Sober wrote:obiero wrote:I hereby repeat my rhetoric question. Between KQ & SCOM which one is likely to reach KES 30 faster..
I bet on Safaricom, the market is less hostile. KQ normally has so many factors affecting its market share; political & Social stability, oil prices,exchange rate among others
Talking purely share price appreciation..it comes down to demand and supply volumes.
Please note..the only reason a share price will go up is because someone somewhere with deep enough pockets and for whatever reason wants that share more than those who have it..hence will offer a higher price for it.
When demand outweighs supply..price goes up.
That said..at current levels..it is easier to wipe out supply of KQ than it is the supply of Safaricom comparatively. Hence..quite easier for KQ to get to 30 than safaricom..
Supply volumes of safaricom need quite abit of cash load to wipeout...especially when prices are higher.. With KQ..Kshs100million is enough to spark a rally toward new highs irregardless of what fundamentals are. A similar cash load on safaricom is like a drop in the ocean.
#Lessons Uchumi, KQ(2007-08)#MomentumInvesting
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