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Rank: Chief Joined: 1/3/2007 Posts: 18,056 Location: Nairobi
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Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
 That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM  My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That’s one thing I have not been able to do .......have cash it’s hard just keeping it there when u can see KCB is at 38/- . 🤦🏽♂️🤦🏽♂️
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Rank: Chief Joined: 1/3/2007 Posts: 18,056 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...ar-ended-31st-march-2018Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,056 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,056 Location: Nairobi
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Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn http://www.centum.co.ke/...udited_Results_FY18.pdf
The Company not Group. The reason I am looking at Company is that the Group debt includes debt allocated to Non-Controlling Interests. From a Group perspective, the net debt is 18.6bn vs Assets of 96bn Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn http://www.centum.co.ke/...udited_Results_FY18.pdf
The Company not Group. The reason I am looking at Company is that the Group debt includes debt allocated to Non-Controlling Interests. From a Group perspective, the net debt is 18.6bn vs Assets of 96bn Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Centum is an Investment Company. Their debt should be analysed as Inventory i.e on a year to year basis. Life is short. Live passionately.
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Rank: Chief Joined: 1/3/2007 Posts: 18,056 Location: Nairobi
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sparkly wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn http://www.centum.co.ke/...udited_Results_FY18.pdf
The Company not Group. The reason I am looking at Company is that the Group debt includes debt allocated to Non-Controlling Interests. From a Group perspective, the net debt is 18.6bn vs Assets of 96bn Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Centum is an Investment Company. Their debt should be analysed as Inventory i.e on a year to year basis. Please explain. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn http://www.centum.co.ke/...udited_Results_FY18.pdf
The Company not Group. The reason I am looking at Company is that the Group debt includes debt allocated to Non-Controlling Interests. From a Group perspective, the net debt is 18.6bn vs Assets of 96bn Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Centum is an Investment Company. Their debt should be analysed as Inventory i.e on a year to year basis. Please explain. Their "business" is investment. This means that they can take up huge amounts of other people's money as long as their mark-up covers the cost of funds to the creditors plus their operating costs. Similar to what banks do. Life is short. Live passionately.
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Rank: Elder Joined: 12/7/2012 Posts: 11,901
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sparkly wrote:VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn http://www.centum.co.ke/...udited_Results_FY18.pdf
The Company not Group. The reason I am looking at Company is that the Group debt includes debt allocated to Non-Controlling Interests. From a Group perspective, the net debt is 18.6bn vs Assets of 96bn Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Centum is an Investment Company. Their debt should be analysed as Inventory i.e on a year to year basis. Please explain. Their "business" is investment. This means that they can take up huge amounts of other people's money as long as their mark-up covers the cost of funds to the creditors plus their operating costs. Similar to what banks do. Exactly what Cytonn is doing and some here don't want to hear none of it. I am ammused / surprised that same people who castigate Cytonn's real estate ventures and support Centum's real estate investments. Pesa sio yangu, back to BBK  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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sparkly wrote:VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn http://www.centum.co.ke/...udited_Results_FY18.pdf
The Company not Group. The reason I am looking at Company is that the Group debt includes debt allocated to Non-Controlling Interests. From a Group perspective, the net debt is 18.6bn vs Assets of 96bn Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Centum is an Investment Company. Their debt should be analysed as Inventory i.e on a year to year basis. Please explain. Their "business" is investment. This means that they can take up huge amounts of other people's money as long as their mark-up covers the cost of funds to the creditors plus their operating costs. Similar to what banks do. Based on your explanation which other people's money has centum taken Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,056 Location: Nairobi
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Centum does borrow money. It also has JVs. It's a difficult business to analyze given the moving parts. It's a conglomerate and quite diversified with 50% in property. I trust Mworia and his team but at any hint of impropriety, I'll take my losses and bail out. Centum is NOT for everyone. Do NOT invest in Centum if you are uncomfortable with it. I like to sleep at night so I plan to make a trip to Vipingo to see what's up. I would also like to go to UG/Pearl Marina. If Rubis pays up, and I buy Centum, then it will become a core holding for me. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Ericsson wrote:sparkly wrote:VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn http://www.centum.co.ke/...udited_Results_FY18.pdf
The Company not Group. The reason I am looking at Company is that the Group debt includes debt allocated to Non-Controlling Interests. From a Group perspective, the net debt is 18.6bn vs Assets of 96bn Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Centum is an Investment Company. Their debt should be analysed as Inventory i.e on a year to year basis. Please explain. Their "business" is investment. This means that they can take up huge amounts of other people's money as long as their mark-up covers the cost of funds to the creditors plus their operating costs. Similar to what banks do. Based on your explanation which other people's money has centum taken According to FY18 Almasi Beverages contributed 10.96 to the Centum NAV this is on Page 43. How did they arrive at this figure? Is it on actual Almasi NAV? No Because Almasi NAV per share is 4/- or thereabouts on my last check from Almasi financials..... Is it on price per share of Almasi? No because I bought my shares at a higher price than market at Kes 7.60 and this is a far cry from the 11/- quoted.... Any clues on this one guys? The only reason I had centum was because of Almasi and NBL but since I could buy Almasi without the Centum baggage, this is when I offloaded Centum to by Almasi and luckily at 44/- mark.
