sparkly wrote:littledove wrote:sparkly wrote:VituVingiSana wrote:Horton wrote:VituVingiSana wrote:Horton wrote:VituVingiSana wrote:sparkly wrote:[quote=muganda]Curiously:
Consolidated income statement +226%
Company income statement -273%
Gains on disposal of Almasi 2.6bn
Writedown on Amu Power -2.3bn
Net Asset Value per share down 4%
Centum is selling good assets to cover for losses from their risky investments.
People shouldn't be left dancing when the music stops.
That's not why they sold Almasi but they got a good price. The total gain was 18.6bn. The realized less unrealized gain = 2.6bn
It's a good move to provide for Amu given it is almost dead.
By that logic...BRK should be selling Coca Cola they bought at $2.45 and sold to help out Dexter or Tesco. That would be throwing good money after bad. Almasi has done well for Centum but they really aren’t the contrarian investors they want everyone to believe. The economy is on the down. It’s now that we we will see who has been swimming naked as the waves recede
Let's break it down.
Dexter - If I recall, was bought for shares not using debt so there is no need to sell an asset to repay any loan/s due for Dexter. I think BRK has taken provisions/impairments on Dexter. Why do you think BRK needs to help Dexter?
Tesco - The shares were sold and loss was booked. Why do you think BRK needs to help Tesco when it is not a subsidiary?
Coke - There is a huge capital gains liability upon the sale of Coke shares. The reinvestment has to provide similar ROI to holding Coke. The sale of such a huge stake could depress prices unless BRK can find a large enough buyer at the right price.
U digress. We are talking about Centum comparing their selling of almasi to rejuvenate Amu (profit making entity to help out a crappy investment)
I kif up.
Centum says "don't look at the cashflows,look at NAV".
Now the NAV is eroded by 4%.
Real estate is a struggling, Sidian is struggling, Amu is written off (oh provided for), King Beverages sold at a loss. Old faithful investments like Almasi, KWAL, GM sold off.
@VVS you better read the signs that tough economic times are catching up with Centum and adjust accordingly.
Atleast they will be debt free, between how is two rivers performing?
They got 6.5B from Nedbank 4 months ago. IMO selling Almasi and other solid assets is not to clear debt but to cover losses on dubious investments. [/quote ] The Nedbank loan was used to refinance the Stanbic SA loan. It is either on TRLC's or TRDL's books of which Centum owns 58%. It is probably non-recourse.
IMHO, you are wrong but that's what it is. That's why it is a market.
There was a loss of Fair Value with Kings and Amu. These were provided for. One-off losses.
Akiira may need cash for further development OR a provision for a "dead/suspended" project.
Centum has a lot of cash which could be used to settle the Corporate Bond coming up for repayment in 2020.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett