@ CNN: The payday for KK is only 2-3 months away and will be 25% greater than if i cashed in now.
KCB will most probably remain in the Ksh 23-25 range within this period (8-10% upside within 2-3 months).

The dramatic rise in price for KCB to the 40's will be achieved in 2013 based on an EPS > Ksh 4.00 and after the elections are done and dusted smoothly.

@ PKoli: Rea Vipingo has multiple advantages which include: The land (about 70,000 acres in total spread over 2 countries); Decent dividends (almost 7% yield at current prices); Business diversification to horticulture - the planting of higher value crops should have a dramatic effect on their revenue especially from 2013 onwards; Price stagnation - the technical analysts will tell you the price has stagnated at the Ksh 15-16 for too long and is destined for a break out.....(Hisah,QW....am i on point??).

@ Young: What is holding KCB back (and the whole NSE in general) is the forthcoming elections within the next 9 months. A price explosion after elections is guranteed.......KCB with a dividend payment of about 50% out of profits and growing an EPS at > 20% annually should ideally be trading at a P/E of not less than 10.
On Rea Vipingo.......demand has been 10 times the supply for more than 2 weeks. The share price is going north for sure.

Happy Hunting.

@ CNN: The payday for KK is only 2-3 months away and will be 25% greater than if i cashed in now.
KCB will most probably remain in the Ksh 23-25 range within this period (8-10% upside within 2-3 months).

The dramatic rise in price for KCB to the 40's will be achieved in 2013 based on an EPS > Ksh 4.00 and after the elections are done and dusted smoothly.

@ PKoli: Rea Vipingo has multiple advantages which include: The land (about 70,000 acres in total spread over 2 countries); Decent dividends (almost 7% yield at current prices); Business diversification to horticulture - the planting of higher value crops should have a dramatic effect on their revenue especially from 2013 onwards; Price stagnation - the technical analysts will tell you the price has stagnated at the Ksh 15-16 for too long and is destined for a break out.....(Hisah,QW....am i on point??).

@ Young: What is holding KCB back (and the whole NSE in general) is the forthcoming elections within the next 9 months. A price explosion after elections is guranteed.......KCB with a dividend payment of about 50% out of profits and growing an EPS at > 20% annually should ideally be trading at a P/E of not less than 10.
On Rea Vipingo.......demand has been 10 times the supply for more than 2 weeks. The share price is going north for sure.

Happy Hunting...

At what p/e was citi estimating for the above banks given it disputed their accounting for the FY results?

Seven months down the line and the scenario is as follows:
1. KK - (Purchase Price=Ksh 9.30; Dividend since purchase=Ksh 0.43). With the expected buy out, it seems to have found some price stability at Ksh 16. Am holding out for Puma cash which i anticipate will be > Ksh 20 (at least 25% more than if i cashed in now).

2. KCB - (Purchase Price=Ksh 15; Dividend since purchase= Ksh1.85). The price seems to have stabilized at Ksh 23-23.50. It is still undervalued; price target is Ksh 40 by April 2013.

3. Williamson Tea - (Purchase Price = Ksh 186; Dividend since purchase = Ksh 57.50). The 2nd half of their financial year was greatly affected by weather. However, they still managed to announce an EPS of Ksh 93 for year ended March 2012. Of importance is that for the last 3 years, the company has announced EPS in the range of Ksh 93-97 hence signaling a new high normal in profitability. Remove the biological assets (non-cash profit) component from the profit and this gives cash profit of Ksh 50-60 yearly. The tea prices are currently at new highs ($3.70-3.80 per kg) and with the precipitation experienced over the last few months, a possible continuation of this trend in profitability is expected.
The company has given me a dividend yield of 31% within 7 months!! Am holding onto this one as the future looks bright for Williamson tea (and also my price target of Ksh 400 is yet to be met).

Going forward:

I am currently accumulating the following 2 counters:

1. Rea Vipingo - At Ksh 16 - 16.50; The company announced above normal EPS last year (Ksh 7.79) which the market assumed was a one off. However, half year March 2012 produced an EPS of 3.47 (Versus Ksh 2.56 for 2011) which indicated last year’s profits were the new normal and could be replicated easily this year.
The diversification into horticulture seems to be paying off handsomely (they leased some land in athi river (130 acres) which they are growing baby corn, etc for export in addition to their horticulture project at Kibwezi (250 acres)).
Last year, they raised their dividend from Ksh 0.80 to Ksh 1.10, and I project at least a dividend of Ksh 1.50 for the year ending September 2012 based on a Ksh 6-7 EPS for 2012.
They hold enormous real estate in Kenya and Tanzania (In Kenya – Kibwezi: 22,215 acres; Vipingo (Near the exclusive Vipingo Ridge): 10,575 acres http://www.businessdaily.../-/wghxkwz/-/index.html
; and Tanzania: 36,660 acres) and are constantly increasing their sisal acreage. The diversification to horticulture is a sound strategy for this agribusiness company. This is a company to watch going forward.

2. KCB – The price of Ksh 23.25 - 23.50 is too enticing to ignore what with my price target of Ksh 40 within the next 10 Months and a dividend of Ksh 2 for 2012.
Happy Hunting.

Stockmaster,
Please check your mail......

@gatogo,
Check your email brotha