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
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
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
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?
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.
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.
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