My picks this week:

KPLC
- New restructuring plan has scant details but folks are still digesting it.
- Rains should lower electricity costs boosting consumption in 2010
- New sources of supply should mean no more rationing thus sales increase
- New emphasis on cutting losses through theft should increase PAT
- Low P/E even after accounting for the preferred dividend
- Only 79mn shares of which the bulk are tied up with GoK,NSSF & other larger institutions. A small float means buyers find it tough to accumulate shares unless they increase the price.
- Closed at 147 but I think it can hit 160 this week

KQ
- New destinations should boost sales/revenues & profits
- Lower oil prices ($80 vs $147) should cut operating (non-hedged fuel) costs
- Higher oil prices ($80 vs $50) should provide gains in hedged positions
- I am not sure which out-weighs the other (hedging costs vs spot fuel purchases)
- Higher labot expenses but hopefully KQ can squeeze better productivity
- Low P/B (0.72)
- Low P/E
- Closed at 29.25 but I think it will hit 31 this week

Safaricom
- Huge foreign demand
- Huge gains in data usage especially after recent 'free modem' promotions
- 200/day unlimited opened data use to thousands of Kenyans
- Closed at 4.80 (VWAP was 4.50) but I think 5/- is a given.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

KPLC & Safaricom are up 10% already (1 hour into trading). Demand > Supply for both.

KQ is trading at Friday's VWAP... and demand is likely to push it up...

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

Access kenya anyone? Those somen brothers should hype this stock just like MJ did for Saf.

...KPLC is soaring.....

@Impunity

v I might be lagging behind on this 'Tana Green project having been given the green light from NEMA...'

v Please,give me a life line or link to the said article or hint at the source

v Will be thankful for it.

v To me,Tana Green Project is the determinant of Mumia’s success story or its failure.

v Just a thought,did you know you are in the Waki list?

v I am optimistic they give inmates at The Hague a laptop.


>>>>>>It saves you hell if you treat new acquaintances as enemies consistently until each proves otherwise or confirms - Jsanchiazh.
>>>>>>>In life,there are three classes of people,those who make things happen,those who watch things happen and those who ask what happened. Where do you fall?

KQ - 34 (Supply is weak but coming in slowly)
KPLC - 160 (Lots of trades. Mainly foreign buyers)
Safaricom - 4.90 (I think the demand is building & 5/- is a real possibility)

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

akili mingi na pesa mingi.......how do you tell who is buying in reference to 'mainly foreign buyers' ?


i love your smile....

@mlefu - KQ at 36.50 & 94% of the net buys by foreigners...

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

diversify on low p/e counters and wait patietly

@Pierce - Why not?

BUT the ins & outs in an illiquid exchange means they probably prefer to stay in for longer...

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB