MTN MTNOY was hobbled in the first half by a w
Post# of 17650
Posted On: 07/02/2014 9:22:01 AM
MTN
MTNOY was hobbled in the first half by a weak South African economy, a polarizing presidential election, and a five-month miners' strike that had soured investor sentiment towards the country. The good news is that the rand looks to have stabilized for now, and the presidential election and miners' strike are now history. As investors rotate out of the fully-valued U.S. market and into recovering emerging markets, Africa will be a destination of choice. Africa is one of the few bright spots for global growth right now, and MTNOY is a direct play on the rise of Africa's middle classes.
Let's review the bullish arguments for MTNOY:
•It's the dominant mobile provider in the last great frontier market: Africa.
•It provides a service that is essential to the lives of the new African middle classes.
•Its markets are far from saturated, and it has virtually unlimited growth potential due to the inevitable shift to smartphones and higher-margin data plans; only about a third of MTN's subscribers currently use data.
•It's very reasonably priced and pays a high and growing dividend; MTNOY stock has a dividend yield of 4.6%.
•MTNOY stock trades at a reasonable price/earnings ratio of 16.
Bottom line: MTNOY is an excellent stock to buy and hold for the next decade.
http://seekingalpha.com/article/2296265-mtn-g...2014?ifp=0
........think MTN was also favored by SA gov recently; regardless, does give a view as to SA potential
MTNOY was hobbled in the first half by a weak South African economy, a polarizing presidential election, and a five-month miners' strike that had soured investor sentiment towards the country. The good news is that the rand looks to have stabilized for now, and the presidential election and miners' strike are now history. As investors rotate out of the fully-valued U.S. market and into recovering emerging markets, Africa will be a destination of choice. Africa is one of the few bright spots for global growth right now, and MTNOY is a direct play on the rise of Africa's middle classes.
Let's review the bullish arguments for MTNOY:
•It's the dominant mobile provider in the last great frontier market: Africa.
•It provides a service that is essential to the lives of the new African middle classes.
•Its markets are far from saturated, and it has virtually unlimited growth potential due to the inevitable shift to smartphones and higher-margin data plans; only about a third of MTN's subscribers currently use data.
•It's very reasonably priced and pays a high and growing dividend; MTNOY stock has a dividend yield of 4.6%.
•MTNOY stock trades at a reasonable price/earnings ratio of 16.
Bottom line: MTNOY is an excellent stock to buy and hold for the next decade.
http://seekingalpha.com/article/2296265-mtn-g...2014?ifp=0
........think MTN was also favored by SA gov recently; regardless, does give a view as to SA potential
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