We are adding a new stock to our longer term growth portfolio this week, including a 20% downside stop loss. This is because it can be a little volatile and has recently put in a single day 11% return on the back of some very solid results. This is a telecommunications play that is firmly focused on emerging markets.
We are big believers in many of the social and economic growth fundamentals underpinning much of Africa at the moment. It has a young population, growing urban middle class, more stable government in several countries than we have seen since independence, and a more diverse economic outlook. Telecommunications companies are well positioned, as they also benefit from a lack of ageing or legacy infrastructure, unlike in developed countries.
This company is £3.3bn market cap UK-listed play which has seen some solid share price growth this year, up from around 60p, and is now trading at 109p. But the share is still at around 10x which makes it cheap. The dividend yield is 3.95%.
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