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Portfolio Balancing: Avoid Over Exposure To Financial Sector
Rank: Veteran Joined: 11/13/2015 Posts: 1,630
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MaichBlack wrote:wukan wrote:ngapat wrote:I remember there is a time shares expecially inthe financial sector with a p/e ratio of 10 and below were consindered dirty cheap. Right now the financial sector contains many counters with p/e ratios below 5. Still undervalued to me. Im using a p/e of 10 as the true value of counters that are still growing at above 10% pbt Trust the wisdom of the markets to trade banks at low p/e. After all it is leveraged capital that they trade on. Financial sector is too prone to shocks. It is not an idiot-proof sector either, takes one idiot and all that leveraged capital goes poof! Reason why they lend against collateral. P/e of 10 is a high premium to pay for banks. Market has better opportunities for growth at much lower level of risk. You are better off buying bonds for the fixed income and looking for growth stocks in other sectors. By the way apart from ATMs is there any innovation that has come out of banks? Mpesa ate their lunch, crypto adoption among the young generation will finish the lunch. The Kenyan generation that believed in banking shares is now in retirement and cashing out. Gen X are the ones holding on to the illusion of value. Anyway, businesses can survive for decades by selling an image of value rather than delivering the thing itself until disruption comes. To each his own! Party on! What about the huge profits the banks are turning in? In real hard cash!!! Of course, you must see huge profits given the macro play with the currency better explained below. But the ROE for banks will still trend downwards. Markets are forward looking.
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Rank: Member Joined: 2/15/2010 Posts: 162 Location: Kenya
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obiero wrote:MaichBlack wrote:As people are busy "avoiding exposure to the financial sector" Equity and KCB have touched 71/= and 69.5/= respectively courtesy of astronomical growth in the 3rd quarter results!!!
Wale waliskiza, ole wao!!! Over exposure! Read to understand, and not to merely reply. I ate my gains on HF, COOP and IMH. Posted here publicly. What exactly are you mumbling about Mkuu I have seen a reverse Crammer portfolio on line can we do a reverse Obiero portfolio we see "live live". 
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Rank: Elder Joined: 6/23/2009 Posts: 14,013 Location: nairobi
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DtheK wrote:obiero wrote:MaichBlack wrote:As people are busy "avoiding exposure to the financial sector" Equity and KCB have touched 71/= and 69.5/= respectively courtesy of astronomical growth in the 3rd quarter results!!!
Wale waliskiza, ole wao!!! Over exposure! Read to understand, and not to merely reply. I ate my gains on HF, COOP and IMH. Posted here publicly. What exactly are you mumbling about Mkuu I have seen a reverse Crammer portfolio on line can we do a reverse Obiero portfolio we see "live live". Hehe. Utakufa vibaya wewe
KQ ABP 4.48; MTN ABP 5.20
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Rank: Chief Joined: 1/3/2007 Posts: 18,281 Location: Nairobi
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DtheK wrote:obiero wrote:MaichBlack wrote:As people are busy "avoiding exposure to the financial sector" Equity and KCB have touched 71/= and 69.5/= respectively courtesy of astronomical growth in the 3rd quarter results!!!
Wale waliskiza, ole wao!!! Over exposure! Read to understand, and not to merely reply. I ate my gains on HF, COOP and IMH. Posted here publicly. What exactly are you mumbling about Mkuu I have seen a reverse Crammer portfolio on line can we do a reverse Obiero portfolio we see "live live". Niko NDAAANI Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/22/2009 Posts: 7,685
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DtheK wrote:obiero wrote:MaichBlack wrote:As people are busy "avoiding exposure to the financial sector" Equity and KCB have touched 71/= and 69.5/= respectively courtesy of astronomical growth in the 3rd quarter results!!!
Wale waliskiza, ole wao!!! Over exposure! Read to understand, and not to merely reply. I ate my gains on HF, COOP and IMH. Posted here publicly. What exactly are you mumbling about Mkuu I have seen a reverse Crammer portfolio on line can we do a reverse Obiero portfolio we see "live live". I have said it before. Anyone who would have been listening to @Obiero and doing the exact opposite of what he recommendeds would have been dirt rich by now!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,685
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VituVingiSana wrote:DtheK wrote:obiero wrote:MaichBlack wrote:As people are busy "avoiding exposure to the financial sector" Equity and KCB have touched 71/= and 69.5/= respectively courtesy of astronomical growth in the 3rd quarter results!!!