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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Horton wrote:Ericsson wrote:sparkly wrote:VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn http://www.centum.co.ke/...udited_Results_FY18.pdf
The Company not Group. The reason I am looking at Company is that the Group debt includes debt allocated to Non-Controlling Interests. From a Group perspective, the net debt is 18.6bn vs Assets of 96bn Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Centum is an Investment Company. Their debt should be analysed as Inventory i.e on a year to year basis. Please explain. Their "business" is investment. This means that they can take up huge amounts of other people's money as long as their mark-up covers the cost of funds to the creditors plus their operating costs. Similar to what banks do. Based on your explanation which other people's money has centum taken According to FY18 Almasi Beverages contributed 10.96 to the Centum NAV this is on Page 43. How did they arrive at this figure? Is it on actual Almasi NAV? No Because Almasi NAV per share is 4/- or thereabouts on my last check from Almasi financials..... Is it on price per share of Almasi? No because I bought my shares at a higher price than market at Kes 7.60 and this is a far cry from the 11/- quoted.... Any clues on this one guys? The only reason I had centum was because of Almasi and NBL but since I could buy Almasi without the Centum baggage, this is when I offloaded Centum to by Almasi and luckily at 44/- mark. Massaging results to hoodwink shareholders and investors Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Ericsson wrote:Horton wrote:Ericsson wrote:sparkly wrote:VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn http://www.centum.co.ke/...udited_Results_FY18.pdf
The Company not Group. The reason I am looking at Company is that the Group debt includes debt allocated to Non-Controlling Interests. From a Group perspective, the net debt is 18.6bn vs Assets of 96bn Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Centum is an Investment Company. Their debt should be analysed as Inventory i.e on a year to year basis. Please explain. Their "business" is investment. This means that they can take up huge amounts of other people's money as long as their mark-up covers the cost of funds to the creditors plus their operating costs. Similar to what banks do. Based on your explanation which other people's money has centum taken According to FY18 Almasi Beverages contributed 10.96 to the Centum NAV this is on Page 43. How did they arrive at this figure? Is it on actual Almasi NAV? No Because Almasi NAV per share is 4/- or thereabouts on my last check from Almasi financials..... Is it on price per share of Almasi? No because I bought my shares at a higher price than market at Kes 7.60 and this is a far cry from the 11/- quoted.... Any clues on this one guys? The only reason I had centum was because of Almasi and NBL but since I could buy Almasi without the Centum baggage, this is when I offloaded Centum to by Almasi and luckily at 44/- mark. Massaging results to hoodwink shareholders and investors Perhaps they conservatively added the NAV to the current price to get the “correct NAV” ?!?! 😆😆😆😆
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Rank: Chief Joined: 1/3/2007 Posts: 18,056 Location: Nairobi
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@horton - Where can I get Almasi's financials? Google hasn't been helpful! What's Almasi's EPS? What % of each of the 3 bottlers does Almasi own? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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VituVingiSana wrote:@horton - Where can I get Almasi's financials? Google hasn't been helpful!
What's Almasi's EPS?
What % of each of the 3 bottlers does Almasi own? Horton is an insider Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Ericsson wrote:sparkly wrote:VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:VituVingiSana wrote:Ericsson wrote:Tips for preparing your portfolio for economic slowdown and bear run;
--Own stocks with good balance sheets and low debts
--Consider short duration and bonds
--Have at least 10% cash in your portfolio.
That's what I learnt when I decided to follow WB's lessons excluding some small forays into stuff like ARM My core picks have remained consistent since they have low net debts. KenRe is cash-rich [but GoK controlled] I&M is cash-rich [but it is a bank and there's always a risk of a run] KK has low debt [I have excluded WC debt given it finances easy to liquidate inventory] Unga has low/moderate debt [but it has taken on more debt recently for the new Eldoret plant + inventory] Safaricom - Zero debt [and huge cashflow inflows] Centum - Moderate debt but manageable debt levels. Working Capital is a double-edged sword. Firms like KK need huge levels of WC, which is financed by borrowing, but for inventory that can easily be sold. Unga faces a different challenge given inventory prices/value are dependent on GoK but it's FMCG so it can cash out at a manageable loss. FX is also a risk. Balance Sheets measure "debt" at a point in time which could skew the analysis. The completion of the sale of an asset, proceeds used to pay down debt, could be delayed for a few days after the date of the Balance Sheet. On the surface, the debt situation looks dire but once the sale is completed, it will improve dramatically. Centum debt is not moderate What's their debt? Ksh.24.64bn http://www.centum.co.ke/...r-ended-31st-march-2018 Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn What is the figure of cash.The figure I see is ksh.5.8bn http://www.centum.co.ke/...udited_Results_FY18.pdf
The Company not Group. The reason I am looking at Company is that the Group debt includes debt allocated to Non-Controlling Interests. From a Group perspective, the net debt is 18.6bn vs Assets of 96bn Company's Net Debt (Total Debt less Cash) is 13.765bn vs Assets of 61.57bn Centum is an Investment Company. Their debt should be analysed as Inventory i.e on a year to year basis. Please explain. Their "business" is investment. This means that they can take up huge amounts of other people's money as long as their mark-up covers the cost of funds to the creditors plus their operating costs. Similar to what banks do. Based on your explanation which other people's money has centum taken 1. Corporate Bond; 2. Privately arranged debt, similar to the Cytonn CMS but only available to those with 50m and above. Life is short. Live passionately.
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