Profit warnings should be banned.... The guys who were buying on friday are gettin fried alive today.... The guys who sold on friday are way above the clouds...

NAIROBI (Reuters) - Kenya's East African Cables on Saturday issued a profit warning for the financial year ending December due to unsatisfactory performance by its Tanzanian unit.

The company recorded a 51 percent drop in pre-tax profit for the first quarter of 2010 to 84.67 million Kenya shillings, due to high metal prices that put pressure on its margins.

East African Cables said its Kenyan unit was strong and profitable, but its Tanzanian unit was not faring well.

"A decline in profitability has occurred within our subsidiary in Tanzania ... arising from ... significant provisioning of bad and doubtful debts and inventory ... (and) continued volatility in sales in the Tanzanian utility sector," it said in a statement published in the local Nation newspaper.

"The impact of the above factors, which see the subsidiary report a significant loss, will be reflected in the group's unaudited results of the first half of this financial year..."

East African Cables' shares closed Friday trade on the Nairobi Stock Exchange at 21.75 shillings, from 20.25 shillings a day earlier.

http://af.reuters.com/ar...ws/idAFJOE66G01920100717

Please elaborate...I thought (other than the Referendum) the release of first half results and the improved economic forecasts should spur the market or at the very least hold steady?

Isn't duty on imported finished products what we've been advocating for all these years?

Ukishindana na ndovu kunya utapasuka msamba. The only way you can make money in manufacturing things in Kenya that can be procured way cheaper from China is if you have a personal relationship with everybody on the board of Kenya Power and the whole management including everyone in procurement and they have assured you that they will pay you 10 times the market price of cables and you have deposited their cut from the deal even before you begin construction of the factory......... You also need to have contacts at the port and all border points to ensure no cables ever enter Kenya for at least 5 years..

[quote=FUNKY]BREAKING NEWS: @sbmbankkenya Ltd. has filed a petition before the High Court to liquidate East African Cables Ltd. Through its advocates, Robson Harris and Company Advocates, the bank says the petition is scheduled to be mentioned in court next Tuesday on 4th February 2020. https://t.co/hkyqyjRppA[/quote]



And just the other day they got some cash for equity.

It's a red herring. Sowing fear to displace the faint hearted. What is 280M if 3B can be restructured. FY profit loading...

People ignore red signals at their own peril.
I bought and sold Cables for a small profit during the good old Kibaki days. Cables was going for around Sh 30. Look at the share now languishing at Shs 2.30.