Time to jump ship

Finweek English Edition - - MARKETPLACE -

In the fi­nan­cial in­dus­try, hun­dreds of con­fer­ences are held an­nu­ally, but one of the more im­por­tant ones is the Sohn In­vest­ment Con­fer­ence held ev­ery year in New York. It was here three years ago that the African Bank short was pro­posed and last week Jim Chanos of Kynikos As­so­ciates sug­gested short­ing MTN. He has an ex­cel­lent track record and it is im­por­tant to take note of his views. In­ter­est­ingly, Chanos is not wor­ry­ing about the Nige­rian fine, he is wor­ried about the state of Nige­ria and South Africa, which to­gether make for two thirds of the tele­coms op­er­a­tor’s prof­its. He says mar­gins and av­er­age rev­enue per user (ARPU) will con­tinue to fall in th­ese two mar­kets and the im­pact on prof­its is go­ing to be dis­as­trous.

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