qw25041985 wrote:Hi all.Mumias is still my favourite stock.Ksh 13.60 was my price Target when they reported Half Year Results and is
an implied PE of 10.00 assuming zero acceleration from the First Half.
DONOT be left out.If they made >500% profit in the last half year of their financial year you can imagine the kind of dividends they are going to pay when they announce ther full year results sometime in September.I believe we are going to see a mad rush for this counter in the comin weeks as we run to their end of year results.
One of my favourite stocks is SASINI TEA AND COFFEE LTD.
As for sasini.I calculated it's target price this way ksh 15.20 (closin price as of 2.5.2010) / [Ksh 1.33 (Earnings per share) x 2 ] = Implied Forward PE is Ksh 5.714
I believe a PE of 10 is an entirely Fair and Justified Objective which
gives a Price of Ksh 26.60
NB : target price = Current stock price *{current p/e /forward p/e}
All this means is that Sasini ltd is currently trading at half its real value !!!!!!!!!!!!!!!!!I believe this stock has allot of energy to double once money.Once investors note this's a lowly valued share be sure to see the share price rally allot.
My advice is that you should buy this share now when its cheap.The company ,Sasini,made a profit of over 100% in the first half of its financial year.
I suggest Sasini shares for anybody who has an investment horizon of one year.DONOT invest in this share and then after a few months start worryin why its not doubling your investment.You have to wait abit longer.
THATS ALL FOLKS,happy investing. And PLEASE consult your broker before you do anything with your money.Atleast i do.
If you are 14 years and below, that was a good attempt. If you are above 18, please try another line of business.
If you were to be an investor, you would have done due diligence on the share to discover that there was a simple reason of why Mumias 1H profits appreciated by 500% and above. One off scenario that is not likely to be replicated in the near future and no impact on dividend pay out ratio.
On the Sasini affair, you have to consider the Merali Factor that increases the risk associated with his companies because of his thieving ways.
The fact that they have decided to convert Coffe or tea land into real estate does not vindicate you in any way. It only proves your immaturity in the market.
If I were you, I would have changed my name totally to disassociate with the former character. I.e., call yoursell IQ60 heading south.