Rank: Member Joined: 3/26/2012 Posts: 830
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mibbz wrote:S.Mutaga III wrote:Regardless of all the positivity about this stock, which I believe is valid, the P/E is not low enough to excite me. As a disciplined investor, I will let this one pass purely because of its P/E. @Mutaga III i repect your trading/investing strategy but history has shown that price movement and action does depend not only on technical and fundamental analysis of a company but also 'market sentiment' which can be characterised as many things including emotions,brokers advising clients,gut feelings,insider information on deals,hype,wazua gurus giving the way foward etc.In a country like ours where information assymetry thrives backed with a skkewed principal(buyer) and agent(broker) relationship that ends with brokers advising guys on what to buy, I expect KK to gain leaps and bounds becasue the 'sentiment' is positive. Lastly I always tell guys,there is a lot f money floating around.Its bound to seek shelter somewhere exciting.This is exciting irrespective of fundamentals and its huge debt. Henceforth I am with the bulls on this, but cautiously optimistic at ksh 12.50 to 13 FY 2014. The problem is how to calculate your said factors. One can easily calculate P/E but I dont know how you calculate market sentiment. Calculating human emotion is an exercise in futility. Work with the numbers that you can calculate. Keep it simple. Read Sir Isaac Newton's bad experience with the South Sea Company. “I can calculate the movement of stars, but not the madness of men.” Check the image http://www.sovereignman....3/12/20131210-image.jpg
A successful man is not he who gets the best, it is he who makes the best from what he gets.
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