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CIC @105 ; Is this a good deal?
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FRM2011
#1 Posted : Tuesday, May 24, 2011 8:05:22 PM
Rank: Elder

Joined: 11/5/2010
Posts: 2,459
A friend of mine bought 10,000 CIC shares yesterday @ 105. Apparently, at those prices there are sellers. Now my friend is looking for more cash to buy more and am not sure this is a good deal.

Wazuans please offer advise.
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Ericsson
#2 Posted : Tuesday, May 24, 2011 11:18:28 PM
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Joined: 12/4/2009
Posts: 10,809
Location: NAIROBI
Bad Deal.Once the share split is done just before listing and also the plan to raise the shareholding of Sacco's to 60% just before IPO the share price will be below 5bob.
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jerry
#3 Posted : Tuesday, May 24, 2011 11:38:53 PM
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Joined: 9/29/2006
Posts: 2,570
Ericsson wrote:
Bad Deal.Once the share split is done just before listing and also the plan to raise the shareholding of Sacco's to 60% just before IPO the share price will be below 5bob.

=>I would expect the share to sell at around 10/= ex-split which means you better wait for IPO. 50/= would be reasonable.
The opposite of courage is not cowardice, it's conformity.
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Layman
#4 Posted : Wednesday, May 25, 2011 7:45:42 AM
Rank: Member

Joined: 9/21/2006
Posts: 422
Location: Nairobi
WOOIIIIII buying CIC @ 105/=. Is there something about this CIC that we don't know? I think thats too ambitious. But on the oprimistic side, the split of the 10,000 shares will result into 200,000 shares at approximately 10/= each giving Kshs 2,000,000/= while the cost @ 105/= is 1,050,000/=. Mhhhhh that gives about 100% profit in less than one year!
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youcan'tstopusnow
#5 Posted : Wednesday, May 25, 2011 8:04:34 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Just the usual pre-IPO rise. Companies on the cusp of listing receive increased interest. Whether its a good deal at 105 is another question. I take my hat off to PKoli. This jamaa was stacking on this from a while ago. He has shown that ''you buy when others are not interested''
GOD BLESS YOUR LIFE
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Mainat
#6 Posted : Wednesday, May 25, 2011 8:06:01 AM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
Earnings per share is currently Ksh8, so he is getting shares at a P/E of 12 which is not too bad especially given the shares are being listed next year. As a comparison, Jubilee is trading at a P/E 15 and Pan african at a P/E of 4
Sehemu ndio nyumba
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jerry
#7 Posted : Wednesday, May 25, 2011 9:01:18 AM
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Joined: 9/29/2006
Posts: 2,570
Mainat wrote:
Earnings per share is currently Ksh8, so he is getting shares at a P/E of 12 which is not too bad especially given the shares are being listed next year. As a comparison, Jubilee is trading at a P/E 15 and Pan african at a P/E of 4

=>there is also DPS of 1.60 that we ought to consider. @Layman. You r rt on 100% guaranteed profit.
The opposite of courage is not cowardice, it's conformity.
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bird_man
#8 Posted : Wednesday, May 25, 2011 9:27:08 AM
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Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
Can someone actually put some loose maths on this rather than mere opinions?I am thinking of getting some at 80sh and I am wondering what the price after split may be as well as IPO price.
I bought some at 27sh,others at 42.5sh......is 80sh ok?
Formally employed people often live their employers' dream & forget about their own.
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the deal
#9 Posted : Wednesday, May 25, 2011 10:05:03 AM
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Joined: 9/25/2009
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Location: Windhoek/Nairobbery
@mainat JUB PE is 5.8 buying an insurance firm at a PE of 12 is expensive...pple buying CIC are SPECULATING on the split and the Listing
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bird_man
#10 Posted : Wednesday, May 25, 2011 10:38:30 AM
Rank: Veteran

Joined: 11/2/2006
Posts: 1,206
Location: Nairobi
the deal wrote:
@mainat JUB PE is 5.8 buying an insurance firm at a PE of 12 is expensive...pple buying CIC are SPECULATING on the split and the Listing

But can we make money on it?
Formally employed people often live their employers' dream & forget about their own.
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