Wale waliskiza, ole wao!!! Over exposure! Read to understand, and not to merely reply. I ate my gains on HF, COOP and IMH. Posted here publicly. What exactly are you mumbling about Mkuu I have seen a reverse Crammer portfolio on line can we do a reverse Obiero portfolio we see "live live". Niko NDAAANI Me too!!! Easy money!! He has managed to fvck up even on Coop!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 6/23/2009 Posts: 14,013 Location: nairobi
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Hehe. Who is fooling who. I have held a consistent BUY recommendation for COOP. Check my ABP for COOP and my exit point. Every trader has an entry and exit price, personal to their needs and plans. You keep counting my money, for what gain to yourself? 😅 http://m.wazua.co.ke/for...&m=914567#post914567
KQ ABP 4.48; MTN ABP 5.20
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Rank: Elder Joined: 12/6/2008 Posts: 3,566
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obiero wrote:Much Know wrote:obiero wrote:several counters trading near NBV, some like HF above PB ratio. something will give, sooner rather than later Predatory lending has always preceded the collapse of even big banks and many others leading to a financial crisis. We're vere close.... At the precipice We imagine Bretton woods have said NPL za ufala zitupwe kwa choo and release the 10 million hustlers people from CRB. State of the Nation. Election are approaching. Ras Kienyeji Man
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Rank: Elder Joined: 12/6/2008 Posts: 3,566
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World Bank demand No. 5 for release of 170billion The lender wants all government bank accounts to be kept at the Central Bank of Kenya (CBK) rather than dispersed among commercial banks. Read more: https://www.tuko.co.ke/b...-disburse-ksh-96b-loan/
Tafakari hayo, the python has started squeezing  Ras Kienyeji Man
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Rank: Chief Joined: 1/3/2007 Posts: 18,281 Location: Nairobi
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Much Know wrote:World Bank demand No. 5 for release of 170billion The lender wants all government bank accounts to be kept at the Central Bank of Kenya (CBK) rather than dispersed among commercial banks. Read more: https://www.tuko.co.ke/b...-disburse-ksh-96b-loan/
Tafakari hayo, the python has started squeezing I support this! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 14,013 Location: nairobi
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VituVingiSana wrote:Much Know wrote:World Bank demand No. 5 for release of 170billion The lender wants all government bank accounts to be kept at the Central Bank of Kenya (CBK) rather than dispersed among commercial banks. Read more: https://www.tuko.co.ke/b...-disburse-ksh-96b-loan/
Tafakari hayo, the python has started squeezing I support this! Single Treasury Account. Also remember that 78% of bills and bonds in Kenya are held by financial services sector. Jiulize maswali
KQ ABP 4.48; MTN ABP 5.20
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Rank: Elder Joined: 12/6/2008 Posts: 3,566
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VituVingiSana wrote:Much Know wrote:World Bank demand No. 5 for release of 170billion The lender wants all government bank accounts to be kept at the Central Bank of Kenya (CBK) rather than dispersed among commercial banks. Read more: https://www.tuko.co.ke/b...-disburse-ksh-96b-loan/
Tafakari hayo, the python has started squeezing I support this! I,&..M seem immune so far... Ras Kienyeji Man
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Rank: Elder Joined: 12/6/2008 Posts: 3,566
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Much Know wrote:VituVingiSana wrote:Much Know wrote:World Bank demand No. 5 for release of 170billion The lender wants all government bank accounts to be kept at the Central Bank of Kenya (CBK) rather than dispersed among commercial banks. Read more: https://www.tuko.co.ke/b...-disburse-ksh-96b-loan/
Tafakari hayo, the python has started squeezing I support this! I,&..M seem immune so far... But is it? Ras Kienyeji Man
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Rank: Elder Joined: 6/23/2009 Posts: 14,013 Location: nairobi
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Much Know wrote:Much Know wrote:VituVingiSana wrote:Much Know wrote:World Bank demand No. 5 for release of 170billion The lender wants all government bank accounts to be kept at the Central Bank of Kenya (CBK) rather than dispersed among commercial banks. Read more: https://www.tuko.co.ke/b...-disburse-ksh-96b-loan/
Tafakari hayo, the python has started squeezing I support this! I,&..M seem immune so far... But is it? I believe your question is rhetorical https://www.businessdail...to-record-levels-5266830
KQ ABP 4.48; MTN ABP 5.20
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Rank: Elder Joined: 12/6/2008 Posts: 3,566
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obiero wrote:Much Know wrote:Much Know wrote:VituVingiSana wrote:[quote=Much Know]World Bank demand No. 5 for release of 170billion The lender wants all government bank accounts to be kept at the Central Bank of Kenya (CBK) rather than dispersed among commercial banks. Read more: https://www.tuko.co.ke/b...-disburse-ksh-96b-loan/
Tafakari hayo, the python has started squeezing I support this! I,&..M seem immune so far... But is it? I believe your question is rhetorical https://www.businessdail...o-record-levels-5266830[/quote] Thumping bony chest Ras Kienyeji Man
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Rank: Elder Joined: 7/22/2009 Posts: 7,685
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obiero wrote:Much Know wrote:Much Know wrote:VituVingiSana wrote:Much Know wrote:World Bank demand No. 5 for release of 170billion The lender wants all government bank accounts to be kept at the Central Bank of Kenya (CBK) rather than dispersed among commercial banks. Read more: https://www.tuko.co.ke/b...-disburse-ksh-96b-loan/
Tafakari hayo, the python has started squeezing I support this! I,&..M seem immune so far... But is it? I believe your question is rhetorical https://www.businessdail...o-record-levels-5266830 ^ You just posted KCB's Q3 results yesterday. If you went through the results, you must have seen gross loans increased by 7% to 1.24 Trillion and NPLs ratio reduced from 18.5% to 17.8%. Comment. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,685
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@Obiero you also posted Equity Bank's results. Something tells me you delved deeper and you saw loans disbursed by the bank increased by 7.5% to Ksh 859.8 billion and NPLs improved, dropping to 12.1% in Q3 2025 from 13.4% in Q3 2024. Comment and relate to the story in the above link which clearly is literally just a story. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Chief Joined: 1/3/2007 Posts: 18,281 Location: Nairobi
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MaichBlack wrote:@Obiero you also posted Equity Bank's results.
Something tells me you delved deeper and you saw loans disbursed by the bank increased by 7.5% to Ksh 859.8 billion and NPLs improved, dropping to 12.1% in Q3 2025 from 13.4% in Q3 2024.
Comment and relate to the story in the above link which clearly is literally just a story. https://nation.africa/ke...fter-tarmacking-5270236
Where is Mr Dust Bowl? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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