wazua Tue, Mar 31, 2026
Welcome Guest Search | Active Topics | Log In

2 Pages12>
As long as CBR is 16%+, NSE will not see 3,500
Options
Previous Topic · Next Topic
Mainat
#1 Posted : Wednesday, November 16, 2011 12:32:55 AM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
From corporates who maintain overdrafts for working capital to the mama mboga who borrowed 10k from memba to take advantage of fresh greens plus the multiplier thereof, there an almost 10% decrease in disposal income or cash. That implies less consumption which will feed directly to bottomline aka profit.
For the cash rich, a t-bill at 16% recalls the m01 days and putting cash in a skittish NSE is not the better alternative.
For political reasons, I believe the governor may give us good news as early as Feb 2012
Sehemu ndio nyumba
Back to top
  |
VituVingiSana
#2 Posted : Wednesday, November 16, 2011 2:18:20 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
On the NSE, you can only invest in firms not the Index so it matters little where the index is at.

Cash-rich firms is the place to be...!

I need to start looking at the Balance Sheets of my investees... Since I have my preferred firms...

Williamson - Negligible debt but lots of cash including 450mn from sale of 50% of Williamson House.

Unga - Negligible debt but lots of cash including 350mn in Term Deposits.

Kenol - Net cash positive AFTER the Inventories are netted against Current Liabilities but the Finance Costs will jump in 2011 which is not good for KK.I remain bullish coz my exit is in 2014-15 and at 20/-
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
simonkabz
#3 Posted : Wednesday, November 16, 2011 7:46:18 AM
Rank: Elder

Joined: 3/2/2007
Posts: 8,776
Location: Cameroon
Interbank rates 26%. @mainat, I also dont see the CBR remaining up there at 16.5%. A whole lot of friends have shelved plans to take any loans/topups at those crazy rates. This also means no more construction for a vast majority, a net-selling effect at the NSE as cash is diverted. Shares chini. Plots chini. Houses chini. Nkt!
TULIA.........UFUNZWE!
Back to top
  |
simonkabz
#4 Posted : Wednesday, November 16, 2011 7:55:31 AM
Rank: Elder

Joined: 3/2/2007
Posts: 8,776
Location: Cameroon
Ssshh! Baclayloan rates will shift upwards on 1st Dec. They are still lending at the old rates. Any application made upto n including 30th Nov will be honoured.
TULIA.........UFUNZWE!
Back to top
  |
Sure
#5 Posted : Wednesday, November 16, 2011 8:54:54 AM
Rank: Member

Joined: 9/9/2010
Posts: 546
Location: Garissa
VituVingiSana wrote:
On the NSE, you can only invest in firms not the Index so it matters little where the index is at.

Cash-rich firms is the place to be...!

I need to start looking at the Balance Sheets of my investees... Since I have my preferred firms...

Williamson - Negligible debt but lots of cash including 450mn from sale of 50% of Williamson House.


@ VVS...I thought the house was sold at 500 million? When you say sale of 50%, do you mean Williamson will continue owning 50% of the house which they may sell in the future at above 500 million? Come clean on this one cauze I respect your opinions on these threads.
Wisdom to detect when share prices hit rock bottom.
When interest on bonds keep going up, you know the bear run is on high street. When interest on bonds start leveling, the bear has met the bull and they have hit rock bottom. When the interest rates on bonds start coming down, the bull has overpowered the bear and you better be riding the bull.
Back to top
WWW
  | | Edit by user: Wednesday, November 16, 2011 8:57 AM | Reason: Not specified
Sure
#6 Posted : Wednesday, November 16, 2011 8:58:51 AM
Rank: Member

Joined: 9/9/2010
Posts: 546
Location: Garissa
Mainat wrote:
From corporates who maintain overdrafts for working capital to the mama mboga who borrowed 10k from memba to take advantage of fresh greens plus the multiplier thereof, there an almost 10% decrease in disposal income or cash. That implies less consumption which will feed directly to bottomline aka profit.
For the cash rich, a t-bill at 16% recalls the m01 days and putting cash in a skittish NSE is not the better alternative.
For political reasons, I believe the governor may give us good news as early as Feb 2012


Do I need to say more?
Wisdom to detect when share prices hit rock bottom.
When interest on bonds keep going up, you know the bear run is on high street. When interest on bonds start leveling, the bear has met the bull and they have hit rock bottom. When the interest rates on bonds start coming down, the bull has overpowered the bear and you better be riding the bull.
Back to top
WWW
  |
Sure
#7 Posted : Wednesday, November 16, 2011 9:15:51 AM
Rank: Member

Joined: 9/9/2010
Posts: 546
Location: Garissa
VituVingiSana wrote:
On the NSE, you can only invest in firms not the Index so it matters little where the index is at.

