2011 Roundup! The Big Money U missed Out

  
I have taken sometime to recap on opportunities that came to us in 2011 through DSE. Most of you guys missed out. You could not spare some pennies for this lifetime opportunity of owning part of efficient running and profitable companies. If you find out that this year was not for you next year will be there for you. But remember procrastination is the mother of all misses. However, you must understand that what happened in this year will not take the same trend next year it will be in some other ways!


Winners: 


DCB:  Up 129%. Dar es Salaam Community Bank was the best performer stock in 2011, It has gained from Tsh 280 per share in January 2011 through TSh. 640 per share in December 2011. I advised my followers to take an aggressive position with this stock in February 2011.

TCC: UP 39%. Tanzania Cigarete Company was the second best performing stock though far behind DCB. The shares have moved from price of Tsh.2,260 in January to Tsh 3,140 in December 2011.

SWISSPORT: UP 37%. This Airport handling company has being performing well and has good dividend policy which attracts dividend focused investors. However, monopoly enjoyed by the company has being endangered by new entrants that will be handling for Precision Air Services and other carriers.The company's shares moved from TSh600 in January to 820 in December 2011.

CRDB: UP 33%. The bank performed well in this year although the share price has fallen from the highest price of Tsh 225. Shares were priced at TSh. 130 in January and Tsh 173 in December 2011. Many investors shun bank shares because they are scared of the turbulent financial markets. Inflation, weakening and unstable local currencies, high borrowing costs and risks of loan default are among challenges facing financial institutions in the region currently.

NMB: UP 29%. NMB is the most extensive bank in Tanzania covering all districts and regional centers. Earlier loss making institution transformed to a profitable bank after being privatized to the most respected private bank, Rabo Bank. Banks financials have stabilized and profitability of the bank has being impressive. However, it has not being spared from current challenges facing financial institutions.

SIMBA: UP 25%. Tanga based Cement manufacturing company has performed well on the market this year. High growth in Construction industry comes with great potential in profitability and stability of this company. Growing competition from new entrants in Tanga, ARM and expected plant in Mtwara region by Dangote group poses a great challenge to the current cement manufacturers in Tanzania.

TWIGA: UP 16%. Cement Manufacturing company

TBL: UP 12%. Largest brewer in Tanzania.

Lossers:


TATEPA: DOWN 56%. This is the biggest losser for this year from the price of TSh.600 per share in January to Tsh 265 in December 2011.

Would you have invested One million TZS in each of the above eight highlighted stocks you will have realized 45% average return on your potifolio. And if you invested in the best 3 performers your potifolio would have resulted into a killing 68% average return. What if you invested TZS 100 million into DCB? This alone would have turned into TZS 228.5 million. Definitely, this is how millionaires get born!

Dar es Salaam Stock Exchange in average was the best Market in the region in this year. Nairobi and Uganda Stock exchanges have had their bad times throughout the year. Some stocks on NSE lost to the level of 88%. For investors in Tanzania Nairobi Stock exchange presents a strategic investment in 2011 and 2012 due to lower levels of valuation. Election in mid next year will make foreign investors in NSE sell off and hence push the NSE all share index further dip which will result to bargain stocks.

By: Emmanuel Akyoo