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Potencial Cameroon fine

MTN was out with another bit of bad news during the day, the authorities in Cameroon suggesting that the company is involved in bribery, along with the other operator, Orange. And guess what, they are seeking to hit the company with another fine. No fine yet and MTN haven't been given any official documentation so they haven't released a SENS, that didn't stop the stock tumbling over 4% yesterday. We certainly are in the midst of a terrible storm for the company, the Nigerian overhang of a court case pending and now this, it really feels awful. And by the way, we certainly called this one wrong in the short term. Wrong, wrong, wrong. Currently trading on eMpTyN. We will continue to evaluate and for the time being continue to suggest that one holds the line here, uncertainty always leads to selling and with lower prices the faith is lost. As Byron pointed out yesterday, MTN has 4 times as many subscribers compared to Vodacom but now has a lower market cap. At the moment MTN finds themselves on the wrong end of the stick as far as developing markets are concerned, the wrong ones. Emerging market stocks, the market tells you those are finished.


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