Rank: Elder Joined: 2/10/2007 Posts: 1,587
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BGL wrote:PKoli wrote:Aguytrying wrote:2.50 is the maximum price i would pay for Cic. there's no such thing as a special share. @Aguy, Unless you do not want to own CIC, you might have to wait a little longer. Two stocks taught me a lesson; 1. ARM was trading at 28 and I said the maximum I can ever buy is at 26. I had a few but would have added a significant number. I watched it go to 64 and stagnate there for a while. I finally added some at 64. I offloaded at 120. 2. I was encouraged by a friend to buy equity bank, after listing at KES 135. The share was trading at 140 when I arrived at the brokers office at African Alliance, then upper hill. I was to buy about 20,000 shares. I felt 140 was too high and only bought 2,000 at 135 and cancelled the order for equity. Obviously equity went on to announce a bonus of 2 for every one. The 140 worth share went to 300. The rest as they say is history. They also split it 1 to 10 Yeah, they split 1 to 10;
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Rank: Veteran Joined: 8/11/2010 Posts: 1,011 Location: nairobi
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CIC demand 163,500 supply 2,618,400 4.40 4.70 4
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Still early days but the share seems to have a lot of support above 4.00-4.50. 550m (tradable)shares is ALOT of shares hence the heavy supply pressure. but its holding up. so far, so good. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Veteran Joined: 10/11/2009 Posts: 1,223
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CIC Insurance acquires Sh1 billion land for real estate http://www.businessdaily...92/-/yk6ymo/-/index.htmlHistory will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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[quote=BGL]CIC Insurance acquires Sh1 billion land for real estate http://www.businessdaily...2/-/yk6ymo/-/index.html[/quote] Like everyone else. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 10/7/2010 Posts: 251 Location: nairobi
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and who would want to buy a house in isinya for 6 - 12 million?
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Rank: New-farer Joined: 9/11/2012 Posts: 12 Location: Bermuda
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Probably they ultimately have REITs in mind.....just a thought.... ...When they count the men who built Kenya, will you be in the list? I choose to go long term....
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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madebe wrote:and who would want to buy a house in isinya for 6 - 12 million?
CIC shareholders. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 7/6/2010 Posts: 242
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Houses between 7 million and 12 million in ISINYA on the higher side. There has been hype of middle class in Kenya,from my observation for You to comfortable service a mortgage 0f 7million You need to be on a salary scale of 250,000 Kshs gross.Below that utaumia.
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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House for 6mn with a deposit (down-payment) of 1mn = Loan for 5mn Assuming no principal payments in Year 1 means interest at 16% [HFCK] before other closing costs is 800,000 per year OR 66,666 per month. Add the following: Land Rates/Rent, Maintenance, Security, etc which can easily add 3,333/month to the cost. So the minimum cash outflow in Year 1 is 70,000. At a tax rate of 30% the 'owner' needs to make 100,000 per month just to pay the mortgage. What about other expenses??? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 7/23/2009 Posts: 526
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VituVingiSana wrote:House for 6mn with a deposit (down-payment) of 1mn = Loan for 5mn
Assuming no principal payments in Year 1 means interest at 16% [HFCK] before other closing costs is 800,000 per year. Ouch  Ouch Accept no one's definition of your life; define your life.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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VituVingiSana wrote:House for 6mn with a deposit (down-payment) of 1mn = Loan for 5mn
Assuming no principal payments in Year 1 means interest at 16% [HFCK] before other closing costs is 800,000 per year OR 66,666 per month.
Add the following: Land Rates/Rent, Maintenance, Security, etc which can easily add 3,333/month to the cost.
So the minimum cash outflow in Year 1 is 70,000. At a tax rate of 30% the 'owner' needs to make 100,000 per month just to pay the mortgage. What about other expenses??? ...that is why we have very few mortgages,with such a monthly payment ua take home must be very healthy... possunt quia posse videntur
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Have seen an Ad in today's DN by CIC regarding the purchase of 417 acres of land at Isinya at Kshs 723 Million i.e Kshs 1,733,812 p.a.Isn't this rather steep for land at Isinya??
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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I usually wonder if an investment idea is working so well and everyone starts doing it, will it continue to work(or be as profitable) in the future?? i dont think so The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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VituVingiSana wrote:House for 6mn with a deposit (down-payment) of 1mn = Loan for 5mn
Assuming no principal payments in Year 1 means interest at 16% [HFCK] before other closing costs is 800,000 per year OR 66,666 per month.
Add the following: Land Rates/Rent, Maintenance, Security, etc which can easily add 3,333/month to the cost.
So the minimum cash outflow in Year 1 is 70,000. At a tax rate of 30% the 'owner' needs to make 100,000 per month just to pay the mortgage. What about other expenses??? After doing some calculations i realised it doesnt make economic sense to chase owning a house in Nairobi. It may be the only thing you do till you retire. Either land prices will come down or stabilise and incomes catch up. What sense is there in buying a house that is double its real cost and taking a mortgage that will see you paying double the cost at the end of the term loan? this is just making banks and existing land owners filthy rich at ones own expense The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 7/6/2010 Posts: 242
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It costs about 2million to construct a bungalow and about 3m - 3.5 for a standard maissonnete , if You have a plot in Kitengela/ Ruiru / Isinya it would be wise to seek a construction loan , but how many banks are offering construction loans and at what rate?
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Price action since 3.05/- got interesting. 4 - 4.50/- level will be telling if that barrier region is vaulted despite the expensive P/E. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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And a high of 4/- trades (15.94%). Keep watching... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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FUNKY wrote:http://bit.ly/WQNfD4 Thanks for the pdf. I'm wondering. why is CiC telling shareholders to exercise caution, because they have bought land? If they were selling it would make more sense. this to me is just a way of giving the shares a boost (and its working) The investor's chief problem - and even his worst enemy - is likely to be himself
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