Hello Wazuans!

I interviewed a few analysts on what they expect from the NSE's banks this year (and added my two cents, too ):

Will Kenyan Banks Sizzle or Fizzle in 2014?

Would love to hear your opinions here or in the comments!

Happy investing and have a great weekend!
Ryan

Very will written @hooverl, how did I miss it!

My Take

When trying to unearth value in banks, I like stocks with low price/book ratios and high returns on equity (ROE).

As you can see in the chart below, such bank stocks are scarce as hen’s teeth in today’s market.


While the sweet spot in the upper left hand corner of the chart is empty, there’s a bunch of outliers in the upper right hand corner. These are very profitable banks, but their price is steep. Look for them to underperform the sector as a whole in 2014. Co-operative Bank, NIC, and Housing Finance look like better values.

In sum, I expect most Kenyan banks to finish 2014 higher than where they started, but I don’t expect the sizzling performances of 2013.

Nice and succinct perspective. Though i feel KCBK, DTKL and COOP are too close in the graph to be separated. Plus, a forward looking perspective (arrows showing anticipated movement on the chart) would be good - for example DTKL should love left, towards the 'sweet spot', while BARC should stay where it is (or move down).

Otherwise, quite a nice and simple perspective that is difficult to fault