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22 Pages<1234>»
Uchumi - A value play?
VituVingiSana
#21 Posted : Monday, November 03, 2014 6:49:35 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,447
Location: Nairobi
Gordon Gekko wrote:
I learnt a very expensive lesson with the KQ/TN team. I'm not repeating the same mistake with the UCH/JC team. I will sit out my rights, unless JC is removed from the equation now. And to imagine he rakes in a metre and change each month - very painful.
TN had zero shares in KQ. ZERO. Does JC have a significant number shares in Uchumi?

BTW, the first CEO (after Uchumi went public) was the largest individual shareholder in Uchumi. And #3 after ICDC and ICDCIC when it went public. And we know how Uchumi performed as a business in those very tough Goldenberg years.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Aguytrying
#22 Posted : Monday, November 03, 2014 6:52:37 PM
Rank: Elder


Joined: 7/11/2010
Posts: 5,023
I'm not hating when I say their supermarkets stink. aga khan walk.
JC gets a metre each month? now I understand everything. this is KQ all over again.
The investor's chief problem - and even his worst enemy - is likely to be himself
Gatheuzi
#23 Posted : Tuesday, November 04, 2014 4:56:11 PM
Rank: Veteran


Joined: 8/16/2009
Posts: 981
Aguytrying wrote:
I'm not hating when I say their supermarkets stink. aga khan walk.
JC gets a metre each month? now I understand everything. this is KQ all over again.


I also sensed that issue at AgaKhan and thought my nostrils were playing a game on me.

So the fundamental question remains, why expand if we can't first maintain the cooling & refrigeration right?
Time is money, so money is time. Money saved is time gained in reverse!
sparkly
#24 Posted : Tuesday, November 04, 2014 10:43:34 PM
Rank: Elder


Joined: 9/23/2009
Posts: 7,293
Location: Enk are Nyirobi
Gatheuzi wrote:
Aguytrying wrote:
I'm not hating when I say their supermarkets stink. aga khan walk.
JC gets a metre each month? now I understand everything. this is KQ all over again.


I also sensed that issue at AgaKhan and thought my nostrils were playing a game on me.

So the fundamental question remains, why expand if we can't first maintain the cooling & refrigeration right?

The one at Adams Arcade had become a kibanda selling mandazi, chapati and just as disorganised.
Life is short. Live passionately.
sparkly
#25 Posted : Wednesday, November 05, 2014 7:22:58 AM
Rank: Elder


Joined: 9/23/2009
Posts: 7,293
Location: Enk are Nyirobi
www.businessdailyafrica....72/-/24g47z/-/index.html

Uchumi on an acquisition spree.

While Shoprite is exiting TZ.

They have not paid suppliers in Kenya.

They have taken loan of KES 600m from KCB.

Acquisition was financed by debt.

Rights issue to expand into small and insignificant markets of Rwanda Burundi.

Shareholders should be very afraid... Insolvency 2.0 coming soon.
Life is short. Live passionately.
MRNYOIKE
#26 Posted : Wednesday, November 05, 2014 11:42:47 AM
Rank: Hello


Joined: 11/5/2014
Posts: 1
UCHUMI is a good company and trading at cheap.
this is a good company for acuisation and i worry why there is no take over bid.

it has been hit by competition but their expansiob currently is not as reckless as her peers who have not learnt from Uchumi ealier strategy
Gatheuzi
#27 Posted : Wednesday, November 05, 2014 1:59:22 PM
Rank: Veteran


Joined: 8/16/2009
Posts: 981
sparkly wrote:
www.businessdailyafrica.com/Corporate-News/Uchumi-acquires-Dar-supermarket-in-growth-drive/-/539550/2509572/-/24g47z/-/index.html

Uchumi on an acquisition spree.

While Shoprite is exiting TZ.

They have not paid suppliers in Kenya.

They have taken loan of KES 600m from KCB.

Acquisition was financed by debt.

Rights issue to expand into small and insignificant markets of Rwanda Burundi.

Shareholders should be very afraid... Insolvency 2.0 coming soon.


A loan at 18% interest from KCB. And another 405M from Coop bank. That means close to 200M per annum will go in payment of interest leave alone the principal. I wish they were applying the rights to reduce these expensive loans. We have bonds, so why not consider such or place a commercial paper
Time is money, so money is time. Money saved is time gained in reverse!
mkonomtupu
#28 Posted : Wednesday, November 05, 2014 2:40:21 PM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,000
Location: River Road
Gatheuzi wrote:
sparkly wrote:
www.businessdailyafrica.com/Corporate-News/Uchumi-acquires-Dar-supermarket-in-growth-drive/-/539550/2509572/-/24g47z/-/index.html

Uchumi on an acquisition spree.

While Shoprite is exiting TZ.

They have not paid suppliers in Kenya.

