TKC has a very low P/E, good operating margins, lots of cash and very low debt, but yet it continues to be punished like a red headed step child. What gives? Have investors just plain forgotten about this one?
It may have low P/E, operating ratios and cash, however; it has been facing intense competition especially from VODAFONE.In my last visit to Turkey, I saw many new VODAFONE stores opening with attractive deal/packages to the customers. People started to use VODAFONE along with TURKCELL, but I am sure when VODAFONE market share comes up to 40%, some people will stop using TURKCELL.
In the long term, with this stiff competition; TKC will face margins going down significantly or will lose the market share. On this end, I would pay more attention to Mr. Ciliv's comments and strategy against the competition.
In the short term, the current political conditions going on in Turkey will put more pressures on consumer spending/confidence which will pull the whole country down.
In my opinion, there are more downside than upside for TKC at this point.