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> 10 % Dividend Yield........my new yard stick in NSE stock picking
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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stocksmaster wrote:If the end of year returns an EPS of Ksh 130 - 140 as i estimate it should, then a second dividend of Ksh 20 could be in the horizon.
Happy Hunting The 50 bob is a one off dividend.. The first & last time we will see one for the next couple of years... I do concur with a normal FY dividend of 20bob and an EPS of 140 for march 2012.. Though In this euphoria be careful about the risks for the company like kshs strength, stagnating growth in operations, tea prices etc These risks can damage EPS, dividends, NAV & the share price as has beenbseen in the recent past.. Anyone constructing a long term portfolio would be wise to avoid this company & sector.. Mark 12:29
Deuteronomy 4:16
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Rank: Veteran Joined: 11/11/2006 Posts: 972 Location: Home
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sparkly wrote:@Stocksmaster lend me your crystal ball for one month...   Ditto
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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the deal wrote:KCB is Sell. @90
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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the deal wrote:KCB is Sell. Get ready to swallow your words thursday 16th feb 2012 after results... Mark 12:29
Deuteronomy 4:16
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Rank: User Joined: 1/24/2012 Posts: 1,675 Location: In Da Hood
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Rank: Member Joined: 9/12/2009 Posts: 312
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guru267 wrote:stocksmaster wrote:If the end of year returns an EPS of Ksh 130 - 140 as i estimate it should, then a second dividend of Ksh 20 could be in the horizon.
Happy Hunting The 50 bob is a one off dividend.. The first & last time we will see one for the next couple of years... I do concur with a normal FY dividend of 20bob and an EPS of 140 for march 2012.. Though In this euphoria be careful about the risks for the company like kshs strength, stagnating growth in operations, tea prices etc These risks can damage EPS, dividends, NAV & the share price as has beenbseen in the recent past.. Anyone constructing a long term portfolio would be wise to avoid this company & sector.. Madam Guru267, So would you categorize the share as a buy/ avoid at the current prices?
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Rank: Member Joined: 9/12/2009 Posts: 312
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stocksmaster wrote:With the index first approaching the 3000 mark, my stock picking focus is now on dividend yield.
For my long term portfolio, i am focusing on stocks that assure me at least a 10% Dividend Yield at prevailing prices. My focus therefore is now on the following stocks:
1. Kenol Kobil - At Ksh 9.30, and with management having assured investors of at least USD 35M net profit (EPS of 2.15 at 45% dividend payment policy) with a dividend of about Ksh 1, this represents 10.75%. Am hoping for a price dip below Ksh 9.00 to undertake massive purchases although am already buying at prevailing prices.
2. KCB - At a projected dividend of Ksh 1.50 for 2011, the price of Ksh 15 represents a 10% dividend yield. Am buying at price dips below Ksh 15.
3. Williamson Tea - Having paid Ksh 15 dividend last year on an EPS of Ksh 97, the company made 91% of this money in 1st Half 2011 alone. Am projecting an EPS of Ksh 135 - 140 for the full year. The company is awash with cash and can comfortably give Ksh 25 - 30 as dividends for 2011. I'll be buying at any price below Ksh 250.
As prices continue to dip, my 10% principle brings more companies into focus.
Happy Hunting. Stockmaster, Please comment on DTB.I know it doesn't exatly fall in this new list of your preferred shares but I know last year you had bought a sizeable amount.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Wondergirl wrote:
Madam Guru267,
So would you categorize the share as a buy/ avoid at the current prices?
@WG at current prices this stock has some legs to go higher so it may be good for speculators.. The question for a long term investor is what next after books closure and what about the future¿¡ 1. As far as I know the company has no real expansion plan, so that means stagnating revenue going forward. 2. The company relies on a weak shilling and high tea prices to grow its revenue which is not a sustainable model. so for speculators the stock may be able to grow closer to 500-600bob but I do not see anything further than that for many years after that.. As a long term investor I look for stocks that can grow to 10 times their current value within 10years and I do not believe WTK is one of those stocks by any means.. Mark 12:29
Deuteronomy 4:16
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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@ Guru - they still have an option of a split in the future which can even take the price to around 1000/-.
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Rank: Member Joined: 9/12/2009 Posts: 312
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guru267 wrote:Wondergirl wrote:
Madam Guru267,
So would you categorize the share as a buy/ avoid at the current prices?
@WG at current prices this stock has some legs to go higher so it may be good for speculators.. The question for a long term investor is what next after books closure and what about the future¿¡ 1. As far as I know the company has no real expansion plan, so that means stagnating revenue going forward. 2. The company relies on a weak shilling and high tea prices to grow its revenue which is not a sustainable model. so for speculators the stock may be able to grow closer to 500-600bob but I do not see anything further than that for many years after that.. As a long term investor I look for stocks that can grow to 10 times their current value within 10years and I do not believe WTK is one of those stocks by any means.. Thanks buddy!
