@Trizher,
It's a no brainer.

you should be knowing something, Njunge. i have seen you pull of a stunt at our fantasy game.

Hey how will the separation btw the insurance and bank business shares be done? must one be a share holder and if so how will it be done, am trying to find a way of perticipating but seems a re really clueless, kindly advise on how one can get into insurance shares during or before separation.

@mwanahisa, Ahsante sana kwa ujumbe hiyo. i suppose they are still waiting for some authorization i guess from IRA, i can still spend money as i Waite for new info...

The CFC Insuarance holdings will be listed at an introductory price of Ksh 6.157 which is P/E of about 8 (based on half yr 2010 results). This looks abit ambitious since this division is the 'black sheep' of the CFC Stanbic Holdings (especially for last year where this division made a 700M loss).

The mother company seems to value its insuarance arm at Ksh 3.2B (projected market capitalisation after listing 515,270,364 shares at Ksh 6.157) despite an asset base of 23B.

The listing prospectus will shade more light on this insuarance wing of CFC but i would value its shares at not more than the P/E of Kenya Re (P/E of about 5).(This is a new entity coming from a loss making year which could be representing the toxic assets of CFC Stanbic.When the other banks are merging their operations to reduce overheads eg KCB with S&L,CFC is demerging to 'unlock value').

At a P/E of 5, this translates to a price of about Ksh 3.5-4.00.

With all 515M shares being given as a special dividend to CFC Stanbic Holdings shareholders at a ratio of 1:1, I anticipate a significant dumping of the shares that will push the insuarance shares towards the Ksh 4.50 to 5.50 range.

CFC Insuarance will make for an interesting speculative share due to its penny nature (and i suspect high liquidity) especially before the market can truely value it.

Happy hunting.

@ The Deal: Thanks.
As concerns YaserbigChair, you will be surprised by his depth of analysis and insight once he starts posting if he is as good as he was 2-3 years ago. I rarely give compliments but I can say he is Very Good with reliable info.

Happy hunting

@mwanahisa, stockmaster, really nice to read these analysis, very informative...@all question, assume you have 800k to make investment decision on either kplc and/or stanbic bank at a period of 6 months. what would be your entry/investment strategy specifically on those two stocks. the objective is to maximise on your investment

well if Mzee Njung'e says you are good you must be really good anyway's Yasser the moment you drop your first post on your return to Wazua i will be off your back...LOL...

Assuming one is on recovery path-cfc, while the other-Kre is on downward bec of structural issues, cfc can be a good play. But as youve said, it will be safer to see it come down fisrt before jumping in.

And this talk about getting the insurance free (which iam convinced is not the case) will be negative for the share price. But some may actually be ready to hold on to it because its "free".

By the way to those knowledgable in insurance accounts - the 23B assets is net?, or what?. and How would it compare with Kre against current price?

Naona kama ni kubaya pande hiyo ya CFC gotta bail out....bye CFC