Following the release of the results (kudos Stella),its now easier to tell which brokers to avoid. Any broker whose main capital is the NSE seat (its being called Revaluation reserve and comes in at Ksh250m) should be avoided. If it collapses,the only way investors will get their money is if its sold. Any other signs?

www.mjengakenya.blogspot.com

but these guys already evaded most of CMA rules in preparing published the financial statements as alleged in today's dailies?..

If the posted profits and losses are your only yard stick for determining good and bad brokers then ole wako my friend.

Bright and interesting people talk about ideas. Those of average intelligence talk about things. Stupid people talk about other people.

True ...... Revaluation reserve is an accounting mask to hide capital deficiency......

Rules of the game here: Before you post anything think.give facts only..It's a serious blog for serious people....Do not insult your brother....respect one another...Just be good.... It's good to live a honest life....life without guilt.... Jeremiah 17:11 As a partridge that hatches eggs which it has not laid,So is he who makes a fortune,but unjustly; In the midst of his days it will forsake him,And in the end he will be a fool.' From the SK Anti-hate/anti- corruption campaigner..

The sad thing is that the seat may NOT even be worth 250 million.... It has only been valued at that price based on the last sale/purchase transaction.... ( When that Russian company bought into some firm.).....

At the time the business looked profitable.... If the same transaction took place today,the buyer may not be willing to pay that much considering the dismal performance of the entire industry... At which point,all IBs and Stockbrokers would have to revalue the seat downwards..

The seat value went up when the banks started diversifying into the stock market,the seat had been valued at 50 million in 2004 - 2005 when the cartel started its formation. The best way to judge the value of a firm....... (this is my interpretation) is by accessing how a broker settles the clients sells and other brokers,you can get valuable info from a mole (insider) in CFC Stanbic (this is where the brokers settle out each other). When a brokers cheques start getting unpaid please take your money and run....... or transfer your shares to a better broker. Integrity of the directors or people at the helm of the institution also matters alot. Since people talk,make friends with a few people at your broker and you may just happen to hear a comment that will spin your head into reasoning so hard.

'Do all the good you can,by all the means you can,in all the ways you can,
in all the places you can,to all the people you can,as long as ever you can'.
John Wesley
English Preacher (1703-1791)