fellifel wrote:To start with, it might be fortunate or unfortunate how equity bank might have turned the face of banking in this country, but it leaves questions to be asked. The fact that equity is doing big is because of backing from the topmost authority in the country, with government funding passing through the bank, Youth development fund, women devlopment funds.
Equity was not the only institution to get these funds, and after all, these were small amounts by equity's standards at the time.
How has "the topmost authority in the country" provided backing to Equity?
fellifel wrote:The expansion rate for the bank leaves so much to be suspected.If in doubt, ask yourself why banks that have been around for quite a while like the Co-operative Bank have not had such expansion rates despite mainly catering for the low income earners.
Simple answer, they were not friendly to low income earners. And BTW, Co-Op was a political bank during the Moi Error. They were almost closing down at one time under the weight of loans to Moi's henchmen.
fellifel wrote:In short, this is a classic case of a pyramid scheme, only these time, its on a large scale. For the price of a share to shoot to an all time high for a company that has been on the stock exchange for less than a year leaves a lot to be desired.
What do you mean by "all time high"? Every listed company reaches an all time high as soon as it starts trading!!! On the other hand, Equity does not hold the record for the highest price per share ever seen at the NSE. That distinction belongs to Limuru Tea, which is the only one in my memory that has crossed Sh1,000 per share point.
fellifel wrote:Since there inception till now they may have changed there strategy but with the sort of returns and basing on there asset value, the bank is on a ride that is too good to be true. Now change of regime may not affect it much but it will affect it.
You may have a point here, that the growth is "too good"; but this has now plateaued....just like SCOM
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.