Monday, September 04, 2006

Scangroup hits the market and more

Scangroup has hit the market but a bit more docile than the way Kengen did. sceptics who lost out on the Kengen euphoria still hold that even though scangroup is moving up slow but steady the prospects are not favorable for long term. pray, a company which made only 89 million, what would there be to gain? secondly its rumored that their main client is Coca Cola. move that out and you have paper in your hands. however these guys sell the most expensive of all assets, human capital or better human intelligence. but that which gives them their edge is what is their archiles heel. since if they lose their best talent to whichever firm, they lose out on the company. i need someone to explain to me then how the comapny has managed to stay in operation and indeed profitability for so long. the results were of course very disappointing!

EAC new shares start tomorrow in the NSE. trading at 67 . what will happen ? i speculate that this share will rally to 100 very quickly in the short term. long term prospects are dim and that is why i suspect that the powerful club will pick another underdog eg express and repeat the history. those looking for quick gains can rush to get it. but will it be available?

Kengen it appears that fund managers have managed to mop up the excess kengen shares in the market and shortage has begun hence the price is slowly moving upwards. i speculate that the power generator is looking for its cousin KPLC which is trading at 202 today. again the small guys will lose out just like in the case of KQ and Mumias!

is Merali a shrewed business man or just a jumpy specultor? he cant settle down and most of the firms associated with him are doing quite badly. again, does it make sence to invest in such a wide variety of things like he has done? the man is virtually everywhere!


  1. Its the second time am hearing of Transcentury going for Express. How credible is the source of information?

  2. Jaks: the rumour mill is in the blog zone. If rumours in blogs have paid off before, will you believe this time???

    Odegs: You were hating on EAC a couple of blogs ago, are you sure you don't want to revise your predictions? The market isn't about long term prospects...

  3. i dont think am hating EAC. the agreement is that the stock is hugely overpriced. we know the reasons. for speculators, this is not a problem. however for long term investors, caution is advised. i still suspect that that powerful group will pick another stock and repeat the story. just remember that Mbaruh is chairman of NSE, chairman of Dyer & Blair and director of transcentury. also remember that most of the EAC transactions are floated and bought by the same brokerage firm. fill the gaps. i also think Kenyans should accept criticism and analysis professionaly without thinking that there is hatrade or any malice.

  4. Mwasjd, I had planned for Express Kenya but not this soon. I remember the HFCK speculation, I heard it first in the blogs and it paid-off. So far the volumes traded on that counter do not indicate anything, but am sure once the rumour hits the local press, then the tide will turn. Remember when Transcentury started buying EAC, it was trading at a paltry Ksh.27. Now I'm reorganising and will be at my broker by Friday. To be on the safe side I'll go for not more than 1,000 shares first.


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