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stock picking
guru267
#21 Posted : Tuesday, February 23, 2010 9:18:20 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
stock.enigma wrote:
What of negative pe like KQ?



@stock.enigma finance 101.. negative p/e is not used when valuing stocks because it is meaningless... its just there to show you the amount of loss the company made..
Mark 12:29
Deuteronomy 4:16
Scubidu
#22 Posted : Tuesday, February 23, 2010 10:23:17 AM
Rank: Veteran

Joined: 9/4/2009
Posts: 700
Location: Nairobi
@guru267. What are the recommended ways of valuing negative PE stocks and agriculturals?
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
guru267
#23 Posted : Tuesday, February 23, 2010 11:38:04 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
@scubidu..i have no comment on agriculturals because i must admit they are extremely hard to value....

but for stocks with negative p/e one just needs to look at the company first and find out its previous profitability, the nature and cause of the loss, the management structure/activities,the number of years it has been in profit/loss and cashflows/reserves...

after all that then the best way to value a negative p/e stock is to use the Net Asset Value per share...


Mark 12:29
Deuteronomy 4:16
Chaka
#24 Posted : Tuesday, February 23, 2010 11:54:05 AM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
Can someone explain to me what determines the number of shares a company issues or is worth?
guru267
#25 Posted : Tuesday, February 23, 2010 12:23:49 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
@chaka... i hope you know shres are issued when the compnany is being set up and not when its listed on the stock exchange so it all depends on the directors and the price is also determined by the directors depending on how much capital they want to raise
Mark 12:29
Deuteronomy 4:16
VituVingiSana
#26 Posted : Wednesday, February 24, 2010 3:30:57 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
Buying agricultural stocks is similar to buying real estate...

The cash returns (dividends/rent) are 4-6% but the gains come in when the farms are sold...

Real estate (well, not the slums!) needs constant care. You get rents but then have repairs, taxes & vacancies...

Agriculture stocks have the same problems & opportunities... Good rains, high commodity prices, etc make more good 'returns' but often ploughed back in for new fences, new plantings, new machinery...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mkonomtupu
#27 Posted : Wednesday, February 24, 2010 7:59:50 AM
Rank: Veteran

Joined: 2/10/2010
Posts: 1,001
Location: River Road
Anyone know what is happening in Rea Vipingo? The price has been going up the last few days.
VituVingiSana
#28 Posted : Wednesday, February 24, 2010 8:21:40 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
Kuna kitu at Rea Vipingo... All of a sudden there is lots of demand... the price rise has been 17% in 2 days...

The year end is 30 Sep so I do not know what is driving the price unless someone knows something we do not...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mv_ufanisi
#29 Posted : Wednesday, February 24, 2010 8:36:49 AM
Rank: Member

Joined: 1/15/2010
Posts: 625
@VituVingiSana
Your eyes are all over the market searching for bargains.
VituVingiSana
#30 Posted : Wednesday, February 24, 2010 8:58:04 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
mv_ufanisi wrote:
@VituVingiSana
Your eyes are all over the market searching for bargains.

Isn't that what all of us should be doing?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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