@stocksguru, relax the most important thing for an investor is emotionally stability if you believe the fundamentals of a company are right then stick to it. I watched NIC tumble from 55 to 23 last year I didn't panic because I knew the fundamentals were right so I bought more at 23-25 range. I bought into Uchumi starting from 10/= and I watched tumble to 6.80/= and I put my thoughts on wazua where people expressed pity that I was buying a monkey which would hit below 5/= but I didn't panic because the fundamentals were okay and I took a major plunge at 6.80-7.20/=.The rest is history

@Mukiri there is lots of uncertainty about the company's future but they are still in profits and pay a dividend. Sugar is a basic commodity so chances of a complete wipeout are low. The charts for the stock are also predictable. With MSC i trade technicals not fundamentals.

I believe what @aguy has said is the best advice.If you cant handle the stress of selling your current counters at a loss,then dont average down...just start afresh with new counters and new cash. #goodluck#

My anthem all along in my years trading stocks from paper to electronic has been that long term is a summation of short terms and that a bird in hand is worth 2 in the bush.
I only do a max of 3 stocks often 2 which I always monitor every day. Here im talking about price,any changes in management of that coompany,action of competitors,macro economic environment etc. Truth is it's easier for you to know almost everything about something as opposed to something about everything.
These 2 stocks must be:
1) Growth stocks - Doing profits of 40% plus or have future potential.
2) Liquid - Very important coz of ease of entry & exit.
3) Darling of foreigners/Elicit foreign investor interest.
Im currently invested in Safaricom & KCB.
The picks keep changing depending on the fortunes of the company. For instance,i dumped Equity for KCB in October 2011 & I have been trading it since then(buying in dips & selling in surges). Waiting to see its Q1 2013 to know if it'l still be in my best 2. Equity bank kept me going from 2006-2011 due to its high growth rates then but clearly KCB has been able to come out strong since. Before that I had EABL,MSC, & KQ which I dumped in 2004,2005 & 2006. Safaricom also meets my above criteria & will still remain in my portfolio.

I have also learnt never to get emotional with stocks. If they cease to meet my criteria outlined above,i dump them like yesterday. Case in point is EABL, KQ,MSC & Equity & that todays winners are not necessary tomorrows,hence the need to constantly evaluate & revise your stock picks.

There is also the need for timing. To know the best time to get in & also out. Greed & fear are always at play. Managing these makes all the difference.


Happy investing @stocksguru. Hope 2013 works out for you investmentwise!

Be blessed!

Ever since I started investing,I have learnt the following lessons:-
Predicting the direction of a stock is a futile exercise,so I always refer any investor to the allegory of Mr.Market by Benjamin Graham.Since my pessimism extends to the point of not trusting the books of a/c of all companies,I only buy companies that have a dividend yield of >8%...I am of the opinion that dividends can be used to measure the health of a company sice you cant give what you havent earned.As the yield increases,the price falls,meaning I automatically buy at low prices.I also know that it is necessary to take the guesswork out of investing,so I average down with my first batch bought at 8% dividend yield mostly after books close.I diversify to a maximum of four counters.

@Mukiri,the 3 other counters you've mentined are great particularly in the sectors that they are in. but jus make sure you dont over diversify. Focus is key. Also make sure your broker is not only reliable, but available to place your orders immediately.
All the best in 2013!

Which 5 are these?

Thanks for the insight, how exactly will Access recover unless if it is bought off by Safaricom

Jamii with their FIBA is busy eating away at Access's high end residential business, they have extended deeper into Karen, Runda, Loresho and Muthaiga. On the other hand Safaricom has has gone flat out with WiMax installations and the retail market.

Another party taking away business from Access if their former partner now operating as Xtranet. An with Altech looking for a buyer to take over their stake in KDN it seems the fiber to the building/home business in Nairobi is over saturated. Almost forgot about FON who have the backing of Soliton are a formidable player who cannot be ignored.

Bell has pulled another one from his hat with the 7 Billion investment to roll out triple play in the middle income areas of Nairobi of which Access blatantly ignored when they had the opportunity.

I cant make a case for ACCESS, but of the shares you own, i think it has the better prospects share price wise.