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WILLIAMSON and KAPCHORUA H1 2010-11 results
Rank: Elder Joined: 6/2/2008 Posts: 1,438
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WTK and KAPC have this morning reported their results as follows:
WTK
PAT 442,169,000 - UP 108.8%
EPS - 50.50. Of this 22.49 is from Operations while 28.01 arises from changes in FV of Bio Assets.
Interim DPS - 2.50
KAPC
PAT 92,244,000 - UP 105.96%
EPS - 23.58. Of this 5.60 is from Operations while 17.98 arises from changes in FV of Bio Assets.
Interim DPS - 1.25
In my view WTK's results are pretty good but not so much for KAPC. I still expect the results for both to be less than those for 2009-10, especially in terms of the profits from operations.
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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mwanahisa wrote:WTK and KAPC have this morning reported their results as follows:
WTK
PAT 442,169,000 - UP 108.8%
EPS - 50.50. Of this 22.49 is from Operations while 28.01 arises from changes in FV of Bio Assets.
Interim DPS - 2.50
KAPC
PAT 92,244,000 - UP 105.96%
EPS - 23.58. Of this 5.60 is from Operations while 17.98 arises from changes in FV of Bio Assets.
Interim DPS - 1.25
In my view WTK's results are pretty good but not so much for KAPC. I still expect the results for both to be less than those for 2009-10, especially in terms of the profits from operations. Slightly lower profits from operations than i expected.Interim dividend..nothing to sing about!
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Rank: User Joined: 6/27/2008 Posts: 709 Location: Velayat-e Faryab
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mwanahisa wrote:WTK and KAPC have this morning reported their results as follows:
WTK
PAT 442,169,000 - UP 108.8%
EPS - 50.50. Of this 22.49 is from Operations while 28.01 arises from changes in FV of Bio Assets.
Interim DPS - 2.50
KAPC
PAT 92,244,000 - UP 105.96%
EPS - 23.58. Of this 5.60 is from Operations while 17.98 arises from changes in FV of Bio Assets.
Interim DPS - 1.25
In my view WTK's results are pretty good but not so much for KAPC. I still expect the results for both to be less than those for 2009-10, especially in terms of the profits from operations. You did not mention the prospects they have stated. They lost automated harvesters due to arson attacks and vandalism. Union leaders are still calling for more strikes. A 20% wage bill will be added to the books by 2011, tea prices are declining etc. Not a good prospect. Thus the two will continue hoodwinking profits. Go overdrive in purchasing the goods when there's blood on the streets, expecially if the blood is your own
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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Surealligator wrote: You did not mention the prospects they have stated. They lost automated harvesters due to arson attacks and vandalism. Union leaders are still calling for more strikes. A 20% wage bill will be added to the books by 2011, tea prices are declining etc. Not a good prospect. Thus the two will continue hoodwinking profits.
What do you mean by the phrase "hoodwinking profits"? I have noted that WTK and KAPCHORUA have always had dour predictions of their future propects even when things are good. If you read their 2010 Annual statements you may have seen that they had already alluded to do this. It has become an art form for them. At one point, I even thought they were doing it deliberately so that they could do a UNILEVER TEA on us. I even raised this issue at an AGM, which they skillfully avoided. I acknowldged that the prospects may not be so rosy, especially due to rising costs but this will also apply to other tea companies such as Kakuzi as well, and Sasini to some extent. I have been a shareholder in WTK (and a nominal one in KAPC and Kakuzi) for some time now. I have learnt that the best time to buy agricultural stocks is when their prospects are at their worst and the price is heavily discounted. We are not there YET and hence, I am not rushing to buy any of the agriculturals for my long term portfolio but I am now actively speculating on Sasini. I believe that it presents the best chance for short term gains. Risky though.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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mwanahisa wrote:Surealligator wrote: You did not mention the prospects they have stated. They lost automated harvesters due to arson attacks and vandalism. Union leaders are still calling for more strikes. A 20% wage bill will be added to the books by 2011, tea prices are declining etc. Not a good prospect. Thus the two will continue hoodwinking profits.
