Ericsson wrote:Equity at 50 is hard.that will value at about ksh.185 Billion which is more than the valuation of EABL and Safaricom.Equity resistance is at 30.
KCB will hit a high of 30,COOP a high of 25.
For Centum the profit growth will not be sustainable as it is due to them liquidating some of the quoted shares they hold.
Full Yr 2009-2010 and half year 2010 remarkable profits was due to them liquidating their KCB portfolio which they bought is 2001-2 when the share was ksh.8 bob.
I do not see any counter they hold that can give them those high returns.
Downside of Centum is purchasing 40 million Safaricom shares at an average price of ksh.5.90.Where is Safaricom price currently?
It is not hard for Equity to get into the high of 50 though i admit June would be too close but by December it will definately be near.Much as supply and demand dictates the market,the incorporation of mobile companies in their fold (Safcom-mkesho,Orange) and all that means innovativeness thats aimed at increasing business to Equity,Mkesho has more that a million custonmers.As you will notice in my earlier statement,that Centum,Co-op,KCB are undervalued based on their P/Es but not Equity which has gone against the market trends and fundamentals since 2007.
As we wait with baited breath the release of colosal profits by Equity,we will also be hearing their move to buy some microfinance institutions in Rwanda and Tanzania thereby meaning you cannot compare Equity with EABL and Safaricom.
"You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it". Malcolm X