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Centum: On your marks, Get Set ...
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mukiha
#21 Posted : Monday, April 26, 2010 7:17:05 AM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
winston wrote:
@mukiha -would you be kind enough to explain the bit on BAT? Is it the reluctance to split? Thanks

I wonder if I'd be comfortable with being in the cigarette business.

I wonder why they pay 100% of EPS as dividend.

Is the smoking habit going to last?
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too many questions I'd have to think about before putting money in a cigarette company...
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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winston
#22 Posted : Monday, April 26, 2010 7:39:00 AM
Rank: Member

Joined: 4/14/2010
Posts: 806
Location: Nairobi
@mukiha - Thanks. Appreciate your perspective.
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VituVingiSana
#23 Posted : Monday, April 26, 2010 8:22:44 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
100% dividend coz they can meet almost all their expansion needs with existing cash flow.

Depreciation is a 'source' of cash... (well, not really but I cant b bothered to explain)...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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obiero
#24 Posted : Monday, April 26, 2010 8:31:23 AM
Rank: Elder

Joined: 6/23/2009
Posts: 14,220
Location: nairobi
i bought some centum llate last year at ksh ten and sold them three months later at ksh thirteen.. thinking i had made a profit. now look??????

KQ ABP 4.26
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mukiha
#25 Posted : Monday, April 26, 2010 12:56:20 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
@Obiero; kwani you sold the whole lot?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Scubidu
#26 Posted : Monday, April 26, 2010 2:44:48 PM
Rank: Veteran

Joined: 9/4/2009
Posts: 700
Location: Nairobi
Both Centum and BAT seem to have cashflow problems? At least BAT has a good credit rating and good line of credit, they can borrow to pay those dividends. But Centum will need to borrow for the KCB rights issue and probably for the annual dividend (if they propose anything). Isn't that a big risk on Centum? Current price is not justified at all IMHO, take profits.
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
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Wa_ithaka
#27 Posted : Monday, April 26, 2010 2:54:25 PM
Rank: Veteran

Joined: 1/7/2010
Posts: 1,279
Location: nbi
Scubidu-are you aware Centum has put RVR stake in the market for almost Ksh350m? Moreover, I mberieve the statement you are referring to is now 6 months old and I'd expect to see improvement from dividends...
The Governor of Nyeri - 2017
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Kaffir
#28 Posted : Monday, April 26, 2010 3:09:24 PM
Rank: Member

Joined: 5/8/2008
Posts: 77
I expect them to have some good results. But, my appeitite for risk is not too high these days. I've also bailed out too after hitting my target (bought at 13shs) - no need to be too greedy. Enjoy the ride
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Scubidu
#29 Posted : Monday, April 26, 2010 3:12:46 PM
Rank: Veteran

Joined: 9/4/2009
Posts: 700
Location: Nairobi
Well @Wa_ithaka. I have just downloaded the annual report from their website. Centum holdings 79 million shares in KCB. Some speculate that the rights price could be about 13.60...the math is self-evident. Either Centum sells KCB (which I'm guessing they're doing or already done substantially) or they pay USD13.5 million (3x times the RVR sale). Nway it's in their best interest to scale down on KCB cos it's the only way they'll post good results and not have to keep borrowing.
“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
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Wa_ithaka
#30 Posted : Monday, April 26, 2010 3:37:09 PM
Rank: Veteran

Joined: 1/7/2010
Posts: 1,279
Location: nbi
Scubidu-we at least agree. KCB is not a share that Centum should be holding in large amounts. Note though that it stands to make Ksh79m in divs from the same share...
The Governor of Nyeri - 2017
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