mkate_nusu wrote:Ebenyo wrote:mkate_nusu wrote:Ebenyo this is what I was talking about on stocks to sell. The bonus shares further diluted the poor earnings. 2nd half will even be worse. sub 10 bob on the way
I can see their operating income declined.Where was the problem?
Their main income is transaction fees from brokers and investment bankers.Im always charged 2.1% whenever i buy or sell shares.Does this mean some brokers didnt remit their dues?.Their other income stream,annual listing,was boosted this year with the listing of Nbv and fusion.That should have boosted their income.
Ebenyo that 2.1 % comprises the brokerage commissions, nse levy among other taxes.
To make it simple we shall just assume NSE gets the 2.1% whenever you trade. 2.1% of 1 million KCB shares transacted at 60 KES last year is way more than the 2.1% of half a million KCB transacting at 30 KES this year.
Do this for almost all other companies listed and you have the YoY earnings decline
@ mkate nusu,thanks for the clear elaboration.That means their income depends on daily traded volumes.High volumes=high income.Low volumes=low income.That also goes with the bear and bull runs.
The issuing of bonus shares was misplaced.I can see full year results with massive EPS dilution.With the income decline,i think the kshs 0.49 DPS might not be revisited.But if i can jump in at sub 10 bob,it will be a fair value to me.Let me see the market reaction .
Towards the goal of financial freedom