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Why would C&G cost more than BERG share?
Surealligator
#1 Posted : Monday, May 24, 2010 1:46:14 PM
Rank: User

Joined: 6/27/2008
Posts: 709
Location: Velayat-e Faryab
Car and General paid a dividend of 67 cents. Crown Berger is giving 1.25 shillings. Why is C&G trading at 50 shillings while Crown Berger is trading at a miserable 34.50. Is there something underlying the difference?
Go overdrive in purchasing the goods when there's blood on the streets, expecially if the blood is your own
Wa_ithaka
#2 Posted : Monday, May 24, 2010 2:38:51 PM
Rank: Veteran

Joined: 1/7/2010
Posts: 1,279
Location: nbi
Different industries; eps et al. Can't compare. Ni kama kulinganisha... raila na kamotho; omena na githeri
The Governor of Nyeri - 2017
sparkly
#3 Posted : Monday, May 24, 2010 5:16:00 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Surealligator wrote:
Car and General paid a dividend of 67 cents. Crown Berger is giving 1.25 shillings. Why is C&G trading at 50 shillings while Crown Berger is trading at a miserable 34.50. Is there something underlying the difference?


@ Surealligator you surprise me bana. Since when did the absolute amount of dividend become a way of valuing stocks? si safaricom na peni kumi basi itakuwa bure...
Life is short. Live passionately.
VituVingiSana
#4 Posted : Tuesday, May 25, 2010 2:42:10 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
LOL... ati dividends should be the main or sole reason for valuing a stock...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mukiha
#5 Posted : Tuesday, May 25, 2010 7:10:53 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
Reminds me of the comment by Prof Anyang' Nyong'o in the run up to SCOM IPO; "They are selling it at throw away! Sh5 is a joke; even KQ was sold for Sh11...."
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
2012
#6 Posted : Tuesday, May 25, 2010 7:21:52 AM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
mukiha wrote:
Reminds me of the comment by Prof Anyang' Nyong'o in the run up to SCOM IPO; "They are selling it at throw away! Sh5 is a joke; even KQ was sold for Sh11...."


Laughing out loudly Laughing out loudly

A whole bloody professor!


BBI will solve it
:)
mukiha
#7 Posted : Tuesday, May 25, 2010 7:34:22 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
@2012; YES.... prof of political science...

@surealligator; if you compare some basic data of C&G and crown, you will understand why:

EPS: C&G = 8.8, Crown = 3.64

NAV: C&G = 57.8, Crown = 34.3

P/E: C&G = 5.7, Crown = 9.6 [this makes Crown almost twice MORE expensive!]

P/B: C&G = 0.86, Crown = 1.02 [this makes Crown 20% MORE expensive]

On these alone, it is clear that Crown at Sh35 is MORE expensive than C&G at Sh50.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Wondergirl
#8 Posted : Tuesday, May 25, 2010 7:39:52 AM
Rank: Member

Joined: 9/12/2009
Posts: 312
@ Mukiha if you don't want to start an abusive thread, then don't go mentioning people's names(especially politicians of kenya who are glorified by others ) .There always people waitng around the corner waiting for an opportunity to insult.Its uncalled for.
mukiha
#9 Posted : Tuesday, May 25, 2010 7:57:17 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
@Wondergirl; it is important to mention prominent people's names, especially politicians, and especially when they goof. It helps us know the caliber of leadership we have.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
2012
#10 Posted : Tuesday, May 25, 2010 7:58:19 AM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Wondergirl wrote:
@ Mukiha if you don't want to start an abusive thread, then don't go mentioning people's names(especially politicians of kenya who are glorified by others ) .There always people waitng around the corner waiting for an opportunity to insult.Its uncalled for.



My dear you hold your political leaders a bit too highly. Some of us prefer to treat them like the jokes they are.
I have a lot of respect for the good Professor, he was by far the best Planning Minister and a reason why we enjoy some of the things we do today.

BBI will solve it
:)
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