Most wanjikus suffer from cutting losses paranoia. They wont sell even if it turns into another paka story...

Kirita-thanks.
Agu-to be clear, in 2010 Britak made Ksh2.7bn PAT and it projected Ksh1.0bn for 2011 a 62% fall. Infact, the profit warning is rosier. Please confirm this is prospectus you saw http://bit.ly/Au1T1T
Btw, hadn't realised that the Ekweity duo still own 11% of Britak

LIAR, LIAR... I would bet a case of beer but I know you will never pay up...

It's a pity the government in its own capacity and a few wealthy who coincidentally exert some considerable influence in government decided to use the securities exchange as a platform on which to CON wanjiku rather than a platform to DO business with Wanjiku on a win win situation.

It was very obvious that BRITAK was offered at a very steep premium in a similar way to Safcom. Pity is some of the things promised by Britak will never see the light of day making one wonder what work CMA does when reviewing IPO memoranda. I doubt any regulator in any developed market would have allowed Britak to list at 9.50. I opined in this forum and even shared with the Transaction advisor that it made sense for Wanjiku to spend her money on Kenol shares (on comparative price basis) which were retailing at 9.40 cum div and were about to pay 52 cts dividend at the IPO time than buy Britak which was forecasting a payout of 55cts in 2012 from 2011 profits.

Presuming Wanjiku 1 bought Britak at 9.50 whereas Wanjiku 2 bought Kenol and went back to her shamba, Wanjiku 2 has to date received a 5% price gain, 52cts divy from 2010 results, another 57cts interim divy and confirmation from Bw. Segman that results for 2011 are beyond forecasts and there will be a divy which will likely be higher than the interim, in total a 22% return in a very ugly year assuming final divy from 2011 full years is at least equal to interim.

On the other hand wanjiku 1 is 51% poorer with minimal hope of an upside besides a market rally. CMA would have saved Wanjiku 1 all this grief by interogating Britak's forecasts and insisting they price much lower (closer to their true intrinsic value). Other than Equity bank's entry price, CMA continues to thoroughly fail Wanjiku and I can't comprehend how they keep renewing Stella's job!

@youcan'tstop us now, you need to spend more time on your books to understand what is the role of a CMA and why it's funded by the government aka Wanjiku. It's not a bureaucracy for receiving and stamping memoranda 'APPROVED'. It exists primarily to protect the investing public and preserve public interest.

It's the duty of the regulator to ensure that information issued to the public is factual and can be relied upon by the public when making investment decisions. The CMA actually reviews forecasts, assumptions and methodology used to arrive at the intrinsic value. Anyone can bring documents for review at CMA but if you must issue them to the public then CMA has to review their sensibility. Equity Bank is a case in point, they had an introductory price of 120p.s in mind but were forced to revise their forecasts and subsequent prices to 70. It was simple, the CMA then (before Stella brought her madness) argued that Equity could not grow loans and deposits at 100% yet the banking industry was growing loans at 25% and deposits at 20%. Off course Equity had a track record to back up their claims, but didn't have bankable future numbers.

In comes stella and we have Uchumi with fantastic sales projections, Safcom with superb data forecasts and Britak with very rosy investment income assumptions. Whose work do you think it is to stop this madness? Don't get mixed up by the definition of price discovery which is the price the buyer and seller agree to do business at assuming they have correct and factual information about a security. Price discovery is not Kamare, where one person hides a card in their fists behind their backs and asks you to discover which hand is holding the card.

I like this kind of argument. Kausha, I also doubt stella's credibility. However, CMA has changed with time. Previous CMA was more of a Criminal Mob Authority than a markets authority as they did not protect Wanjiku and bent all the rules to protect the brokers and the broken.

And as much as you castigate the CMA, people should always take personal responsibility for their actions

That would be shooting themselves in the foot, you have to agree. How many NSE listed companies have done this before? Did Equity do that? (I don't know)

Shouldn't the investor do this for themselves and then determine if he/she is getting a raw deal? Otherewise, that would be tantamount to 'kuwekewa chakula kwa mdomo, kutafuniwa na kumezewa' = kufundishwa tabia mbaya! (Brokers - who you pay - can do this for you) Hakuna cha bure

MPC MAINTAINS CBR @18% www.centralbank.go.ke

Kausha/Kihangeri, may I welcome you to Kenya. Kenya is blessed with healthy productive people (growing at 1million per year). Please help yourself to some of our chai.
Kenya has a CAPITALIST economy. This means I bring something to the market, you bring your money (shillings if possible unless you are from Somali) and we agree how much you'll pay for my something. Alternatively I put a marked price on my something and you have to decide whether its worth that price.

Karipu