Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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On 12 Nov 2012 VituVingiSana wrote:sparkly wrote:hisah wrote:sparkly wrote:the deal wrote:This is a mature company with limited growth prospects going forward, I can't buy it at a PE beyond 10, which means my fair price is KES4.20. @thedeal their dividend payout says the company is far from mature. CAPEX also high, aiming at data offering improvement and mpesa. @hisah the growth will come from cost reduction. That capex hike is what I'm looking at. Is it for 4G rollout? Or what product is up the sleeves since a lot of cashflow is now piled up.. They are going to increase fibre from 600km to 2400 in the next 3yrs at a cost of KShs 14B. I don't understand why they can't just acquire jamii telkom 4000km of fibre instead of re-digging trenches. With fast changes in Telecoms, this is money that may never be recouped in time. Didn't Safcom have a tiff with JTL? Nowadays, JTL is going after the high-end retail market with the Faiba ads. KDN has many issues but if it's cheap enough it can be a takeover target. Access looks interesting. I was told (rumour) that the Somens had rejected an offer at 20/- & now the shares are trading at 4.60 so there is a (slight) possibility of a takeover. On 6 Sep 2013, the cash was signed, sealed & delivered. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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