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Cooperative Bank versus Mumias.
Rank: Member Joined: 9/22/2008 Posts: 79
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What is really driving coop bank, very steady at 9.60-9.90.At the same time i feel mumias is trading at a throw away price.Given that i bought coop at an average price of ksh 1.50,pre-IPO is it wise to move to mumias.or any other good buy u wazuerians think is better for both short term gains.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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@mwala i don't see why you shouldn't some profits on co-op. On what basis is MSC trading at a throw away price? Life is short. Live passionately.
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Rank: Member Joined: 9/22/2008 Posts: 79
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i firmly believe that mumias is headed for goods year ahead.I expect the share to trade around 16 by the end of the year.The only thing why am in coop is because i am looking for a better stock
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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@mwala i dont see why you should leave co-op to go to mumias.. mumias is valued at around 16 bob but you should remember that stocks rarely trade at their true value and mumias faces alot of risks and also that co-op shares are also very undervalued... i think you should only sell a small amount to move into mumiaso or if you are really bullish on mumias then commit some new money for the transaction Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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Honestly, I don't know where to even start comparing the two. They are both pushed by very different factors.
BBI will solve it :)
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Rank: Member Joined: 9/22/2008 Posts: 79
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@guru267,i can bet on my wife that coop is a snake when it comes to movement,the highest it can move is 12 bob by the end of the year,hail mumias
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Rank: Chief Joined: 1/3/2007 Posts: 18,101 Location: Nairobi
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mwala wrote:@guru267,i can bet on my wife that coop is a snake when it comes to movement,the highest it can move is 12 bob by the end of the year,hail mumias That is still 20%... pretty good return... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 2/5/2010 Posts: 273 Location: NBI
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I would proposes you buy both. Mumias for speculative purposes with the hope that there end of year financials will push its price up then buy co-op and keep it since it looks like a stable stock for long-term
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Rank: Member Joined: 9/22/2008 Posts: 79
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That is still 20%... pretty good return...
[/quote]
Both counters are good,but i would have a comparative advantage of 10 to 20 percent yield from mumias by the year end
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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mwala wrote:@guru267,i can bet on my wife that coop is a snake when it comes to movement,the highest it can move is 12 bob by the end of the year,hail mumias dont bet anything on your wife... co-op is a snake but i ask you one thing how much growth do you envisage for mumias exceept revenue growth from increased prices????? Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 9/22/2008 Posts: 79
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A stock is as good as it is making money.Our market is rather imperfect and i must say that fundamentals don't always work.I heard somebody say truth is synonymous to workability.
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Rank: Member Joined: 10/18/2007 Posts: 217
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This is how i would be guided as an income investor,
a)I Put say 90k in co-op and wait to get a dividend of 9k at 10cents a share and a acapital of less than one shilling ayear or
b) put the same amount in mumias, get a dividend of 36k a year and a capital gain of one shilling a year before moving out.
I would definately invest in mumias, the two cannot be comparable.
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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@wote,you point comes through but the dividends in the above case would be 900 bob and 3600k only.
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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wote wrote:This is how i would be guided as an income investor,
a)I Put say 90k in co-op and wait to get a dividend of 9k If this was possible we'd all quit our jobs and put the pension in co-op!
BBI will solve it :)
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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@wotw, cnn. You are both wrong on dividends. You get it less with holding tax of 5%. If it is an income stock for you, you are best off selling cum div, that way you will have made your margins and the buyer will pick up the tax.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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wote wrote:This is how i would be guided as an income investor,
a)I Put say 90k in co-op and wait to get a dividend of 9k at 10cents a share and a acapital of less than one shilling ayear or
b) put the same amount in mumias, get a dividend of 36k a year and a capital gain of one shilling a year before moving out.
I would definately invest in mumias, the two cannot be comparable. capital gains are a result of re-investment of the company profits (instead of paying div) hence you should expect more capital gains from the company that retains more profits. Life is short. Live passionately.
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Rank: Chief Joined: 1/3/2007 Posts: 18,101 Location: Nairobi
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mwala wrote:A stock is as good as it is making money.Our market is rather imperfect and i must say that fundamentals don't always work.I heard somebody say truth is synonymous to workability. All markets are imperfect... Ask Warren Buffett... It is NOT about 'inside information' but information that people do not care to find out coz of time/knowledge constraints... IMHO... if you buy on fundamentals... in the long run, you will be OK... except for the political risk! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,101 Location: Nairobi
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Don't forget TRANSACTIONAL costs... If you sell Co-op & buy Mumias... you have to consider the 'sale' + 'purchase' commissions as well for the 'switch' or re-allocation... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 9/22/2008 Posts: 79
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Commission and other expenses regardless,mumias remain the best;Consider selling 20k coop shares at 9.75.That accounts an expense of 5k.Again buying Mumias at 10.50(factoring in the transaction fee) that gives me 18k Mumias shares.Selling Mumias by the end of the year at 15 bob gives me 240k.240k>190k if my arithmetic serves me well.Plus a dividend cheque say 7200
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Rank: Elder Joined: 2/7/2007 Posts: 11,935 Location: Nairobi
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@All, As we post on Co-op and Mumias,take time to say a prayer for Dr. Evans Kidero,the MD MSC who lost his beloved wife late last week.May God give him and his family the strength to overcome the loss. Nothing great was ever achieved without enthusiasm.
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