SittingPretty wrote:dunkang wrote:SittingPretty wrote:Really new at trading, bought the following stocks( my first in Jan)CIC(4.0),SCOM 5.8, MSC5, BRITAK(6.9) and KQ10.8. Advised by my inv banker offcourse. Only two counters have stood so far.
I have gone through the fundamentals, including industry outlook but I can't get to piece through the clatter. My gut, call me a wanjiku, tells me KQ and MSCS, despite the legal farm tussles, could firm up in the long run. Whats your take Wazuans!!!!
Am just wondering what reasons your investment banker gave.
- CIC @4.0 is a NO with all information at hand,
- SCOM @5.8 for a long term investor, i.e +2 years,
- MSC @5 OK with me but +1 year,
- KQ for free, still won't be in my head,
- Britak @6.9, i just don't know, data at hand sketchy
Going back, Still holding SCOM offloaded the rest and boarded NIC at 46.
.Wazua saved my money and Stomach!
@SittingPretty, I just saw this thread. Here's my two-pennies worth...
Nice to hear that you're still interested in investing after only 8 months (I think you said your first investment was in Feb 2013?)! Please take all the advice you can get (Kenyan "Investment Banks", Wazua, friends, family) and also invest time in online research. Then figure out what works best for you, but always look at the underlying nature of the companies you invest in, the industries, the economy, etc. It's your hard earned cheese, so don't let anything other than an informed decision guide you in how you invest it.
Conventional wisdom suggests that a long term investment in a well researched portfolio will always beat out a speculative short-term investment. Short term would mean holding an investment for anything less than a year, except, of course, if exceptional circumstances dictate otherwise. Getting in and out of the market the way you're suggesting puts you in the league of the speculative investor.
Please note that - in my humble opinion - there are no real indigenous investment banking houses in Kenya at the moment (assuming you would want to support a Kenyan business rather than an imported one). There are a few indigenous stockbrokers who have been given (or have bought) Investment Banking licenses, but this doesn't make them true investment banking houses.
An investment banking house makes its real money by trading on its own book, not by making commissions on its customer's account or giving transaction advice. All the indigenous investment banking houses continue to behave like stockbrokers and transaction advisors despite the hugely expensive licenses that they hold. CMA is largely to blame for this because they should specify what an investment bank does - but that's a whole other story for another time and day.
This begs the question - why not separate their stockbroking and advisory services and get separate licenses? It would be cheaper for them and they could really shine as stockbrokers, making bigger margins than as "Investment Banks"... but then again, they would not have the prestige of the moniker, eh?
Anyway, please think of building a portfolio based on the fundamentals of the target counter companies. And don't forget to diversify into debt instruments and other investment vehicles (e.g., the Kenyan favourite - property).