mwanahisa wrote:@selah, TCL does not own even a hair of AfDB. The African Development Bank is certainly not a sister company of TCL. I am sure they (TCL) would wish it was!
selah wrote:In todays paper ADB has approved a 3.59b loan to finance the rehabilitation of the dilapidated kenya - uganda railway,the loan is part of 5yr capital investment program of 22.1B.
The last time I checked TCL owned part of this Bank so can we take its statement seriously or can we say most of its decision is clouded since its just funding its sister company.
Apologies,that was quite a big error, I had confused it with development bank of Kenya (DBK).
What that means is that TCL offers some very attractive long term value but its a risky investment in the short term,my error not withstanding.
The capital requirement for RVR to turnaround is humongous given that the management need to pay up this loan as well as the convertible bonds not forgetting loans which it is already servicing.
In a capital intensive business like this one until the business is completely streamlined and all processes made to work efficiently then its like standing in a quick sand...the management will continue investing and loosing money in a business whose operational cost is unsustainable due to derelict infrastructure.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3