Cash-rich firms is the place to be...!

I need to start looking at the Balance Sheets of my investees... Since I have my preferred firms...

Williamson - Negligible debt but lots of cash including 450mn from sale of 50% of Williamson House.

Unga - Negligible debt but lots of cash including 350mn in Term Deposits.

Kenol - Net cash positive AFTER the Inventories are netted against Current Liabilities but the Finance Costs will jump in 2011 which is not good for KK.I remain bullish coz my exit is in 2014-15 and at 20/-


From your posts, I can see you have hit 7003. Be careful as you are now hustling towards the grave where upon you will become an ancestor.

Usually from being an elder, there is no other title apart from 'The Living Dead' where upon your death, you become an ancestor. How is that now?
Wisdom to detect when share prices hit rock bottom.
When interest on bonds keep going up, you know the bear run is on high street. When interest on bonds start leveling, the bear has met the bull and they have hit rock bottom. When the interest rates on bonds start coming down, the bull has overpowered the bear and you better be riding the bull.
Back to top
WWW
  |
VituVingiSana
#8 Posted : Wednesday, November 16, 2011 10:37:04 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
Sure wrote:
VituVingiSana wrote:
On the NSE, you can only invest in firms not the Index so it matters little where the index is at.

Cash-rich firms is the place to be...!

I need to start looking at the Balance Sheets of my investees... Since I have my preferred firms...

Williamson - Negligible debt but lots of cash including 450mn from sale of 50% of Williamson House.


@ VVS...I thought the house was sold at 500 million? When you say sale of 50%, do you mean Williamson will continue owning 50% of the house which they may sell in the future at above 500 million? Come clean on this one cauze I respect your opinions on these threads.

Williamson owned 50% of Williamson House. Since WH was valued/sold at 900mn (according to the Chairman during the AGM) then WTK's stake is 450mn.

*** Let's assume WTK refused to distribute the cash & put it at 20% for 1 year = 90mn just in interest!***
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  | | Edit by user: Wednesday, November 16, 2011 10:38 AM | Reason: Not specified
Sure
#9 Posted : Wednesday, November 16, 2011 11:02:51 AM
Rank: Member

Joined: 9/9/2010
Posts: 546
Location: Garissa
VituVingiSana wrote:
Sure wrote:
VituVingiSana wrote:
On the NSE, you can only invest in firms not the Index so it matters little where the index is at.

Cash-rich firms is the place to be...!

I need to start looking at the Balance Sheets of my investees... Since I have my preferred firms...

Williamson - Negligible debt but lots of cash including 450mn from sale of 50% of Williamson House.


@ VVS...I thought the house was sold at 500 million? When you say sale of 50%, do you mean Williamson will continue owning 50% of the house which they may sell in the future at above 500 million? Come clean on this one cauze I respect your opinions on these threads.

Williamson owned 50% of Williamson House. Since WH was valued/sold at 900mn (according to the Chairman during the AGM) then WTK's stake is 450mn.

*** Let's assume WTK refused to distribute the cash & put it at 20% for 1 year = 90mn just in interest!***


That is good info. Who was the other half owner of Williamson house?
Wisdom to detect when share prices hit rock bottom.
When interest on bonds keep going up, you know the bear run is on high street. When interest on bonds start leveling, the bear has met the bull and they have hit rock bottom. When the interest rates on bonds start coming down, the bull has overpowered the bear and you better be riding the bull.
Back to top
WWW
  |
the deal
#10 Posted : Wednesday, November 16, 2011 4:23:33 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
The market is never wrong, people's opinion are, so the market will prove us wrong/right.
Back to top
  |
2 Pages12>
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.