selah wrote:Aguytrying wrote: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.
What you are forgetting is that safaricom has already been labeled an exploiter now tell me if they increase their rates and then continue announcing those super-normal profit how will its customer base react.
Airtel has already won the hearts of the majority of kenyans...Equity is already encroaching on Mpesa with its agency banking safaricom will be left with its data that already is under price war with telcom.
My take is that bob should be very careful how he goes protecting its bottom line I foresee a kencel kind of an ending for safaricom.
Going back to my litter box research today I saw alot of Airtel 100/= scratch cards....Is this the warning sign....
Dont hold your breath, expecting kenyans to switch away from safcom because it is more expensive. Kenyans are weird me included. Safcom has, and still is the most expensive.
Yu has free calls 6am-6pm, for crying out loud
Airtel(which i use) has calls at 1 bob, through out. club 10. Sending money with aitel is free!!!! airtel got some movement when they lowered prices, but that fizzled and we are back to where we are.
Orange has good offers as well (but their internet is crap, OMG-dont get me started on their internet). I woulndt know about their offers though coz i dont care.
Btw are there any safcom offers i dont know about? I called for over ten minutes jana, and spend less than 10 bob????
The investor's chief problem - and even his worst enemy - is likely to be himself