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Centum 2019/2020
Ericsson
#21 Posted : Tuesday, August 20, 2019 10:33:31 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,250
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
obiero wrote:
VituVingiSana wrote:
sparkly wrote:
Kusadikika wrote:
What is going on???!!!!

Building a war chest to buy something big?? or Seeing danger ahead and wanting to hold onto cash for now??

What would you make of it if you heard Centum is just buying dollars??

Reinvesting in real estate and leasing business
The pessimism is good for buyers Applause
Buffett writes that earnings gyrations “don’t bother us in the least.” After all, “Charlie (Munger) and I would much rather earn a lumpy 15 percent over time than a smooth 12 percent.”
This is not a case of losses year after year after year. It's a loss in a project. Happens.

The concentration of the portfolio in Real Estate may be problematic but is also an opportunity. Centum has huge holdings that can produce income, through phased sales, over time.

In the meantime, I hope this news creates a buying opportunity! Laughing out loudly

Real estate in Kenya is crumbling my brother. Unless the economic situation changes, time will get hard for firms like Centum. Atleast they have realized alcoholic beverages, ABL and Sidian Bank were not the best placement of capital
Real Estate is in bad shape but after seeing the types of houses/buildings and prices on HF's website I am not surprised.
Ugly. Expensive.

If Centum can provide quality at fair prices then Kenyans will flock back into real estate. For now, I think Centum should take baby steps in new real estate projects. Phased approach.

At the same time, I do not want Centum to be afraid of making bold moves that seem sensible. Paying off the bond/s is a good move to reduce annual cash outflow by reducing interest costs.


Paying off the bond and they took another ksh.7.4bn loan from Nedbank
Was this recent? I went through the latest Investor Presentation and Financial Report and I think Centum is looking to pay down most of the loans (excluding ODs and some small stuff) at the Holding level including the bond and Nedbank loan by 2021.
Have I made an error or misinterpreted this?

Ulicheswa
It will be an item in FY2019/2020 statements
The news is as below

https://www.businessdail...09090-5whh37z/index.html
rwitre
#22 Posted : Tuesday, August 20, 2019 10:37:25 AM
Rank: Member


Joined: 3/8/2018
Posts: 368
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
obiero wrote:
VituVingiSana wrote:
sparkly wrote:
Kusadikika wrote:
What is going on???!!!!

Building a war chest to buy something big?? or Seeing danger ahead and wanting to hold onto cash for now??

What would you make of it if you heard Centum is just buying dollars??

Reinvesting in real estate and leasing business
The pessimism is good for buyers Applause
Buffett writes that earnings gyrations “don’t bother us in the least.” After all, “Charlie (Munger) and I would much rather earn a lumpy 15 percent over time than a smooth 12 percent.”
This is not a case of losses year after year after year. It's a loss in a project. Happens.

The concentration of the portfolio in Real Estate may be problematic but is also an opportunity. Centum has huge holdings that can produce income, through phased sales, over time.

In the meantime, I hope this news creates a buying opportunity! Laughing out loudly

Real estate in Kenya is crumbling my brother. Unless the economic situation changes, time will get hard for firms like Centum. Atleast they have realized alcoholic beverages, ABL and Sidian Bank were not the best placement of capital
Real Estate is in bad shape but after seeing the types of houses/buildings and prices on HF's website I am not surprised.
Ugly. Expensive.

If Centum can provide quality at fair prices then Kenyans will flock back into real estate. For now, I think Centum should take baby steps in new real estate projects. Phased approach.

At the same time, I do not want Centum to be afraid of making bold moves that seem sensible. Paying off the bond/s is a good move to reduce annual cash outflow by reducing interest costs.


Paying off the bond and they took another ksh.7.4bn loan from Nedbank
Was this recent? I went through the latest Investor Presentation and Financial Report and I think Centum is looking to pay down most of the loans (excluding ODs and some small stuff) at the Holding level including the bond and Nedbank loan by 2021.
Have I made an error or misinterpreted this?

Ulicheswa
It will be an item in FY2019/2020 statements
The news is as below

https://www.businessdail...9090-5whh37z/index.html



Read.

