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Introduction to Zimbabwe and the Zimbabwe Stock Exchange.
Dmitrys
#21 Posted : Thursday, September 29, 2011 12:39:31 PM
Rank: New-farer


Joined: 9/29/2011
Posts: 22
Location: Nairobi
I am a regular in Zim but would consider three factors, 50% foreign ownership rule (what direction it will take) since most of the companies have mojority forign ownership, Erections and when they take place and unit price of the stock you note majority are split candidates otherwise prices are not for small investors. But under any economic conditions people will always swallow to down their sorrows, hence delta any time and any mining concern.
Cde Monomotapa
#22 Posted : Thursday, September 29, 2011 12:53:09 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Dmitrys wrote:
I am a regular in Zim but would consider three factors, 50% foreign ownership rule (what direction it will take) since most of the companies have mojority forign ownership, Erections and when they take place and unit price of the stock you note majority are split candidates otherwise prices are not for small investors. But under any economic conditions people will always swallow to down their sorrows, hence delta any time and any mining concern.

Super. How would you describe the status of a regular Zimbo pre & post 2009. Better or worse?
Dmitrys
#23 Posted : Thursday, September 29, 2011 1:59:45 PM
Rank: New-farer


Joined: 9/29/2011
Posts: 22
Location: Nairobi
Things have improved you get regular supplies but at a price the only functioning currencies are USD (acceptable everywhere), SA Rand in (Bulawayo area and border) and and Botswana (Pula scarce). You can imagine in a rural economy where everything from a match being quoted in dollar term and smallest unit is 1 US.

It paints three pictures but with a lot of uncertainity at the moment until election time and outcome, 1)stability and move to next level of reconstruction, 2)dependant on erections continue fighting and keep away foreign capital and fights spelling doom and 3)Another coalition and continue waiting and uncertain future.

It is upon one to gamble but like Somalia there are many opportunities, including basic supplies, there are no functioning factory and import everything from the basic, blanket, powder milk, soap. The few factories that work are barely surviving as it is very expensive to operate, e.g. import parts and raw materials. Everything mafuta, sabuni, body oil, costs 1.5 value of nairobi price. Beware no economical and reliable transport link with nairobi only aircargo (KQ, EA, SAA) which cost leg and a nose, need a local partner to circumvert 51% rule and most shops do not buy bulk wholesale no capital hence you might need a godown
msaliti7
#24 Posted : Thursday, September 29, 2011 2:27:06 PM
Rank: New-farer


Joined: 9/9/2011
Posts: 11
Cde Monomotapa wrote:
Personally, I am a 100% behind I&E in mines. See, what the foreign press won't tell u is that it costs btwn USD15M - 1B to set up a mine that is sitting on several more hundreds of millions & billions worth of ZIMBABWEAN NATURAL WEALTH. Thus, as the rest of Africa keeps getting screwed off their natural wealth, I will be happily invested in a country where 51% of mining earnings are retained in the country. MEGA DOMESTIC consumer & capital base.


I couldn't agree more..African countries need to impose a 50% mining tax on this foreign fleeces,it only makes sense,since 50% of revenues generated would usually be more than sufficient to repay the capital costs incurred in setting up the mine,that 50% due to the fleecers should incur further Corporate tax and dividend witholding tax on repartriation,that is the only way we can ensure our assets are deployed in developing our country.
Another option would be to introduce an auction system upfront with a floor price set at 50% of the present value of projected revenues,this will ensure even local consortiums have a chance of bidding for the projects as opposed to the current tender process where gava hawks are bribed to award tenders to companies.
Cde Monomotapa
#25 Posted : Thursday, September 29, 2011 2:29:53 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Dmitrys wrote:
Things have improved you get regular supplies but at a price the only functioning currencies are USD (acceptable everywhere), SA Rand in (Bulawayo area and border) and and Botswana (Pula scarce). You can imagine in a rural economy where everything from a match being quoted in dollar term and smallest unit is 1 US.

It paints three pictures but with a lot of uncertainity at the moment until election time and outcome, 1)stability and move to next level of reconstruction, 2)dependant on erections continue fighting and keep away foreign capital and fights spelling doom and 3)Another coalition and continue waiting and uncertain future.

