Contrarian Investing Kenya

25/10/2015

Stanlib I-REIT IPO @ Ksh20 per Unit

Good Buy if it meets the following

1. The Price to NAV -it should not be more than 2
2. Gearing levels- (cos this can mess up income distributable to unit holders given the sticky high interest rates in Kenya)-it should not be more than 20%
3. Dividend Yield- (It should not be less than 5%)

Investment Case

1. Issuers Track record-Stanlibs's and Liberty's (parent company) track record compares to none on the African continent...they have done amazing projects in South Africa.

2. Management targeting realistic returns-14% rental yields are realistic and possible...just depends on the buying price and how well the mall is doing in terms of traffic etc

3. Low risk-this guys are not buying land to build and then sell which is a very high risk strategy look at Home Afrika and Britam (Acorn Saga)...this guys are buying Already built property...Build property with tenants in it...which is easy to analyse and predict future cash flows

4. Portfolio diversification-awesome way to get an exposure to Kenya's real estate sector.

24/07/2015

Just In: The Kenyan Stock market is closing at 12pm today due to President Obama's visit to Kenya.

21/07/2015

Follow me on Twitter https://twitter.com/mikada08/status/623098170411745280

“The NSE20 share index could slide by much as 15-20% this year if the CBK/MPC keep pressing the rate hike pedal!”

26/06/2015

Been a while?....how are you surviving these trading conditions at the NSE?

30/04/2015

We are transforming ourselfs into something better. A. microfinance bank B. Stockbroker C. investment advisor. Guess the correct answer and you will win one of my favourite investment books.

30/04/2015

Q1 2015 Banking sector earnings have started streaming in...Coop Bank PAT +29% y/y, Equity Bank +11% y/y and Housing Finance +0.2% y/y.

22/04/2015

Sir John Templeton’s 16 rules for investment success:

1. Invest for maximum total real return
2. Invest — don’t trade or speculate
3. Remain flexible and open minded about types of investment
4. Buy low
5. When buying stocks, search for bargains among quality stocks.
6. Buy value, not market trends or the economic outlook
7. Diversify. In stocks and bonds, as in much else, there is safety in numbers
8. Do your homework or hire wise experts to help you
9. Aggressively monitor your investments
10. Don’t panic
11. Learn from your mistakes
12. Begin with a prayer
13. Outperforming the market is a difficult task
14. An investor who has all the answers doesn’t even understand all the questions
15. There’s no free lunch
16. Do not be fearful or negative too often

21/04/2015

Britam, Housing Finance & Equity Bank enjoy cross ownership...I think investors need to trade with caution on these shares given the ponzi scheme saga unravelling in Mauritious.

10/04/2015

Home Afrika issues profit warning for FY2014.

09/04/2015

Just In: Liberty Kenya FY2014 PAT up 4% y/y to stand at Ksh1.14Bn vs my projection of Ksh1.11Bn

01/04/2015

Just In: Total Kenya FY2014 net profit up 6.4% y/y to stand at Ksh1.4Bn. Declares Ksh0.70 dividend per share.