Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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cyruskulei wrote:jgithige wrote:xxxxx wrote:xxxxx wrote:deadpoet wrote:Is Bamburi a buy at sub-50, the poor 2019 results notwithstanding? I assume the NAV is high - results should be out this week.
The NAV is deceitful given the cutthroat competition in the sector. Sooner or later, they're gonna have to take significant impairment losses on these assets. That Bamburi hasn't reported 2019 to date is very TELLING. I'd stay out until I know what they can do to their ROUTE TO CUSTOMER given all these Asian companies flooding the sector.
Eish....but where are Bamburi's financial results?
I pity bamburi somebody tell me their major customers if not government tenders. Most hardware shops are now stocking either mombasa cement, devkis simba or savanna. Bamburi thrived on the inefficiencies of eapc blue triangle where they also hold some stake. Though they say their cement is superior I doubt which contractor will buy their overpriced cement in this turbulent times. Most will reason like wanjiku Simiti ni simiti. Currently cement prices have come down with ksh 530 you have a bag. Enzi za bamburi and blue triangle a bag was retailing at 700. Larfarge should close shop. Period.
I have been a construction consultant for close to 20years and trader in nse for similar period. Always keen on products of listed firms in the construction sector and financial performance of the same firms. With all honest, the future of bamburi is bleak. Go from hardwAre to hardware checking on cement brands stocked. Shock on you if you see bamburi. Key reason is pricing.
Competition, note also the quality of cement is not as good across.Fan and shit playing out at its best, after settling distribution won't be equal as usual. ,Behold, a sower went forth to sow;....
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