling cost the second thing is economies of scale.. safcom is already established.. infrastructure and administratively.. orange is getting 3G now,,airtel is building HQs.. http://www.businessdaily...-/120hhfbz/-/index.html
..this saves safcom a lot of time..to concentrate every shilling on milking the loyalty of its customers. ..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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...plus i do have a feeling that Airtel Kenya will largely copy paste this to operate here. ..safcom.. why lie ..ni kuFyaMM!! http://economictimes.ind...eport/companyid-2718.cms..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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Rank: Member Joined: 3/10/2008 Posts: 68
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@mwanahisa, that was with a light touch. but let me extend your argument a little. i agree "trading" in the share may be more profitable than call cost savings in the long run. but for "investors"??...if you can save 3000/month, that's 36,000 a year with zero initial investment. as an investor, to make a similar amount you need 36,000/0.02 = 1.8m shares*5bob = kes 9m (assuming you bought at at ipo i.e @5bob and taking last DPS of kes 0.02). not many have invested that much, not the least yourself!! -you have made that crystal clear, lol, and not especially those who need to make savings on communication (count me in pls!).
mine was an attempt to disabuse "investors" (not traders) of the notion that they need to cheer when safcon decides to use monopolistic practices to fleece kenyans in the name of being "truly kenyan" and for offering "value".
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Rank: Chief Joined: 1/3/2007 Posts: 18,215 Location: Nairobi
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Asante Airtel for dropping my calling costs BUT my overall spend has not dropped... I used to be curt but now I am ok even if I am put on hold! The simplicity is what I like... One price to call anyone, anytime... [Plus 3/- to UK, USA, etc...] Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/21/2010 Posts: 6,191 Location: nairobi
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Dividend imerushwa ikaniangukia kwa mpesa. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 7/21/2010 Posts: 6,191 Location: nairobi
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Watu wapige domo tu,bharti hawajanipa chochote na i dont expect anything from them. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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VituVingiSana wrote:Asante Airtel for dropping my calling costs BUT my overall spend has not dropped... I used to be curt but now I am ok even if I am put on hold!
The simplicity is what I like... One price to call anyone, anytime... [Plus 3/- to UK, USA, etc...] Incidentally, Orange is now my main provider as most of my calls are to landlines during office hours. It costs me just Kshs 100 for a whole month (less than 5/= a working day) to call from between 10.00 a.m. to 5.00 p.m. I think that this is just too good to last, but I will enjoy it for as long as it does!
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Rank: Member Joined: 10/4/2010 Posts: 223 Location: Afghanistan
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Is Zain/Airtel getting undeserved credit? Zain reduced the calling rates after CCK halved the interconnection charges from Sh 4.42 to Sh 2.21. This is set to reduce further to Sh 0.87 in 2014. Kenya has the second lowest intercon rates in Africa...compare with SA 9.31, Naija 6.00, TZ 5.98, UG 6.44. IMHO, credit should be to CCK first. The rich have money working for them; the poor and the middle class are going to work for money.
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Rank: Member Joined: 5/27/2010 Posts: 324 Location: nrb
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Dod wrote:Is Zain/Airtel getting undeserved credit?
Zain reduced the calling rates after CCK halved the interconnection charges from Sh 4.42 to Sh 2.21. This is set to reduce further to Sh 0.87 in 2014.
Kenya has the second lowest intercon rates in Africa...compare with SA 9.31, Naija 6.00, TZ 5.98, UG 6.44.
IMHO, credit should be to CCK first. Yeah, many of us actually lost on this factor. zain apparently hogs all credit cos of first mover. Putting into perspective this fact then safcon which was charging 6/(this I heard was the avaerage of the variable super ongea although personally i never got it). so safcon was getting 1.79 for the first minute, 7.79 for two minutes. Now with 3sh. they get 0/79 for first, 3.79 for two min...... well, it doesnt change much the revenue haemorrage equation as i had initially thought.
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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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Dod wrote:Is Zain/Airtel getting undeserved credit?
Zain reduced the calling rates after CCK halved the interconnection charges from Sh 4.42 to Sh 2.21. This is set to reduce further to Sh 0.87 in 2014.
Kenya has the second lowest intercon rates in Africa...compare with SA 9.31, Naija 6.00, TZ 5.98, UG 6.44.
IMHO, credit should be to CCK first. its not about giving credit.. its about the cloud hanging over safaricom ..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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