Wazua
»
Investor
»
Stocks
»
The 5 Value Traps of the NSE Investors Should Avoid
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
|
A Value Trap is a stock that appears to be cheap on paper, it's either trading on a low P/E multiple or below it's book value, its normally characterized by a sharp price depreciation and investors are normally attracted to this kind of stocks thinking it will not go any lower only for it to fall further. Read more on this link http://www.contrarianinv...stors-should-avoid.html 
|
|
|
Rank: User Joined: 8/29/2011 Posts: 1,045 Location: Mtaani
|
as far as i can see there's no value trap for me on the nse when the bull resumes (note RESUME) all stocks will get lifted even paka
|
|
|
Rank: Elder Joined: 9/12/2006 Posts: 1,554
|
For once I agree with QW, on this one....
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
@thedeal i agree with you on unga and kenre. Nbk and access poor fundamentals, no value. Safaricom is one of the most responsive to news. Add on your list Boc. Looks cheap on pe and div yields but is a value trap. Life is short. Live passionately.
|
|
|
Rank: Chief Joined: 1/13/2011 Posts: 5,964
|
Jamani wrote:For once I agree with QW, on this one.... 
|
|
|
Rank: Elder Joined: 7/11/2010 Posts: 5,040
|
Well. I wont talk about p.e. But here are the money traps. Paka, sameer, nbk, olimpia, access, express. Eapc. IF you buy any of these and you lose your money. Dont say u were not warned. The investor's chief problem - and even his worst enemy - is likely to be himself
|
|
|
Rank: Elder Joined: 7/11/2010 Posts: 5,040
|
the deal wrote:A Value Trap is a stock that appears to be cheap on paper, it's either trading on a low P/E multiple or below it's book value, its normally characterized by a sharp price depreciation and investors are normally attracted to this kind of stocks thinking it will not go any lower only for it to fall further. Read more on this link http://www.contrarianinv...stors-should-avoid.html I really want you to explain why kcb is bubbling under?? I agree with all. Except unga. Why. Like u said, they are cash rich, increasing profits good dividend. The risks you mentioned are true, but not enough to make it a value trap. They've been in this business for a while, on the corruption they'll do what They've always done. On standardized price, they'll survive. And being one of the bigger firms, when the rubber touches the road, i expect the smaller firms to be hardest hit. The investor's chief problem - and even his worst enemy - is likely to be himself
|
|
|
Rank: Elder Joined: 7/11/2010 Posts: 5,040
|
the deal wrote:A Value Trap is a stock that appears to be cheap on paper, it's either trading on a low P/E multiple or below it's book value, its normally characterized by a sharp price depreciation and investors are normally attracted to this kind of stocks thinking it will not go any lower only for it to fall further. Read more on this link http://www.contrarianinv...stors-should-avoid.html I really want you to explain why kcb is bubbling under?? I agree with all. Except unga. Why. Like u said, they are cash rich, increasing profits good dividend. The risks you mentioned are true, but not enough to make it a value trap. They've been in this business for a while, on the corruption they'll do what They've always done. On standardized price, they'll survive. And being one of the bigger firms, when the rubber touches the road, i expect the smaller firms to be hardest hit. The investor's chief problem - and even his worst enemy - is likely to be himself
|
|
|
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
|
Aguytrying wrote:the deal wrote:A Value Trap is a stock that appears to be cheap on paper, it's either trading on a low P/E multiple or below it's book value, its normally characterized by a sharp price depreciation and investors are normally attracted to this kind of stocks thinking it will not go any lower only for it to fall further. Read more on this link http://www.contrarianinv...stors-should-avoid.html I really want you to explain why kcb is bubbling under?? I agree with all. Except unga. Why. Like u said, they are cash rich, increasing profits good dividend. The risks you mentioned are true, but not enough to make it a value trap. They've been in this business for a while, on the corruption they'll do what They've always done. On standardized price, they'll survive. And being one of the bigger firms, when the rubber touches the road, i expect the smaller firms to be hardest hit. Some stocks bull or bear they don't move at all....if you stuck with Unga or Kenya Re you would have missed last years bull run..
|
|
|
Rank: Elder Joined: 2/26/2012 Posts: 15,980
|
2016 1. Home Afrika 2. Trans-Century 3. EAPC 4. Mumias 5. Sameer "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
|
murchr wrote:2016
1. Home Afrika
2. Trans-Century
3. EAPC
4. Mumias
5. Sameer Add Olympia, KQ... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
|
VituVingiSana wrote:murchr wrote:2016
1. Home Afrika
2. Trans-Century
3. EAPC
4. Mumias
5. Sameer Add Olympia, KQ... Add Atlas Africa Industries/ ADSS Dumb money becomes dumb only when it listens to smart money
|
|
|
Rank: Elder Joined: 7/11/2010 Posts: 5,040
|
Aguytrying wrote:Well. I wont talk about p.e. But here are the money traps. Paka, sameer, nbk, olimpia, access, express. Eapc. IF you buy any of these and you lose your money. Dont say u were not warned. I was wrong only about access which was sold. NBK! those days it was trading in the 30's. Even though i was an amateur i still had it The investor's chief problem - and even his worst enemy - is likely to be himself
|
|
|
Rank: Elder Joined: 2/26/2012 Posts: 15,980
|
VituVingiSana wrote:murchr wrote:2016
1. Home Afrika
2. Trans-Century
3. EAPC
4. Mumias
5. Sameer
Add Olympia, KQ... Olympia is "fairly" priced. If you buy it today, you will get your money back in 10 years ceteris paribas. KQ's books dont show value. Looking at the books alone, i would call it a Zombie .....(Sorry Obiero) "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
|
murchr wrote:VituVingiSana wrote:murchr wrote:2016
1. Home Afrika
2. Trans-Century
3. EAPC
4. Mumias
5. Sameer
Add Olympia, KQ... Olympia is "fairly" priced. If you buy it today, you will get your money back in 10 years ceteris paribas. KQ's books dont show value. Looking at the books alone, i would call it a Zombie .....(Sorry Obiero) Matu will not let the company live another 10 years! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
|
Aguytrying wrote:Aguytrying wrote:Well. I wont talk about p.e. But here are the money traps. Paka, sameer, nbk, olimpia, access, express. Eapc. IF you buy any of these and you lose your money. Dont say u were not warned. I was wrong only about access which was sold. NBK! those days it was trading in the 30's. Even though i was an amateur i still had it Sigh, Access... Sold too early coz I was speculating/trading on the price movements... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Wazua
»
Investor
»
Stocks
»
The 5 Value Traps of the NSE Investors Should Avoid
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|