RSS

Africas Stock Bargains Dwindle

Ryan Shen Hoover writing in the the Cheetah Index states:

It’s great to see such confidence in Africa’s capital markets. It will encourage additional companies to go public and ultimately improve African exchangesliquidity. But it makes uncovering a “screaming buy” each month much more difficult. Instead of “40% off everything in the store,” value investing in Africa is now more akin to rummaging through the clearance section.
Still, retail investors can thrive in such an environment. They’re able to pick up deals that the big guys can’t touch. Large institutions find it difficult to invest in opportunities like Fan Milk because of the lack of liquidity, and great companies like SAB&T Ubuntu are too small for them to buy without moving the market. Moreover, most of Africa’s IPOs and secondary offerings tend to favor small-time investors. Like scooping up “Midnight Madness” deals, investing in African stocks isn’t convenient, but it can be rewarding and fun.

  • Digg
  • Del.icio.us
  • StumbleUpon
  • Reddit
  • RSS

0 komentar:

Posting Komentar