They have taken loan of KES 600m from KCB.

Acquisition was financed by debt.

Rights issue to expand into small and insignificant markets of Rwanda Burundi.

Shareholders should be very afraid... Insolvency 2.0 coming soon.


A loan at 18% interest from KCB. And another 405M from Coop bank. That means close to 200M per annum will go in payment of interest leave alone the principal. I wish they were applying the rights to reduce these expensive loans. We have bonds, so why not consider such or place a commercial paper


What insolvency d'oh! d'oh!? if your annual turnover is 14 billion, your annual profits 400 million, and you are borrowing 1 billion secured by 2.2 billion assets. Stop fearing leverage.

The KCB loan is one year loan.

If they get rights cash which goes to working capital then this one is a butterfly. Uchumi shareholders should support the rights if they want it to fly.
Material disclosure: I own zero shares here
Akenyan2014
#29 Posted : Monday, November 10, 2014 10:44:50 AM
Rank: Member


Joined: 5/6/2014
Posts: 268
Location: Nairobi, Kenya
Boris Boyka wrote:
sparkly wrote:
If only Uchumi had continued on the same trajectory they were on 14 yrs ago, I would be a very rich man!

@sparkly so you're poor than you were courtesy of uchumi,MSC,kk,...I see this 2014 wasn't on your side.....2015-2016 ni yako kuwa very rich.


2014 casualties: CARB, UCHM, MSC, TCL, KQ ordered from the worst hit.

Perhaps if UCHM goes back to 6bob of 2012 we could see it reclaiming its 18.0 position in a short while. Correct me.
hisah
#30 Posted : Monday, November 10, 2014 12:33:44 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
I again I ask, who is the underwriter of this rights issue? For Mr Market to discount the price vs rights price that signal is as clear as it gets.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
sparkly
#31 Posted : Monday, November 10, 2014 1:46:54 PM
Rank: Elder


Joined: 9/23/2009
Posts: 7,293
Location: Enk are Nyirobi
mkonomtupu wrote:
Gatheuzi wrote:
sparkly wrote:
www.businessdailyafrica.com/Corporate-News/Uchumi-acquires-Dar-supermarket-in-growth-drive/-/539550/2509572/-/24g47z/-/index.html

Uchumi on an acquisition spree.

While Shoprite is exiting TZ.

They have not paid suppliers in Kenya.

They have taken loan of KES 600m from KCB.

Acquisition was financed by debt.

Rights issue to expand into small and insignificant markets of Rwanda Burundi.

Shareholders should be very afraid... Insolvency 2.0 coming soon.


A loan at 18% interest from KCB. And another 405M from Coop bank. That means close to 200M per annum will go in payment of interest leave alone the principal. I wish they were applying the rights to reduce these expensive loans. We have bonds, so why not consider such or place a commercial paper


What insolvency d'oh! d'oh!? if your annual turnover is 14 billion, your annual profits 400 million, and you are borrowing 1 billion secured by 2.2 billion assets. Stop fearing leverage.



If your suppliers have claims to your 2.2B assets and you only get 2.85% return from your 14B turnover, then you have a problem.
Life is short. Live passionately.
mkonomtupu
#32 Posted : Monday, November 10, 2014 3:09:22 PM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,000
Location: River Road
sparkly wrote:
mkonomtupu wrote:
Gatheuzi wrote:
sparkly wrote:
www.businessdailyafrica.com/Corporate-News/Uchumi-acquires-Dar-supermarket-in-growth-drive/-/539550/2509572/-/24g47z/-/index.html

Uchumi on an acquisition spree.

While Shoprite is exiting TZ.

They have not paid suppliers in Kenya.

They have taken loan of KES 600m from KCB.

Acquisition was financed by debt.

Rights issue to expand into small and insignificant markets of Rwanda Burundi.

Shareholders should be very afraid... Insolvency 2.0 coming soon.


A loan at 18% interest from KCB. And another 405M from Coop bank. That means close to 200M per annum will go in payment of interest leave alone the principal. I wish they were applying the rights to reduce these expensive loans. We have bonds, so why not consider such or place a commercial paper


What insolvency d'oh! d'oh!? if your annual turnover is 14 billion, your annual profits 400 million, and you are borrowing 1 billion secured by 2.2 billion assets. Stop fearing leverage.



If your suppliers have claims to your 2.2B assets and you only get 2.85% return from your 14B turnover, then you have a problem.


Aiii wee mboss... in retail you look at credit lines in most suppliers tell you lets put this on the shelf once sold pay us. Anyway looking at the IM Uchumi paid 675m to GoK and 956m to KCB and PTA banks without default or insolvency.

