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Matiba sells 2m Carbacid Shares to Centum
Rank: Member Joined: 2/12/2008 Posts: 345
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@slykat... True..but is carbacid deal enough to offset the dwindlin fortunes of centum..? What alternatives r u foregoin by buyin into centum?..as far as investment practices goes..growth investors go for a counter whose year on year earnings grow on average by 15% over immediate past 3 years.. One deal is not enough. But hey! It's just me.
DISCLAIMER: This is the opinion of one Jammo,CFA,CPA,Opinionated and Loud,based in nairobi. Whilst care has been taken in compiling the data to be as most factual n logical,he doesn't accept any responsibility of accuracy or completeness of info contained herein..neither does he purport to be a genius!
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Rank: Member Joined: 6/3/2006 Posts: 553
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@jammo,i greatly agree with you,Centum wameangukia big time...But some of their other investments.. The thicker the thigh the sweeter the pie. The thicker the thigh the sweeter the pie.
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Rank: Member Joined: 2/20/2007 Posts: 359
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Well I cant explain why others are buying - for sure. But I guess its got more to do with confidence in their new CEOs outlined strategy of investing aggresively in undervalued companies during the slump to reap seriously during the recovery,than it has to do with carbacid. The latter seems to be like the beginning of his strategy. This is long-term jammo; the deal is yet to be approved by cma + no one knows how long twill b b4 the value of the shares can be realized owing to the freeze.
Look at it this way,if am not a savvy investor myself or may not benefit from asymetrical info or that am not good at trading,i might as well bank a little in mworia who is showing he can find bargains. all with a longer-term view. of course it can go wrong,like with rvr
When buying shares,ask yourself,would you buy the whole company?
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Its a good deal for Centum as it now holds 20% of Carbacid. Off course,one deal can't undo some of the mess that P Mwangi left behind like RVR and some dodgy NSE holdings. www.mjengakenya.blogspot.comSehemu ndio nyumba
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Rank: Member Joined: 2/12/2008 Posts: 345
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@slykat...the only certain thing about an uncertain future is uncertainty. Centum is one of the biggest casualties of the market slump!...talk of buyin undervalued stocks now isn't goin to translate to growth but 'indemnifyin' it's financials. Eg.
If u own a stake of cables bought at 43.... that u still r holdin...does buyin more now at 21 become a bargain? How much cash do u think u'l need to spend on cables now breakeven on entire stake of cables?..such that should market stagnate throughout reportin period u atleast report a breakeven? ...if instead they sat out..and cables went back up to 43..current buyers..who never hav bought in will be reportin over 100% return..yet buyers of 43 hav just got back to 0%return!!
Centum is bankin on a future that we all kno is uncertain.!!
DISCLAIMER: This is the opinion of one Jammo,CFA,CPA,Opinionated and Loud,based in nairobi. Whilst care has been taken in compiling the data to be as most factual n logical,he doesn't accept any responsibility of accuracy or completeness of info contained herein..neither does he purport to be a genius!
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Rank: Member Joined: 2/20/2007 Posts: 359
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@ Jammo ; progression is a certainty (hehehe,except in Kenyan tribal politics)
U forget that some will be buying first time now when generally prices r 40-60% down having cashed in during the boom. Centum is near 60% down in a yr,if u bought now u r sawa. the universal law of progress presupposes that either the mkt will regress or progress - but it cannot stagnate. the stocks that have not dropped like equity can still do a free fall but their way up is likely flatter. In sum,over time the universe progresses. Thats what we bank on. There will be a few victims that regress to their primive beginning or to extinction eg. northern rock,lehman bros etc. But thats a chance investors take. I will say those buying centum now will be very content in 3-5 yrs time or counting their losses. If the latter,then everybody else at NSE will probably be counting losses.
When buying shares,ask yourself,would you buy the whole company?
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Rank: Elder Joined: 3/2/2007 Posts: 8,776 Location: Cameroon
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@jammo,look at it ths way,centum's holdings slumped in value,but so did centum's share price,albeit by a bigger margin from highs of 30s to just 10bob. Cant see the reason to avoid the counter. Murenj's lover! TULIA.........UFUNZWE!
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Rank: Elder Joined: 3/2/2007 Posts: 8,776 Location: Cameroon
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@jammo,look at it ths way,centum's holdings slumped in value,but so did centum's share price,albeit by a bigger margin from highs of 30s to just 10bob. Cant see the reason to avoid the counter. Murenj's lover! TULIA.........UFUNZWE!
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Rank: Member Joined: 2/20/2007 Posts: 359
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@Jammo - just re-read ur post. must say u r an incurable trader. Just remember not all of us can do that.
When buying shares,ask yourself,would you buy the whole company?
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Rank: Member Joined: 5/5/2009 Posts: 181
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@ Jammo,i must salute you on your knowledge of stocks,but on your latest post i beg to differ. If one bought KCB at Ksh 30 say mid-last year,does that mean that if i bought more KCB at Ksh 15 i wont be acquiring at half my previous buying price.
In addittion,if KCB was to creep slowly to Ksh 25,dont you think i will have a gain than not buying during the slump?
The Hedonist
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Matiba sells 2m Carbacid Shares to Centum
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