a contrarian investor is someone who invests in companies being neglected or shunned by investors i.e when Cfc Stanbic announced their KSH 35M profits this year most people where quick to point out that it is just another SA business about to go bust in Kenya having failed to navigate the terrain but if u dismissed all this talk and bet and against the trend you will be 95% richer today,the same thing happened to KQ when they announced their record losses in June last year...it had lows of 20 bob again if you did bet against the trend u will be more than 100% to the good this...so contrarian investing works at the NSE...BUT before you bet against the trend make sure:
1.The company has good management
2.Its capable of digging itself out of the mess it is in.
3.Check how the general industry it is in is performing i.e CMC and the Car industry.

Happy Investing-the deal

i saw a post by either @Sparkly or @ProverbB showing that despite KQ posting improved profits, actuall they were just calling on their fuel hedge. Their profit / revenue has come down 5 years YOY from 16% to 2.6%.

remember KQ is an airline, not a derivatives speculator. When valuing its stock, include its key #s (e.g. passenger #s, iceland volcano, cameroon crash claims, precision, etc) and ignore good luck (if you want to cash in on fuel hedges, also include that KQ earns in USD and hence earning affected by KES/USD rates)

But its a great stock for short term. All commercials are fantastic on short term as long as you keep your eyes open (if you nap, they will give you a very loud wake up call, e.g. UCHUMI)

Am considering it too.

I suspect that several people may pick similar stocks and real performance differences emerge mostly from number of transactions (costs) and portfolio mix.

What do you think?

imagine that if someone invested 1m and made 50% every year for 5 years, he would end at 5m. The #s are wilder at higher returns.

That’s part of my motivation for the best investor challenge - to determine realistic return rates.

5-year returns are as follows: 2.1m (20%); 5.1m ( 50%); 16m(100%); 39m(150%) and 81m(200%)

the upcoming spin off by CFC should provide contrarians with an opportunity to buy like @Sparkly said spinoffs tend to be undervalued and normally do well...a stock for 2011 is CMC dont get in now but wait till January 2011 when they announce their losses n then get in...

Neither... Politics is something i would rather keep out of... I'm just a woman in business... Didn't you notice jubilee's share price action when it was trading cum all after I said i would bid it up due to the low supply??

Musollini, Mbugua(Simon), Marende(philanthropic), Mungiki

@the deal that makes sense! At one time i remember asking her if she has access to pirate money lol

BTW, whats this with BBK and CFC. Employees are moving from BBK to CFC and i expect CFC to go up and BBK down. Am a bit confused

Like buying BP shares over the last few months....