VituVingiSana wrote:Since I don't own SafariCon shares nor use SufferingCon... it doesn't affect me but how will SafCon manage similar profits as net margin on Voice must have dropped like a rock...
[Some ground will be made up by Data & M-Pesa but I doubt enough to caover Voice]
I have all of a hundred shares in Safcom and I do use their services, so I guess my concern level for Safaricom is higher than yours.
On a more serious note, the health of Safaricom is or has been a major concern to all in the market. To begin with, it has the effect of pushing the indexes (indices?) down, with any small slide. You will also recall it was Safaricom that started the headlong dive by the NSE in 2008 as the GFC begun to bite.
Further, the masses are unlikely to ever embrace the NSE wholeheartedly again as long as Safcom remains below IPO price. And it is the retailers who tend to really push prices up when they are on a roll as they do not pause to analyse before buying, just as they do not when they decide to sell.
So, unfortunate as that may be, Safaricom will have an impact on my KQ, KK, KCB, Equity Bank and other shares. I am actually afraid that since Safcom's results will not be anything to write about, I will not see shares get to the potential in 2010.