Friday, September 22, 2006

Stock Prices and Perfomance

I have just been looking at stock prices and their P/E ratios. all i can say is that they are shocking to say the least. Looking at HFCK for instance the P/E is a masive 119! the issued shares are 115 million and the price is 61. honestly i cannot tell why the share keeps on rising. am told there are good prospects after they re-organised their managment and books but still one is left wondering how they will manage the commercial banks foray into their territory. Apperently the best run firms like BAT, EABL, BBK, Total and KQ do not have their prices going up. yet they have the best P/E ratios. in fact in a rare encounter with a leading CEO , i heard the man say that BAT in his view was the most efficiently run firm in Kenya. how is that for peer respect. yet BAT is no where among the firms that excite the market!

something is definitely wrong. EAC has P/E of almost 60 only after the price depreciated to 63 the other day. when it was 100; you can do the math.


  1. The prices will either stagnate or fall for many of these overpriced shares!

    Look at NBK as another example...

  2. Too much money, too few places to take it. Shares awareness seems to have picked up alot following the IPOs (especially Kengen)and everyone is taking there money to the market.

    I agree with Coldtusker, soon the bull might be passing the button to the bear


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