Safaricom Kshs. 26.50 (+9.28%) zipped through the market in a convoy of 37,906,200 shares. The ticker touched all-time highs of Kshs. 27 during the week. Immense value creation has taken place. The share fell to all-time lows of Kshs. 2.40 early in 2009, halving its IPO price of Kshs. 5, much to the chagrin of the initial subscribers. If you would have bought 10,000,000 shares in those dark days, worth Kshs. 24,000,000, which would have been the cost of a good house at that time, you would now be holding Kshs. 265,000,000 worth of green shares. That’s a return of a whopping 1,000%! The company is set to grow even further. With the expected launch of its Amazon like ecommerce website (which may even turn into a gargantuan Alibaba like website), a ‘new MPESA’ is going to come forth. Another cash cow. The company’s expansion beyond Africa is also imminent. Acquisition by Vodacom Group of an effective 35% stake in Safaricom, will enable the telecommunications giant’s board to be more aligned towards its African interests and expand more easily into the lucrative continent. This share can break Kshs. 100 in the long-term if earnings are increased to Kshs. 5 per share, but expansion may also require additional capital.

@hisah,a shakeout (retracement) up to what levels?