@S.Muthaga 111


Would have preferred to reach you directly but its not possible .

Yes your selection is good fundamentally but kindly be advised that you should not stay too long on this counter for 2 reasons

- It is illiquid low cap stock
- After this earning season stocks will retreat from late June, there will be market correction that will affect LKL negatively even though her Fy end is June and Q4 results is in Nov.

If I were you (though you are not me) I will try and exit at 6.63 still a tidy 43% gross off site which is excellent in a bearish market.

In general I kindly advise to deploy your intelligent strategy to liquid big cap stocks, so that if you make moderate gain 20 to 35% gain , you are assured of easy entry and exit, and in market downtown if you tarry a while you will make some gains

Typical examples includes

Safaricom 24/28
KCB. 38/45
EQUTY. 36/44
STANBIC. 83/100
EABL. 185/210
BBK. 10.50/11.90


I personally did badly in speculation in my first few years in NSE as I was mostly with low cap stocks like Mumias, Cables, Uchumi of yesteryears but for more than 10 years now I got born again as a long termer on big cap stocks.
Though I am not perfect but I can attest to incremental dividends like this year
on
KCB 2.0/2.5
EABL interim 2.0/2.5
BBK. 0.8/0.9
Safcom likely 1.10/1.20
COOP. 0.8/1.0
SCB. 12.5/14

The luggards in my portfolio are not doing badly dividend wise relative to last year

Bamburi 4/5.1
NSE. 0.3/0.49

Etc.



Different strokes to different folks.
I prefer to invest long term and stay with market leaders .

May be if I wanted to speculate further I would sticked to only the big 4. That is

Safaricom
EABL
KCB
Equity

For example for 3 years running 2017/2018/2019 cytonn has successfully made gains by positioning in KCB at sub 39 and exiting at sub 45 over less than a year period

Be rest assured as per your desire that you will still catch KCB at below 40 Bob.

Thanks and Regards

Mzee Young

Note:- 1 have 15 years experience in Kenya NSE as a non resident foreign investor .As a retiree part of my passive income is from NSE. Mainly dividends

I am a bit wary of KCB. It has become a saviour of struggling banks re. Imperial Bank and NBK which have alot of skeletons. Intergration might prove costly.

I am talking about KCB dividend reinvestment @Ericsson not the holding so you enjoy interim dividend on both the previous holding and additional units bought from FY dividend.
I meant if you buy the share in June/July and hold till around October you will enjoy the interim dividend

Safaricom HY results influences the price post HY but FY results does not affect upwards movement of price on the short term.

Do your research and thank me later (Re OBIORO my friend)
In January this year Safaricom hit a low of 21.30.That price you won't see while it's trading cum dividend.

Investors typical response to performance
and the general market pulse is more important than timing the counter.

That is my point.

@Ericson Wrote:-
I will wait for it to go below 40 during the low season of the NSE which usually starts from June when most companies will be paying out their dividends or from October when those that declare interim dividends will be paying out.
Target dividend yield is 9%+
The local lenders KCB is acquiring are at cheap prices
END

On point @Ericsson
For long termers you can equally get the KCB dividend and re-invest at sub 40 .

Fund Managers when injecting additional funds do invest in the stated period as it is cheaper than cum dividend .
Ask Cytonn & co......
Get to enjoy the interim dividend for this year and the full year

Safaricom is an exception this year because of extra dividend. It will be a good opportunity to get it at sub 27 in discourse at cum dividend plus special dividend as register closes Aug 30.
Her half year is early Nov, it is from then depending on the result it will gradually move north wards up until FY results in May 2020 before losing steam as it is now.

In that case I will just average down. There is no guarantee it will go below 40, so I would rather average down if it does, than stay without a position. I wouldn't be surprised if it rallied back to 45ish by end-month. For me it is a win-win situation. If it nosedives to Ksh 36 and the fundamentals remain intact, I will get the chance to buy more and lower my average buying price. If it rallies from here, I retain my current holding at and profit. If it doesn't go sub-40, you will be left without any investment trying to catch that bottom.