qw25041985 wrote:i totally agree uchumi has been a financial trap. On relisting i expect the price to fall considerably as the wanjiku investors want out of this stock.
Yet again Uchumi is a BUY in our improving economy because as the economy is improving people have cash to spend on goods .And this is good for uchumi.the company has a good branch network.
I am pretty much keen on its listing and as long as fundermentals ( which are good) havent changed you guyz shld take a serious look @ this company.
Ignorance is expensive.
1. Major share holders have been locked in and cannot sell their holdings atleast for a year. meaning only a little volume of the shares will be available to trade.. hence dumping and price fall as predicted above is improbable... technically speaking..demend likely way outstrips supply considering buffer on liquidity for 52 TRADING WEEKS!!!
2. Inflation..too much cash chasing to few goods..food prices up..wage increase accelerates inflation..more cash justifies higher prices.. employers have to cut on production costs..wage bill, energy costs.. hurting supply side... so many things to say here..
..but importantly psychological reflex of 60% population is consume more save less..cut down on luxury and ostentatious spending..meaning prefer shopping at kiosk and mama mboga and wholesale outlets compared to supermarkets
don't you know nakumat cut down hours from 24 hours due to NO TRAFFIC?..less and less shopping in supermarkets.. a country of hustlers..looking for better deal at hawkers..
Which kenya are you from?
more cash does not mean economy growth.. ask idi amin..
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version