Wazua
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Liberty Kenya 1H13 PAT up 50% on cost and claims containment
Rank: Chief Joined: 5/31/2011 Posts: 5,121
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the deal wrote:mwekez@ji wrote:the deal wrote:mwekez@ji wrote:the deal wrote:mwekez@ji wrote:the deal wrote:...theyre holding too much cash though...probably waiting for interest rates to go up...they have been in ascendancy in Q3...could probably spiral out of control in Q4 if eurobond fails to launch....with the cash they can sterilise their bond book or buy bargains.... More risk aversion > investment in bill and bonds. Cant they do better. Like Panafric and Britam real estate foray I wouldnt call it risk aversion...theyre investments are generating a lot of cash which is good...real estate?...very few properties offering yields of 13%...thats what Jammi bora was offering on its latest bond...well Pan Africa & Britam...I will just tell you...theyre earnings are too volatile for my liking....I like Liberty theyre building a predictable robust business...they just had to do some cleaning...I'm looking at those results & seeing some serious cleaning...before Liberty took over CFCI had a loan of Ksh500mn from NIC Bank...while generating billions in cash... By real estate am specifically refering to the developing of properties for sale. Very good money being made there. Far above what conservative investors in bill/bonds are getting. It depends on the cost of land...your selling price....I dont see property prices rising by double digits going forward...alot of buyers are already outpriced...if its real estate development then just buy Home Afrika...I think they have a better land bank than Pan Africa...property sales is also non recurring revenue..so it solely depend on how big your land bank is....now how big is Pan Africa's Runda land bank? Here, we are after an insurer that is utilizing the float to the maximum. I still see real estate yielding double digit return per annum for long. The industry is very far from maturity. Pan Africa Runda land bank is big enough and am sure the think tanks in the company have a plan for more #Watch the space Pan Africa is a speculative play...they will do well this year...but in 2014...they could issue a profit warning...I respect Sanlam but theyre not good at life insurance... LOL .... Pan Africa is a good investment ... lets compare notes in the 2014 when Pan Africa will still be outpeforming the industry.
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Wazua
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Liberty Kenya 1H13 PAT up 50% on cost and claims containment
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