Jubilee sold over 1.7 billion of quoted company shares because they fear the political climate may start pouring in torrents. They did not intend to give the cash to shareholders cauze they intend to reinvent the same in shares that will come down clashing due to the political upheavals likely to be seen this yr and next year. This is a no brainer. Today, the share has no takers. Bids are at 100. Let the share deflate. At least, BBK was descent enough to give a fat dividend from sale proceeds.

What wrong with this market gaining By 20% and then dropping by 21% within a span of two days.

Sure, kindly get your facts right. To begin with Jubilee's bids are not at 100. It can't go down by more than 10% from yesterday's price. And I am a bidder today, so I should know.

Secondly, Jubilee is not just an insurance company. It is a holdings group which has extensive investments over and above its insurance business. I daresay, insurance is not the most critical business within the holdings company even though it is the most talked about.

As an investments holding company, JHL buys and sells shares (amongst other investments e.g. Govt bonds) in the normal course of business. So they sold 1.7 billion shares last year. Big deal! You should also mention that they bought approx 1.2 billion worth of shares. I am actually happy that they sold more than they bought and they have got quite a hefty amount in Govt paper. That means they are well positioned to dip into the market at lower prices.

And you should not be comparing Jubilee with BBK. They are in different lines of business.

Pole sana! But I think there were enough admonitions on Wazua not to chase the counter. As a matter of practice, you should not do this on any results announcement unless you are so certain of yourself. Kindly take this as a lesson learnt.

Personally, I was ready to sell of part of my holding at the right price (and possibly re-enter at a lower price). However, it did not get there, so I continue to hold. I speculate but Jubilee is one of those shares I would be loathe to sell and then be unable to buy back.

I actually think the price of 220 undervalues the share but since folks are willing to sell at 200, that's what I will offer them and if they drop their asks, so will my bids drop.

So relax Jubilee will make you money (if you are patient), but not necessarily in the short run.

@Mwanahisa a lot lies are being peddled about JUB i tend to ignore such kind of utterances, i'm a buyer at 200 bob...gross-expenses=net, net-net=? and u are right JUB is not only insurance, they have investments ranging from energy, property even to Agric i.e Farmers Choice why not talk about such.

Writings were on the wall yesterday from 11.05 when price stuck at 220 and no one wanted to cave in and at that time the best ask was at around 235-240 then immediately suppliers started to drop prices at a rate of around 5 till it got to 220 when most bidders seemed not to give in. Sold my holdings then @220. I've realized one thing about the Kenyan Market, never get in on the day of the announcement, sell on the first hour of announcement or when the market is about to close on the same day. On the second day put your sale order in during the pre-order time and try and sell before 10.30.
This is because most guys buy the headline before reading in between the lines. Take an example of a share in a US company when once crashed on old news that had been mistakenly filtered by their systems and by the time people realized guys had made a kill while others had massively lost.

When msimon talks insurance, sikilizeni!

I see you are a believer in the "wazua effect" on the N.S.E. I've counter checked what m(simon) says [couldn't resist], and the figures are true. what i wonder is of the sale that he claims covered the "loss", exactly how much was just stocks? And please just tell us what you see, oh great guru of wazua. The events since release have softened my 250 price tag, and may buckle very soon.

sarcism?

mwanahisa- indeed i may be wrong on some matters no doubt, but i wouldn't be a net buyer of this stock at current levels. Its a great company no doubt, but its not a great investment at the moment.
Now here is a new gospel when it comes to insurance play. For plain corporate action aka special situation, you can consider Pan African, both before the book closure on bonus and div. and after the book closure. Why? Well its simple. They are selling their 40% stake in APA. What's that in shilling value? Depends on your valuations for APA. Now based on how we value insurance companies,(Float and its cost!) and book value measures, you would have a best case scenario of 1.7bn(40% on assumptions that it has a 95 underwriting margin and investment income using 3yr averages), mild scenario of 700m(40% on assumptions that 95 underwriting margins and investments are made only in long term government bonds), or worst case of 420m(420m is based on 40% of book-value end of 2009). That would provide support for the stock and will be a catalyst for a great dividend in the next financial year. So your overall returns could be well in excess of 40-50% for the year. We dont believe in stock tips but we think this would be great. The better thing is for the price to go below 90.
The other alternative for the long haul is Kenya Re. am more than certain that this stock will reward the patient ones. Jubilee at below 110, would be a steal, but what are the odds for those who lack it in the portfolio?
Disclaimer: These are personal views and are in no ways stock recommendations