Why is KCB's price going down when everyone else is rising? I still wonna add to mine to even out for ones i got @ 28 ages ago.. Does someone know something i don;t or is a speculator pushing it down then to buy loads?

KCB.........a sleeping giant.Good for medium to long term.

What a nonsensical assertion/question!

"is a speculator pushing it down then to buy loads?"

1) If that is 'true' then you should buy coz they are selling them cheap

2) Even if the 'speculator' pushed the price down... who will sell to them (speculator) at the lower price?

3) Stop whining & read this story:
http://www.nation.co.ke/.../-/r3yp2nz/-/index.html

4) KCB loan book has huge amounts of poorly performing debts... We had Uchumi, then Triton now Panpaper, kesho KPC...

Bwana gatoho, It is simple. Really.
[Maybe the usual crappy politics are getting to me. I work so hard, pay taxes & the thieves get away.]

Ok, back to you... Again, pole... (tho I have no idea how this relates to Murdoch) Often, folks ask questions without thinking about it a little more...

KCB is a relatively liquid stock (by Kenyan standard) so there tends to be demand/supply at all levels... and the price would adjust to any 'mismatch' pretty fast.

Someone who wants to drive the price down has to continuously sell shares at lower prices. For KCB (among other liquid shares) then buyers will show up thus defeating the ability for the speculator to mop up shares at a lower price.

Also, unless there is fraud (or a rumor), why would someone sell their shares at a lower price to the speculator?

My point is that it is self-defeating for the speculator to try to drive the price down... He might sell 1,000,000 shares to drive it from 22 to 20... but can he buy back 1,000,000 at 20/-? Probably not...

I am a fundamental (not technical) investor... So if I think 22/- is a good price (which I think it is even with all the scams/bad loans!) then no point in selling at 22/- or 20/-... In fact, if the price fell to 20/-... I am a buyer!

KCB didn't have a good 2009-hence the retrenchments and the falling price.
I don't believe KCB in its present shape (i.e. without a world class risk-management system) will ever get beyond being a behemoth without the requisite returns. Its cost/income is the highest of any of the listed banks and it never really talks about how its going reduce it or at least increase revenue per employee.
Retrenching 1,000 employees will probably save at most, Ksh150m per year and at that not even this year.
Then as vvs mentioned, all the potentially huge loan write-offs and don't forget the pension-thingy...

@gatoho with the benefit of your dialogue with vvs, the answer is very simple- demand vs supply. The company is fundamentally sound but even a good company takes a beating now and then. Of course You reduce your risks when you buy low.

You got me there @ Vitu. Yeah I meant bid but as you can see I am In Kandara so abit behind though in the village Am Chief!

@vvs,hope you never dream of being a lecturer or something in that line.You seem to have little patience for persons showing the slightest knowledge gap or at least showing it.

Interest income is actually why banks are doing this business.

A bank without Assets(loans) is in the wrong business, and a bank that is lending non perfoming loans is at risk of shutting down as its not only LOOSING interest income but at risk of loosing its depositors money(Liabilities).

And is it just coincidental that KCB has been lending to this companies that are folding up?

The lending of huge amounts by banks to coporates is through the advice of Coporate managers of the bank. They have been doing a shoddy job in accessing the credit worthiness of these companies.

I want to believe and also that they are at the top of the list of 1000 that are going home.

@vvs



Uchumi is out of the woods, at least there is nothing to worry about there.

Triton - KCB is well covered with the securities that were charged and of which some have already been sold - nothing much to worry about.

Panpaper - in all these, even if they go bad, the bank is only affected if it cant realise its owed amount through the securities it is holding....