MTN Group (OTCPK:MTNOY)
continues to be an underperforming stock for investors looking for
exposure to Africa outside of mining or other natural resources. That
the local shares are up a bit since my last update is no comfort at all to ADR holders, as ongoing depreciation of the South African rand has punished performance.
Operationally,
I continue to like MTN Group's prospects, though I acknowledge that the
company has to up its game in South Africa and faces a host of risks
and uncertainties in Nigeria. While I think a long-term perspective can
smooth these issues to some extent, and I continue to believe the shares
are undervalued, MTN Group's need for both internal improvement and
external stability puts in a category suitable only for high-risk
investors.
Follow this link for the full article:
Currency And Competition Grinding On MTN Group
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