Am one of those ppl who got in @ 63bob kitambo. It was purely speculative, i didn't understand the metrics & i still don't. I paid the "price" as i watched it go to the floor, i salvaged some money by averaging down but made major losses overall.
If there are any value prospectors in the hse, these are the cons i'm looking as i consider touching it again @. Any advise on why someone would buy? What price?
1. Highly competive & price sensitive (global & regional) consumer market.
2. Volatile market; very sensitive to consumer finances, politics etc.
3. Low margins and huge overheads (including rising oil prices - what is the current and future hedging situation and plan)
4. I have not seen any major innovations / business aggression from management recently. Compare mobile comm and banking markets. Where will value / growth come from?
Someone correct me if i'm wrong: Management have overstayed and are in a comfort zone... this wouldn't happen in a multinational like Barclays... when next do we see double digit growth?
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