Acc K just released results with massive jump in revenues but 23% drop in profit. What direction do you think the share will take in the next few weeks before books close on 5th may?

If my maths is correct, the PE of this share is now hovering at the 27 level. Quite high considering they're now erroding shareholder value.

Clear direction of the shareprice in the near future

@guru267, pray elaborate.

I see growth but also see pressure on the unsustainable margin. And I also see tapering of the rate of growth from prior years. And a milestone around the business in the name of IT.

EBITDA grew by 10% and cash generated from operations only 7% up. But the pricing multiple still reflects exuberance of past years.

Did shareholders finally receive past year dividend? And has dividend now declined from 0.40 to 0.30 per share?

http://www.nse.co.ke/new...0FOR%202010%20FINAL.pdf

I say tapered growth because this year revenue grew 26%, prior year it grew 75%, year before that it grew 75% (with consolidation)

I think Access need to rethink their strategy especially pricing. Their products are still expensive while there's competition offering the same for much less. In the area I live everyone is on ZUKU. KDN have already laid their cable too not forgetting Safaricom. There's this argument that safaricom is unreliable and as true as that is, it always seems to work in safcom's favour, don't know how but it does. Access watch out for Safaricom Business.

I think the shift from heavy reliance on satellite to fiber could justify this.

Not true since depreciation is not a tax deductible expense. The company will however benefit from a tax deduction for amounts spent on access to the cable and on the associated software.

Kenyan internet is still in its infancy. The cable is here, next... local content is going to explode, you will need the net to buy, to sell, to access your money, file tax returns, access public services, communicate, learn, take exams, be entertained, the net will be a necessity rather than a luxury. The net cake will be huge. Access and safaricom are just ways of taking you there. One is a taxi, the other a bus. I am no IT expert but the way i see it both saf and access stand to make good money. If access is well run and can maintain top management, a monied suitor will come calling soon and investors stand to gain huge.

@sparkly well said...technology is the future and Africa is still verry far behind the digital age so theres still lots of potential here...AK has made huge investment in itself so lets see wait and see how the half year results play out...i think a clear picture on the way foward will be revealed then...

I definitely agree with sparkly. We are barely scratching the surface on broadband connectivity in Kenya. I say if you own AK, hold on tight for a few more years. In terms of share appreciation, AK will do better that SCOM. SCOM is too diluted.