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Co-operative Bank fate.. discuss
Rank: Member Joined: 8/27/2015 Posts: 138 Location: Harare
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VituVingiSana wrote:The Ethiopian Birr is tightly controlled thus the parallel rate is much higher like the South Sudanese Pound was but not as bad. We saw how the profits and investment of KCB and Equity was severely diminished when the SSP was floated.
So anyone investing in Ethiopia by taking money INTO Ethiopia needs to write-down part of the investment since you get a lousy low rate for the Birr. Repatriating profits is very difficult so one cannot assume there will be cashflow from the investment. It is locked in Ethiopia. This is also further complicated by the fact that you have to obtain approval to repatriate profits i.e to buy dollars the NBE has to give you a permit. The ET government also changes their fixed FX rate at will similar to the 20% devaluation in 2010. There are also plans to devalue it in the near future due to high inflation rates. Their application to join WTO is pegged on a floating currency and opening up the economy so this may change. Investment philosophy development in progress...
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Rank: Chief Joined: 1/3/2007 Posts: 18,064 Location: Nairobi
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alotoftalk wrote:VituVingiSana wrote:The Ethiopian Birr is tightly controlled thus the parallel rate is much higher like the South Sudanese Pound was but not as bad. We saw how the profits and investment of KCB and Equity was severely diminished when the SSP was floated.
So anyone investing in Ethiopia by taking money INTO Ethiopia needs to write-down part of the investment since you get a lousy low rate for the Birr. Repatriating profits is very difficult so one cannot assume there will be cashflow from the investment. It is locked in Ethiopia. This is also further complicated by the fact that you have to obtain approval to repatriate profits i.e to buy dollars the NBE has to give you a permit. The ET government also changes their fixed FX rate at will similar to the 20% devaluation in 2010. There are also plans to devalue it in the near future due to high inflation rates. Their application to join WTO is pegged on a floating currency and opening up the economy so this may change. So until the Birr is floated the risk of a devaluation remains. Let's take KK as an example. Their assets would be worth substantially less than on their books. [Though KK does not revalue their fixed assets in Ethiopia so there will not be a substantial loss in real terms BUT the value of the Birr cash/bonds will have to adjusted downwards in KES]. Furthermore the 'profits' that KK makes in Ethiopia will be substantially lower in KES [as the profits are made in a depreciating Birr]. If the Birr is allowed to float (& repatriation allowed) then the likes of KK will eventually benefit from their investments in Ethiopia. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 5/30/2016 Posts: 332 Location: Kayole
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share price taking a serious beating from book closure after effects KEGN, KPLC, KQ, SCOM
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Rank: Elder Joined: 7/21/2010 Posts: 6,177 Location: nairobi
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mkate_nusu wrote:share price taking a serious beating from book closure after effects this stock is among the poor nse performers compared to its potential "Don't let the fear of losing be greater than the excitement of winning."
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Rank: New-farer Joined: 3/28/2016 Posts: 37 Location: nairobi
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Ericsson wrote:Chair and Vice Chairman are puppets.The MD lacks new ideas.
You don't grow profits by cost-cutting and then coming to post nonsense news eti reduction in stationery costs contributed to growth in profits.
They need to grow profits via growth in loan book.The bank has never been aggressive in loaning to the retail segment of the population but have been too reliant on SACCOs whose business is now diminishing.Their interest rate to the retail segment is too high compared to its peers and their loan approval process chases away potential customers instead of attracting them.
The good home mortgage business started about 6 years ago hasn't had an impact in the mkt and don't even know their mkt share ni ngapi.
The entry to Ethiopia is just PR;they haven't got the approval from Ethiopia govt to start business.Multinational banks and finance institutions are still barred from engaging in commercial business there. Ati you dont grow profits by cost-cutting? Go tell that to Mckinsey at Delta corner towers.
