Interesting SBG was spot on with their revenue projections but the elephant missed their EPS projections by a big margin.

Are they going to cut their TP further?

On valuations I agree with them,this sort of growth has been priced into the share price. On a straight line basis forward PE is 17 although I expect a bumber dividend at year end as cash flows improve but they need to invest more in their network...its becoming horrible everyday.

If anything this kind of results will give the other telco's more ammunition for calls to level the playing field...only SCOM makes money in Kenya's telco industry the rest are loss making...80% voice traffic market share means the other 3 are only sharing 20%!

Already there right at the start of trading.

There is someone having a monkey at 10.2

Si they wait...

The price is quite overbought at this level and 10 will indeed be a selling zone. Waiting for euro session to come online in the afternoon.

#Selling the news. Base target 9 - 9.50 zone. A reload zone must be created. Sell the news then buy the FY rumour in Jan-Feb towards May 2014.

10.20???this buyer has only one pride of making safcom reach an all time high price.

Prints a low of 9.45/- and closes at 9.70/- with a high of 10.20.

Classic sell the good news play. 10.10 will be revisited in future.

Safcom will become another BAT and Stanchart as a dividend stock based on the undertaking to be paying 85% of free cash as dividends. This means that the dividends for year ending March 2014 will be between Ksh 0.425 and Ksh 0.446 (free cash flow of between 20-21B as projected by the management).

If safcom can maintain this impressive growth momentum, coupled with the declining fortunes of the key nse financial counters, it is destined for greater things. Its Mpesa and Mshwari products make it a bank-equivalent without the scary non performing loans exposure currently being experienced by the likes of KCB and Equity.

In future, I forsee safcom spinning off the mpesa/mshwari (bank-equivalent part of safcom) to be a separate subsidiary company which can be more focused as a financial company while the mother telco company focuses on other growth areas.

Happy hunting.

I see a re entry point of 8.25 if the 10 bob resistance holds!

Dwindling fortunes spell doom for Telkom as rival posts mega profits



The statements in bold are indeed sticky fingers that depict classic enterprise corruption deals. Wealth transfer from public to private hands. Very sad

Meanwhile mpesa bank as indicated above is cannibalizing the data market from its rivals. The data revenues for H1 indicate what is to come next for the rivals as well as its huge cashflow pool.