It is upon one to gamble but like Somalia there are many opportunities, including basic supplies, there are no functioning factory and import everything from the basic, blanket, powder milk, soap. The few factories that work are barely surviving as it is very expensive to operate, e.g. import parts and raw materials. Everything mafuta, sabuni, body oil, costs 1.5 value of nairobi price. Beware no economical and reliable transport link with nairobi only aircargo (KQ, EA, SAA) which cost leg and a nose, need a local partner to circumvert 51% rule and most shops do not buy bulk wholesale no capital hence you might need a godown

All money money $$ depending on where U are sitting Laughing out loudly
Cde Monomotapa
#26 Posted : Thursday, September 29, 2011 2:36:09 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
I've been a shareholder of Meikles Group since 07' (days I could not interpret all those ZWD zeros Laughing out loudly) BUT now in the latest numbers out of TM Supermarkets only, turnover spiked to USD160M and that to me tells me consumer spending is on the up n up! Hence the economy is breathing life! Our other competitor OK Zim is doing awesomely too Laughing out loudly
Cde Monomotapa
#27 Posted : Thursday, September 29, 2011 2:45:54 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
On the politics vis-a-vis the economy I get a big laugh out of peoples fixation and negativity against Cde. Mugabe and yet he is the very president who has sat through all Tuesday cabinet meetings of both Zanu & MDC post 2009 and participated in and approved all economic recovery policies that we are enjoying now smile
Nabwire
#28 Posted : Thursday, September 29, 2011 9:03:09 PM
Rank: Veteran


Joined: 7/22/2011
Posts: 1,325
Sielewi, kwani the gava has to force the companies to sell their shares to black Zims? Kwani ukienda kununua, the whites wanakataa kukuuzia? I can understand if its the gava ensuring black ownership of companies, but now black ownership of stocks? Ama nimesoma vibaya? Huyu Mugabe kweli! So as a black non Zimbabwean, do I fall under the 51% or can I only buy the shares available to mzungu? When is their next election? Was the last one free and fair, this sounds naive of me, but pliz eleweni that the news in the States is very one sided. Do the locals like Mugabe or are they under a dictatorship? And what does expropriation mean? Hii kizungu ya Brito sielewi. And Msaliti, what do you mean by is this an arms race? Hii Zimbabwe seems more complicated than meets the eye, when the gava can impose rules on private companies, what would prevent them from grabbing my shares and saying that the local mwananchi needs them??? Comrade pliz expound.
Cde Monomotapa
#29 Posted : Thursday, September 29, 2011 9:33:20 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
"It's a Jersey thing. You wouldn't understand" - South Park Laughing out loudly Laughing out loudly Most ZSE companies are compliant.
Nabwire
#30 Posted : Thursday, September 29, 2011 9:43:03 PM
Rank: Veteran


Joined: 7/22/2011
Posts: 1,325
Wacha mzaha, you know im your go to expert when it comes to the NYSE, so its time you returned the favor. By the way just curious, in 2017 when you finally invest, which stocks will you buy? This should be interesting
Cde Monomotapa
#31 Posted : Thursday, September 29, 2011 10:27:45 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Ok. In summary, the I&E laws oblige all foreign firms operating in Zim with a minimum NAV of USD500K to submit proposals of how they intend to comply by selling 51% to local Zimbos over a period of 5 years after approval by the I&E Ministry. Nevertheless, the GoZ is flexible as witnessed in a recent USD750M deal where 53% of New Zimsteel (formerly ZISCO) was sold to India's Essar Group.
Cde Monomotapa
#32 Posted : Thursday, September 29, 2011 10:30:31 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
In 2017 i'll be interested in domestic economy/GDP dependant Co.s mostly. Kazi kwako.
Nabwire
#33 Posted : Thursday, September 29, 2011 10:32:25 PM
Rank: Veteran


Joined: 7/22/2011
Posts: 1,325
So its the same thing that happened in South Africa? So do they locals have the money to buy 51% ama itakuwa mambo na kunyanganya kaburu shamba? When were the last elections, and when are the next?
Nabwire
#34 Posted : Thursday, September 29, 2011 10:34:27 PM
Rank: Veteran


Joined: 7/22/2011
Posts: 1,325
Cde Monomotapa wrote:
In 2017 i'll be interested in domestic economy/GDP dependant Co.s mostly. Kazi kwako.



