thanks for the insight.i would want to ask what other fundaments or ratios or theories you are using to arrive at this conclusion,because like bamburi or construction industry is growing,hence cables will be needed,breweries is also doing good,good mgt team,my question is how do you know when to buy and for how long to keep and when to sell,what do you look for,thanks and have a nice day.eddie

I hope you bought them at that time. Good post and definitely a good buy but would not go above 28

I am in full support of the views of S Macharia on East African Cables. Despite being in an area of business where it is difficult to differntiate your product from that of your competitors, this company has been impressive in staedily growing its earnings, dividends and equity.

They have the advantage that cable products are bulky so a competitor must have very highly efficient and cheap production before they can brave the transport costs and import tariffs to come and sell in East African Cables' territory.

Conservatively financed, thier balance sheet is strong and as commodity prices remain under pressure, they are experiencing yet lower input costs.

I see them growing their earnings by over 10% in these difficult economic circumstances and I would buy them up to KES 30.

I of course do not forget to pray that Kenya's economy resumes good growth supported by high regional demand and a stronger shilling.

If there is an infrastructure stock on the NSE that I would rate AAA, it would have to be EA Cables. This co. is very well positioned in a number of sectors and industries within East and Central Africa. Let me explain.

(1)With almost every govt. in Africa screaming rural electrification, EA cables stands to benefit heavily because of its presence in East and central Africa and beyond . To add on to that, the exploding commercial construction in the region e.g in Southern Sudan, Rwanda, Uganda and even good old Kenya(just to name a few) present a very positive outlook for this co. Cables will be needed in plenty, now and in decades to come.

(2)With the Arrival of world class high speed internet in the region, the information age in Kenya and its neighbors is about to experience a revolution. This is an issue that should not be taken lightly because of the potential profits that lie ahead for some companies listed on the NSE (even some that don't fit the profile of a company that would make money from internet infrastructure). First things first, EA Cables is a major distributor of fibre optic cables and equipment in the region and the sole distributor of internet infrastructure cables manufuctured by Nexans Korea. As soon as the undersea cables hit the Kenyan coast, they have to be wired from Kenya, Tz, Ug, Rwanda, Burundi, Southern Sudan and DRC. Thats sounds like one very looooong cable to me. EA cables is there to provide it.This process began in 2008 atleast in Kenya.

This company is almost a monopoly in the region and has sound management. It is always looking for ways to acquire raw materials cheaply so as to reduce their gross margins. Its balance sheet is sound and its year over year increase in profits (especially during an economic downturn) only puts a smile on an investors face. THE COMPANY IS A DEFINITE BUY.