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Kenya Re - Waking up from the Slumber?
youcan'tstopusnow
#31 Posted : Wednesday, January 05, 2011 11:46:28 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Insurance stocks do not seem to be a darling of investors. I wonder if the same will be said of CFC insurance
GOD BLESS YOUR LIFE
The Merchant
#32 Posted : Wednesday, January 05, 2011 1:33:00 PM
Rank: Veteran

Joined: 5/24/2010
Posts: 846
Location: KENYA
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.d'oh!
Cicero
#33 Posted : Wednesday, January 05, 2011 2:11:17 PM
Rank: Member

Joined: 7/7/2009
Posts: 111
Other than for investors looking to diversify and despite the foundamentals of Kenya-Re including it's PE (or inspite of them), this would not be a counter i would advice anyone on. It is still lingering around it's IPO price many years on. Compare it with Equity!

I think a wait (outside) and see would be the best advice i would give on this one...
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it...
msimon
#34 Posted : Wednesday, January 05, 2011 3:24:34 PM
Rank: New-farer

Joined: 8/23/2010
Posts: 63
Location: Kampala
Cicero wrote:
Other than for investors looking to diversify and despite the foundamentals of Kenya-Re including it's PE (or inspite of them), this would not be a counter i would advice anyone on. It is still lingering around it's IPO price many years on. Compare it with Equity!

I think a wait (outside) and see would be the best advice i would give on this one...


I have come to learn that the best way to survive and make serious profits in the investing business is to spend all your investing time reading annual reports and spending as less time looking at the stock price as possible. I mean, the we only look at the stock price when it comes to comparing value with price. It has worked well for us over the past four years. I hope it doesn't change, and i doubt it'll ever.
The Merchant
#35 Posted : Wednesday, January 05, 2011 4:21:16 PM
Rank: Veteran

Joined: 5/24/2010
Posts: 846
Location: KENYA
msimon wrote:
Cicero wrote:
Other than for investors looking to diversify and despite the foundamentals of Kenya-Re including it's PE (or inspite of them), this would not be a counter i would advice anyone on. It is still lingering around it's IPO price many years on. Compare it with Equity!

I think a wait (outside) and see would be the best advice i would give on this one...


I have come to learn that the best way to survive and make serious profits in the investing business is to spend all your investing time reading annual reports and spending as less time looking at the stock price as possible. I mean, the we only look at the stock price when it comes to comparing value with price. It has worked well for us over the past four years. I hope it doesn't change, and i doubt it'll ever.

Good one. Now based on your number crunching, whats your opinion of KenyaRe?
gesowan
#36 Posted : Wednesday, January 05, 2011 6:44:22 PM
Rank: Member

Joined: 11/6/2010
Posts: 289
sell
Gatheuzi
#37 Posted : Wednesday, January 05, 2011 7:10:49 PM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
With 6 shares that I have in kenya-re (3 shares on each of my 2 CDS accounts) I will be a life member in this company.

However this is as far as it goes, if I had them I would quickly sell even if it is at a loss, and buy myself some new pants.
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.
obiero
#38 Posted : Wednesday, January 05, 2011 9:39:19 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,249
Location: nairobi
Gatheuzi wrote:
With 6 shares that I have in kenya-re (3 shares on each of my 2 CDS accounts) I will be a life member in this company.

However this is as far as it goes, if I had them I would quickly sell even if it is at a loss, and buy myself some new pants.

with utmost respect i say to u. u will eat ua own words come endyear results

gesowan
#39 Posted : Wednesday, January 05, 2011 10:36:39 PM
Rank: Member

Joined: 11/6/2010
Posts: 289
@GATHEUZI
I do agree with you in totality
mwanahisa
#40 Posted : Monday, April 04, 2011 1:23:37 PM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
With the release of a number of results from the insurance industry, it may be worthwhile revisiting the biggest reinsurer in the country.

The three insurance companies that have reported (PanAfric, Britak & Jubilee) have had a huge increase in profitability. The increase in profitability has come about to a large extent from an increase in their investment income. However, keen watchers of the industry will also note that there has been a healthy increase in premium income. A corollary of this is that the amount ceded to reinsurers has gone up. A significant portion of this goes to Kenya Re.

I assume (maybe I should pray) that Kenya Re is at least as efficient (or should I say no more inefficient) as it was last year, the above factors point to the possibility of a reasonable growth of profits at Kenya Re.

I am aware that Kenya Re is a dead counter as far as many Wazuans are concerned. All the same, it may just be worth a punt. After all on can aim for a modest 10% - 20% return with the release of results, if indeed my projections come to fruition. This of course presupposes that the bear market will not get any worse.
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