The word is positive
Why I will not be on the Queue for Safaricom shares
17Mar2008 Filed under: Blogroll, Business, Society, personal Author: alkags| 3,030,303,030.30 |
Kenya government is selling 15% 25% of Safaricom for a whopping 50 Billion Shillings – over 757,000 dollars. This makes Safaricom to be worth over Kshs. 200 Billion Shillings ($5 $3 Billion)!! Michael Joseph is a legend in East Africa that stories shall be told off many a night by an African fire – ok, with less drama but you know what I mean). Regardless, I will not be on the queue to be among the first to own Safaricom shares.
I could go into long details as to why I will not be buying Safaricom shares as soon as they are listed, but Bankelele (Kenya’s most authoritative blogger on the economy and business), has written about it quite succinctly here.
I shall be buying the shares after they list and stabilise like I did with kengen – Happy with those returns so far!!
- Tags: Business, ICT, safaricom, Stocks and Shares
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About Al Kags
Al Kags is a poet and writer based in Nairobi Kenya. He is the Author of the Book - Living Memories (http://living.alkags.com), a collection of true stories narrated to him by ordinary people who lived in the extraordinary times of the 1950s.
As a poet, Al Kags has published the Quarterly Colour Series of Poetry, a series of ebooks since 2009, which have been read by over 1,000,000 people around the world and which are contributed to by people from all over the world.
For his day job, Al Kags is an acclaimed Marketer and project Manager.
zacks
March 17th, 2008 at 12:10 pm
Assuming the interest rate of 10% the company valuation with the kind of profit it made is 17b/10%=170b.
Payback period (50b/(.25*17b))=11.765years, the average for the local market is 15years.
Assuming it will be a blue chip like the best ones their PBP is between 30years and 20Years.
Relate the company with others in communication business like the scan group.PBP = 25YEARS
Other factors not withstanding like politics, uncertainity relating to communication industry in terms of competition, inflation,
technological change challenges and the fibre cable;the price is a reasonable bargain and worthy to participate. ama sio alkags.
alkags
March 18th, 2008 at 2:05 pm
Zacks,
Kabisa!The only thing is I don’t mind delaying the PBP for a while longer if they can get their network to work better though…
I have this theory that I am using as a caution for my Safaricom Investments and that is mainly that they have concentrated on sales over quality over the last few years and it WILL catch up with them when they have reasonable competition.
Kags
Koros Vincent
March 28th, 2008 at 10:21 am
Excellent work there Safaricom. Keep it updated.