@ youcantstopusnow
Access Kenya recorded improved turnover last year but since IT segment recorded lower margins 13% in 2009 vs 30% in 2008. The company says it has reversed this trend. Margins from Internet Segment were however improved. Another factor that lead to lower PBT is the increase on depreciation charge which more than doubled in the period.
These results must be the basis for a stagnating price i.e. @ PE of 26 it must recored growth comensurate with this ranking.
On the outlook side, the landing of the fibre optic cables will continue to put pressure on pricing hence the margins should be expected to drop. The question is how fast and how soon will this happen.
AK only stand to benefit if more customers get connected but of course there is the pressure from the mobile companies.
The strategies that AK will take to cover this is what will determine the direction of the price. First Half may shed some light.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.