Any one who has seen recent analysis on Access? Why has the stock received such a heavy beating at the NSE? What are future prospects of the stock? Any body who can share with us a brief SWOT analysis of Access?

PKoli

@Mainat

Thanks for your response. What then should Access do or not do to survive in the looming competition? How have they positioned themselves with the fiber optic arrival?

PKoli

AK declared dividend for the year ended 31st Dec 2008 and not paid by sept 2009. It speaks for the cash situation at the company. May be worse for the time to come.

Not only have they not paid last years dividend,to date,they have also not announced when the dividend will be paid. When I tried to find out from them,about the dividend,I have received,no response to my emails. I have also bailed out of AK.

they are not only battling with very unpleasant business environment but are also experiencing very stiff competition from safaricom & the likes...

note that Ak's internet biz,with a GP margin of 53% (read under stiff competition from safaricom) accounted for 77% of its half year results while it's IT biz (with GP margin of 16%) only accounted for the balance...

this tell you that if they don't do something to boost they internet biz,they might be giving in to safaricom

Evil men understand not judgment: but they that seek the LORD understand all things.

What wouldhappen if AK took control or merged with flashcom and they get into CDMA mass market where thay can offer voice and internet services?

NAMASTE !Don't be unrealistic with your expectations

Got a number of Shares there and was planning to to add some more. The price looks quite attractive but given recent developments I have decided to tread with caution.

Some factors to consider for anyone getting in:

1. AK's lovely cashflows are no more. Paying for access to the cables,laying their own and the aggressive acquisitions seem to have taken the the wind out of their sails. They were borrowing upwards of 400M from NIC for these. The fact that they have not yet paid div for 2008 is telling.

2. The ownership of the company is still concentrated on the Somens. My guess is that the intention of the major shareholders has been to build value momentum for the share by the acquisitions (and now the fibre) with the aim of offloading some of their holdings to some 'strategic' secondary investors.

3. Factor 2 seems to be affected by factor 1 and the fact that the company is facing stiff competition from the bigger players.

Needless to say i am watching closely in the short term to see how AK will react. The coming of the cable might turn out to be the shining pin that burst the AK bubble too soon.

If I hear any rumours of a director selling before these challenges are resolved ... then I will be Bolting before you can say USAIN.

Guys,now u c! Whatever views u get here r a representative sample of reality...

Can silence be misquoted?

Ak's competition problems are compounded ten-fold by poor product offering....very slow (slower than ZAIN!!!) and very expensive (5times that of ZAIN). I know a corporate client of theirs who has both Ak and ZAIN.....their are dropping AK!!

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)