Oct 10 (Lagos) - MTN Nigeria communications plc (
MTNN ) said it has fully restored its network after suffering outage on Saturday which lasted about 6 hours. This is also a good time to take a look at the stock.
Last fiscal the Company reported N 1.3 trillion revenue and PAT of N 205 billion.
MTNN is the undisputed leader in the Nigerian telecommunication sector. The Company's stock is not too far from its one year high price. We will not expect this outage to have any impact on the stock price in the mid to long term.
We may see a brief weakness which will probably be grabbed as a buying opportunity. The stock of
MTNN is not cheap and the company has a lot of debt on its balance sheet. Investors should keep the numbers in mind before jumping in on any weakness in the opinion of easykobo private analyst unless they are willing to have patience and be ready to hold long term for big gains.
Also we have to keep in mind that this is a South African Company, a country which has targeted Nigerians in the recent past which came to be known as "xenophobia". Such tensions could spark anytime and as investors we have to keep them at the back of my minds because that can have a short term impact the stock price.
There are plenty of Nigerian companies which can offer value at their current levels. That is where we would choose to look. The kind of jaw dropping rallies during the past 12 months in stocks like
LASACO (+328%),
LIVESTOCK (+290%),
HONYFLOUR (+274%) show us that we can find a lot of value in Companies that have been long ignored by investors instead of going with the most obvious choices.
repoting for easykobo.com on Sunday, Oct 10 2021 from Lagos, Nigeria