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Monday, April 30, 2007

AccessKenya IPO/OFS - Last Day

Raging debates on www.stockskenya.com... Unlike prior discussions, there is more of substance being discussed...

I will not discuss the specifics since the fundamentals are based on POTENTIAL not the assets or current financial state of the firm.

(My) Bottomline:
  • Not cheap on a NAV or PE basis.
  • Growth will continue for next 3 years.
  • Cash out by Somens not a good indicator (OFS of 35mn shares).
  • Growth will be at lower net margins.
  • Expansion is a strong possibility into the region by acquisitions
  • Corporate market prefers RELIABILITY over (cheapest) price. As long as Access Kenya delivers RELIABILITY there is great potential among the MNCs & SMEs.
  • Cheaper bandwidth (TEAMS, Eassy) will boost usage.
  • Increased use by government organisations will boost usage & sales.
  • No debt plus IPO cash (KShs 426mn)to be used to boost service, sales & customer service.
  • Somens want to increase the "value" of their shares so expect their dedication coz I think there will be a merger &/or sale of the AK (as we know it) to someone else!
BUY... for the short-term!

8 comments:

MainaT said...

agree completely with the last pt. even if there isn't an initial price appreciation-they've already had an offer and will get more so one can hold out for 1yr.

Ssembonge said...

I would classify Access Kenya as an aggresive growth stock.

Its valuation is justified by its future prospects.

Michael said...

Naf said about this IPO.Lets wait and see what happens as from 4th of May when the stock start trading.

Anonymous said...

Dubs comes to Naija! Thought i'd share this with you and fellow Kenyans!!

http://www.tinapa.com/

Anonymous said...

Any news about the IPO results?

coldtusker said...

Massive oversubscription... except for employees & QIIs...

Anonymous said...

no new posts...wassup?

mueja said...

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