10.20???this buyer has only one pride of making safcom reach an all time high price.

Prints a low of 9.45/- and closes at 9.70/- with a high of 10.20.

Classic sell the good news play. 10.10 will be revisited in future.

Safcom will become another BAT and Stanchart as a dividend stock based on the undertaking to be paying 85% of free cash as dividends. This means that the dividends for year ending March 2014 will be between Ksh 0.425 and Ksh 0.446 (free cash flow of between 20-21B as projected by the management).

If safcom can maintain this impressive growth momentum, coupled with the declining fortunes of the key nse financial counters, it is destined for greater things. Its Mpesa and Mshwari products make it a bank-equivalent without the scary non performing loans exposure currently being experienced by the likes of KCB and Equity.

In future, I forsee safcom spinning off the mpesa/mshwari (bank-equivalent part of safcom) to be a separate subsidiary company which can be more focused as a financial company while the mother telco company focuses on other growth areas.

Happy hunting.

I see a re entry point of 8.25 if the 10 bob resistance holds!

Dwindling fortunes spell doom for Telkom as rival posts mega profits



The statements in bold are indeed sticky fingers that depict classic enterprise corruption deals. Wealth transfer from public to private hands. Very sad

Meanwhile mpesa bank as indicated above is cannibalizing the data market from its rivals. The data revenues for H1 indicate what is to come next for the rivals as well as its huge cashflow pool.