1. Marambii gets 2 more years
2. NBK to pay dividends this year (after 12 yrs)
3. The lowest priced bank share currently


Questions:
1. How will the privatization affect this bank?
2. What are the probable growth areas given other banks have tapped into technology and NBK is still lagging behind?


Your honest opinion very much welcome!

QW.. what happens if Sudan referendum is not successful? do you think Coop will still be a buy?

Coop and KCB are a buy with or without Southern Sudan. That said it is widely expected that the referendum to be peaceful and successful because Bashir will be the biggest loser if it goes otherwise plus we can easily predict the results.

@mali co op is a great company but i think its share has priced in alot of the future earnings already...

So if one is looking for a stock with more than 100% returns in the next 1 year its definitely not co op...

Plus the dividend yield is crap..

0.50 KEs per share will do and the rest is ploughed back. i doubt if they will distribute the entire cake.

@Mali

Where did you get the 1.2billion shares figure

If net profits as on results of the Bank for the third quarter ended 30 September 2010 is 1,351,080,000 and total issued shares are 280 million (Final Financial net prof for 2009 was 1,462,950,000)then EPS should be around 4.83. If the 2010 Full yr will be above 2009, consider the EPS to be above 5.22. DPS should then range between 1 and 2 shillings.

You need to keep in mind that the preference share dividends are issued with the clause (
The holders of the non-cumulative preference shares are entitled to a non-cumulative dividend at a negotiable rate not exceeding 6%
per annum on the capital for the time being paid up on the preference share capital, if the directors declare a dividend on ordinary
shares. For the purposes of calculating the earnings per share, the net profit has been allocated to ordinary shares and preference shares to the extent that each instrument shares in the earnings as if all the net profit for the year had been distributed) in mind.

also of concern is the following clause

( Whenever the profits of the bank in respect of any year shall be more than sufficient to pay the preferential dividend aforesaid to the close of such year, the holders of the preference shares shall be entitled to participate in the surplus pari passu with the
holders of the ordinary shares provided that such participation shall be non-cumulative)

In case I have missed out on some details, please let me know as it will enlighten me in the process.

THIS stock is headed for 60's and it all happening under my nose....how sad..The payment of dividend will surely sky-rocket it.then throw in the fact that the banking sector will out-perform itself.And you have a stock to neatly crown your portfolio..I will definately have its time to shine this year.Question is .Will YOU shine with it...????

with a P/E of about 10.22 (compaired to the industry P/E of 17.72),and having a high earning yield %age of about 9.78,NBK is undervalued and could easily hit 60 before june.
The fact that the bank will be giving a divinded is a also a factor to consider,plus the anticipated privatisation.
my 2 cents !!

By the way, what is the number of gok preference shares

Who are the major individual shareholders in this stock? once a brocker said there is inside trading else market manipulation by a key shareholder. Yes it will reach 60s the takers of capital gain will flood the supply depressing the price back to a round 45-50s. not facts but for the last year it like followed a simillar pattern.