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Kenya Stocks Quite Cheap
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MaichBlack
#11 Posted : Friday, January 10, 2014 8:26:42 AM
Rank: Elder

Joined: 7/22/2009
Posts: 7,869
dunkang wrote:
Realtreaty wrote:
Yes, kenyan stocks are very cheap and reason outsiders are flooding in to buy cheaply and make profit. The more international companies open offices and tradehubs in kenya the more they will buy local companies, turn them upside and make more products and profits. Think why Vodafone still retains the 40% of Safcom and would buy it up to 80% if Govt allowed them. barclays kenya @17-18 Kes if compared to same Barclays stock in USA or UK is just 1/32 but may be making a profit. The Most dear stock in kenya is the BAT at 600 equivalent to $7.50. Compare this with BAT stock in UK and you find its a peanut price at $103. But we still say the price is high. So i would say any stock under 50 Kes is a gift to buy if the company is making a profit every year for now.

Mboss, look at the value of the share not the price of the share. It would be 1,000,000,000 shares each $7.50 compared to 1,000,000 shares each $103.00.

VALUE NOT PRICE.

Why don't people get this SIMPLE FACT??? Reminds me of a certain so called professor who was arguing that the government was selling Safaricom at a throw away price! Kshs. 5/= per share for a company that makes billions in profit?? The fellow didn't even bother with the number of shares being issued and the valuation of the company! And he calls a bloody press conference to discuss this - with a straight face! A professor /'leader' /minister reasons like this, na raia je??
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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streetwise
#12 Posted : Friday, January 10, 2014 8:36:46 AM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
I suggest replacement of the word cheap with affordable.

Does this help.
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streetwise
#13 Posted : Friday, January 10, 2014 8:39:43 AM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
I suggest replacement of the word cheap with affordable.

Does this help.
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streetwise
#14 Posted : Friday, January 10, 2014 8:42:52 AM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
I suggest replacement of the word cheap with affordable.

Does this help.
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mulla
#15 Posted : Friday, January 10, 2014 10:37:52 AM
Rank: Member

Joined: 6/15/2013
Posts: 301
we should also consider the GDPs of the western countries compared to ours....many times higher than ours, way more paper dollar multi - millionaires, earnings from these companies many times higher than ours etc, so only justifiable that the share price of the western companies be much higher than ours e.g.BAT $103
You may be surprised to find that the P/E and EPS is average for the industry(p.s. i haven't looked at the P/E and EPS)thus in the UK the BAT price may not be considered expensive.
VALUE NOT PRICE
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Realtreaty
#16 Posted : Friday, January 10, 2014 12:06:58 PM
Rank: Elder

Joined: 8/16/2011
Posts: 2,388
streetwise wrote:
I suggest replacement of the word cheap with affordable.

Does this help.

Nope, better say "Low Priced" if the word cheap seems ugly to you. Remember almost 60% of our stocks are said to be owned by foreigners who come in make money and go. This is my intention. affordability will come in only to a person who is "Willing to buy at that given price and has the capital to do so"
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Fyatu
#17 Posted : Friday, January 10, 2014 2:27:31 PM
Rank: Veteran

Joined: 1/20/2011
Posts: 1,820
Location: Nakuru
Realtreaty wrote:
Yes, kenyan stocks are very cheap and reason outsiders are flooding in to buy cheaply and make profit. The more international companies open offices and tradehubs in kenya the more they will buy local companies, turn them upside and make more products and profits. Think why Vodafone still retains the 40% of Safcom and would buy it up to 80% if Govt allowed them. barclays kenya @17-18 Kes if compared to same Barclays stock in USA or UK is just 1/32 but may be making a profit. The Most dear stock in kenya is the BAT at 600 equivalent to $7.50. Compare this with BAT stock in UK and you find its a peanut price at $103. But we still say the price is high. So i would say any stock under 50 Kes is a gift to buy if the company is making a profit every year for now.


The more reason i'm on a buying overdrive of a certain company listed on the NSE. It is here on wazua that people were shouting from on top of hills that Britank was overpriced at kshs.9
Dumb money becomes dumb only when it listens to smart money
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Fyatu
#18 Posted : Friday, January 10, 2014 2:30:28 PM
Rank: Veteran

Joined: 1/20/2011
Posts: 1,820
Location: Nakuru
MaichBlack wrote:
dunkang wrote:
Realtreaty wrote:
Yes, kenyan stocks are very cheap and reason outsiders are flooding in to buy cheaply and make profit. The more international companies open offices and tradehubs in kenya the more they will buy local companies, turn them upside and make more products and profits. Think why Vodafone still retains the 40% of Safcom and would buy it up to 80% if Govt allowed them. barclays kenya @17-18 Kes if compared to same Barclays stock in USA or UK is just 1/32 but may be making a profit. The Most dear stock in kenya is the BAT at 600 equivalent to $7.50. Compare this with BAT stock in UK and you find its a peanut price at $103. But we still say the price is high. So i would say any stock under 50 Kes is a gift to buy if the company is making a profit every year for now.

Mboss, look at the value of the share not the price of the share. It would be 1,000,000,000 shares each $7.50 compared to 1,000,000 shares each $103.00.

VALUE NOT PRICE.

Why don't people get this SIMPLE FACT??? Reminds me of a certain so called professor who was arguing that the government was selling Safaricom at a throw away price! Kshs. 5/= per share for a company that makes billions in profit?? The fellow didn't even bother with the number of shares being issued and the valuation of the company! And he calls a bloody press conference to discuss this - with a straight face! A professor /'leader' /minister reasons like this, na [size=16]raia[/size] je??


for a moment i thought you meant Raila...
Dumb money becomes dumb only when it listens to smart money
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ecstacy
#19 Posted : Friday, January 10, 2014 3:05:24 PM
Rank: Elder

Joined: 2/26/2008
Posts: 4,449
Realtreaty wrote:
Yes, kenyan stocks are very cheap and reason outsiders are flooding in to buy cheaply and make profit. ..But we still say the price is high. So i would say any stock under 50 Kes is a gift to buy if the company is making a profit every year for now.


What reasoning is this? Mister, listen to the counsel you have been given. In the alternative, we shall make money from you!! Laughing out loudly
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Aguytrying
#20 Posted : Friday, January 10, 2014 3:19:25 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
@Realtreaty.
BAT kenya has 100,000,000 shares. BAT kenya is trading at 560.00 per share.

If they split the share 1:1000. each share would cost 0.56 shs.

would this make BAT kenya a cheap share?

The truth is no value has been created, the market capitalization would still be what it is today at 56 billion (560x 100,000,000). Hence the share hasnt become cheaper.
The investor's chief problem - and even his worst enemy - is likely to be himself
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