KenyanTrader254

15/07/2020

8 long years without a new listing (IPO)!!
Thats a not so good scorecard for a stock exchange in East Africa's largest and most advanced economy. With an emerging urban middle class that is fueling demand for high value goods and services. Its quite surprising that none of the businesses meeting this demand have made it to the NSE.
We don't expect the NSE's management to just run the stock exchange operations. We expect them to grow the stock exchange to a point where its a true reflection of the economy it operates in. We acknowledge the gains made through the introduction of the Growth and Enterprise Markets Sector (GEMS). However, the pace has lagged behind the growth witnessed in the Kenya business environment. We have many promising companies and startups operating in the country? What is stopping them from using the Stock exchange as a tool for raising capital and unlocking their true potential?
Is it lack of information? or failure to comply with stringent conditions for listing? The market is hungry for new listings.
Some food for thought for the new chairman of the NSE. Congratulations on your appointment.
https://www.the-star.co.ke/business/kenya/2020-07-14-kittony-eyes-increased-listings-as-new-nse-chair/

23/03/2020

Investing during times of crisis.

Crisis-Resistant Essential Businesses. That's Where Your Money Should Be. In the last two weeks or so. We have seen the progressive scaling down of operations across government and

15/03/2020

Trading tip: Buy the crisis
So last week we experienced something close to a crash. As a result, we now have some good bargains. We have not hit the bottom yet. So don't rush and put all your money in. The trick is to buy the dips gradually. Stick to companies that meet these 5 conditions.
1.Is profitable
2. Has been growing its profits
3.Trading at a reasonable PE(fairly priced/underpriced)
4. Not Govt controlled
5. Is in a sector that is growing
Good luck investing.

09/03/2020

In my opinion the current rise in some stocks is a false market recovery. The underlying conditions that caused the sudden price drops still exist. This Corona virus will hit the stock market hard.
Its already in a number of African countries and its just a matter of time before it spreads to Kenya. The bad thing is that apart from the disruptive impact on supply chains and social life....it also brings FEAR which is not good for business and the stock market.

17/01/2020

I hear that stocks are currently cheap. How do I know which stock will go up so that I buy ???

This is a question many investors ask. It shouldn't be complicated. In any market, it is normal for prices to fall. This happens for both profitable and struggling companies.
When trying to identify which one will rise back up, the first thing to look at is profitability. If the company has a good profit record, even better if the profits are growing, you can be sure that the price will recover.
Now say you identify 10 companies that fit this criteria. How do you identify the ones that are likely to perform best?

This is where PE ratio comes. You can go research on how PE works if you have no idea but in a nutshell its one of the key indicators as to how much the market has undervalued or overvalued a stock.
You don't want to be the guy who buys a car at three times the normal price(with the hope of reselling), then wonders why the market price never goes up to the price you bought it at. And of course you're unable to find a willing buyer for the car.
PE ratio will keep you away from the expensive stocks and will also guide you on the best entry price to buy at.

With these two indicators(Profitability and PE), you can now pick a stock and also pick the best entry point. Its now a matter of waiting for the price to reach the entry point and STRIKE.
Warren Buffet says that the key thing in investing is knowing what to buy and at the best price. He spends most of his time preparing for that good strike.

Goodluck Investing :-)

04/12/2019

As an investor in the Kenyan stock market, you should be able to identify companies that are well-positioned to benefit from Technology-driven growth. Read more here...

Invest in Companies that are reaping the benefits of Technology The Digital Revolution is already here. The much-talked about digital revolution is now here with us. It was predict

30/10/2019

The biggest losers will be companies that are trying to defend an old business model. One that has not adapted to technology advancements. We are in 2019. You should not be caught doing business as if we're still in the 90s.

16/06/2019

5 companies in the NSE that grew their revenues but still made less profits in 2018.

5 stocks in the NSE that grew their revenues but still made less profits in 2018 Companies are always looking for ways to make more profits. One proven way is to increase their sal

27/05/2019

26 stocks in the NSE that pay dividends.
Dividends, Dividends, Dividends!!
Is it better to buy shares in a company that pays out dividends to its shareholders?

Dividends, Dividends, Dividends!! Is it better to buy shares in a company that pays out dividends to its shareholders? Its quite simple. If the profits reported by a company are re

20/04/2019

The news of the intended KCB-NBK merger is the second since the turn of the year. The other one was CBA-NIC.
This consolidation is necessary to enable the banks comply with CBK regulations. Many banks have deposit ratios that are barely compliant.
Our eyes will now turn on the other Tier 1 banks and some Tier 2.
We will be waiting for Equity and Co-op bank to make some moves.
We also have our eye on DTB bank. Its share price has suffered a steep decline. Almost similar to what happened to NIC's share before the news of the merger.
The script for mergers and acquisitions has two common themes.
A big strong bank on one side seeking to expand.
A medium or small bank that is struggling to grow its deposits and loan book.
Lets watch and wait. Or is it buy and wait?

28/03/2019

One of the sectors in Kenya that I believe is ripe for digital disruption is the Insurance sector.
Technology can help them solve two big problems. Fraudulent claims and high operating costs due to their dependency on insurance agents.
They also need to improve their customer relationship management which is almost non-existent.

18/03/2019

Out of my top four transactions that have made me the most profits, it is worth noting that out of the 4 companies, 3 are small to medium sized companies. Small companies, big moves. You are more likely to make higher returns investing in smaller companies that are performing well.