wazua Fri, Mar 27, 2026
Welcome Guest Search | Active Topics | Log In

3 Pages<123>
These NSE shares have the X-Factor
Options
Previous Topic · Next Topic
moneydust
#11 Posted : Wednesday, May 11, 2011 7:00:06 PM
Rank: Member

Joined: 1/31/2007
Posts: 304
Obi 1 Kanobi wrote:
mwanahisa wrote:
@Iborian. Many a commentator has counted Equity out only to have the smirk wiped off their faces. In 2011, so far, Equity has reported the highest PBT and PAT plus the fastest growth in profits of the listed banks that have reported.

I suspect that BBK is busy making ammendments to their report to just pip Equity. But they can't keep doing it for ever.

If anything, KCB should the biggest on the profits front but KCB is like a recovering punch drunk heavyweight boxer while Equity is like an ultra fit Middleweight that has been fighting in the Heavyweight division for so long that the real heavyweight contenders forgot just how nimble the "small heavyweight" Equity can be. And BTW, I own both, so I should know!
As a consequence the Equity share price always comes back to a superior PE ratio in comparison to the rest. The market just wants to confirm that Equity will repeat this feat in Q2.


What are the basis for your conclusions for these two. Reminds me of lie repeated over and over till people start believing it as true. KCB and equity are almost identical in size (consider results, staff numbers and branch networks), however KCB has more assets due to the time it has been around to accumulate it.

Equity is a good bank, but KCB is a steady and proving to be better as time goes by.



People have always hoped that KCB can perform better than Equity and other banks because of its asset size.I have always wondered what these assets are that give the bank such pitiful returns year in year out.Sometimes I think what they indicate as assets are actually non performing loans/investments which they are afraid to write off lest they get a backlash and given its history as a KANU/Moi's bank this cannot be farfetched....Nevertheless in investments its always better to buy into fact rather than hope hence I will always pick Equity before KCB until such a point when the latter is able to prove itself in hard numbers...the Qtr 1 2011 results were not really encouraging...
Back to top
  |
Magnetic Touch
#12 Posted : Wednesday, May 11, 2011 7:27:50 PM
Rank: Member

Joined: 12/31/2008
Posts: 90
Obi 1 Kanobi wrote:
Equity is a good bank, but KCB is a steady and proving to be better as time goes by.


KCB a better bank than Equity? Eish, what have you been smoking one Obi Kanobi?
Back to top
  |
Iborian
#13 Posted : Wednesday, May 11, 2011 8:00:36 PM
Rank: Member

Joined: 4/17/2009
Posts: 194
I did not mean to imply that Equity is slacking off. In simple English...the premium on Equity shares is not there at the moment. Methinks that could be a signal to buy.

moneydust wrote:
People have always hoped that KCB can perform better than Equity and other banks because of its asset size.I have always wondered what these assets are that give the bank such pitiful returns year in year out.Sometimes I think what they indicate as assets are actually non performing loans/investments which they are afraid to write off lest they get a backlash and given its history as a KANU/Moi's bank this cannot be farfetched....Nevertheless in investments its always better to buy into fact rather than hope hence I will always pick Equity before KCB until such a point when the latter is able to prove itself in hard numbers...the Qtr 1 2011 results were not really encouraging...
Back to top
  |
Aguytrying
#14 Posted : Wednesday, May 11, 2011 8:04:56 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
@mwanahisa. there's something about scangroup and ARM, that charisma you talk about. They are shares with bright futures that investors know unless something goes horribly wrong they;ll make gains. A share like scan is even hard to comprehend, I've said before it has 'long legs" when it goes down, you can always bet your lucky dollar it will bounce back. Wish id, trusted it and speculated at the 50.00 last month.

As for ARM, the increase in capacity soon expected to make it the largest producer could be a factor, that and it has made folks super gains in the past.

I dont quite get them.....but i like'em
The investor's chief problem - and even his worst enemy - is likely to be himself
Back to top
  |
Renegade
#15 Posted : Wednesday, May 11, 2011 9:09:32 PM
Rank: Member

Joined: 4/18/2009
Posts: 118
Scangroup is one that certainly lives up to that X-factor billing. It is way beyond the level that most valuation models would have it at.
Back to top
  |
erifloss
#16 Posted : Thursday, May 12, 2011 8:12:45 AM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
One should actually remember that banks are intermediaries between Savers & Borrowers & the one that does this better is the best. Remember that banks being highly leveraged, the best bank is one that knows how to invest its funds with better returns and minimizes its risk exposure. Going by my reasons Equity is better than KCB.
Wanted to find out how long Helios sticks in its investment & exits on what basis i.e. Rate of return expected or period coz having 3 board seats in Equity & with their,massive investment therein when they exit IMHO there will be a substantial erosion.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
Back to top
  |
the deal
#17 Posted : Thursday, May 12, 2011 8:52:33 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
cfc insurance holdings
Back to top
  |
The Merchant
#18 Posted : Thursday, May 12, 2011 10:50:30 AM
Rank: Veteran

Joined: 5/24/2010
Posts: 846
Location: KENYA
Equity at 25 today...all those singing EQUITY better start buying smile
Back to top
  |
mwanahisa
#19 Posted : Thursday, May 12, 2011 10:57:37 AM
Rank: Elder

Joined: 6/2/2008
Posts: 1,438
The Merchant wrote:
Equity at 25 today...all those singing EQUITY better start buying smile


True, True my orders are on the queue!
Back to top
  |
Iborian
#20 Posted : Thursday, May 12, 2011 11:42:25 AM
Rank: Member

Joined: 4/17/2009
Posts: 194
Renegade wrote:
@MH, Looks like none of the value shares guys on this forum talk about are included. I am thinking of such counters like Breweries, Centum, Jubilee, KCB etc. Why?

Also what do you think of the coming new kid kid on the block - Britak, now that James Mwangi is in it?


Of the lot above, the only one that deserves mention is EABL. Why? It trades at zillions of multiples to its NAV and has one of the highest PE ratio in the mkt. It has a reasonable although not too appetising a yield.

And the clincher - tepid growth in the last few years and with Mututho, sales are going nowhere. Yet we keep buying. Kwa nini? Let's all have a drink.
Back to top
  |
3 Pages<123>
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.