You are provided with five companies listed as follows in the Nairobi Stock Exchange:CARB, EABL, KNRE, CGEN, WTK

Question 1

Using technical analysis approaches, predict the likely behaviour of price action of the above stocks and then determine whether you should buy, hold or sell the asset. Support your conclusion

Question 2

Using the fundamental analysis model

a) Calculate the intrinsic value of the stocks above and determine whether the stocks are undervalued, overvalued or properly valued.

b) Compare the values obtained using the above model and provide a justification for the deviations found

c) Compare your analysis in question 1 and question 2 to provide an overall buy/sell recommendation.