mwekez@ji wrote:young wrote:cnn wrote: On this day,Safaricom touches a high of 9 shillings,money still being made and maybe some getting into the slaughter house.
On the flip side, others will regret not joining the bus on 9 or sub 9 bob when Safaricom will print 15 mid next year.
Things are looking up for Safaricom, there is room to grow.
@young, how do you arrive at the Target Price of 15?
15 bob is a 50% capital gain by Fy 2014 by
June 2014 as it is aporoaching 10 bob very
soon.
It is over valued at the moment but HY by
november will be salutary that will even out
the notion of being over valued. It is a blue
chip super brand with much growth potential
due to its dominance and miltiple income stream
Simply put it had got is act well so expect accelerated
growth in the near term.
Foreigners participation also drive the price
crazy hinged on expectation that it will double
its dividend next year. A dividend of circa 65
cents is circa 4% on the price of 15 bob.
Foreigners also position on EABL irrespective
of its lack lustre performance. This translates to
EABL approaching mid 300 wheras the true
valuation is 268 - 282. So fundamentals is not
everything. Market sentiments play a big role
specifically on blue chip superbrands in NSE.
Even if you go wrong be patient , your stock
will rebound and rake in gains.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .