Burning Spear wrote:
Hi good people.
Kindly advise me on the best counters to get a good chunk and dispose after six or so months to get the profits.
my guess is
Centum,KCB,CO-OP,NIC and NBK based on the low P/E s and high % on earning yields.
NBK is also becoz this year they may declare a divinded for the financial period 2010.
Kindly help me to narrow to 3 good counters
Regards
When do you intend to buy?
A share to buy today..is not necessary the one to buy next week..
Your above list..(
except Centum whose results get released late May) is experiencing the upward momentum because within5-10 weeks results will be announced..after which a correction will happen to each to make the market valuation reflect actual valuation.. meaning the longer you wait to buy..the more expensive they become..
Past years have revealed a worrying trend..where prices of bank stocks drop immediately upon results announcements..albeit good results..case in point last april.. and the previous april.. and the previous april..use Wazua's stock profiler to confirm.. largely because of the rally up prior to March 31st..
question is do you want a share to buy today (on friday) or next week on monday, wednesday..friday..the other week?? coz everyday they change price..everyday trader perception changes..everyday market liquidity changes..
You might get a share now and 6 months down the line the disposal value just gives you back your capital and pays off the commissions.. at which point you wax philosophical and decide to be "long term" investor..

PS..bytheway..there's always a low p/e & high % on earnings yield stock at any given time!..question is.. compared to what? industry average or similarly capitalized compeh? I suggest on banks.. add price-to-book value.. just me.
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