Some of DSE trading stocks have been highly undervalued and presents a great opportunity to investors in the bourse. Among the companies that fell in my sight is Dar Es Salaam Community Bank which as per 31st September 2010 carries net Asset of TSh.13Bln While the market Capitalization stands at TZS 9Bln, a huge TZS 4Bln difference.
This indicates that the company has a negative goodwill which is not the case for the small fast growing bank. According to our expatriates at Epak Capital Ltd, the small Bank is undervalued by at least TZS 4Bln. Currentlty the price per share is TZS 280 and the fair valuation of the company bring the value at TZS 400 per share. There is 120 TZS per share to be gained when the real value of the company prevails. This is an equivalent of 42.9% capital gain in a period of around six to twelve months from Start of this year,2011.
Further, The company's favourable dividend policy has seen the company payout a dividend of TZS 20/share in 2008, TZS 28/share in 2009 and for year 2010 which the company performed even better analysts expect a dividend between TZS 35 and TZS 50. If the company pays out a dividend of TZS 40 per share this will be an equivalent of 14% return on your investment(at current price of TZS 280/share).
Given the expanding bank industry the potential for strategic banks like DCB is limitless. Instead of young investors going for very expensive shares i would advice them to buy DCB and CRDB shares which have a room for great capital gain.
Emmanuel Akyoo,
Managing Director,
Epak Capital Ltd.
P.O.BOX 110222 DAR ES SALAAM,
0712-459035/0784-146756
Sunday, January 30, 2011
Sunday, January 16, 2011
A Great Year 2011
After three years of economic slump the world seems to be emerging again to its business as usual times. East African stock markets are not left behind in this economic recovery of the world.
The performance of CRDB Shares in December 2010 from market price of Tsh 110 per share to the high of Tsh.130 per share in january 2011 an equivalent of 18.20% gain in market value reflects investors confidence in the bank performance and on expected distributable dividends.
Also, we have seen blue chip companies like TBL,Twiga,Simba with high demand from local and foreign investors.
We expect new listings in the first quarter of 2011 as it was reported in the end of 2010, companies like Precision Air(PW) and National bank of Commerce(NBC Bank) were preparing to list on the Dar bourse.Further, we expect National Media Group, locally operating Mwananchi, The Citizen and Mwanaspoti newspapers to cross-list on the Dar es salaam stock market.
Follower of this blog(investors) are adviced to prepare and organise for funds to invest in these upcomming opportunities.
However, Investment in stocks requires temperament and some knowledge of the company you are interested into. For more education and information on common stock, bond investments you can set an appointment through below contacts.
Emmanuel Akyoo,
Director,
Epak Capital Limited
email: emmakyoo@yahoo.com
Mobile: 0712-459035, 0784-146756
The performance of CRDB Shares in December 2010 from market price of Tsh 110 per share to the high of Tsh.130 per share in january 2011 an equivalent of 18.20% gain in market value reflects investors confidence in the bank performance and on expected distributable dividends.
Also, we have seen blue chip companies like TBL,Twiga,Simba with high demand from local and foreign investors.
We expect new listings in the first quarter of 2011 as it was reported in the end of 2010, companies like Precision Air(PW) and National bank of Commerce(NBC Bank) were preparing to list on the Dar bourse.Further, we expect National Media Group, locally operating Mwananchi, The Citizen and Mwanaspoti newspapers to cross-list on the Dar es salaam stock market.
Follower of this blog(investors) are adviced to prepare and organise for funds to invest in these upcomming opportunities.
However, Investment in stocks requires temperament and some knowledge of the company you are interested into. For more education and information on common stock, bond investments you can set an appointment through below contacts.
Emmanuel Akyoo,
Director,
Epak Capital Limited
email: emmakyoo@yahoo.com
Mobile: 0712-459035, 0784-146756
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