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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FUNKY wrote:@ Guru - they still have an option of a split in the future which can even take the price to around 1000/-. How does a split affect the value of a firm?? Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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guru267 wrote:FUNKY wrote:@ Guru - they still have an option of a split in the future which can even take the price to around 1000/-. How does a split affect the value of a firm?? My crstal balls tells me the value remains the same,but the share appears cheap in the eyes of @wanjiku. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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@stocksmaster, what do you plan to do with the 50bob from WTK? Eat or re-invest. If the latter, where? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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mukiha wrote:@stocksmaster, what do you plan to do with the 50bob from WTK? Eat or re-invest. If the latter, where? The interim dividend of Ksh 50 per share means that i will recover more than a 1/4 of my investment from WTK (purchase price of Ksh 186 in October 2011). I may decide to plough back the entire amount back to WTK if the price falls below Ksh 250 post interim dividend. The end of March 2012 results (in May 2012)may just deliver another 10% return on investment (read the post No.1 of this thread), duly exploiting the power of compounding. Happy Hunting
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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mukiha wrote:@stocksmaster, what do you plan to do with the 50bob from WTK? Eat or re-invest. If the latter, where? The interim dividend of Ksh 50 per share means that i will recover more than a 1/4 of my investment from WTK (purchase price of Ksh 186 in October 2011). I may decide to plough back the entire amount back to WTK if the price falls below Ksh 250 post interim dividend. The end of March 2012 results (in May 2012)may just deliver another 10% return on investment (read the post No.1 of this thread), duly exploiting the power of compounding. Happy Hunting
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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stocksmaster, not for the 1st time, you do justice to your name. A 26% dividend (interim) yield. You just blew apart the ROI on t-bills (and maybe even the NSE this year) thanks to your investment in WTK. Hongera! GOD BLESS YOUR LIFE
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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youcan'tstopusnow wrote:stocksmaster, not for the 1st time, you do justice to your name.
A 26% dividend (interim) yield. You just blew apart the ROI on t-bills (and maybe even the NSE this year) thanks to your investment in WTK.
Hongera!
Hongera kwake  . since this one has come true along with many others. Ile imebaki ni Kenol kobil(which also came 1/2 true with the 0.57 interim) fully fully The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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stocksmaster wrote:With the index first approaching the 3000 mark, my stock picking focus is now on dividend yield.
For my long term portfolio, i am focusing on stocks that assure me at least a 10% Dividend Yield at prevailing prices. My focus therefore is now on the following stocks:
1. Kenol Kobil - At Ksh 9.30, and with management having assured investors of at least USD 35M net profit (EPS of 2.15 at 45% dividend payment policy) with a dividend of about Ksh 1, this represents 10.75%. Am hoping for a price dip below Ksh 9.00 to undertake massive purchases although am already buying at prevailing prices.
2. KCB - At a projected dividend of Ksh 1.50 for 2011, the price of Ksh 15 represents a 10% dividend yield. Am buying at price dips below Ksh 15.
3. Williamson Tea - Having paid Ksh 15 dividend last year on an EPS of Ksh 97, the company made 91% of this money in 1st Half 2011 alone. Am projecting an EPS of Ksh 135 - 140 for the full year. The company is awash with cash and can comfortably give Ksh 25 - 30 as dividends for 2011. I'll be buying at any price below Ksh 250.
As prices continue to dip, my 10% principle brings more companies into focus.
Happy Hunting. The strategy is holding perfectly......... Happy Hunting
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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stocksmaster wrote:stocksmaster wrote:With the index first approaching the 3000 mark, my stock picking focus is now on dividend yield.
For my long term portfolio, i am focusing on stocks that assure me at least a 10% Dividend Yield at prevailing prices. My focus therefore is now on the following stocks:
1. Kenol Kobil - At Ksh 9.30, and with management having assured investors of at least USD 35M net profit (EPS of 2.15 at 45% dividend payment policy) with a dividend of about Ksh 1, this represents 10.75%. Am hoping for a price dip below Ksh 9.00 to undertake massive purchases although am already buying at prevailing prices.
2. KCB - At a projected dividend of Ksh 1.50 for 2011, the price of Ksh 15 represents a 10% dividend yield. Am buying at price dips below Ksh 15.
3. Williamson Tea - Having paid Ksh 15 dividend last year on an EPS of Ksh 97, the company made 91% of this money in 1st Half 2011 alone. Am projecting an EPS of Ksh 135 - 140 for the full year. The company is awash with cash and can comfortably give Ksh 25 - 30 as dividends for 2011. I'll be buying at any price below Ksh 250.
As prices continue to dip, my 10% principle brings more companies into focus.
Happy Hunting. The strategy is holding perfectly......... Happy Hunting very perfectly(double superlative), Williamson tea has swiflty come down, now at 235. Time to pull the trigger again? Do you think touching 200 is overly optimistic before end year results in may 2012? The investor's chief problem - and even his worst enemy - is likely to be himself
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> 10 % Dividend Yield........my new yard stick in NSE stock picking
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