COURTESY

By Phoebe Achola

Mobile phones and computers are undoubtedly the best forms of communication
we have today. There is, however, a chance that you may be misinterpreted,
when sending a text, email or even making a call. How do you prevent this
from happening?

When making a phone call, it is courteous to offer greetings, then identify
yourself by name and reason for calling. Keep the conversation brief and
straight to the point. Be audible and speak slowly for the listener to
comprehend. If you choose to leave a message, be concise and choose your
words carefully. Before hanging up,politely say goodbye and thank the
person.

Send an email, if you do not require an immediate answer. If it is formal,
do not use acronyms. Your email or text should be short, easily understood
and lacking in unimportant content. Excessive use of punctuation or
uppercase should be avoided as it conveys a tone that may not be receptive
to others. Always proofread your text before sending it.

We would like to be polite and articulate, as we communicate. Having the
listeners or readers interests in mind will help facilitate that.

LONG-TERM INVESTMENT STRATEGY IN EQUITIES-A FUNDAMENTAL ANALYSIS

By Joseph Karumba:

Any investment one makes in equities should be based on concrete reasons. There are two kinds of equities investors namely: short term and long term traders. The former buy and then sell their shares within a short time span, usually ranging from 3 months to even a daily basis (known as day trading). Their gains are based mainly on share price variations due to cyclical events in a company’s fiscal year. What causes share price increase is fundamentally an increase in demand for that particular stock. This surge in demand may be attributed to company announcements such as an increase in profits, a run up to book closure for dividends payout, share splits and rights issues. That is a topic for another piece. The latter kind of investors, hold stock for much longer periods from 5 years onwards. I shall focus on the long term investment strategy in this piece.

The fundamental driver of stock value appreciation is a rise or prospective rise in company earnings. So what contributes to a sound stock pick as a long term investor?

·        A capable high performance management team and a board whose members have both good repute and a wealth of relevant experience. As for the management, one can check the performance of the company if they have been around for a while and if they are new, especially the CEO, one can look into their credentials and performance record prior to joining the firm. A list of these individuals is always available on the firm’s website. Case in point, under Linus Gitahi, the NMG has done tremendously well. The change of guard at the helm of this media company demanded a look into the record of his past performance. Indeed his record at the NMG is at par, if not better with his performance at the Glaxosmithkline, where he worked previously.

·        Current financial standings. The company should be profitable for the current and the past few years for in truth, it all comes down to the earnings. Its assets should be larger compared to previous years-this indicates growth. This information can be found in Q1, Q3, half-year and full year financial results which can be obtained from the company’s website.

·        Is the company’s name a brand within the market in which it plays? Many a times no research is necessary to know this. Their products are known by many and are common in many parts of their market region. Am sure you have heard people say, or said it yourself,: 'Mpesa ya Yu' 'Ile Omo mpya ya Ariel'...this is characteristic of brand products. You will not miss them on the shelves of any supermaket or even small shops countrywide.

·       Understand the business model and check whether the company has a competitive advantage so as to know whether it is sustainable in the long run. For instance, when along came Equity bank, whose model was to serve simply, the needs of the majority of the then unbanked population, many banks in existence then had to restructure their business model- in the long run they would not be sustainable in this Wanjiku economy.

·         Future prospects of the company are also vital. In this criterion you assess the firm’s expansion plans if any and the growth of the industry in which it operates in general. The former can be found in the annual reports of the company. The latter only demands elementary economic analysis. Let's look at the property and infrastructure development in Kenya. This means there will an increase in demand for capital to finance the construction and purchase of these sprouting projects. This means that mortgage service providers, eg S&L under KCB, Housing finance among other financial institutions stand to gain from this opportunity. The cement industry will also supply more cement in line with this demand indicating potential for growth.

The task at the hand of an investor is to find listed companies that have a good combination of the attributes mentioned and explored above. Though a bit taxing, the rewards are worth the effort. It truly is, never too early to start, for the least you can gain is a ton of experience to aid you later on to reap tons of profit.

GENERAL KNOWLEDGE:

Courtesy of Facebook

Lets salute his will power..!!! Please Share it!!

Peng Shuilin had half of his body amputated after being run over by a truck. But he never gave up! His recovery has amazed surgeons after almost two years undergoing a series of operations. The vice-president of the hospital where this 37-year old Chinese man has been treated said: “He is amazing and the only person in the world to survive having so much of his body amputated.” He’s doing well now and has opened his own bargain supermarket - called the Half Man-Half Price Store. That’s incredible.
We should not give up, whatever the situations are. If he can do this, everybody can!

Share it with your friends. We need as much shares as possible for this man and his spirit. Press share button now if you have a human heart.
Remember guys, everything is possible if you set your mind on it...the power of positivity.