kenya.....kritique

Nairobi politics, football, conspiracy theories and related propaganda

Wednesday, March 08, 2006

kengen IPO euphoria..

Jaindi kisero in his piece today in the daily nation, has cautioned the public against the excitement generated by the IPO.
I tend to disagree with his view on the ipo.

yea to some extent our financial markets are rather unpredictable and volatile.

what is currently going on is a bearish trend - whereby people are selling stocks not for speculative reasons- but to fund future acquisitions.

to some extent i dont agree that buying kengen shares might be disastrous in the long term. on the contrary, kengen is poised to be a high yield stock-given the fact that it is an energy stock.

worldwide trends with regard to technology and specifically energy stocks have pointed to strong gains in the longterm. given our energy needs and climatic conditions, kengen is poised to continue playing the critical and crucial role in energy security for the country.

i can confidently state that it will be damn expensive to buy a kengen share 1 year from now-the price will have skyrocketed!!!!!

of course most kenyans are eying the stock in the hope of reaping shortterm gains (dividends, capital gain, high eps, etc). now this group will indeed help bring the price down for a while, and thats where a strategic investor can cash in.

soln:

apply now and hope to get alloted some shares, or engage in secondary trading at the NSE and hope the price doesnt rise steeply in the short term.

but either way, Kengen stock is indeed a must have long term stock!!

cos as it were, we will always need energy!!


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