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WTK AND KAP WARNING by yaserbigchair
yaserbigchair
#1 Posted : Monday, November 29, 2010 8:04:45 PM
Rank: Member


Joined: 7/19/2006
Posts: 118
Location: Mombasa
I WOULD JUST LIKE TO INFORM MY FRIENDS HERE THAT YOU SHOULD NOT ALL BE EXCITED ABOUT THE PROFIT RISE IN THESE TWO COMPANIES.

PLS NOTE:

THEIR PROFITS WILL FALL AFTER NEXT SIX MONTHS... BE AWARE!

ABOVE 20% DOWN!

THANK YOU.
Sound that I love most: Is the ringing bell of Stock Market.
YOUNG ECONOMST
#2 Posted : Monday, November 29, 2010 8:20:04 PM
Rank: New-farer


Joined: 11/11/2010
Posts: 65
Location: NRB
Its only easy to trade WTK when there are such announcements and when they fade, retailers can drive it wherever they want with thin volumes. Not a so pleasant counter to deal with in a short-run.



That's just my opinion and i have the right to be right or wrong.

"The opportunity of a lifetime must be seized during the lifetime of the opportunity."
mwanahisa
#3 Posted : Monday, November 29, 2010 8:29:19 PM
Rank: Elder


Joined: 6/2/2008
Posts: 1,438
Yeah, I have seen this warning. Should I be saying thank you?

I will be buying - but I am seasoned enough to know the price at which to buy. I will definitely watch how WTK trades and ybc, I will let you know when I buy, although it may take a while.

BTW, I reckon WTK will make at least Kshs 30 in profits from operations for 2010-11. That's a forward PE of less than 6 (after stripping out the gains arising from changes in FV of BA's)based on today's price. The total dividend for 2010-11 could also range from 7.50 - 10 for the year. And they now have sufficient reserves to pay dividends for a few years even if they slip into losses. So, I am happy to hold what I have in WTK. It's roughly 3% of my portfolio, so I can ride out any bumps.

Should profits fall or it gets into losses, then I will buy and wait for the good times to roll. Agriculturals are cyclical, so you buy them when they are battered.
sparkly
#4 Posted : Monday, November 29, 2010 9:33:14 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
@bigC elaborate. The main drivers of tea profits are 1. Weather 2. Global supply 3. Strength of SH vs USD 4. labour costs. What do you see and please avoid making sweeping statements.
Life is short. Live passionately.
yaserbigchair
#5 Posted : Monday, November 29, 2010 10:26:54 PM
Rank: Member


Joined: 7/19/2006
Posts: 118
Location: Mombasa
@sparkly

1. SHORT RAINFALL FOR THE NEXT 6 MONTHS

2. ARSON WHICH APPEARED THAT IT BURNED MACHINES AT WTK

3. STRIKE WHICH THEY SAY IS COSTING THE COMPANIES A LOT AT THE COURTS

4. LABOUR COST GOING UP BY 20%

HOPE NIMEKUJIBU VIZURI SANA.

THANKS
Sound that I love most: Is the ringing bell of Stock Market.
sparkly
#6 Posted : Tuesday, November 30, 2010 8:57:54 AM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
yaserbigchair wrote:
@sparkly

1. SHORT RAINFALL FOR THE NEXT 6 MONTHS

2. ARSON WHICH APPEARED THAT IT BURNED MACHINES AT WTK

3. STRIKE WHICH THEY SAY IS COSTING THE COMPANIES A LOT AT THE COURTS

4. LABOUR COST GOING UP BY 20%

HOPE NIMEKUJIBU VIZURI SANA.

THANKS

@big chair asante kwa jibu.
Life is short. Live passionately.
yaserbigchair
#7 Posted : Tuesday, November 30, 2010 7:08:32 PM
Rank: Member


Joined: 7/19/2006
Posts: 118
Location: Mombasa
U R WELCOME!
Sound that I love most: Is the ringing bell of Stock Market.
cnn
#8 Posted : Tuesday, November 30, 2010 7:32:54 PM
Rank: Veteran


Joined: 6/17/2009
Posts: 1,622
sparkly wrote:
yaserbigchair wrote:
@sparkly

1. SHORT RAINFALL FOR THE NEXT 6 MONTHS

2. ARSON WHICH APPEARED THAT IT BURNED MACHINES AT WTK

3. STRIKE WHICH THEY SAY IS COSTING THE COMPANIES A LOT AT THE COURTS

4. LABOUR COST GOING UP BY 20%

HOPE NIMEKUJIBU VIZURI SANA.

THANKS

@big chair asante kwa jibu.

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