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Rank: Elder Joined: 12/4/2009 Posts: 10,646 Location: NAIROBI
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Coop has seriously underperformed since its listing in 2009 @9.50 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 8/16/2011 Posts: 2,261
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Ericsson wrote:Coop has seriously underperformed since its listing in 2009 @9.50  Are you sure?
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Rank: Elder Joined: 12/4/2009 Posts: 10,646 Location: NAIROBI
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yes Dividend has been low apart from this year and share price not impressive Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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mlennyma wrote:mkate_nusu wrote:share price taking a serious beating from book closure after effects this stock is among the poor nse performers compared to its potential I talked about it once . Whereas the likes of equity ,kcb and even nbk reached a peak of past 40, 60 and even 150. But this stock has never rallied past 26 or something . Someone will boast of bonus they gave recently but the other pundits in the same business have given bonuses and rallied to over 100, meanwhile coop is struggling with below 20. It's one of the dead stocks. I still route for regime change in this bank if good things need to happen . These old ideas from old board members need to be shelved . That's how the stock will Start to rally .
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Ericsson wrote:Coop has seriously underperformed since its listing in 2009 @9.50 Listing was done in 2008 when I was still with them. We were coerced/slightly forced into buying them because of potential serious undersubscription.
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Rank: Elder Joined: 6/23/2009 Posts: 13,477 Location: nairobi
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enyands wrote:Ericsson wrote:Coop has seriously underperformed since its listing in 2009 @9.50 Listing was done in 2008 when I was still with them. We were coerced/slightly forced into buying them because of potential serious undersubscription. bought at 6.5 and sold at 21. generalisation isn't good. but indeed the share could do better
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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obiero wrote:enyands wrote:Ericsson wrote:Coop has seriously underperformed since its listing in 2009 @9.50 Listing was done in 2008 when I was still with them. We were coerced/slightly forced into buying them because of potential serious undersubscription. bought at 6.5 and sold at 21. generalisation isn't good. but indeed the share could do better When was it at 6.5 ???  iv had this stock since 2008 obiero
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Rank: Elder Joined: 6/23/2009 Posts: 13,477 Location: nairobi
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enyands wrote:obiero wrote:enyands wrote:Ericsson wrote:Coop has seriously underperformed since its listing in 2009 @9.50 Listing was done in 2008 when I was still with them. We were coerced/slightly forced into buying them because of potential serious undersubscription. bought at 6.5 and sold at 21. generalisation isn't good. but indeed the share could do better When was it at 6.5 ??? iv had this stock since 2008 obiero evidence availed in true wazua spirit http://www.wazua.co.ke/i...tkprofiler.aspx?stkId=67
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 7/17/2008 Posts: 152
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enyands wrote:mlennyma wrote:[quote=mkate_nusu]share price taking a serious beating from book closure after effects this stock is among the poor nse performers compared to its potential talked about it once . Whereas the likes of ity ,kcb and even nbk reached a peak of past 40, 60 and even 150. But this stock has never rallied past 26 or something . Someone will boast of bonus they gave recently but the other pundits in the same business have given bonuses and rallied to over 100, meanwhile coop is struggling with below 20. It's one of the dead stocks. I still route for regime change in this bank if good things need to happen . These old ideas from old board members need to be shelved . That's how the stock will Start to rally . Sometimes people express their ignorance without knowing it. What is the meaning of 40, 60 & 150 quoted here? Does it mean if Equity split the share by 10 and start trading at 4 bob it will be under performing? How many listed companies were able to return kshs 15b in 2015 like coop did?
