Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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MugundaMan wrote:sparkly wrote:
1. You are welcome to try your hand young turk.
2. Nevertheless let me share my experience. I participated in the IPO in 2006 at 9.50 per share. Didn't get my full application since the offer was oversubscribed by 733%.
3. I held on to my measly holdings for about 4 years during which period I believe I received dividends of 20 cents in total.
4. I sold off the said measly holdings for ~4.75 per share to cut my losses and put the cash in better stocks.
5. 7 Years after I sold, the share is still trading at 2.35.
6. Why did i sell at a loss 7 years ago? It's because i read instructive literature on investments including "The Intelligent Investor" and realized Eveready was going nowhere but down. The very reason that the Americans divested is because the company had no future.
7. That's my experience, wisdom or lack thereof spanning 11 years but you are welcome to accumulate more experience for the guys who will come after you.
8. By the way if you invested KShs 1,000 in Eveready in 2006 it is worth KShs 247 today without considering inflation but if you invested the same amount in a corporate bond paying 10% interest the same is worth KShs 2,853 today.
Sparkly, Nobody is denying that EVRD has had its litany of woes. It has. You simply got in at the wrong time, brother. I was one of the doomsayers on this stock until a few years ago. I'm fully aware of all the troubles the company has gone through. I would not have touched this thing with a ten foot pole up until the true nature of their troubles - the suicide deal with Energizer - that made it impossible to compete with the flood of cheap Chinese imports, came out in the open. Besides the crazy low book value per share, I figured something interesting was happening here if they could succeed in ditching the suicide deal (which they did). And since they could not beat the Chinese, they joined them. Convinced it was worth a risk, I bought in slowly with time at an average cost of a little over ksh 2.05 or so. Then came the good news of the dividend after the land sale. I literally made half my money back overnight. Depending on how these results go I may accumulate even more shares. Bottom line, I am not selling this baby for the next ten years. Worth the gamble IMHO. Let's just pray that going forward, I don't have an experience like yours though  . All the best. Life is short. Live passionately.
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