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”
At just KES1.00 per share Mumias Sugar might be a tempting bet, but prospective investors would be wise to heed the danger signs.
Mumias Sugar is Kenya’s largest sugar producer.
It’s also its most prominent penny stock.
With a price that currently hovers around KES1.00 per share, no other Kenyan stock is as accessible to individual investors. If you have KES100.00 in your pocket, you can open a brokerage account and buy 100 shares of the company.
This low barrier to entry makes Mumias the subject of an inordinate amount of ill-advised speculation.
Continue reading “4 Reasons to Stay Far, Far Away From Mumias Sugar”
Here are last-minute instructions for how to invest in Kenya’s M-Akiba bond.
[UPDATE: Due to an impressive response from investors, the initial offer for the M-Akiba Bond closed five days earlier than scheduled. But don’t worry. The bond will soon be available for purchase on the secondary market. Stay tuned here for instructions on how to do so.]
Have you invested in the government of Kenya’s M-Akiba Bond?
If not, you likely have just a few more hours to participate in the initial offer. The mobile-only infrastructure bond has proven fantastically popular.
If you’re a Kenyan citizen and at least 18-years-old, it’s worth taking a look.
The minimum investment is just KES3,000 and it pays tax-exempt interest at a rate of 10% annually. And because the bond can be bought and sold on the secondary market, it makes a nice option to stash an emergency fund.
Sound interesting? If so, here are some last-minute instructions for how to invest.
Were these instructions clear? Do you have questions about M-Akiba or the process for investing? Let’s hear them in the comments!
Good luck and check back here soon for more info on how to buy M-Akiba on the secondary market.
How to Begin Investing on the Nairobi Securities Exchange
10 Effective Ways to Pick Better Stocks
