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Cooperative Bank versus Mumias.
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mwala
#11 Posted : Tuesday, February 23, 2010 12:44:52 PM
Rank: Member

Joined: 9/22/2008
Posts: 79
A stock is as good as it is making money.Our market is rather imperfect and i must say that fundamentals don't always work.I heard somebody say truth is synonymous to workability.
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wote
#12 Posted : Tuesday, February 23, 2010 2:54:54 PM
Rank: Member

Joined: 10/18/2007
Posts: 217
This is how i would be guided as an income investor,
a)I Put say 90k in co-op and wait to get a dividend of 9k at 10cents a share and a acapital of less than one shilling ayear or
b) put the same amount in mumias, get a dividend of 36k a year and a capital gain of one shilling a year before moving out.
I would definately invest in mumias, the two cannot be comparable.
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cnn
#13 Posted : Tuesday, February 23, 2010 3:45:58 PM
Rank: Veteran

Joined: 6/17/2009
Posts: 1,627
@wote,you point comes through but the dividends in the above case would be 900 bob and 3600k only.
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2012
#14 Posted : Tuesday, February 23, 2010 3:54:41 PM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
wote wrote:
This is how i would be guided as an income investor,
a)I Put say 90k in co-op and wait to get a dividend of 9k


If this was possible we'd all quit our jobs and put the pension in co-op!

BBI will solve it :)
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Gordon Gekko
#15 Posted : Tuesday, February 23, 2010 6:43:37 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
@wotw, cnn. You are both wrong on dividends. You get it less with holding tax of 5%. If it is an income stock for you, you are best off selling cum div, that way you will have made your margins and the buyer will pick up the tax.
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sparkly
#16 Posted : Tuesday, February 23, 2010 8:59:08 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
wote wrote:
This is how i would be guided as an income investor,
a)I Put say 90k in co-op and wait to get a dividend of 9k at 10cents a share and a acapital of less than one shilling ayear or
b) put the same amount in mumias, get a dividend of 36k a year and a capital gain of one shilling a year before moving out.
I would definately invest in mumias, the two cannot be comparable.

capital gains are a result of re-investment of the company profits (instead of paying div) hence you should expect more capital gains from the company that retains more profits.
Life is short. Live passionately.
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VituVingiSana
#17 Posted : Wednesday, February 24, 2010 3:26:01 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
mwala wrote:
A stock is as good as it is making money.Our market is rather imperfect and i must say that fundamentals don't always work.I heard somebody say truth is synonymous to workability.

All markets are imperfect... Ask Warren Buffett... It is NOT about 'inside information' but information that people do not care to find out coz of time/knowledge constraints...

IMHO... if you buy on fundamentals... in the long run, you will be OK... except for the political risk!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#18 Posted : Wednesday, February 24, 2010 3:27:32 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
Don't forget TRANSACTIONAL costs... If you sell Co-op & buy Mumias... you have to consider the 'sale' + 'purchase' commissions as well for the 'switch' or re-allocation...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mwala
#19 Posted : Wednesday, February 24, 2010 7:30:36 AM
Rank: Member

Joined: 9/22/2008
Posts: 79
Commission and other expenses regardless,mumias remain the best;Consider selling 20k coop shares at 9.75.That accounts an expense of 5k.Again buying Mumias at 10.50(factoring in the transaction fee) that gives me 18k Mumias shares.Selling Mumias by the end of the year at 15 bob gives me 240k.240k>190k if my arithmetic serves me well.Plus a dividend cheque say 7200
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Njung'e
#20 Posted : Wednesday, February 24, 2010 7:49:19 AM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@All,
As we post on Co-op and Mumias,take time to say a prayer for Dr. Evans Kidero,the MD MSC who lost his beloved wife late last week.May God give him and his family the strength to overcome the loss.
Nothing great was ever achieved without enthusiasm.
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