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Maybe some real growth will occur in unusual places. Like Africa. And maybe the growth will be in a technology that was not our fist technology in the developed world. Cell phones. Cell phones exist in places where land lines are no good in Africa. And they are even a form of banking. Hence my bet on MTNOY. I am nervous about buying OTC stock but this one seems like a possible winner, deserving of a modest investment.
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Based in South Africa, one of, if not The most developed nation on that continent, there is plenty of room to grow, as most countries treading the fine line between "developed" and "developing" rely more and more on mobile phones for business as well as personal use.
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I'm starting to pay attention to South Africa. I think the entire cotinent is a huge long term growth oportunity with significant challenges. And those challenges amount to a moat for those who know how to do business and make money there. Much of Africa seems to be skipping landlines and going with cheaper mobile phone, South Africa is the stable base from which they grow (92% of the population has cell phones, a higher penetration rate that the US) and Nigeria is their growth market, only 42% cell phone penetration with a population of about half the size of the US.
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Red Raider is Lord
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MTN is a South Africa-based telecom with operations in 21 countries in Africa and the Middle East. They have operations in Swaziland, Zambia, Uganda, Rwanda, Botswana, Nigeria, Cameroon, Congo-Brazzaville, Cote d'Ivoire, Benin, Ghana, Guinea Bissau, Guinea Conakry, Liberia, Iran, Afghanistan, Cyprus, Sudan, Syria and Yemen.
They are currently trading at 12.8x trailing earnings. They have seen great revenue and earnings growth in recent years. The balance sheet is a weak spot however - they are trading at 7.7x tangible book and have a low current ratio. They look attractive now on a recent pullback from the $17.50 area.
Other telecom I like: NIHD, NTT, DCM, IIJI, TKC, TSP and TLKGY.PK along with telecom related services like TNDM, RRST, and IRDM.
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Africa are you kidding?!
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I guess I'm bullish on this one....not sure why.
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MTN have 2 things that i like: simple business with stable cash-flows and a huge market to exploid in an empty continent call it Africa!!! That's why i believe that MTN is a good bet for the long run.
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international diversity.
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Mobile phone business in Africa will continue to boom. Landlines are terrible and expensive to get. Every Tom Dick and Harry wants a cell phone, not just for its usefullness but as a fashion statement. Call it the Louis Vuitton of Africa. MTN is dominating the mobile phone market, it is investing in internet technologies too. The only way up is up for MTN. Even the sky does not limit it.
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Look for China Mobile to gobble these guys up. If not, you still have a great long term growth play.
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Emerging market wireless player. Rising tide of adoption.
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south africa!
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Great cell phone play in several African markets. Healthy balance sheet, endless growth potential, strong operating cash flow.
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