One analyst said it best 2012 is a diversity year and this does not mean in one market.
1. HFCK - Not well diversified regionally.
- Dependent on raising lending capital and under the
current economic environment this is too expensive they
are even contemplating of going to the international
markets and with the current Euro zone debacle everyone
knows what that will do to any trial of this.
- Inflation has reduced people's disposable income
tremendously and with house rents going up, people are
going for cheaper houses making new investments in real
estate a rather unattractive investment as of now.
2. TCL: - With its white elephant project and heavy reliance on EA
Cables, i don't see it making money for investors.
- International commodity prices are on the rise
especially minerals and metal as some are regarded as
the best and safer investment options after the death of
bonds and with it RF Rates. This is bad for TCL's bottom
line because of the industry they are in.
- Tranny is the word. Questions..Why list during an
economic downturn nearing an election through
introduction? Why create so many subsidiaries while
almost nearing the IPO period? Why do the IPO at a PE of
over 35 when the average market PE as at the time is
around 10-15?
3. CFC Stanbic: - Its Cost to Income ratio speaks volumes. Growth
of its top line and its performance in comparison
to its peers is terrible. When a company takes in
so much talent and performs below par for a time
period over a year with no clear strategic path
then don't expect better than good performance
from them.
- They are also all over the place with their
product offerings and are yet to clearly define
their real target market. Remember BBK when
Equity stepped in! History repeating itself!
As said above, for any investment you'll go for this year look at:
1. Regional and product diversity.
2. The lack of or the political patronage a company is linked to.
3. Performance Consistency.
4. Div Yield.
5. Well laid and achievable Strategic path.
6. A competent and consistent performing management.
Investments: KK, Jubilee, NMG, Williamson, EABL, BAT, 2 year Bond & or T Bills.
Strategy:Capital preservation + income while at it.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary