guru267 wrote:The Merchant wrote:KenyaRe is the best priced stock in the NSE according to me. Investors just do not respect it at all. It reminds me of Jubilee which is a neglected beauty. Buy is my recommendation for KenyaRe even if on purely technical reasons (at 11.50).
@the merchant one cannot even slightly compare jubilee and kenya re...
Kenya re earnings growth, revenue diversification and management are EXTREMELY poor while jubilee's are exemplary... Kenya re deserves its current share price more than any other counter on the NSE
Well, I don't know how you arrive at such a bad outlook for its growth(maybe because the compulsory cessations end 2015?). However I think 2 more factors that are equally important are okay with this company namely;
1. Profitability: HUGE investment in the stock market and lower claims expected this year. More premiums expected due to a robust economy.
2. Risk: I think they place a premium on risk management hence their conservative growth. This is not necessarily a bad thing and should make us investors have more confidence.
About the management, can you explain more? Is there something I do not know? Jubilee I cannot dare argue. Exemplary management. I have dealt with them a few times so I slowly buy into this share when I can.
From the numbers alone KenyaRe looked very good to me. Please explain your fundamentals further, I may be lost on the theory and missing the larger picture.