@deal

on contrary, i would go for ARM over Bamburi. Reasons
1. Bamburi is a blue ship firm which has a strong balance sheet.ARM on the other hand is highly geared with lots of debt ( including a private equity) who are financing its capacity expansion. the capacity in Kenya has been expanded over the last two years to 1metric tonnes of cement p.a. in Athi river mining and improving its kaloleni plant. In Tanzania, the company by the 3rd quarter of this year should have both Tanga and Dar plant operating at a capacity of 1.5mT p.a. ( the largest capacity to be held by a single player).within Kenya, where Bamburi dominates, the expansion and new players are joining in hence price is expected to generally remain static, meaning without additional capacity(by Bamburi), earnings growth expected is minimal resulting from cost efficiencies

2. Diversification. ARM hold a product portfolio of cement, fertiliser, lime, soda carbonates and other minerals. whereas cement has the largest market share, the other products offers earnings stability. within this year, fertiliser production units is expected to be aligned as a subsidiary on its own before searching a private investor who will inject capital to expand capacity.

In short, the weak balance sheet may pull down the prices bur in the next three to four years after repayment of obligations, ARM will be the king.

my 2 cents

@deal

on contrary, i would go for ARM over Bamburi. Reasons
1. Bamburi is a blue ship firm which has a strong balance sheet.ARM on the other hand is highly geared with lots of debt ( including a private equity) who are financing its capacity expansion. the capacity in Kenya has been expanded over the last two years to 1metric tonnes of cement p.a. in Athi river mining and improving its kaloleni plant. In Tanzania, the company by the 3rd quarter of this year should have both Tanga and Dar plant operating at a capacity of 1.5mT p.a. ( the largest capacity to be held by a single player).within Kenya, where Bamburi dominates, the expansion and new players are joining in hence price is expected to generally remain static, meaning without additional capacity(by Bamburi), earnings growth expected is minimal resulting from cost efficiencies

2. Diversification. ARM hold a product portfolio of cement, fertiliser, lime, soda carbonates and other minerals. whereas cement has the largest market share, the other products offers earnings stability. within this year, fertiliser production units is expected to be aligned as a subsidiary on its own before searching a private investor who will inject capital to expand capacity.

In short, the weak balance sheet may pull down the prices bur in the next three to four years after repayment of obligations, ARM will be the king.

my 2 cents