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Safcom on a dive, whats going on?
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moneydust
#211 Posted : Monday, August 30, 2010 2:27:27 PM
Rank: Member

Joined: 1/31/2007
Posts: 304
Zain did only what it had to do...safcom dominance was growing from strength to strength...if this had continued the other operators would hav bn out of bsn b4 long.

>This reality was manifested in the low and declining subscriber numbers of the competition.

>The zain move could b suicidal but I think it gives them a fighting chance...Infact I think its a winner..they just need to have an exceptional low cost base and sufficient capital to last them through the next 2-3yrs because thats when the battle will b won...

>Safcom has already blundered by failin to realise the significance of zains move...rather than give a comprehensive counter offer, they hav come up with a discriminative promotion.Zains move is akin to the per second or per minute wars of safcom and zains predecessor kencell.We all know who won that..at a great loss and strategic disadvantage to who...

>That said safcom dominance cant b wished away...they can still make their billions but not as easily as in the past they need to hav a strategic shift..For instance they need to hav a look at their cost base,I think its too high and need to cut it down....Otherwise they are headed for doom together with their shareholders.

>Voice revenue cant b wished away its the mainstay of safcom. other revenue streams might b growin but safcom cant do without voice revenue..thats why they constantly remind us of their subscriber numbers...

I was once a diehard safcom customer but with their latest disappointing counter strategy hav decided to grudgingly shift to Zain....

SAFCOM WAKE UP..it still not to late..Hope the incoming CEO can see that its no longer business as usual...they need to regain the initiative..



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selah
#212 Posted : Monday, August 30, 2010 4:05:07 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
I saw a piece in aljazeera on how pipes (telecommunication companies with fibre optic infrastructure) are in the red to the tune of -$140b brought about by intensive capital expenditure on infrastructure and system upgrades where as the swipes ( Google, Microsoft,apple) who normally depend on this infrastructure have $140b laying in their the bank accounts.

Because of this mismatch, there is lobbying for the swipes to chip in on the infrastructural expenditure.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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hisah
#213 Posted : Monday, August 30, 2010 11:49:20 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
robertyawe wrote:
The drop in the price of calling charges might to many seem as the final nail on safcoms grave, but be weary of the exaggeration of the kings death.

As the price of safaricom drops there has been an increased entry by "foreign" investors who have looked at the fundamentals of the company and know that it is a good fundamental investment.

I have been looking at the statistics on the Kenyan mobile market and it is clear that a price war is likely to affect the new entrants than the incumbent. Total subscribers 19.7 million, Safaricom subscribers 15.9 million of which 11.8 million are registered with MPesa.

Forget what some guy in the UK is saying about Safaricom, they are the same ones who recommended that foreign investors should exit due to the expected downturn as a result of expected violence during the referendum.

Learn to make your own decisions based on your understanding and knowledge of a market. Dumping safaricom because of the price drop is like dumping breweries because you saw a guy get drunk on a beer and fall into a ditch.



I've noticed this all the way since March 2009. It dives and the foreigners pile it up in spades. Kenyans are selling their crown firm to outsiders without question? Today 77% of the buy side was foreigners, no selling. And I expect this trend to continue all the way to 3/- (if we can only get there Pray for another long term re-entry)
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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guru267
#214 Posted : Tuesday, August 31, 2010 2:33:25 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
hisah wrote:
robertyawe wrote:
The drop in the price of calling charges might to many seem as the final nail on safcoms grave, but be weary of the exaggeration of the kings death.

As the price of safaricom drops there has been an increased entry by "foreign" investors who have looked at the fundamentals of the company and know that it is a good fundamental investment.

I have been looking at the statistics on the Kenyan mobile market and it is clear that a price war is likely to affect the new entrants than the incumbent. Total subscribers 19.7 million, Safaricom subscribers 15.9 million of which 11.8 million are registered with MPesa.

Forget what some guy in the UK is saying about Safaricom, they are the same ones who recommended that foreign investors should exit due to the expected downturn as a result of expected violence during the referendum.

Learn to make your own decisions based on your understanding and knowledge of a market. Dumping safaricom because of the price drop is like dumping breweries because you saw a guy get drunk on a beer and fall into a ditch.



I've noticed this all the way since March 2009. It dives and the foreigners pile it up in spades. Kenyans are selling their crown firm to outsiders without question? Today 77% of the buy side was foreigners, no selling. And I expect this trend to continue all the way to 3/- (if we can only get there Pray for another long term re-entry)

@hisah my Eyes are wide open to watch the ex div action and my money is prepared for anything below 3.80... Because its currently trading at its target price which it cant hold ex div

IMHO
Mark 12:29
Deuteronomy 4:16
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