It's a season of Downgrades


All in all unless Safaricom cuts it's operational costs i expect full year EBITDA to drop by 15-30% because i expect ARPU to continue falling as inflation and the recent price hike forces customers to switch to cheaper options, the weak Shilling will also continue to pose a challenge thus i expect full year EPS to come in around Sh0.23. So at the current price of Sh3.30-Sh3.35 I rate Safaricom Expense/Sell/Avoid since I don't expect it to gain by more than 15% from this current price levels. My target price is Sh2.30 by June 2012.

Read more on this Link http://www.contrarianinv...ot-with-that-price-hike

if only this crappy market allowed shorting! NKT!

This elephant has stopped being innovative and is now and then spending a lot of time tussling with CCK... Anyone else noticed this? KK too is in the same boat, but its biz plans are still expanding. So btw KK and mpesa, KK is more attractive as well as EABL all facing harsh laws and regulations (regulators).

http://www.nation.co.ke/...84/-/sbv4e0/-/index.html

Safaricom has reached it's peak there are so many players in the field.. they might have been there in the beginning but competition is everywhere. this is a moribund stock. It's like taking a donkey to the river and forcing it to puke the water it just drunk.

I think Safaricom will be last man standing in this harsh telecom game and that is partly why the stock is catching a bid.Safcom is asserting itself as the leader in the industry and with mpesa,data,cloud computing and tech growing as the economy expands it just means brighter days for Safcom.The worst thing Safcom did was float too many shares during the IPO.I would be a buyer if it dips below 3.10