Hahaha, wewe kwani unafikiri nakuuliza list ndio nikucopy? C'mon man, you need my advise kabla ujipate ukinunua Enron d'oh!
Cde Monomotapa
#35 Posted : Thursday, September 29, 2011 10:41:10 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Nabwire wrote:
Cde Monomotapa wrote:
In 2017 i'll be interested in domestic economy/GDP dependant Co.s mostly. Kazi kwako.



Hahaha, wewe kwani unafikiri nakuuliza list ndio nikucopy? C'mon man, you need my advise kabla ujipate ukinunua Enron d'oh!

hey, hey! Not at all. Right now i'm just observing US macro-economics for directions. Hiyo marko yenu has SO many Co.s thus, I will need U return the favor as I have no clue as to specific Co.s. Do understand.
Cde Monomotapa
#36 Posted : Thursday, September 29, 2011 10:47:21 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Nabwire wrote:
So its the same thing that happened in South Africa? So do they locals have the money to buy 51% ama itakuwa mambo na kunyanganya kaburu shamba? When were the last elections, and when are the next?

Yes. It is similar to SA's BEE prog. Last elections were in 08. Currently, there is a new Constitution in the worx & referendum expected Q1-Q2, 2012. Thereafter, elections should follow. (Prezz.terms are 5yrs). Kinda copy-paste process of Kenya smile makes my life easy.
Nabwire
#37 Posted : Thursday, September 29, 2011 10:48:13 PM
Rank: Veteran


Joined: 7/22/2011
Posts: 1,325
Cde Monomotapa wrote:
Nabwire wrote:
Cde Monomotapa wrote:
In 2017 i'll be interested in domestic economy/GDP dependant Co.s mostly. Kazi kwako.



Hahaha, wewe kwani unafikiri nakuuliza list ndio nikucopy? C'mon man, you need my advise kabla ujipate ukinunua Enron d'oh!

hey, hey! Not at all. Right now i'm just observing US macro-economics for directions. Hiyo marko yenu has SO many Co.s thus, I will need U return the favor as I have no clue as to specific Co.s. Do understand.



Now we are talking Applause I like your honesty, it is almost impossible for a novice to navigate this jungle called NYSE, halafu pia kuna Nasdaq,huko siwes mek though pple make big money akina Apple are still on Nasdaq. My advice is do thorough research then buy low sell high, seems easy until you get in! But I will offer my services pro bono at first, then rates zitashoot up!!
Nabwire
#38 Posted : Thursday, September 29, 2011 10:52:02 PM
Rank: Veteran


Joined: 7/22/2011
Posts: 1,325
Najua unampenda Mugabe, but are the elctions free ama he is pulling an MO1?
Cde Monomotapa
#39 Posted : Thursday, September 29, 2011 11:08:52 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Nabwire wrote:
Cde Monomotapa wrote:
Nabwire wrote:
Cde Monomotapa wrote:
In 2017 i'll be interested in domestic economy/GDP dependant Co.s mostly. Kazi kwako.



Hahaha, wewe kwani unafikiri nakuuliza list ndio nikucopy? C'mon man, you need my advise kabla ujipate ukinunua Enron d'oh!

hey, hey! Not at all. Right now i'm just observing US macro-economics for directions. Hiyo marko yenu has SO many Co.s thus, I will need U return the favor as I have no clue as to specific Co.s. Do understand.



Now we are talking Applause I like your honesty, it is almost impossible for a novice to navigate this jungle called NYSE, halafu pia kuna Nasdaq,huko siwes mek though pple make big money akina Apple are still on Nasdaq. My advice is do thorough research then buy low sell high, seems easy until you get in! But I will offer my services pro bono at first, then rates zitashoot up!!

smile thanks for the compliment (honesty). I'll do so before the billing starts!
Cde Monomotapa
#40 Posted : Thursday, September 29, 2011 11:10:50 PM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
Nabwire wrote:
Najua unampenda Mugabe, but are the elctions free ama he is pulling an MO1?

I will say...Zanu-PF=PNU & MDC-T=ODM #period# smile
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