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CFC Insurance Holdings - Share Price to tumble!
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mwanahisa
#1 Posted : Tuesday, April 26, 2011 10:12:36 AM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
The listing price was set at a price of 6.15. However overzealous punters pushed the price to a day's high of 17 with a closing average price 14.80.

This is for a company with a trailing EPS of just 54 cents. Even though it has a relatively high NBV of 9.59, I think it is a mistake to buy at anything above it's book value until management prove they can be as profitable as their listed peers in the insurance sub-sector.
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2012
#2 Posted : Tuesday, April 26, 2011 10:20:24 AM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
mwanahisa wrote:
The listing price was set at a price of 6.15. However overzealous punters pushed the price to a day's high of 17 with a closing average price 14.80.

This is for a company with a trailing EPS of just 54 cents. Even though it has a relatively high NBV of 9.59, I think it is a mistake to buy at anything above it's book value until management prove they can be as profitable as their listed peers in the insurance sub-sector.



Couldn't agree with you more. Why would anyone buy @17/- unless the intention is to purely play the market?

BBI will solve it :)
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mwanahisa
#3 Posted : Tuesday, April 26, 2011 10:34:51 AM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
Of course they have a small free float, so it is possible for the main shareholders to keep it artifically high but on the current fundamentals, it simply does not make sense.
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guru267
#4 Posted : Tuesday, April 26, 2011 11:14:34 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
mwanahisa wrote:
The listing price was set at a price of 6.15. However overzealous punters pushed the price to a day's high of 17 with a closing average price 14.80.

This is for a company with a trailing EPS of just 54 cents. Even though it has a relatively high NBV of 9.59, I think it is a mistake to buy at anything above it's book value until management prove they can be as profitable as their listed peers in the insurance sub-sector.

I thought the EPS of .54 was the half year profit.
Mark 12:29
Deuteronomy 4:16
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Iborian
#5 Posted : Tuesday, April 26, 2011 11:15:01 AM
Rank: Member

Joined: 4/17/2009
Posts: 194
Hii share iko na wenyewe. Don't expect them to let the share price fall so that the likes of you can get in.
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mwanahisa
#6 Posted : Tuesday, April 26, 2011 11:21:29 AM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
guru267 wrote:
mwanahisa wrote:
The listing price was set at a price of 6.15. However overzealous punters pushed the price to a day's high of 17 with a closing average price 14.80.

This is for a company with a trailing EPS of just 54 cents. Even though it has a relatively high NBV of 9.59, I think it is a mistake to buy at anything above it's book value until management prove they can be as profitable as their listed peers in the insurance sub-sector.

I thought the EPS of .54 was the half year profit.


No. This is for the full year as reported. Results published in the Daily Nation on 21st March 2011. Full Year profits were Kshs 260,014,000. However, the profits attributable to owners of the parent were only Kshs 225,741,000.
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Marthegorgeous
#7 Posted : Tuesday, April 26, 2011 11:22:06 AM
Rank: New-farer

Joined: 12/16/2009
Posts: 34
Location: NAIROBI
Assuming an annualized EPS of 1.08,therefore the current PE is 13.7 which is well above the average PE for the Insurance sector.
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  | | Edit by user: Tuesday, April 26, 2011 11:23 AM | Reason: Not specified
mwanahisa
#8 Posted : Tuesday, April 26, 2011 11:29:06 AM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
As indicated in my post no. 6 above, EPS was actually 0.54 hence PE @15 is 27.78. How does that strike you?

Marthegorgeous wrote:
Assuming an annualized EPS of 1.08,therefore the current PE is 13.7 which is well above the average PE for the Insurance sector.
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the deal
#9 Posted : Tuesday, April 26, 2011 11:36:03 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
The results will be out this week...PE alone doesnt do it anymore...look at a momentum stock like SCAN.
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Iborian
#10 Posted : Tuesday, April 26, 2011 11:39:34 AM
Rank: Member

Joined: 4/17/2009
Posts: 194
Tell him @the deal. Mwanahisa will still be waiting for the price to fall when it hits 20. Meanwhile the deal will have made his kill.

the deal wrote:
The results will be out this week...PE alone doesnt do it anymore...look at a momentum stock like SCAN.
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