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Need advice: DTB @110 coop @16 EB @25
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The Merchant
#31 Posted : Tuesday, August 24, 2010 4:11:25 PM
Rank: Veteran

Joined: 5/24/2010
Posts: 846
Location: KENYA
I agree with @msimon and @waithaka. I must also add that to effectively use intrinsic value one must apply a discount rate (not less than 20%, WB uses 60%)to the intrinsic value and only then can it be a proper comparison to the exixting market value.
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youcan'tstopusnow
#32 Posted : Tuesday, August 24, 2010 4:44:30 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
The Merchant wrote:
I agree with @msimon and @waithaka. I must also add that to effectively use intrinsic value one must apply a discount rate (not less than 20%, WB uses 60%)to the intrinsic value and only then can it be a proper comparison to the exixting market value.

Effectively the margin of safety
GOD BLESS YOUR LIFE
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The Merchant
#33 Posted : Tuesday, August 24, 2010 5:18:35 PM
Rank: Veteran

Joined: 5/24/2010
Posts: 846
Location: KENYA
youcan'tstopusnow wrote:
The Merchant wrote:
I agree with @msimon and @waithaka. I must also add that to effectively use intrinsic value one must apply a discount rate (not less than 20%, WB uses 60%)to the intrinsic value and only then can it be a proper comparison to the exixting market value.

Effectively the margin of safety

EXACTLY smile
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msimon
#34 Posted : Tuesday, August 24, 2010 5:18:50 PM
Rank: New-farer

Joined: 8/23/2010
Posts: 63
Location: Kampala
Wendz wrote:
@msimon

and what is your take on KPLC? is it worth taking it up now? where would you place it in June 2010?

KK has really been winking at me but it has too much drama my sight is blurred.


Wendz..KPLC is doesn't fit my criteria for a good investment. But i went through some numbers quickly and i realized it can be a good investment if regulations are removed. Because in the last 5 yrs sales have grown at 18% and this will increase in the future, plus profits have grown at 25% for the last 4yrs and will increase in the future. It currently has an earnings yield of about 19%. This would be a good candidate for a life insurance portfolio. But when you look at the opportunity cost, there are better investments on the NSE that have better value. But if it gets lower than this in the 120 ranges, it can be a good candidate for at least 10% of your portfolio,under the stalwart section.
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  | | Edit by user: Tuesday, August 24, 2010 5:24 PM | Reason: Not specified
guru267
#35 Posted : Tuesday, August 24, 2010 8:26:53 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
msimon wrote:
Wendz wrote:
@msimon

and what is your take on KPLC? is it worth taking it up now? where would you place it in June 2010?

KK has really been winking at me but it has too much drama my sight is blurred.


Wendz..KPLC is doesn't fit my criteria for a good investment. But i went through some numbers quickly and i realized it can be a good investment if regulations are removed. Because in the last 5 yrs sales have grown at 18% and this will increase in the future, plus profits have grown at 25% for the last 4yrs and will increase in the future. It currently has an earnings yield of about 19%. This would be a good candidate for a life insurance portfolio. But when you look at the opportunity cost, there are better investments on the NSE that have better value. But if it gets lower than this in the 120 ranges, it can be a good candidate for at least 10% of your portfolio,under the stalwart section.

@msimon ATI 120 FOR KPLC???? @vvs should see this post
Mark 12:29
Deuteronomy 4:16
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guru267
#36 Posted : Wednesday, August 25, 2010 12:14:38 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
And finally KCB has started waking up...
Mark 12:29
Deuteronomy 4:16
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The Merchant
#37 Posted : Wednesday, August 25, 2010 12:29:35 PM
Rank: Veteran

Joined: 5/24/2010
Posts: 846
Location: KENYA
@guru...whats your target for KCB? What a tricky stock to follow.
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PKoli
#38 Posted : Wednesday, August 25, 2010 12:30:27 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
guru267 wrote:
And finally KCB has started waking up...


I remember shouting myself hoarse when I was telling people that this giant is extremely underpriced and being punished unfairly. Luckily I never listened to anyone but my gut feelings
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