Christian Sirikali recalls enjoying Bralirwa’s products as a child in Rwanda and the Democratic Republic of Congo. Now a chartered account, Sirikali looks at the brewer through an investor’s lenses and likes what he sees.Read More...
Infrastructure is a key pillar of the sub-Saharan Africa investment thesis. The hopes and dreams of Africa’s rising consumer class need to be powered by electricity, transported by road and rail, and anchored by new homes and workplaces.
Here. Jan Schalkwijk, CFA takes a closer look at two Kenyan companies capitalizing on East Africa’s infrastructure boom.Read More...
Your success as a singer, songwriter, and producer is nothing short of remarkable. I’m sure you never dreamed while a boy in Dakar, Senegal that one day your music would dominate record charts, or that you would perform with the likes of Michael Jackson, or earn an eight-figure income. You’ve been ranked among the most powerful celebrities in the world, and I’m sure your upcoming album will add to your long list of achievements.
True, your success wasn’t overnight or without controversy. But you seem to sincerely want to give back and do good in the world.
Moreover, you’re serious about investing in the continent that you call home. You write about it in songs. You talk about it in interviews. You even own a South African diamond mine.
Could we talk a little bit about that last one?Read More...
It’s tough to beat a company that pays out a regular dividend.
They generate income for shareholders. They typically boast sharp management teams. And, historically, their shares have outperformed their non-dividend-paying counterparts.
The Nairobi Securities Exchange is chock full of dividend stocks. Almost all companies listed on the market presently pay a dividend.
But not all dividend stocks are created equal. Some don’t yield much in relation to their price. Others pay out so much of their earnings that it hampers their future growth. And some disappoint shareholders with frequent dividend cuts.
So, which Kenyan stocks offer the most substantial, reliable, and growing income stream?
Let’s take a closer look.Read More...
The stock market can be a pretty confusing, intimidating place for new investors.
With all of its charts, ratios, and jargon, it’s clear why many people choose to either hire a professional to manage their stock portfolios or to ignore stocks altogether.
Are you one of these people?
If so, I’m glad you’re here, because, today, I’m going to show you a magic formula for picking great African stocks.Read More...
If you’ve ever traveled in Southern Africa, I’m sure you’ve spotted a Shoprite store. Whether it be the bright red logo of their eponymous supermarkets, the upscale suburban Checkers stores, or their Hungry Lion fast food joints, the company’s dominant market presence is difficult to miss.
Clearly, Shoprite feeds a continent on the rise.
This reality is anything but revelatory to Africa investors. The company’s share price has risen exponentially as the narrative of the continent’s emerging middle class took hold.
The stock now sports a P/E ratio of 27. Is it worthy of the hype?Read More...
It’s time to stick my neck out.
I’ve talked a lot about the past performance of various African stocks, and I’ve asked a number of local experts for their favorite listings. But I haven’t often gone out on a limb and made picks of my own, and many of you have noticed.
So, it’s only fair that I go on record with my best bets.
Here are my top South African stock picks. I expect that, on average, they will outperform the Johannesburg Stock Exchange All Share Index over the next 12 months.Read More...
When I asked my friend Kamanda Morara of Ashanti Research for his best Kenyan stock pick for 2013 in mid-December, I had no idea that his choice would bear fruit so quickly.
His tip, KCB Bank Group (KNCB:KN), was trading at a price of KES27.50 at that time. This gave it a dividend yield of 6.7% and a trailing P/E ratio of just 6.5.
Someone must have been eavesdropping on our conversation.
The stock now boasts a price of KES33.50 — a gain of nearly 22% in less than two months.
So, I checked back in with Kamanda last week to congratulate him and to ask whether he felt KCB still had room to run.Read More...
It’s been a long dry spell for Ugandan IPOs. The Uganda Securities Exchange hasn’t seen a new local listing since the National Insurance Company floated some shares back in March 2010 – more than two and a half years ago.
So, when the national electricity distribution company, Umeme, launched its IPO last week it created plenty of buzz in Kampala.
Should retail investors sign up for some shares? Or should they avoid them like a live wire?Read More...
In a recent blog post, African stock market pundit, Coldtusker, argued that Kenya Airways’ dismal share returns can be at least partially explained by the fact that its CEO owns zero shares of the company.
His reasoning is that a boss with no skin in the game has little incentive to manage a company in shareholders’ best interests.
To test this theory, we measure the stock performance of five Kenyan companies that are managed by heavily vested CEOs to see if they beat the market over time.Read More...