some general knowledge !!!!!!

In my books,price to book value of less than 1 is cheap for a stock since one is

buying at less than the intrinsic value of the company...Debt to equity of less than

0.5 can make it cheap since debt is fairly manageable...Another thing if P/E of 8 or

less leaves room for little downside risks but also alot of room for high upside

returns.finally a stock can also be cheap if dividend yield is higher than the

inflation rate...

As for kENOLKOBIL.

I think you can still get in even now.... Remember that before split at Ksh 100.00

it's still had another 40 bob or so to go..at 140, it would have be at a fwd pe of

10 and a current/trailing pe of 15 which is it's correct value.Now after split then

its corerct value becomes Ksh 140.00 /10 = Ksh 14.00 .This is the target price after

the full year results.Then add the speculation movement as the half year results get

factored in and i expect the share to move even higher breakin Ksh 14.00

resistance.So again, KENOLKOBIL is a BUY. BUY .BUY

More thoughts.....


KCB has been trading at 18.00-19.00 range all week.I am increasingly of the View

that the Price is within a whisker of its lows for the Year and actually moved

preemptively ahead of the Rights Shares Supply. Moreover, that the Rights Issue

represents good timing ahead of a Game Changer Type Acceleration across the KCB
Franchise.

KenGen for the past week has been trading at 17.00-17.10 range. KenGen is well

supported here and the News Flow will continue to support.

Centum.The Re Engineering deserves a prce of 25.00 which is
where we are headed.So @ Wilison,@ the deal , @vvs ,@ guru hold your horses.

EABL was unchanged at 179.00 and traded 13,300 shares. Thinning
Volumes confirm Supply exhaustion at these price points and probably
an imminent move higher.

On KenolKobil... I agree with @qw...

I have been bullish & when the (false) KPRL story came out it spooked people... Thank you Daily Nation!

The price fell to low 90s & I picked up KK between 90-100 (as I managed to get some cash)...

I admit I didnt expect the post-split to be stuck below 10/- but I like the Management & the CEO was very optimistic at the AGM about 1H 2010.

I thought KK would release 1Q 2010 results like Total but nope... So IMHO, they didnt want to get caught in the public eye coz of talk of price controls...

I have not sold my KK... and will hold out for 13/- by April 2011...

VVS, never thought I'd live to see the day when you say/write those words

@qw i have a book on TA i think it can help you....