We have been screaming sell on Zain since it broke the KD 1.200 level. Moreover, every analyst I speak to agrees with me that Zain is overvalued; the latest report I read by CREDIT SUISSE (17 Aug) valued the stock at KD 0.800. However, something seems to be wrong and the stock keeps soaring! What is driving the stock up? Is it the rumors about the sale of their African Operations or is it the sale of part of the company? Even with Vivend’s deal the stock isn’t worth KD 1.500 (click here for details). I lost track of all the rumored deal, but it seems the latest one is Indian Reliance which is offering to buy a the African operations of the company.
Whatever it is driving the stock up is just making it more expensive! Zain is considered the most expensive Telecom stock, valued at EV/EBITDA of 7.32x against the GCC aggregate of 5.83x and MENA aggregate of 5.59x. Please look at the table below for more details.
On the other hand, technically speaking the stock has broke its resistance of KD 1.200 and its 20, 40 and 200 day moving average and it seems like there is no place else to go except the KD 1.700 levels.
Nevertheless, I would still be a seller…
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Loading ...Tags: Etisalat, GCC, Indian Reliance, Khorafi, Kuwait, MTC, UAE, Vivendi, Zain, Zain Africa Sale, Zain sale, Zain Takeover, Zain Telecom
TO SELL!
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It’s too expensive to buy anyways. Many good “fils” stocks out there.
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I say put a sell order on 1.720, but stop loss @1.280, once it plummets there will be nothing to hold it back
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There was a huge selling pressure on the stock today and it closed at 1.380
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Saud,
I guess u got ur answer from the market
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