true dat

Stockmaster, with your stock picking skills, you should have picked a couple of stocks. Since you are in the banking sector now, I would have picked half CFC half DTB. Both will give good returns in say 3 months, but I will bet on CFC for higher returns.

@PKoli. What is your rationale for preferring CFC over DTB? DTB seems to have better fundamentals or are you basing it on observed market behaviour? Ama it is the listing of CFC Ins Holdings?

Pkoli. Even if the deal has not come through, it appears that you are already enjoying stuff from your own cache. Read your post above again - the whole is much less than the sum of the parts. 240 against 160!!!

I have my reservations about CFC Stanbic. The bank made Kshs 725,270,000 PAT in H1. Total H1 for the Group was Kshs 677,962,000 PAT. This equates to EPS of 2.65 and 2.48 respectively. Insurance, Financial Services and/or the overheads at CFC Stanbic Holdings apparently ate into some of the bank's profits. I raised this in a posting but I never got a satisfactory answer why and/or how come.

With the above figures, I say that CFC needs to grow its earnings by a big margin to get to the pricing level you have indicated i.e. 160. We know that Standard Bank bought into CFC Group at between 100-120. But it was at the height of the bull market and in retrospect it looks like they were shafted.

Contrast this with DTB. H1 2010 PAT stood at Kshs 1,160,851,000. EPS of Kshs 7.12. Remember DTB is all over East Africa as well and growing its footprint day by day.

On this one, I think you have it wrong unless you are reckoning that folks will want to speculate more on CFC Stanbic. On fundamentals, DTB is far superior.

Now let me go get myself something akin to the deal's Windhoek.

@ vvs,

You are very right about the high staff turnover in the new outfit. I interact with them both as a customer and through my employer. As far as Iam concerned at a personal level, I will keep them. However from my employer perspective, we have lost track of the different account relationship managers we keep being assigned to after the previous ones left.

And like you can guess the relationship is no longer as cusomized as it used to be with the good old CFC.