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Deacons IPO.. public share offer?
tony stark
#61 Posted : Friday, November 19, 2010 8:30:23 AM
Rank: Veteran

Joined: 7/8/2008
Posts: 947
guru267 wrote:
Olympia recently forecast sales of 1billion for the year ended 28 feb 2010 and they only produced 600 million....

Unless a company has a proven track record in forecasting its hard to believe their rosy picture they are painting


I agree with you.
The goods deacons sells are unfortunately considered luxury goods. With our inflation on the rise I cant understand how they aim to grow their business. They face several challenges
1. Runaway inflation and luxury goods such as mr price clothes have to compete with essentials such as high fuel prices etc
2. Competition from cheap chinese, turkey clothes and the obviously the second hand clothes
3. Taxes are a huge hindarance. As wendz had pointed out earlier the clothes made by mr price are targeted at the masses. The prices in SA are very affordable and at those prices they could actually increase market share very easily. That said KRA still has to hit its targets and the government is a glutton and those taxes will not be reduced any time soon and therefore the prices will not come down and market share will not go up!

I honestly can not see this rosy picture they are trying to paint. I hope the investors the best of luck.

My last point is 800 million is chump change that can be bought out by a few institutional investors why the hell do they want to increase their shareholders to 1500. Is there something they know that we dont?

I think this private placement is receiving more attention than it deserves. Im sure obiero can buy half the shares anyway .....at least!
VituVingiSana
#62 Posted : Friday, November 19, 2010 8:44:43 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
LOL... Lakini @obiero would consider buying clothes in Kenya [even if imported] below his status... He only shops in Paris, London, Milan, Dubai, etc...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
gladiator
#63 Posted : Friday, November 19, 2010 11:31:26 AM
Rank: Member

Joined: 8/25/2006
Posts: 101
Surealligator wrote:

@Deacons interested wazuans

Got the DEACONS KENYA LTD PUBLIC OFFER FOR SHARES |FACT SHEET 17 NOV – 2010. But the graphics will not appear here.

If you need the original, put your E-mail here.



It would be better if you uploaded the prospectus to a free fileshare website like rapidshare and posted the link for everybody instead of having tens of people listing their e-mail addresses.

You can send me a copy at falconsgladiator%hapo%yahoo%kikomo%com and I can post the link for everyone else.
muganda
#64 Posted : Friday, November 19, 2010 11:33:02 AM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Someone said to me, when buying something, ask yourself who's making the money. @Tony stark, agree about the attention, last words...

As @guru267 says, in terms of past growth, they've shown an average rate of ~35%. For 2009, 16% earnings growth, 30% growth in sales (21% attributable to new stores, 8% organic growth). They expect to open 2 more stores (Galleria) by year end.


@erifloss good insight.
Gearing ratio 32%
Dividends cover 3.33
Net Asset Value per share KShs 21.58
Liquidity Ratio: Current 1.4 (2 is good), Quick Acid 0.18 (1 is good)

Year 2008 is their best year to date with 38.6% organic growth, and increase in gross profit margin by 7%


And on @obiero, Deacons analysis of retail fashion industry shows:
LSM1-6 rural urban slum dwellers, casual workers, purchase mitumba.
LSM7-8 permanent employment using public private transport, generally buy clothes from exhibition stalls imported from the Far East.
LSM9-17 upper and middle class buy clothes from their shops and their competitors e.g. Enkarasha, Nakumatt, Bata, Tuskys etc.

To note Bata Shoes has 102 stores - impressive. Didn't know Melablooms has 5 stores; Manix/Levi 5 stores; City Walk 4 stores; Sir Henry's 3 strores.


@madebe, no prospectus in soft. Link to @surealligator fact sheet here http://www.mediafire.com/?p77cmqmhwf6n52a
I see CDSC Registrars and their attempts at diversity will benefit as being Registrars for this one.

muganda
#65 Posted : Saturday, November 27, 2010 9:10:44 AM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Ash I see prospectus finally available online http://deacons.co.ke/site/images/deacons.pdf but time is of the essence as 1,500 or 800m will force early close of the offer; which ends on Tuesday anyway.

This Muchiri Wahome guy is a passionate communicator coming from his years as presenter perhaps. Didn't know shares qualify for 2010 dividend...
sparkly
#66 Posted : Saturday, November 27, 2010 9:28:11 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
People buying the share should understand that this will be one of (if not) the most cyclical share on the nse... Next to the agriculturals and auto. They should be prepared for the roller coaster
Life is short. Live passionately.
Aguytrying
#67 Posted : Saturday, November 27, 2010 9:52:45 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
sparkly wrote:
People buying the share should understand that this will be one of (if not) the most cyclical share on the nse... Next to the agriculturals and auto. They should be prepared for the roller coaster


Oh, yeah. coz of the nature of the business.
The investor's chief problem - and even his worst enemy - is likely to be himself
gathinga
#68 Posted : Tuesday, November 30, 2010 1:29:37 PM
Rank: Veteran

Joined: 11/30/2006
Posts: 635
Daily Nation page 5 today. Offer period extendedto 3rd Dec 2010, on 'approval of the capoital markets authority'

I dont get it;
1. Did they have to obtain capital markets authority approval now that they are not seeking to list at NSE immediately?

2. Electronic crediting of CDSC accounts to close on 7th Dec. Doesnt CDSC only keep records of investors for companies listed on the NSE? Good for them though to obtain additional revenue.
Gordon Gekko
#69 Posted : Tuesday, November 30, 2010 1:49:40 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
Extension is the clearest sign of an issue failure. If folks were falling over themselves scrambling for it like @guru and @vvs are doing for KPLC smile then there would be no need for an extension.
gathinga
#70 Posted : Tuesday, November 30, 2010 5:10:12 PM
Rank: Veteran

Joined: 11/30/2006
Posts: 635
Gordon Gekko wrote:
Extension is the clearest sign of an issue failure. If folks were falling over themselves scrambling for it like @guru and @vvs are doing for KPLC smile then there would be no need for an extension.


true. there can bo no other reasons for extension
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