Quote:

The re-financing deal was signed between the Nedbank Corporate and Investment Banking (CIB), the Nedbank property finance division, and Centum Real Estate, the real estate arm of Centum.

VituVingiSana
#23 Posted : Tuesday, August 20, 2019 10:47:47 AM
Rank: Chief


Joined: 1/3/2007
Posts: 16,292
Location: Nairobi
rwitre wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
obiero wrote:
VituVingiSana wrote:
sparkly wrote:
Kusadikika wrote:
What is going on???!!!!

Building a war chest to buy something big?? or Seeing danger ahead and wanting to hold onto cash for now??

What would you make of it if you heard Centum is just buying dollars??

Reinvesting in real estate and leasing business
The pessimism is good for buyers Applause
Buffett writes that earnings gyrations “don’t bother us in the least.” After all, “Charlie (Munger) and I would much rather earn a lumpy 15 percent over time than a smooth 12 percent.”
This is not a case of losses year after year after year. It's a loss in a project. Happens.

The concentration of the portfolio in Real Estate may be problematic but is also an opportunity. Centum has huge holdings that can produce income, through phased sales, over time.

In the meantime, I hope this news creates a buying opportunity! Laughing out loudly

Real estate in Kenya is crumbling my brother. Unless the economic situation changes, time will get hard for firms like Centum. Atleast they have realized alcoholic beverages, ABL and Sidian Bank were not the best placement of capital
Real Estate is in bad shape but after seeing the types of houses/buildings and prices on HF's website I am not surprised.
Ugly. Expensive.

If Centum can provide quality at fair prices then Kenyans will flock back into real estate. For now, I think Centum should take baby steps in new real estate projects. Phased approach.

At the same time, I do not want Centum to be afraid of making bold moves that seem sensible. Paying off the bond/s is a good move to reduce annual cash outflow by reducing interest costs.


Paying off the bond and they took another ksh.7.4bn loan from Nedbank
Was this recent? I went through the latest Investor Presentation and Financial Report and I think Centum is looking to pay down most of the loans (excluding ODs and some small stuff) at the Holding level including the bond and Nedbank loan by 2021.
Have I made an error or misinterpreted this?

Ulicheswa
It will be an item in FY2019/2020 statements
The news is as below

https://www.businessdail...9090-5whh37z/index.html



Read.

Quote:

The re-financing deal was signed between the Nedbank Corporate and Investment Banking (CIB), the Nedbank property finance division, and Centum Real Estate, the real estate arm of Centum.

Thanks. "Centum raises Sh6.5bn in project funding deal".
This is a known known and is at the PROJECT/SUBSIDIARY level and not HOLDINGS level. Of course, it all ends up in the same place when consolidated but Centum did indicate 2 years ago that they shall push debt from Holdings to Project/Subsidiary level.

Part of the re-financing was for the Two Rivers Loan so an existing loan was essentially extended. Not a new loan.
The balance is project related but not at the Holdings level.
On consolidation, it all shows up but at least 20bn-ish (FY19) is expected to be paid off by FY21.

Centum might need to sell off stakes in other investees over the next 2 years.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#24 Posted : Wednesday, August 21, 2019 3:00:35 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,292
Location: Nairobi
Gotta say... One needs balls of steel at this time.
Centum at 31.50 today
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#25 Posted : Wednesday, September 11, 2019 1:34:19 AM
Rank: Chief


Joined: 1/3/2007
Posts: 16,292
Location: Nairobi
Centum employees buy Sh50m shares
https://www.businessdail...268210-qfj556/index.html
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#26 Posted : Wednesday, September 11, 2019 6:21:43 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,250
Location: NAIROBI
VituVingiSana wrote:


Nineteen employees buy 1.7mn shares.
That's a tiny figure
target1360
#27 Posted : Wednesday, September 11, 2019 8:23:08 AM
Rank: Member


Joined: 5/14/2014
Posts: 276
Location: nairobi
what is 50m divided by the total looooottt of 1.5 billion( read staff bonus).that is 3.4% which i think is negligible. Pr gimmicks i would say.Be wary of businesses that are always in the media pulling stunts
I find satisfaction in owning great business,not trading them
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