I love the stand-off:
Best bid is 200 at a demand of 42,700 shares while the best ask is 220 and the supply is just 7,200 shares. Can't get better than this, since 10.54 last sale at 200 i'm not seeing any other transaction. Who is going to cave in first?

I have done a very quick review of the Jubilee results and I can see a few reasons why the share price has not skyrocketed as per my (and others) expectations. This is besides the current cautious stance being taken by many investors with their fear of the bear.

The reasons are as follows:

1. A large chunk of the rise in profits is due to unrealized profits. Net fair value gains of financial assets through P&L have gone up by about 1.31 billion. Can this be repeated in 2011? Possible but no certainty. In the event of a meltdown on the NSE, this could just as easily be clawed back. On the positive side, JHL were net sellers of shares in 2010.

2.Income Tax expense has only gone up by about 12 million shillings (approximately 5%), corroborating point 1 above.

3. Cash flow from operating activities has only risen by 13%.

Notwithstanding the above, I believe that JHL was undervalued before these results and has now become even more so. I will be looking to buying more when the share price settles.

And it is only a start...

For those not in the Jubilee gravy train, it may be worth looking at other companies in related businesses that have not had such a big rise in prices. See my post on KenRe. Folks had better start watching Centum very closely as well.

I do imbibe but I am rarely in town. Maybe one of these fine days...In any case thanks!

I was listening to the CEO of JUB on Cnbc Africa they're aim is to be the no 1 insurer in Africa and he was very bullish about 2011