A friend of mine bought 10,000 CIC shares yesterday @ 105. Apparently, at those prices there are sellers. Now my friend is looking for more cash to buy more and am not sure this is a good deal.

Wazuans please offer advise.

=>I would expect the share to sell at around 10/= ex-split which means you better wait for IPO. 50/= would be reasonable.

Just the usual pre-IPO rise. Companies on the cusp of listing receive increased interest. Whether its a good deal at 105 is another question. I take my hat off to PKoli. This jamaa was stacking on this from a while ago. He has shown that ''you buy when others are not interested''

=>there is also DPS of 1.60 that we ought to consider. @Layman. You r rt on 100% guaranteed profit.

@mainat JUB PE is 5.8 buying an insurance firm at a PE of 12 is expensive...pple buying CIC are SPECULATING on the split and the Listing

There is a lot of value in this stock...

they made a PAT of 512M in 2010. The No of shares at end of 2010 is 30.5 million. EPS = 16.8 (Where are the others getting their numbers from? the results are on their site!!)

P/E assuming a sh 100/- Price is 5.95 (~6)

They will grow 100% this year again.. if you search you will see MD has always said they will make 7.5 bil in revenue this year. he made that remark yet again at AGM (so it means it means he is very confident - also means he is giving a lower estimate of the possibility)

they just got a stash of cash to play around with from the rights. They are currently number 3 Kenyan insurer based on revenues just from Kenya... think about the upside of expanding to the region/ being the sole insurer for co-op customer loans... co-op medical and further sacco business insurance due in large part to capacity.

P/E can only come down further.

i foresee them doing 100% growth in 2011 and 2012 too... too much upside.

@e_kijana,

True, the CEO was overly optimistic and it is likely they might grow in that region. They seem to have secured some other business courtesy of Coop Bank. That symbiotic relationship will boost CIC. I think the only challenge I see CIC having is how to prudently invest the too much cash they now have.

Looks like your guy did the right thing now, doesn't it?

@Rekoob,
I don't understand the "...very high fundametal wise.." statement. The numbers have been posted and there is consistency... is there data to the contrary about the industry as a whole?

Its like 5 yrs ago in the banking industry if someone were to tell you that banks were going to make above normal profits (and this is not just unique to Equity) no one would have accepted... we always wait for the horses to bolt from th stable...

Basic fundamentals is there is a growing middle class and thus greater affordability and demand for insurance to protect the their families and assets. Of course opportunities also abound at the bottom of the pyramid, but dont expect any shrinking insurance uptake esp if current coverage is only 2.5%.... talk of major upsides for progressive, well capitalised entities... !

Alot of the insurers make money from Investments now... but at the core insuring should be No 1... CIC is doing very well with regard to insurance business and very conservative on investing ( big % sits on bonds and not stocks)... so its as predictable in this regard as any good business should be... its competitors (no names) can swing from major losses one year to major profits the next and leave one wondering...????

The Kenyan Insurance sector is marked by fraud,intense competition and pathetic margins imagine covering a Matatu...without the income from investment no insurance would survive thats why you see this wild swings between profitability-it all depends on the NSE and how it performs...my quick analysis of CIC tells me that its combined ratio is way too high and i think to say they will repeat last years perfomance is a lie...no insurer will repeat their 2010 perfomance...well that does not mean the share price wont go to 200 bob coz price involves many things i.e sentiment