My thoughts on KCB
Today (12.07.2010) was the Final Session for Trading the Rights. KCB trades on a
Trailing PE of 8.659 and post dilution that will be 12.12. KCB is
reporting Half Year Results imminently and the Price looks set to
recover as its move lower was preemptive and now looks overcooked.
The Rights Issue Supply crimped the Price and KCB now trades on a PE
of 8.659 and post Dilution You are looking at a PE of 12.12, with a
1st Quarter Rebound of 10%. Previous Rights Issues have allowed the
Bank to grow at a materially faster Trajectory.
I expect a Replay of that. They have the largest Branch Network in the
Region and the Rights Issue allows them to aggressively go after the
Opportunity.I do not know how much lower the Price can go now because KCB now
looks very cheap versus its Peers who are on an average PE of 14.00+.The Price move lower looks overdone now.The Government of Kenya is diluting their Stake down to 16% which leaves an Opening, I would venture.
ON KENOLKOBIL
KenolKobil trades on a
Trailing PE of 12.102 and might now run up to a Trailing PE of 14.00
which equates to a Price Objective of 12.32.
Your future depends on your dreams so go to sleep !