The counters we believe have immense room for growth, and are good for long term investment are :-
· Kengen - Valuation Kes. 20.
This counter is at a high but is yet to hit the valuation of Kes. 20 per share based on its monopoly on power generation, raising further capital through their infrastructure bond as opposed to a rights issues that would have adversely affected an already undervalued counter, great half year results and an expected smooth CEO transition
· Kenol Kobil - Valuation Kes. 16
This counter has a conservative valuation and is grossly undervalued at current levels due to the PUMA merger deal gone south. This represents an opportunity to get the counter at a bargain, since their poor performance was due to hedging losses and not a fundamental deficiency in their core business.
· Total - Valuation Kes. 30
Total has a backing of their multinational parent company who owns 93% of the company, hence making it a stable company. The valuation of Kes. 30 per share is also a net asset value, which has not taken into account their 2013 strategy in growing the oil company.
·NBK - Valuation Kes. 36
Though the bank did not perform well in their 2012, the new CEO from Standard Chartered has already put in place a strategy to expand to various counties to tap the new resources available as a result of county devolution, the aggressive plan also includes restructuring staff to have a bigger business development team as opposed to operations, all this with a view of putting costs down and getting more efficient