We’re back! Nothing much has happened, that is, if you count one of our favourite FinTechs becoming the fifth unicorn in Africa as nothing. 😀
And Nigeria banning Twitter. 🙁 So yeah, a lot has happened.
Are we going down further?
Things have been pretty much and up and down the crypto charts the past two weeks.
There has been a weird Bitcoin conference happening this weekend. Thousands of people descended upon the city of Miami. I say weird because it gave me very bad vibes when I watched this video of one Bitcoin pundit acting like he was in a ponzi scheme conference. Sigh.
Of course the person he was cussing, Elon, never seems to shut up about Bitcoin. You can see his reply below the same tweet above.
Meanwhile, the president of El Salvador (Yeah, that’s a country) said they would make Bitcoin legal tender in the country.
So we’re here waiting to see how long this “calm” lasts. It might be the calm before the storm.
What do pundits think about all the prices? All Bitcoiners definitely believe the price will only go up, maybe not now but eventually.
Below are our stock picks
Safaricom – LONG TERM BUY: We retain a long term buy on Safaricom. The company innovation levels will continue to be a great driver of revenues while entry into new market will create value for shareholders. With the high dividend payout 80.1% in FY-21, the management opted to issue an interim dividend and a final divided. We forecast the board to retain payout levels of 80% while offering interim dividend to ease on pressure on cash management and due to the huge dollar demand on payout date.
Investors are advised to enter at KES 39.75 and hold the stock to ride on capital gain and expected income.
Equity Group – BUY: The group posted an exemplary performance in Q1-21 leading to re-entry of foreign investors boosting value up by 17.6% y-t-d. We opine the performance is bound continue positive momentum and the Group will revert to dividend payment having failed to pay for the past two financial year with the aim of boosting capital reserve.
We propose a price target of KES 40.45 which was 8.0% lower than a high of KES 43.95 seen on the release of Q1-21 results before easing to KES 42.20, a 4% decline.
KenGen plc – SHORT TERM BUY: The counter continues to create discount on long term price leading us to MAINTAIN a Short-Term BUY. The electric generating company recorded a 9.0% growth in profits for H1 2020 despite the challenging environment issued a dividend of KES 0.30 whose book closure was on 29th March 2021.
As the company continues to focus on its strategy on sustainable energy while leveraging on innovation and partnership on business growth, and as reopening of the economy continues, we expect a price surge. The financial year for the counter comes to an end in June 2021.
How the Markets closed on Friday:
Speaking of Miami, there is this series — StartUp — that Netflix has revived. It’s crazy, (I got bored after season 1) but has some truths about startup and crypto life. It might be your cup of tea.
We have our eyes on…
Have a productive week!