Management says "with benefit of hindsight, the management now observes strict controls on debt management" You can see this from the fact that the ICDC loan of 300m about 109m has been paid and balance outstanding at 191m
KCB overdraft of 200m and short term of 600m- 150m repaid balance of 650m

Now turning to Tanzania, sales grew 10%. The TZ economy grew at 7% in the last 2 years and the formal retail penetration is less than 10%. Now that's huge potential even if it was to get to Kenya's 30% penetration.

Uchumi shareholders d'oh! d'oh! d'oh! you will make me rich again
mkonomtupu
#33 Posted : Monday, November 10, 2014 3:16:10 PM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,000
Location: River Road
hisah wrote:
I again I ask, who is the underwriter of this rights issue? For Mr Market to discount the price vs rights price that signal is as clear as it gets.


Mr. Market is being stupid but who cares an intelligent investor looks at raw numbers especially the market in Tanzania although Uchumi is yet to begin posting profits from operations there but look at the numbers they don't lie


Quote:
DAR ES SALAAM, Nov 6 (Reuters) - Tanzania's economy grew 7.1 percent in the first half of 2014 from a year earlier, slightly slower than its expansion in the same period of 2013, the government said on Thursday.
Africa's fourth-biggest gold producer, and a major tourist destination, forecasts economic growth of 7.2 percent this year and maintained its forecasts for the next two years on Thursday.
"The economy is expected to expand further to 7.4 percent in 2015 and 7.8 percent in 2016," Stephen Wasira, minister of state in the president's office, said in a presentation to parliament


Read more: http://www.dailymail.co....ster.html#ixzz3IfQO7cq3
Follow us: @MailOnline on Twitter | DailyMail on Facebook
Ericsson
#34 Posted : Monday, November 10, 2014 3:32:09 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,441
Location: NAIROBI
Anyone with a copy of the Information Memorandum to post here
mkonomtupu
#35 Posted : Monday, November 10, 2014 3:38:08 PM
Rank: Veteran


Joined: 2/10/2010
Posts: 1,000
Location: River Road
Ericsson wrote:
Anyone with a copy of the Information Memorandum to post here


you can get the IM on the link
http://kenya.uchumicorporate.co.ke/investors
hisah
#36 Posted : Monday, November 10, 2014 4:59:47 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
mkonomtupu wrote:
hisah wrote:
I again I ask, who is the underwriter of this rights issue? For Mr Market to discount the price vs rights price that signal is as clear as it gets.


Mr. Market is being stupid but who cares an intelligent investor looks at raw numbers especially the market in Tanzania although Uchumi is yet to begin posting profits from operations there but look at the numbers they don't lie


Quote:
DAR ES SALAAM, Nov 6 (Reuters) - Tanzania's economy grew 7.1 percent in the first half of 2014 from a year earlier, slightly slower than its expansion in the same period of 2013, the government said on Thursday.
Africa's fourth-biggest gold producer, and a major tourist destination, forecasts economic growth of 7.2 percent this year and maintained its forecasts for the next two years on Thursday.
"The economy is expected to expand further to 7.4 percent in 2015 and 7.8 percent in 2016," Stephen Wasira, minister of state in the president's office, said in a presentation to parliament


Read more: http://www.dailymail.co....ster.html#ixzz3IfQO7cq3
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Interesting this info. The discount is welcome. TA is also oversold smile
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Kingotore
#37 Posted : Monday, November 10, 2014 8:09:58 PM
Rank: New-farer


Joined: 12/27/2013
Posts: 85
If l don't want the uchumi right. What can l do to share allocated to me?
GOOD TO GREAT. KINGOTORE
Gatheuzi
#38 Posted : Monday, November 10, 2014 8:24:34 PM
Rank: Veteran


Joined: 8/16/2009
Posts: 981
Kingotore wrote:
If l don't want the uchumi right. What can l do to share allocated to me?

Either;
1) Sell the shares now, I guess they are selling cum (with) rights; or
2) Sell the rights once they start trading.

Sale of rights to only succeed if market price of the shares rises above the rights price.

Time is money, so money is time. Money saved is time gained in reverse!
VituVingiSana
#39 Posted : Monday, November 10, 2014 8:37:53 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,447
Location: Nairobi
Gatheuzi wrote:
Kingotore wrote:
If l don't want the uchumi right. What can l do to share allocated to me?

Either;
1) Sell the shares now, I guess they are selling cum (with) rights; or
2) Sell the rights once they start trading.

Sale of rights to only succeed if market price of the shares rises above the rights price.

Reminds me of KQ when Rights were selling for 5 cents. And there were many more sellers than buyers!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Cde Monomotapa
#40 Posted : Monday, November 10, 2014 11:31:39 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,963
mkonomtupu wrote:
[quote=Ericsson]Anyone with a copy of the Information Memorandum to post here


you can get the IM on the link
http://kenya.uchumicorporate.co.ke/investors[/quote]

[Nov. 4th] Kama vindeo: https://www.youtube.com/...d&utm_medium=twitter
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