@sheep....with an EPS of 0.27,a P/E of 20 will represent a price of Sh5.40.....something that many people are expecting this week

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

Kenyans who bought IPO,using bank loans and sold at 2.85 must be banging their heads on the wall.

Someone please start a VCT for investors!

Its certainly been a great run for SCOM in the last few weeks. I however expect the price run to be checked soon,probably at the Kshs 5.10-5.50 level and . At this price range,it will be trading at a forward PE of 15-16 times. Historical PE would be around or above 20 and a dividend yield of less then 2%. Given the fairly low growth in profitability over the last 2-3 years,it would be a stretch to justify anything above these prices.

Remember,the main buyers of the stock have been International Investors who have a huge horrizon of shares to invest in around the world. They will therefore compare SCOM with such telecom companies such as MTN of South Africa which covers two continents and has had stellar growth in turnover and profits and currently trades at a PE of 13.44 (TTM). Or others such as Orascom of Egypt - PE of 10.46,China Mobile PE of 12.03 and Bharti Airtel from India - trading at a PE of 13.3. All of these telecom companies are in growth markets with relatively low political risk (excepting MTN with its exposure in Iran). So as Mukiha surmises,it may be time to take some profits off the table,especially if you are in it for the short term.

DISCLAIMER - I do not hold any Safcom shares having sold all of my IPO shares in the first week of trading.



Opportunity calls but few respond.

I bought at IPO and it looks like at long last I might be getting my head out of the sand.

Marriages are made in heaven. But so are thunder and lightning.

foreign buys yesterday were worth ksh 162M,foreign sales worth ksh 150M.

Supply [8.8m] has overtaken demand [6.6m] and the price has flattened at sh4.70. Will it cross the sh5 barrier this week,really?

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

I think it will be more like sh4.75 by Friday

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

...by the way did Vodafone manage to raise their stake to 51%? If I held this share I'd sell to no one except them...

Playing the stock market without insider info...is like buying a cow in the moonlight.

Just sent in my firs sell order at 5.20,not expecting execution this week,but next week; may be

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