Aguytrying wrote:Actually this rally makes alot of sense. This company has had great fundamentals but the share price had stagnate for over 1 year even with the great fundamentals. 2 weeks ago the fundamentals became even better, such that it was too much to ignore, no matter the state the n.s.e is in. Another point to note is how the rally has occurred. It has been slow and gradual gaining 1 % daily at most 1.5. Friday was the highest gain of 3.04 percent since the rally started. A share with many speculators would rally over a shorter time and gaining 10 percent a day, like uchumi or eaagads did. And come down quickly.
The price stagnation for more than a year ensured that the bulk of the short term local speculators were caught unawares by the recent foreign investors inspired rally. The bulk of trades are attributable to foreign purchases, as much as 90% on some days.
Factoring in that the amount of free float of Kenol Kobil is about 30% of issued shares (about 450M Shares), if the foreign investors continue mopping up this float at the rate they are doing it, we may see a Ksh 15 trade before the end of this year and Ksh 13 before half year results release.
Remember Kestrel Capital had valued the share at Ksh 17 level last year (much earlier before the >50% half year projections announcement).......
Happy hunting
x handle: @stocksmaster79