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Getting a loan to buy Mumias shares
Gex
#11 Posted : Friday, July 17, 2009 9:57:00 AM
Rank: Member

Joined: 7/29/2006
Posts: 6
I get your sentiments my kenyan fellow.

Let me give you the two sides of the coin:-

Our kenya NSE is an emerging market and there is no guarantee that most of the counters are driven by 'KEY' fundamentals....we need to appreciate that speculations also plays a key factor here at NSE...

Peolple who have made money will tell you clearly that it has been a combination of both.

So my advise is this:-

Have a reflection of your portfolio and see what do you really want;

* Is it pure Investemnt ?? i.e Long-term Investments of being a part of Blue Chip

* Or is it making and loosing $$$and move....& by-the way when you go the speculative way be ready to burn your fingers as well at one given time....BUT you can also gain highly.

NOW with your Loan of 100K....Think deeply of:-

-a) Interest you'll pay,payback period for the loan to elapse vs rate of return in your NSE Investment.

As per the previous trends - Remember Mumias moved from 49 to now 6 after split. Is there any gain?? and by how much?? This is now your homework.

For me whichever way you take,you can still gain - But remember NSE as i said is an emerging market any thing is possible with your 100K. Think Think Think & dont be moved by emotions and stocks euphoria.
mtaalam
#12 Posted : Tuesday, July 21, 2009 7:09:00 AM
Rank: Member

Joined: 11/2/2006
Posts: 519
@mukiha,
That's an interesting analysis of dividing the 100k to 10k but what if after thinking twice,thrice the deal is still too good? Why use your money while you can use somebody else's? We need to learn the art of borrowing. I recently borrowed to buy Safaricom at 2.85/-. I'd no cash on me and I could not let that deal go by.
So in my opinion and experience the risk is sometimes worth it.

ili iwe funzo...
The General
#13 Posted : Tuesday, July 21, 2009 7:21:00 AM
Rank: Member

Joined: 6/3/2006
Posts: 553
@mtaalam,

Exactly,but only applicable to investors

The thicker the thigh the sweeter the pie.
The thicker the thigh the sweeter the pie.
stonemimi
#14 Posted : Tuesday, July 21, 2009 7:46:00 AM
Rank: Member

Joined: 5/16/2009
Posts: 145
@ptor;

I personally have no problem taking a loan and invest in specific counter as long as am reasonably sure that counter is going at discounted price. I have done it before and continue doing it with measures of success. Suppose you took the loan in March this year and bought MSC. The share was buying at Sh4,plus commissions was Sh 4.20/=. If you were to sell it today at 6.20/= you would have realized 47% in three months. Keep you profit of 40,000 and give the bank their money + interest of 7,000/=. An easy way to become rich. Isn't it? he!!!!

Suppose you were selling sukumawiki as somebody advised. Do you think,you'd have done better? Over to you brother. My advice: take the loan. However,do not narrow your options to a single company. Just be opportunistic and time well and make good choice. Remember: BUY LOW.
Waria
#15 Posted : Tuesday, July 21, 2009 8:22:00 AM
Rank: Member

Joined: 10/11/2007
Posts: 213
@ stonewewe

If it was a bbk loan then they would have to pay six month interest early repayment penalty


Me first,U next
stonemimi
#16 Posted : Tuesday, July 21, 2009 9:07:00 AM
Rank: Member

Joined: 5/16/2009
Posts: 145
@waria

My view is applicable if there is incentive for early repayment. In the case of BBK loan,and since he is paying the loan by his salary,the borrower has Ksh 147,000 to invest on another counter for another period of 3-6 months. If he makes super choices,and if sufficiently lucky to identify good stocks,my take is that his capital will rise to over Ksh 450,000 in one year. No kidding here. Dead serious.
mukiha
#17 Posted : Wednesday, July 22, 2009 4:55:00 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
It's always easy to make arguments with the benefit of hindsight.

The real question right now is: Do you think MCS will touch 9bob in the next three months?

If YES,what is your percentage level of confidence? 90%,80%,70%....what?

Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
obiero
#18 Posted : Monday, August 03, 2015 11:55:21 AM
Rank: Elder

Joined: 6/23/2009
Posts: 14,226
Location: nairobi
hope it went well for ptor

Gatheuzi
#19 Posted : Monday, August 03, 2015 7:25:43 PM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
Today Mr. Obiero you are starting to heal. You are really digging for old information which is good. That is how healing starts.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
obiero
#20 Posted : Monday, August 03, 2015 7:27:45 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,226
Location: nairobi
Gatheuzi wrote:
Today Mr. Obiero you are starting to heal. You are really digging for old information which is good. That is how healing starts.

Slowly but surely. Atleast I dint take a loan!

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