hisah wrote:dunkang wrote:Thats why we call him Con-me-more, he thinks we won't see!
But how do you expalin this;
total demand 12,688,500 331,200 total supply
This thing will be bid since the profit is far better than what the market expected. I was expecting PAT to dip to 9B. At 12.63B that a shocker for me. A number of investment house will see the same and are due to revise their forecast models. With high inflation, tight liquidity & price wars in H2 that tariff was not meant to achieve much. But the results of H2 tell a solid rebound story. I'd be concerned as their competitor since dropping the price war will signal surrender. The risk boomerang is coming back at competition in full force...
So I expect the price to edge higher as well as the 3.30 - 3.40 resistance chart level is now broken.
As a trader I'd target 3.80 - 4.00 assuming you got in at 3.00.
I expected a larger dip in profits too so better than expected results.
But for me, if i had Safcom in my portfolio (which i don't), i would lighten my holding.
It seems the profitability has stagnated for the last two years. The current price of Ksh 3.45 gives an EPS of 10.8 and a dividend yield of 6.35%.
Compared to other shares in the NSE, this looks expensive.
However, Safcom via its MPESA product seems to have captured the attention of foreign investors who may provide some upside potential to the share.
Without this hype, i would value Safcom at a price of between Ksh 2.60 - 2.80.
Happy Hunting
x handle: @stocksmaster79