What do you mean by the phrase "hoodwinking profits"? I have noted that WTK and KAPCHORUA have always had dour predictions of their future propects even when things are good. If you read their 2010 Annual statements you may have seen that they had already alluded to do this. It has become an art form for them. At one point, I even thought they were doing it deliberately so that they could do a UNILEVER TEA on us. I even raised this issue at an AGM, which they skillfully avoided. I acknowldged that the prospects may not be so rosy, especially due to rising costs but this will also apply to other tea companies such as Kakuzi as well, and Sasini to some extent. I have been a shareholder in WTK (and a nominal one in KAPC and Kakuzi) for some time now. I have learnt that the best time to buy agricultural stocks is when their prospects are at their worst and the price is heavily discounted. We are not there YET and hence, I am not rushing to buy any of the agriculturals for my long term portfolio but I am now actively speculating on Sasini. I believe that it presents the best chance for short term gains. Risky though. Quality stuff. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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why has the price not shot up for williamson?..i got in at 180 and expected the price to reach around 250 after the H1 results.
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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This is the nature of Agriculturals. Uncertainty of prospects increases the level of risk, which keeps many investors off.
The paucity of dividends do not help much either. But at least this time they have given an interim dividend.
Agriculturals are not for those with a short term mindset!
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Rank: Elder Joined: 9/23/2010 Posts: 2,220 Location: Sundowner,Amboseli
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Sasini are next with their full year accounts for 2009/2010. Lets see whether they will do a WTK earningswise or will turn out to be disappointing! Crossing my fingers! @SufficientlyP
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Rank: Member Joined: 4/18/2009 Posts: 118
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FUNKY wrote:why has the price not shot up for williamson?..i got in at 180 and expected the price to reach around 250 after the H1 results. May be you better think of exiting. You can get your cash back today but forget the commission. The share has rallied a bit, but for how long?
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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Sufficiently Philanga....thropic wrote:Sasini are next with their full year accounts for 2009/2010. Lets see whether they will do a WTK earningswise or will turn out to be disappointing!
Crossing my fingers! I wish you well.I really do.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Well the results are being like VERY much by the market... The rally in WTK's, Kakuzi and sasini's share prices is clear evidence of that... And guys the interim dividend does not represent half of the total dividend to be paid... Its prudent to pay a much less interim dividend than the final one... so relax...  Mark 12:29
Deuteronomy 4:16
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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atlast price climbed today...lets see what happens 2moro..btw it is the first time they declared an interm dividend if am not wrong..lets hope for the best on this share
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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This what AKS said when i asked him about 80% of the EPS being from biological values "Tea Prices have shifted permanently higher like Sugar Like Coffee I am not worried about the Biological Reval" -
17 hours ago Favorite Retweet Reply values
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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the deal wrote:This what AKS said when i asked him about 80% of the EPS being from biological values "Tea Prices have shifted permanently higher like Sugar Like Coffee I am not worried about the Biological Reval" -
17 hours ago Favorite Retweet Reply values 80%? Not Williamson if the little information i have is to be believed.If they can sustain the first half performance in terms of profits from operations and get it right on dividend payout at year end i will be content. The second half however could be more difficult,the effects of the strike,production volumes if rains are not sufficient,exchange rate risk.The prices however should hold and into the future.
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Rank: Veteran Joined: 7/24/2008 Posts: 781
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i saw a feature of how srilanka is increasing tea production to record volumes after defeating the tamil tigers.. Hope this will not depress world prices. The utimate goal of investing is to buy low sell high;if we re-write this core equation in psychology terms it becomes buy fear sell greed.
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Rank: Member Joined: 7/19/2006 Posts: 113 Location: Mombasa
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I DON'T HOLD A BUY IN THESE COMPANIES, ALTHOUGH ONE CAN HOLD HIS SHARES. I THINK THEY WILL GO UP A NOTCH THEN EASE ALONG DECEMBER UP TO AND INCLUDING JANUARY... THEN IT SHOULD RISE AGAIN. I ALSO BELIEVE FOR A FINAL DIV OF 5 BOB. Sound that I love most: Is the ringing bell of Stock Market.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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guys if you read today's daily nation it cleary states that kenya's tea prices together with production volumes are at its peak again..so i should its good to buy williamson tea..and i got inside information that in the year end they are going to announce a good final dividend as well as declare a bonus issue as they have sufficient reserves....guys start stocking up now and sell after the year end results..if the information about the bonus issue is true then this stock will be above 300...
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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KK apart,WTK is another i am watching closely,they should report in the next two weeks and i expect another good year,will the directors get the dividend right this time?
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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True if the right dividend is declared this share can rally upto 280-300 but if only a paltry 5 bob divdidend is declared nothing will happen.
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Rank: Veteran Joined: 5/24/2010 Posts: 846 Location: KENYA
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230 is the ceiling like kakuzi's 74/-. Sad but true...
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WILLIAMSON and KAPCHORUA H1 2010-11 results
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