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MTN

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David99755
Contributor
Why thej drop in MTN? Any ideas - should I get out?
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15 REPLIES 15
Super Contributor
Most overated,under performing share in the top 40.OMO.
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Frequent Contributor
Will be a winner for 2010. OMO
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Not applicable
Good long term share, growth prospects in the middle east. Hold on to it, 2010 is a good year for MTN
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Not applicable
Whats your time frame?
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Not applicable
What is the rationale behind holding a share that earns lots of cash but pays no dividend worth mentioning, trades at a high PE & has no significant asset base? Most of the infrastructure is rented... also has a large chunk of its business in african countries with a dodgy past history of good governance. OMO not worth the hype
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David99755
Contributor
I have been looking at it long term, say 12-24 mnths. Also have the averaging from the BEE transaction which gives me some advantage but I was getting concerned as I bought at 118 and it has dropped to 114
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Super Contributor
Stong support R111. Moving in a channel between R111 and R121. You can't go wrong with this share. It's not overrated and at a PE of around 12,5 it's cheaper than a year ago when the PE was around 17. omo
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Not applicable
Tis no longer a growth share. Also being punted as a buy from experts. Pressure from authourities to cut outragious profit. Downhill from here. Only upside is one suspects there is a lotta fat which can be cut. But how long will it take them to cut it?
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Super Contributor
The only time MTN's shares see upside,is when takeover or merger talks are happening.You only have to compare it's performance over the past year,to that of most resource stocks ( KIO for one ),to realise MTN has underperformed significantly,and will continue to do so.
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Super Contributor
MTN has got 103 mil + subscribers. SA is only a small portion of that. They have got massive growth opportunities in many african countries. They will become a takeover target again and I predict that will happen very soon. Most Telecoms providers world wide have very limited growth opportunities and that makes MTN a huge target.
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Not applicable
Maybe Nigeria being classed as a country that sponsors terrorists by the US state department won't help the price
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Super Contributor
Snoopy - today's price action is why I dont rate this share - resource stocks motoring (KIO up 2.5% )MTN down 2.2% !! Remember that song - dont hang on Snoopy,buy the winners.
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Regular Contributor
Down swings like these are just an opportunity to get in, im buying and if it goes lower il buy more!
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Super Contributor
If MTN doesn't bounce up from these levels I'd be very surprised, so I expect a possitive close today.
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Super Contributor
MTN will oundoubtedly become a huge take over/merger target in future. Technology is moving in one direction, and the prerequisites for that is wireless connectivity and continues connectivity. These telecoms companies will have to move into the content space and consolidation in that space is inevitable. Data earnings will eventualy top voice call earnings. A nice merger would be Naspers and MTN for instance, but I'm sure the competition commision will have something to say about that, but just imagine the possibilities. I think MTN is a must in any serious long term portfolio, irrespective of how the shareprice performed after the Bharti/MTN deal that went bust. The world cup will also be a very good earnings month for MTN in SA. omo
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