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EQUITY BANK Results ON 28/02/2011
mlennyma
#11 Posted : Friday, February 25, 2011 8:51:47 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Without a good bonus equity might be fully priced.
"Don't let the fear of losing be greater than the excitement of winning."
innovator
#12 Posted : Friday, February 25, 2011 10:49:37 PM
Rank: Member

Joined: 7/24/2010
Posts: 239
Location: nairobi
Equity is a great growth bank to those who are patient. for now the no. of shares and the p.e. may be against the share.
hisah
#13 Posted : Saturday, February 26, 2011 11:03:55 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
I maintain my stand that banks are already priced in at the moment. More excitement will come when they report Q1 2011 results. That will be the leading indicator in determining if they will be able to repeat or improve the returns. I would avoid any bank that reports above 60% returns in 2010. Repeating such a growth rate going into 2011 - 2012 will not be a walk in the park.
I have this sneaky feeling that inflation rate will spike higher than that CBR rate of 5.75% and that will prompt big money to head to money market for juicier rates thus suppressing the equities momentum. If the inflation rate hits 7% and sustains, MPC will have to hike CBR which means banks will likely hike their lending rates, money market will demand higher interest rates and worse, we have a treasury budget gap so govt borrowing wont help the situation.
High inflation also hits industrials more. They'll under perform. But from a contrarian view, industrials have more headroom to rally than financials in the next rally cycle.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
qw25041985
#14 Posted : Saturday, February 26, 2011 2:13:51 PM
Rank: User

Joined: 5/9/2010
Posts: 1,418
Location: Nai
hisah wrote:
I maintain my stand that banks are already priced in at the moment. More excitement will come when they report Q1 2011 results. That will be the leading indicator in determining if they will be able to repeat or improve the returns. I would avoid any bank that reports above 60% returns in 2010. Repeating such a growth rate going into 2011 - 2012 will not be a walk in the park.
I have this sneaky feeling that inflation rate will spike higher than that CBR rate of 5.75% and that will prompt big money to head to money market for juicier rates thus suppressing the equities momentum. If the inflation rate hits 7% and sustains, MPC will have to hike CBR which means banks will likely hike their lending rates, money market will demand higher interest rates and worse, we have a treasury budget gap so govt borrowing wont help the situation.
High inflation also hits industrials more. They'll under perform. But from a contrarian view, industrials have more headroom to rally than financials in the next rally cycle.


Just because banks are hitting over 100% returns doesnt mean that they cannot out-perform again.
The opposite is actually true.Those stocks that hit 100% returns tend to be huge gainers in the years too come as by hitting that >100% investors are shouting w/ a very big voice that they see potential in the stock and thats y they are pushing the price up.
If fundies ( fundamentals) play accordingly they it would be the bests decision to add to a stock that has already hit > 80% return.
Your future depends on your dreams so go to sleep !
jerry
#15 Posted : Saturday, February 26, 2011 5:07:24 PM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
hisah wrote:
I maintain my stand that banks are already priced in at the moment. More excitement will come when they report Q1 2011 results. ....

KCB remains undervalued at a PE of 6.91. I'll not sell at below 30/=.
The opposite of courage is not cowardice, it's conformity.
VituVingiSana
#16 Posted : Saturday, February 26, 2011 8:14:09 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,351
Location: Nairobi
jerry wrote:
hisah wrote:
I maintain my stand that banks are already priced in at the moment. More excitement will come when they report Q1 2011 results. ....

KCB remains undervalued at a PE of 6.91. I'll not sell at below 30/=.

Please show me the calculations that indicate a PE of 6.91 for KCB
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Gordon Gekko
#17 Posted : Sunday, February 27, 2011 6:35:48 AM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
You get that PE with the banks earnings of 3.40. With the groups earning of 2.76, the reality is different.
VituVingiSana
#18 Posted : Sunday, February 27, 2011 9:59:11 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,351
Location: Nairobi
Gordon Gekko wrote:
You get that PE with the banks earnings of 3.40. With the groups earning of 2.76, the reality is different.
You have to use Group Earnings. After all, these are investments of KCB. Unless, KCB plans to sell these subsidiaries OR close them down...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
For Sport
#19 Posted : Sunday, February 27, 2011 10:50:55 AM
Rank: Veteran

Joined: 12/23/2010
Posts: 1,229
VituVingiSana wrote:
jerry wrote:
hisah wrote:
I maintain my stand that banks are already priced in at the moment. More excitement will come when they report Q1 2011 results. ....

KCB remains undervalued at a PE of 6.91. I'll not sell at below 30/=.

Please show me the calculations that indicate a PE of 6.91 for KCB


Check the P/E indicated on the wazua stock profiler. How accurate is the information on this stock profiler??
qw25041985
#20 Posted : Sunday, February 27, 2011 11:28:24 AM
Rank: User

Joined: 5/9/2010
Posts: 1,418
Location: Nai
VituVingiSana wrote:
jerry wrote:
hisah wrote:
I maintain my stand that banks are already priced in at the moment. More excitement will come when they report Q1 2011 results. ....

KCB remains undervalued at a PE of 6.91. I'll not sell at below 30/=.

Please show me the calculations that indicate a PE of 6.91 for KCB


The price-to-earnings ratio (P/E) is probably the most widely used -- and thus misused -- investing metric. It's easy to calculate, which explains its popularity. The two most common ways to calculate it are:
P/E = share price divided by earnings per share
P/E = market capitalization divided by net income


The share price is the market capitalization divided by the number of shares, so the results should be identical. Share price and the market cap are easy to find in the quote section of any financial website. The earnings are usually taken from the trailing 12 months (TTM) and can be found by checking the income statement for the past four quarters. A P/E using TTM figures is often called the current P/E.

Another variation is the forward P/E, which is calculated using analyst future earnings estimates, rather than actual historical earnings. Most financial websites give both the current and forward P/E. I find forward P/E a useful guide for cyclical companies, companies coming out of negative earnings, and those that have significant one-time charges embedded in current earnings. You may also encounter the dilutedP/E, which accounts for a company's diluted shares.

i am sure @ VVS you passed your nursery maths lessons. If you didnt get anything just note that

P/E = share price divided by earnings per share

OR

P/E = market capitalization divided by net income

NO rocket science.
Your future depends on your dreams so go to sleep !
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