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Mumias Sugar huge demand
shocks
#1216 Posted : Wednesday, February 11, 2015 4:32:35 AM
Rank: Member

Joined: 3/15/2009
Posts: 362
Rollout wrote:
PE should buy Mumias for 60% discount, what's the current EBITDA for Mumias, anyone knows? Buy Mumias at 60% discount, institute new management, file bankruptcy, turn it around and then exit in approx 5 yrs. GOK will not be able to fix it.


In Kenya filing for bankruptcy will surely kill the business unlike the US where they have chapter 11
enyands
#1217 Posted : Wednesday, February 11, 2015 4:58:23 AM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
I do believe Kenya should develop a special judicial proceedings to combat such gross white crime activities . In USA there is clear separation of powers *( remember Enron company here in USA that led to jailing for life it's former executives after defrauding shareholders and filing for bankruptcy later).Once you are a legislator you don't interfere with judicial processes .
In Kenya the system is intertwined and complex because the same Kidero guy whose a politician (has legislative influence ) has influence over judicial process . As long as we have people who take advantage of these complex loopholes between judicial and legislative arms they Will continue to do these heinous acts for other companies . We need to wake up and see its the children of our children we are hurting .The bail out money 500 million could be used to hire 5000 policemen to help in Kenya Somalia border thereby keeping me safe from terrorists. Unless we wake up and see things in a three dimension , we will be taken advantage of by these businessmen kam senseless politicians. We need to wake up
enyands
#1218 Posted : Wednesday, February 11, 2015 5:02:10 AM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
Applause
shocks wrote:
Rollout wrote:
PE should buy Mumias for 60% discount, what's the current EBITDA for Mumias, anyone knows? Buy Mumias at 60% discount, institute new management, file bankruptcy, turn it around and then exit in approx 5 yrs. GOK will not be able to fix it.


In Kenya filing for bankruptcy will surely kill the business unlike the US where they have chapter 11

Kausha
#1219 Posted : Wednesday, February 11, 2015 6:35:49 AM
Rank: Member

Joined: 2/8/2007
Posts: 808
Rollout wrote:
PE should buy Mumias for 60% discount, what's the current EBITDA for Mumias, anyone knows? Buy Mumias at 60% discount, institute new management, file bankruptcy, turn it around and then exit in approx 5 yrs. GOK will not be able to fix it.

Describe what disc you are talking about. Mumias has no EBITDA. Been making huges loses past 3 years.
HaMaina
#1220 Posted : Wednesday, February 11, 2015 7:03:17 AM
Rank: Veteran

Joined: 4/23/2014
Posts: 931
enyands wrote:
I do believe Kenya should develop a special judicial proceedings to combat such gross white crime activities . In USA there is clear separation of powers *( remember Enron company here in USA that led to jailing for life it's former executives after defrauding shareholders and filing for bankruptcy later).Once you are a legislator you don't interfere with judicial processes .
In Kenya the system is intertwined and complex because the same Kidero guy whose a politician (has legislative influence ) has influence over judicial process . As long as we have people who take advantage of these complex loopholes between judicial and legislative arms they Will continue to do these heinous acts for other companies . We need to wake up and see its the children of our children we are hurting .The bail out money 500 million could be used to hire 5000 policemen to help in Kenya Somalia border thereby keeping me safe from terrorists. Unless we wake up and see things in a three dimension , we will be taken advantage of by these businessmen kam senseless politicians. We need to wake up


Hiring anyone turns the cost into a revolving cost that needs to be provided for every financial year.
“You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
streetwise
#1221 Posted : Wednesday, February 11, 2015 7:39:10 AM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
You keep on talking talking about Mumias, the guy is in charge of the capital city and largest county by allocation.

What do you think is happening as we talk talk.. tell me 5 year later when it comes out
mwalabenn
#1222 Posted : Wednesday, February 11, 2015 9:50:44 PM
Rank: New-farer

Joined: 1/13/2015
Posts: 17
Location: Nairobi, Kenya
streetwise wrote:
You keep on talking talking about Mumias, the guy is in charge of the capital city and largest county by allocation.

What do you think is happening as we talk talk.. tell me 5 year later when it comes out


Laughing out loudly
Knowledge is knowing that a tomato is a fruit. Wisdom is knowing that it can not be used in a fruit salad.
Rollout
#1223 Posted : Wednesday, February 11, 2015 10:57:06 PM
Rank: Member

Joined: 4/26/2011
Posts: 759
Kausha wrote:
Rollout wrote:
PE should buy Mumias for 60% discount, what's the current EBITDA for Mumias, anyone knows? Buy Mumias at 60% discount, institute new management, file bankruptcy, turn it around and then exit in approx 5 yrs. GOK will not be able to fix it.

