Longhorn’s share price has slipped 7.5% since the start of the year despite the company’s improving fundamentals. The stock presently trades for Ksh5.00 per stub, giving it a P/E ratio of 7.5 and an 8.4% dividend yield. I think this is a steal. Here’s why.
Kenyan stocks have plummeted in recent months. A strengthening US dollar appears to be the main culprit, prompting a mass exodus of global investors from frontier stocks. As a result, the Nairobi Securities Exchange’s main index now rests at its lowest level in nearly 16 months.
Big price swings like these always get me reaching for my bargain-hunting hat. And I think I’ve found one priced to reward patient investors handsomely.
Which Kenyan bank share offers the most attractive combination of profitability and value? Here we calculate the implied return of each one.
Last month we calculated the implied return of Kenya’s three largest bank stocks.
To do it, we simply multiplied each bank’s book-to-price (B/P) ratio by its return on equity (ROE) over the most recent twelve months. (Click here for a refresher on the method.)
The resulting return forecast shouldn’t be viewed in isolation, but it does give a good sense of which shares might offer the best combination of profitability and value.
Continue reading “Ranking Kenya’s Most Promising Bank Stocks”
The NSE’s largest three bank stocks have just reported their mid-year results. Which one offers the most compelling combination of profitability and value?
KCB, Equity Group, and Co-operative Bank of Kenya have just released their mid-year financial statements.
Let’s take a look at the numbers to determine which Kenyan bank offers investors the most value now.
Continue reading “The Best Bargain Among Kenya’s Big Three Bank Stocks”
In case you haven’t heard, MTN Ghana has just launched the biggest IPO in the history of the Ghana Stock Exchange. Here’s how to get in on it.
In case you haven’t heard, MTN Ghana has just launched the biggest IPO in the history of the Ghana Stock Exchange, offering investors GHS3.5 billion (roughly $740 million) worth of shares.
The stock looks like a pretty good deal to me.
Continue reading “How to Invest in the MTN Ghana IPO”The past year has been a great time for Ghana Oil (GOIL) shareholders. The stock has roared 260% higher over the past twelve months, but high valuation multiples should give investors pause.
The past year has been a very good time to own Ghana Oil (GOIL) shares.
The stock has roared 260% higher over the past twelve months, propelled by high-octane earnings growth and a cheery outlook for the Ghanaian economy.
Today, the shares change hands at a price of GHS4.05 per stub, which gives the stock a price-t0-earnings ratio of 24.3. That’s a lofty level, and as I will argue below, I think it’s an indication that shareholders should begin looking for an exit ramp.
