guru267 wrote:shauriyako wrote:@all - Mumias stands out as the odd one out in my portfolio. I need to finish the realignment on my portfolio and the question that comes to mind is - Is there any chance that we will see a rally on this counter towards book closure? If I get out now I will lock in about 10% gain but with 50K units the potential dividends look good too. Your valued advise is sought on this, People.
@shauriyako this stock MIGHT rally towards books closure but even if it did it wouldnt make it over 13.8 bob.... then there's also the possibility investors will realise that they will lose more in capital depreciation than the dividends they'll make and they bail...
for example i only hold stocks for dividend if i'm sure theý'll go up after books closure...
trust me the investors who bought kenya re and safcom before books closure to wait for dividends know exactly what i'm talking about....
With the dividends of 40 cents, I do not expect any rally towards books closure. The stock was oversold after results were announced and the recovery could be based on price correction. However, the external factors like the rallying of world sugar prices, the critical drought in the Amazon region and hence reduced sugar production, could see some price upsurge. I am therefore taking a position at a price of KES 12 per share. I am targeting 40,000 units with expected returns of 22%. That should give a better X-mas than the gross dividends of KES 16,000 if I waited for dividends.