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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luxel wrote:enyands wrote:mlennyma wrote:[quote=mkate_nusu]share price taking a serious beating from book closure after effects this stock is among the poor nse performers compared to its potential talked about it once . Whereas the likes of ity ,kcb and even nbk reached a peak of past 40, 60 and even 150. But this stock has never rallied past 26 or something . Someone will boast of bonus they gave recently but the other pundits in the same business have given bonuses and rallied to over 100, meanwhile coop is struggling with below 20. It's one of the dead stocks. I still route for regime change in this bank if good things need to happen . These old ideas from old board members need to be shelved . That's how the stock will Start to rally . Sometimes people express their ignorance without knowing it. What is the meaning of 40, 60 & 150 quoted here? Does it mean if Equity split the share by 10 and start trading at 4 bob it will be under performing? How many listed companies were able to return kshs 15b in 2015 like coop did? You must be coop MD  . You made my night.what I meant is that some shares have been split till for example the 4 shillings you talking of then they rise up again ,pass coop go up again split come back again ,start rising pass coop till they are 40's now .in this case I'm talking about equity . So what ignorance are you talking of? And when I meant 40,60 and 150 I meant different banks . You are the one displaying your impatience to understand.kuwa mpole jamaa. Don't use strong languages(ignorance) if you don't understand. Ask someone what do you mean by 40,60 150?Sio kuinua mkia juu kama fisi aliyeona mzoga  Even if coop has a return of 150b, I enyands as an investor what I'm I getting in terms of share value ? Capital gain or dividends at the end of the day? If you make 15b and I get nothing as an investor then you can as well call me a flower girl .
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Rank: Elder Joined: 12/4/2009 Posts: 10,646 Location: NAIROBI
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Safaricom and sasini share prices have even caught up with coop. The MD needs to retire and give the position to someone with new ideas Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Ericsson wrote:Safaricom and sasini share prices have even caught up with coop.
The MD needs to retire and give the position to someone with new ideas Ericsson that luxel guy will call you ignorant .seems like he has discovered that new word today
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Rank: Veteran Joined: 4/4/2016 Posts: 1,996 Location: Kitale
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They tried so hard to frustrate mwalimu sacco from buying equatorial bank but it came to naught.They knew they will suffer with the departure of the giant firm.Luckly mckensey report came in handy to cut costs.How long they will relie on cost cutting measures to grow profits without increasing interest income i dont know.I will know the day they will sell even their own customers to grow profits. Towards the goal of financial freedom
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Rank: Elder Joined: 12/4/2009 Posts: 10,646 Location: NAIROBI
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Wachana na Luxel he is still enjoying cerelac. Once he's done he'll get to understand what people are talking about. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 8/16/2011 Posts: 2,261
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enyands wrote:luxel wrote:enyands wrote:mlennyma wrote:[quote=mkate_nusu]share price taking a serious beating from book closure after effects this stock is among the poor nse performers compared to its potential talked about it once . Whereas the likes of ity ,kcb and even nbk reached a peak of past 40, 60 and even 150. But this stock has never rallied past 26 or something . Someone will boast of bonus they gave recently but the other pundits in the same business have given bonuses and rallied to over 100, meanwhile coop is struggling with below 20. It's one of the dead stocks. I still route for regime change in this bank if good things need to happen . These old ideas from old board members need to be shelved . That's how the stock will Start to rally . Sometimes people express their ignorance without knowing it. What is the meaning of 40, 60 & 150 quoted here? Does it mean if Equity split the share by 10 and start trading at 4 bob it will be under performing? How many listed companies were able to return kshs 15b in 2015 like coop did? You must be coop MD . You made my night.what I meant is that some shares have been split till for example the 4 shillings you talking of then they rise up again ,pass coop go up again split come back again ,start rising pass coop till they are 40's now .in this case I'm talking about equity . So what ignorance are you talking of? And when I meant 40,60 and 150 I meant different banks . You are the one displaying your impatience to understand.kuwa mpole jamaa. Don't use strong languages(ignorance) if you don't understand. Ask someone what do you mean by 40,60 150?Sio kuinua mkia juu kama fisi aliyeona mzoga Even if coop has a return of 150b, I enyands as an investor what I'm I getting in terms of share value ? Capital gain or dividends at the end of the day? If you make 15b and I get nothing as an investor then you can as well call me a flower girl .  Ignorance is not a strong word, its in normal use..... I feign ignorance about your discussion.... has nothing to mean you are bad. It means I actually did not understand, like etc
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