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DIAMOND ALL THE WAY TO 135
Aguytrying
#21 Posted : Thursday, October 07, 2010 5:24:28 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
guru267 wrote:
mwanahisa wrote:
@Gatheuzi, just curious how you get to a price of 150 based on fundamentals. Please do tell.


@mwanahisa this stock is worth more than that price on a forward basis...

If it continues with 100% profit growth until year end its P/E will shrink to below 10 and don't forget their many new branches that are bound to boost profits....

Q3 results will justify all the banks prices.... since KCB is moving at the same pace i see know need to chase diamond.... But if you're in neither choose one and buy quick...

And basing on the NMG and Jubilee Interim dividends i also expect bonus shares from them....



Im also eyeing this one keenly, Id say ppl should be in both, though for kcb, its a bit late.
The investor's chief problem - and even his worst enemy - is likely to be himself
Gatheuzi
#22 Posted : Thursday, October 07, 2010 7:17:41 PM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
Aguytrying wrote:
guru267 wrote:
mwanahisa wrote:
@Gatheuzi, just curious how you get to a price of 150 based on fundamentals. Please do tell.


@mwanahisa this stock is worth more than that price on a forward basis...

If it continues with 100% profit growth until year end its P/E will shrink to below 10 and don't forget their many new branches that are bound to boost profits....

Q3 results will justify all the banks prices.... since KCB is moving at the same pace i see know need to chase diamond.... But if you're in neither choose one and buy quick...

And basing on the NMG and Jubilee Interim dividends i also expect bonus shares from them....



Im also eyeing this one keenly, Id say ppl should be in both, though for kcb, its a bit late.


@ Mwanahisa the historical PE of this stock is 7.67 and a current PE of 15. Based on the half year results like @ guru indicated the growth in profits was 100%.

For the purpose of the risk control let us assume the profits grow by only 50% then the EPS at end of 2010 will be 11.51 and at current price of 117, the PE is at 10.

A bank with that level of growth should be fairly valued at around a PE of 15 at minimum so the price is 15X10 = Ksh150.

If it decides to join Equity or HF at PEs of 25 then you can see 250.

Disclaimer: I own DTB so my opinion may be subjective.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
VituVingiSana
#23 Posted : Thursday, October 07, 2010 8:56:06 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,350
Location: Nairobi
Top Notch Management
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Aguytrying
#24 Posted : Thursday, October 07, 2010 9:14:21 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Just visited this companies website and read the reports of their finaces since 2008 to now. Im more than impressed. More impressive than even NIC(which is an excelleny company too). DTB strategy is just awesome, i noticed in 2008 they had set a goal to have 50 braches by 2010, they have 53. their profits have been growing. 2008-1.6B, 2009-1.93B. 1H 2009 (583m). 1H 2010 ( around 1.2B) meaning they had a very strong 2H in 2009. But a similar profit in 2H 2010, should still see it above 1.93B of full yr 2009. 100 branches target by 2012, and who can bet agianst them. First to Burundi last yr of the kenyan banks. Its not advisable to marry a share, but i want to wife this one and NIC as co-wife. lol

The investor's chief problem - and even his worst enemy - is likely to be himself
bartum
#25 Posted : Friday, October 08, 2010 3:03:49 PM
Rank: Veteran

Joined: 8/11/2010
Posts: 1,011
Location: nairobi
and the party continues
youcan'tstopusnow
#26 Posted : Friday, October 08, 2010 4:39:35 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
DTB is gaining, albeit gradually. But I feel the rally is yet to really hit top gear
GOD BLESS YOUR LIFE
youcan'tstopusnow
#27 Posted : Thursday, October 14, 2010 6:58:58 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
DTB Group receives Sh2 billion financing www.businessdailyafrica....74/-/n9oa18/-/index.html
GOD BLESS YOUR LIFE
Aguytrying
#28 Posted : Thursday, October 14, 2010 8:15:23 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
@y. This is the kind of news that can cause a rally. Been unable to get an entry point, this makes me feel like jumping in. On other news. Is there anything good about nbk, ppl dont talk about it here n i personally fear it since i saw it drop like 20 bob, with my own 2.
The investor's chief problem - and even his worst enemy - is likely to be himself
qw25041985
#29 Posted : Thursday, October 14, 2010 8:29:14 AM
Rank: User

Joined: 5/9/2010
Posts: 1,418
Location: Nai
This stock moves like a snail in its best days.
I bet the excitment wnt last long.
Me i say its co-op all the way !! Yani Co-op ni mama na baba yao.
Your future depends on your dreams so go to sleep !
sheep
#30 Posted : Thursday, October 14, 2010 10:05:16 AM
Rank: Veteran

Joined: 7/24/2008
Posts: 781
qw25041985 wrote:
This stock moves like a snail in its best days.
I bet the excitment wnt last long.
Me i say its co-op all the way !! Yani Co-op ni mama na baba yao.


I bought all the way from 47-72 in 2008-2010...now approaching 120...how is that snail pace...together with JUB they represent 60% of my portfolio.
The utimate goal of investing is to buy low sell high;if we re-write this core equation in psychology terms it becomes buy fear sell greed.
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