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CFC Stanbic Rights
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mukiha
#21 Posted : Wednesday, October 24, 2012 3:15:40 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
msafiri wrote:
CFC Stanbic is one of the most undervalued stocks on the NSE (price to book value of 0.60) i.e the market value is less than book value and trailing PE is less than 6. The rights which start trading are at a 30% discount. So long as they trade at sub KES 10 prices, the rights represent incredible value. For a full report sign up at:

http://www.ashantiresear...esearch-reports_12.html



It's book value is misleading. CFC paid a huge goodwill during the takeover of Stanbic Kenya. It is equal to about half the net assets. That amount still remains in the BS as an asset...

If you knock it off, you find a very different NAV
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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Ericsson
#22 Posted : Wednesday, October 24, 2012 3:25:29 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,811
Location: NAIROBI
The Return on Investment is very low for the bank.
Smaller banks with smaller assets like NIC are raking huge profits compared to CFCStanbic.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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FUNKY
#23 Posted : Thursday, October 25, 2012 8:49:09 AM
Rank: Veteran

Joined: 4/30/2010
Posts: 1,635
Maybe someone knew about this yesterday http://www.businessdaily...-/126elghz/-/index.html
that's why the hight trade!!
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mwekez@ji
#24 Posted : Thursday, October 25, 2012 9:15:54 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
hisah wrote:
FUNKY on Wednesday, October 24, 2012 wrote:
There has been a trade of 3 million shares at 38/- today...


A turnover of 114M with a day low of 35.25/- This thing is pointing south. Also this volume of 3M share is the 2nd highest in the last 5yrs. The highest being 6M shares back in May 2011.


sib have said yesterday transaction was cross books trade by a foreign investor d'oh!
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xxxxx
#25 Posted : Thursday, October 25, 2012 11:18:31 AM
Rank: Member

Joined: 3/20/2008
Posts: 503
FUNKY wrote:
Maybe someone knew about this yesterday http://www.businessdaily...-/126elghz/-/index.html
that's why the hight trade!!


I think this is very lousy reporting by BDA.

If I remember correctly, CFC stanbic disposed of their interest in SIMS to Liberty Holdings in May 2012 for Ksh124M. Such a devt should thus not affect the banking arm but the insurance company.
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VituVingiSana
#26 Posted : Thursday, October 25, 2012 11:53:09 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
mukiha wrote:
msafiri wrote:
CFC Stanbic is one of the most undervalued stocks on the NSE (price to book value of 0.60) i.e the market value is less than book value and trailing PE is less than 6. The rights which start trading are at a 30% discount. So long as they trade at sub KES 10 prices, the rights represent incredible value. For a full report sign up at:

http://www.ashantiresear...esearch-reports_12.html

It's book value is misleading. CFC paid a huge goodwill during the takeover of Stanbic Kenya. It is equal to about half the net assets. That amount still remains in the BS as an asset...

If you knock it off, you find a very different NAV
Those are the subtleties folks miss when valuing firms!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#27 Posted : Thursday, October 25, 2012 11:55:22 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
Ericsson wrote:
The Return on Investment is very low for the bank.
Smaller banks with smaller assets like NIC are raking huge profits compared to CFCStanbic.
Look at 1/2 year results. Banks like I&M (traded though City Trust), DTB, NIC have 1/2 the assets of CSH yet PAT is the same as CSH.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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hisah
#28 Posted : Friday, October 26, 2012 4:06:35 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
mwekez@ji wrote:
hisah wrote:
FUNKY on Wednesday, October 24, 2012 wrote:
There has been a trade of 3 million shares at 38/- today...


A turnover of 114M with a day low of 35.25/- This thing is pointing south. Also this volume of 3M share is the 2nd highest in the last 5yrs. The highest being 6M shares back in May 2011.


sib have said yesterday transaction was cross books trade by a foreign investor d'oh!

Almost 2M shares traded today... VWAP @38/- Heavy share trading on CFC counter this week.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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FUNKY
#29 Posted : Friday, October 26, 2012 4:23:05 PM
Rank: Veteran

Joined: 4/30/2010
Posts: 1,635
Seems some good news are on the way...rights issue oversubscribed by a huge percentage!!
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sparkly
#30 Posted : Friday, October 26, 2012 9:06:35 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
VituVingiSana wrote:
mukiha wrote:
msafiri wrote:
CFC Stanbic is one of the most undervalued stocks on the NSE (price to book value of 0.60) i.e the market value is less than book value and trailing PE is less than 6. The rights which start trading are at a 30% discount. So long as they trade at sub KES 10 prices, the rights represent incredible value. For a full report sign up at:

http://www.ashantiresear...esearch-reports_12.html

It's book value is misleading. CFC paid a huge goodwill during the takeover of Stanbic Kenya. It is equal to about half the net assets. That amount still remains in the BS as an asset...

If you knock it off, you find a very different NAV
Those are the subtleties folks miss when valuing firms!


If i remember right the figure was KShs 13 billion?

It represents the "cash profit" paid to Njonjo and Co for them to give up their stake in CFC.
Life is short. Live passionately.
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