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East African Cables... why so low?
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Aguytrying
#11 Posted : Wednesday, June 18, 2014 9:07:56 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
mwekez@ji wrote:
guru267 wrote:
hisah wrote:
Does CABL use irony & steel as raw materials? Some funny taxation was thrown in during the latest budget....


Mainly Aluminum!


... And copper


this would be a better play for those looking to profit from kengen and kplc capacity increases. only other aspect is management. tranny. how much do they own after that buyout recently. what are their plans for the company ??
The investor's chief problem - and even his worst enemy - is likely to be himself
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jawgey
#12 Posted : Wednesday, June 18, 2014 9:54:54 AM
Rank: Member

Joined: 1/13/2014
Posts: 398
Location: Denmark
Aguytrying wrote:
mwekez@ji wrote:
guru267 wrote:
hisah wrote:
Does CABL use irony & steel as raw materials? Some funny taxation was thrown in during the latest budget....


Mainly Aluminum!


... And copper


this would be a better play for those looking to profit from kengen and kplc capacity increases. only other aspect is management. tranny. how much do they own after that buyout recently. what are their plans for the company ??


Its like they will control over 90% after the exchange with Aureos but my take is that Transcentury will look for a stretegic investor in running E.A. Cables.
My only question is, why would Aureos give up its stake in E.A cables and opt for a share swap with Transcentury (Aureos know more about ea cables than us), meaning they believe more in the performance of Transcentury.

Also this.. http://www.businessdaily...2/-/103keug/-/index.html
Seeing is believing
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Angelica _ann
#13 Posted : Wednesday, June 18, 2014 10:29:41 AM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
@jawgey that is April 2013 article.... thought they made a loss in 2013 and yet to factor in sale of thier stake in RvR which will be in 2014 report.
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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jawgey
#14 Posted : Wednesday, June 18, 2014 11:09:15 AM
Rank: Member

Joined: 1/13/2014
Posts: 398
Location: Denmark
Angelica _ann wrote:
@jawgey that is April 2013 article.... thought they made a loss in 2013 and yet to factor in sale of thier stake in RvR which will be in 2014 report.


Yes @Angelica you are right it is a past article but I wanted to highlight the fact that Transcentury reduced its reliance on e.a cables for profit growth. So probably e.a cables is not a good venture in the near term.
Seeing is believing
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kiwaru
#15 Posted : Wednesday, June 18, 2014 11:20:40 AM
Rank: Member

Joined: 8/5/2011
Posts: 125
jawgey wrote:
Angelica _ann wrote:
@jawgey that is April 2013 article.... thought they made a loss in 2013 and yet to factor in sale of thier stake in RvR which will be in 2014 report.


Yes @Angelica you are right it is a past article but I wanted to highlight the fact that Transcentury reduced its reliance on e.a cables for profit growth. So probably e.a cables is not a good venture in the near term.


@jewgey @angelica: looking at the broad macro-economic issues, I would want to think that demand for their product is bound to rise; and Kenya (with all its issues) is on a good trajectory in terms of growth potential with secondary impact on power transmission, construction industry.
Fact that they are establishing additional capacity and the drop in sales is attributed to political transition challenges (remember banks have a steep increase in NPL's from pending contractor bills, etc.
Would this not mean good prospects for the business and ultimately for the stock??
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kiwaru
#16 Posted : Wednesday, June 18, 2014 11:55:31 AM
Rank: Member

Joined: 8/5/2011
Posts: 125
kiwaru wrote:
jawgey wrote:
Angelica _ann wrote:
@jawgey that is April 2013 article.... thought they made a loss in 2013 and yet to factor in sale of thier stake in RvR which will be in 2014 report.


Yes @Angelica you are right it is a past article but I wanted to highlight the fact that Transcentury reduced its reliance on e.a cables for profit growth. So probably e.a cables is not a good venture in the near term.


@jewgey @angelica: looking at the broad macro-economic issues, I would want to think that demand for their product is bound to rise; and Kenya (with all its issues) is on a good trajectory in terms of growth potential with secondary impact on power transmission, construction industry.
Fact that they are establishing additional capacity and the drop in sales is attributed to political transition challenges (remember banks have a steep increase in NPL's from pending contractor bills, etc.
Would this not mean good prospects for the business and ultimately for the stock??


@jawgey I am curious whether the driving objective for Tranny was not diversification as a general principle as opposed to divesture
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innovator
#17 Posted : Wednesday, June 18, 2014 12:09:42 PM
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Joined: 7/24/2010
Posts: 239
Location: nairobi
It is only in RVR where Transcentury did not reap, in other ventures they have done extremely well. This guys are very strategic, civicon will be creating a market for E.A cables through the construction of power lines. In short the whole thing is an integrated business.
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jawgey
#18 Posted : Wednesday, June 18, 2014 12:28:03 PM
Rank: Member

Joined: 1/13/2014
Posts: 398
Location: Denmark
kiwaru wrote:
kiwaru wrote:
jawgey wrote:
Angelica _ann wrote:
@jawgey that is April 2013 article.... thought they made a loss in 2013 and yet to factor in sale of thier stake in RvR which will be in 2014 report.


Yes @Angelica you are right it is a past article but I wanted to highlight the fact that Transcentury reduced its reliance on e.a cables for profit growth. So probably e.a cables is not a good venture in the near term.


@jewgey @angelica: looking at the broad macro-economic issues, I would want to think that demand for their product is bound to rise; and Kenya (with all its issues) is on a good trajectory in terms of growth potential with secondary impact on power transmission, construction industry.
Fact that they are establishing additional capacity and the drop in sales is attributed to political transition challenges (remember banks have a steep increase in NPL's from pending contractor bills, etc.
Would this not mean good prospects for the business and ultimately for the stock??


@jawgey I am curious whether the driving objective for Tranny was not diversification as a general principle as opposed to divesture


Remember ea cables is not a monopoly we still have cheap imports from China.

The main point from Tranny's change of perspective on cables is that they don't foresee a lot of profits/dividends coming from the company esp considering they are on an expansion spree,-i read somewhere that they acquired a piece of land in industrial area to set up shop- they might not be willing to give out divs in the near future instead they will plough back the profits and probably bring in a cash call.

The demand (since its currently discounted) might push up the share price but in terms of returns to investors it might take quite sometime.
Seeing is believing
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kiwaru
#19 Posted : Wednesday, July 02, 2014 2:45:11 PM
Rank: Member

Joined: 8/5/2011
Posts: 125
It would seem that this was a sleeping giant... and even though he is waking up, I dont think that he's fully awake: there's still potential. No??
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Boris Boyka
#20 Posted : Wednesday, July 02, 2014 4:08:25 PM
Rank: Veteran

Joined: 11/15/2013
Posts: 1,977
Location: Here
jawgey wrote:
guru267 wrote:
kiwaru wrote:
Question for the stock guru's...

With a div yield of > 7and a P/E of 10, a P/B of 1.2, the current price would seem a bargain... esp considering that drop in profit last year is attributed to the election impact on revenue.

Is this not a bargain based on foondamentoes?

Anyone with a PDF copy of the financial report?


When a stock is cheap, you buy!

You don't start asking why its cheap as if markets are rational creatures!


And with that am headed to my broker! Laughing out loudly Laughing out loudly

I hope point was noted, taken & implemented!! I missed it at stage though I wasn't questioning ,my luggage was "behind" so I'll board an okada nitaipata town.
Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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