murchr wrote:mv_ufanisi wrote:I jumped out of SCOM bus a while back. This giant has grown too much and won't sustain high growth rates indefinitely. They are kind of stuck to the Kenyan market so upside is limited by that. However it's a good investment for funds with billions.
Now I'm more interested in well run smaller companies which show good growth potential and could expand regionally. Centum has been my favorite stock for a while now and delivered great returns so far.
There's so much room for growth. I'll expound more on Saturday
Saturday is here and am here to debunk the Safaricom has reached its maturity myth.
There's talk over the media that Mobile penetration in Kenya has reached its maturity and an insinuation that in a few years there will be no more new subscribers coming aboard. That is all hogwash and baloney. Kenyans have not stopped procreating, the population is still growing, mobile telecommunication is so much with us, the xaxa generation cannot stop texting, tweeting or posting their selfies on instagram/facebook etc.
Phones keep advancing by the day making it possible to do more and more on the web, Safaricoms main business is not selling phones rather selling the service to keep that phone on. Applications such as OLX are making it more and more necessary for individuals to have smart phones. As you transact online, you are streaming your data via Safaricom. The more and more you transact, the more and more you use data.
I watched Matiangi talk about the EastAfrican "one network area" he explained that the main intention is to pull down the barriers such that Kenyans can buy the MTN network and use it in Kenya seamlessly likewise, EastAfricans can buy Safcom and enjoy its services as if they are in Kenya. So the buying of YU's infrastructure will be greatly utilized. I guess no one doubts Safcoms selling abilities.
So far UG RW SS and KE are for the one network area.
Now, when the analog TVs are finally switched off Safaricom will be very well positioned to provide Kenians with cheaper digital television,Zuku will get a partner. I believe THIS is the reason they are laying cable with all this zeal. Satellite TV is expensive fiber is the way most communication companies have gone.
So those dreaming that this giant is done....i say, they are only scratching the surface
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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