http://www.nse.co.ke/newsite/

What do you think?

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

dont rush buying olympia if you are short term buyer,a good buy though for long term investors,the highs of 21.if i were you i would go for akina access or equity if you got the dime. personal views.read and filter

wakam

Good point,though the notes (and FS) do show a huge rise in financing costs (albeit with a general decline in current/non current liabilities),were they operating on O/D,uchumi style...,?

True nobility lies in being superior to your former self.

Sisini8

Thanks for the response.

Yes I did note the higher FC costs of Ksh29m. Lakini even if you look at the profits from operations,the numbers are paltry i.e. this is an extremely thin-margin type of business.

On inclusion of acquired businesses,please note that this is a non-issue since one can easily assume that the sales are a like for like comparison.

What is your definition of long-term? In my opinion,the long-term is a defined period in the future but in the meantime,one should for example be able to say that in 2 years time,this is my anticipated profit growth.

Cash-flow statement-already looked at it. Whats nice about it? Its only improved because of the rights issue and the borrowings and not from operating activities.


www.mjengakenya.blogspot.com

You have a point MainaT about the time lines and the low profitability. My long term specifically for this stock is 5 years as I believe that it requires that time to implement whatever vision management has for the new acquisitions. My other reasons for selecting 5 years are ;

(1) Benefits from construction in Southern Africa to be felt after the World Cup in SA

(2) I estimate that metropolinization of Nairobi will benefit the company. I expect the benefits to accrue over parliaments 5 yrs

My major concerns are that the MD is not very visible in Kenya and that definitely affects the Companys market price on the NSE of course couple with the no dividends and low dividend pay out ratios.

I am also concerned at the company's gross margin of sub 10%. Could some one in the construction industry tell us what the margins on resins,dyes,adhesives etc usually are.

Last but not least the puzzle of the finance charges,are they carried over from the prerights periods,some one pointed out to me that most of the financing for acquistions has come from the rights money so the finance cost should not be that high.

I have very little time to research the stock but based on my gut and earlier projections,I will just retain my current holding purchased at 12.50 to 13.5 and target a price of 22.














Citius altius fortius !