guru267 wrote:Buy Kenya re at below 10bob at a forward P/E of 2.5, a dividend yield of 6% and a price to book of 0.5...
I highly doubt any other insurance company will beat these potential returns
@guru. I agree.
I think New listings are harder to judge and more unpredictable.They tend to come down back to earth after a few years.
CiC is a VERY good company with a lot of potential. However right now it is too EXPENSIVE.
Surely even with all the growth potential(unless it will be like equity bank or ARM), what can justify it to trade at a pe of 15.00 as an insurance company or actually as any company in the current environment?
Either one of three scenarios will playout. Either CiC will be come down to near the value of its peers, or its peers will come up to near the value of CiC or it will go the ARM, EQTY,SCAN way but this is least likely.
The investor's chief problem - and even his worst enemy - is likely to be himself