Describe what disc you are talking about. Mumias has no EBITDA. Been making huges loses past 3 years.


It's math! Even a negative valuation with still have a discount, the EBITDA could be negative but Mumia value is not negative.
jerry
#1224 Posted : Wednesday, February 11, 2015 11:21:19 PM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
Rollout wrote:
Kausha wrote:
Rollout wrote:
PE should buy Mumias for 60% discount, what's the current EBITDA for Mumias, anyone knows? Buy Mumias at 60% discount, institute new management, file bankruptcy, turn it around and then exit in approx 5 yrs. GOK will not be able to fix it.

Describe what disc you are talking about. Mumias has no EBITDA. Been making huges loses past 3 years.


It's math! Even a negative valuation with still have a discount, the EBITDA could be negative but Mumia value is not negative.

Heard of insolvency? MSC is at that stage.
The opposite of courage is not cowardice, it's conformity.
Thitifini
#1225 Posted : Thursday, February 12, 2015 1:00:18 AM
Rank: Member

Joined: 1/15/2015
Posts: 681
Location: Kenya
I think am learning a lesson on eating from us 'wanjikus' here. Jesus.

60% Learning, 30% synthesizing, 10% Debating
VituVingiSana
#1226 Posted : Thursday, February 12, 2015 4:01:23 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,342
Location: Nairobi
Rollout wrote:
Kausha wrote:
Rollout wrote:
PE should buy Mumias for 60% discount, what's the current EBITDA for Mumias, anyone knows? Buy Mumias at 60% discount, institute new management, file bankruptcy, turn it around and then exit in approx 5 yrs. GOK will not be able to fix it.

Describe what disc you are talking about. Mumias has no EBITDA. Been making huges loses past 3 years.


It's math! Even a negative valuation with still have a discount, the EBITDA could be negative but Mumia value is not negative.
Without GoK support, subsidies and bailout, MSC is bankrupt.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
lochaz-index
#1227 Posted : Thursday, February 12, 2015 9:35:07 AM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
VituVingiSana wrote:
Rollout wrote:
Kausha wrote:
Rollout wrote:
PE should buy Mumias for 60% discount, what's the current EBITDA for Mumias, anyone knows? Buy Mumias at 60% discount, institute new management, file bankruptcy, turn it around and then exit in approx 5 yrs. GOK will not be able to fix it.

Describe what disc you are talking about. Mumias has no EBITDA. Been making huges loses past 3 years.


It's math! Even a negative valuation with still have a discount, the EBITDA could be negative but Mumia value is not negative.
Without GoK support, subsidies and bailout, MSC is bankrupt.


Negative value is when liabilities>assets, I haven’t crunched the numbers for mumias but based on the reports available if its not at negative value currently then its very close to it.
The main purpose of the stock market is to make fools of as many people as possible.
Mainat
#1228 Posted : Thursday, February 12, 2015 10:29:17 AM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
If GoK was behaving like an intelligent entity which also happens to be the largest investor here should be looking at the following options forthwith.
-combine with Nzoia (distance between both is very close), economics of scale et al
-sell Mumias Nzoia to a private company
-instead of pumping money into Mumias, put money into TARDA under newly reconstituted Mumias forcing current shareholders to only own a TARDA. There is no need to run the huge project costing 15bn that was initially envisaged. Use the 2bn that MSC needs

Just some ideas, otherwise this is heading one way.
Sehemu ndio nyumba
streetwise
#1229 Posted : Thursday, February 12, 2015 11:10:28 AM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
Makes alot of sense relocate MSC to TARDA. I hear MSC has huge crushing capacity that can't be satisfied by the local farmers, plus early maturing can can help.
lochaz-index
#1230 Posted : Thursday, February 12, 2015 1:32:17 PM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
Mainat wrote:
If GoK was behaving like an intelligent entity which also happens to be the largest investor here should be looking at the following options forthwith.
-combine with Nzoia (distance between both is very close), economics of scale et al
-sell Mumias Nzoia to a private company
-instead of pumping money into Mumias, put money into TARDA under newly reconstituted Mumias forcing current shareholders to only own a TARDA. There is no need to run the huge project costing 15bn that was initially envisaged. Use the 2bn that MSC needs

Just some ideas, otherwise this is heading one way.


And what would you propose is to be done to the creditors ie bankers,suppliers,outgrowers etc bearing in mind that no private investor would pump in money in a company riddled by debt unless return>risk which I think is not the case with mumias.
The main purpose of the stock market is to make fools of as many people as possible.
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