This is a guest contribution from Simon Maina. KenolKobil is a leading oil distributor and marketer of petroleum and other associated products (e.g. petrol stations) in East Africa. Of late, it has also extended its footprint into Southern Africa with Zambia being its most recent investment. I find shares of the company particularly attractive because […]
Nairobi-based Nation Media Group (NMG) is where much of East Africa gets its news. Its stable of newspapers includes Kenya’s Daily Nation, Uganda’s Daily Monitor, and Tanzania’s The Citizen. The company also owns a growing collection of television, radio, and online assets, including one of my personal faves – Business Daily Africa. So, is it […]
British American Investments Company – Kenya (BRITAM) has made investors very happy of late. The stock is among the Nairobi Securities Exchange’s best performers this year, posting a dazzling 94.7% return.
Now the shares trade a shade below 2.5x their book value. Is that too rich a price? Or is there upside left here?
Let’s take a look at earnings (and Kenya’s long-term bond rate) to give us a clearer picture.
When Co-operative Bank of Kenya (COOP) announced last week that they were hiring global consulting firm, McKinsey & Company, for advice on improving operational efficiency, investors took notice. The stock has jumped 12.4% since the news appeared.
So why are investors so excited? How much scope does COOP have to streamline its operations? And how might such restructuring impact the bottom line?
Ah, the humble price/earnings ratio.
It’s one of the crudest tools in an investor’s toolbox. But there’s no denying that the simple act of dividing a company’s share price by its earnings consistently reveals stocks poised for powerful performance.
Here we examine the recent performance of low P/E stocks on the Nairobi Securities Exchange and list 10 Kenyan shares with the lowest earnings multiples.