This company will surprise us with the growth in the export business.Exports have risen to more than 40% of revenue.
The Anti smoking Legislation will make it harder for new competitiors to get into its market.i.e. the cost of doing Tobacco business will rise
I also like its dividend yield at >people tend to forget the other side of investment gains is dividends Not only capital gains.
On the other hand, the market may well ignore it.At sh190- sh200 its too expensive for the average retail investor.
Going by the latest half year and quarterly results Earnings will double.The only darkside is the rising Non Performing assets.The performance is beyond the 40-60% earnings rise predicted by the management during the NSE listing.
It has good management and it still isnt all over the country.
I hope all those retail investors who bought start cashing out soon so that i can get in at a nice price i.e. under sh.26.
Its well run.The only problem is that its under the State Corporations Act meaning that a new Government in 2008 will lead to changes in the management
I expect earnings to decline but management may retain dividend payout at sh2.50 or Sh2.00.I'll increase the stake coz i love the dividend yield.
I dont know how the energy bill will affect the Oil sector.Will let u know once, i read it.
5. Standard Group
Perennial laggard but has impressive assets i.e. KTN Tv and the Newspaper distribution service.This is a company crying out for a takeover and management turnaround.
I will buy it speculatively,since i'm sure that in the next 18months somebody will make a bid for it.
I hope they set up an investor section on their website like Nation Media group.Otherwise, how will potential investors get financial information on the Group?
I only buy companies that are doing well/well managed in their sector and have room for long term growth(i dont worry too much about the share price as long as the P/E isnt too high).