Some rules about investing that I learnt in my short years playing with money.
1. Never count your chicks before they hatch. - You know you made money once you are out of the deal and have done the math. Looking at prices for a stock/product you are still holding doesn't mean that you will get the same on your exit day.
2. Know your place on the table - Minority shareholder means you are hanging on the tailcoats of other decision makers. If they choose to reinvest returns or divest the business, too bad for you.
3. Forget the marketing - What you see is what they want you to see. learn the scuttlebutt technique for any investment worth a substantial sum. If I don't understand how you are making money, then am a fool to be investing.
4. I know my limits - I know at what point I am willing to count an investment/deal over and count my losses. Beyond that limit, it will stress me and I don't need that.

As far a Cytonn is concerned, some people who put in a million, just couldn't stomach losing a million. Some people knew nobody in the organisation yet they believed and based their decision on what some sales staff was coached to tell them. Some people didn't understand the exit points or the lack of them.
Either way, hio ni funzo.

Cytonn says an option is to “liquidate the portfolio and best case is YES BEST CASE and that’s according to the ponzi - is it’ll fetch 30% THIRTY PERCENT of the value. BEST CASE. Laughable

This is a disaster ... Waaah

The guy who was threatening to sue us here for bad mouthing Cytonn, is he still suing??

Covid has happened, there are not many buyers of apartments at ridiculous prices. Unfinished ones nevertheless.

While the assets may still exist, their value will not appreciate by more than 16% annually (The interest that Cytonn was giving).

The 16% was based on the assumption that Cytonn could develop and sell the apartments in a short time (usually 2 years). When the development and sales cycle is longer than this - the business case collapses because the finance cost eats into the margin significantly.

Any investor who is still hoping for interest payment at 16-20%, compounded is deluded. The business case is no longer valid.

Alma Phase 1 and phase 2 are already sold out. Are the profits from Alma sufficient to retire the finance costs?

Buyers of the properties are also impacted. E.g. if you bought property @the Ridge, there is currently no development going on.
- Have these people being refunded their money?
- Were the monies for the other projects ringfenced to only a specific property? Say if I invested in a project note for the Ridge - can that money be used to finance development at Alma? And If no, what about the sunk costs at The Ridge? I recall they had started development then stopped when things got thick.

Cytonn made a smart move by focussing on developing Alma only. Finish one project before moving on to the next project. Razor sharp focus - and avoids being spread out too thin.

I know people whose funds are in Cytonn. And their development plans are completely messed by the current situation.

I hope this situation is solved in an amicable way. Best way is for Cytonn to seek long term funding and sort dissenting people, the patient ones to wait it out.

He would be here by now, guns blazing!!!

However that post by Dande doesn't inspire at all. Lakini ni sawa.

.

Its been six years friend.. six years and still counting.
Last year at such a time the naysayers were not just composing but singing the dirges and digging the grave. They left first..

?????