Sure wrote:With orders coming from Kibaki that unregistered lines be shut down, Bob's intentions to raise call charges, acquiring 4G and going ex dividend is showing now. I expect the share to start trading at 3 bob and end the day at 2.50. High oil prices are also affecting the Mobile fon provider.
ever heard of the ten percent rule? 3.00-2.5= 0.5. 0.5/3.0= 16%. Hence it cant trade at 2.50 by the end of today.
1. Raising calls charges will increase revenue from calls , which is the highest revenue source. I doubt they will lose a significant number of clients due to this, is the undying safcom affiliation of the kenyan people is anything to go by.
2. Acquiring 4G is a bad thing, how? More data, more speed, more clients......
3. The unregistered clients will not stay for long without a phone, guess which mobile phone provider they'll choose when they buy a new phone.
Infact, things are looking brighter for safaricom THE COMPANY. The share going lower is opportunity to get in.
The investor's chief problem - and even his worst enemy - is likely to be himself