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Kakuzi will be so rewarding by march
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Surealligator wrote:Visited their farm past Kenol and things there are looking up.
Avocados are doing well, milk has hit a high of 30 shillings per litre (These guys have high grade cows), they also have green houses for horti, and a serious forest for growing poles and timber tree (was worried KPLC of late are using concrete poles but was informed they still buy for rural electrification and export),
Pineapples are bought by Del Monte, and the best news of the day, the guys grow tea in two areas, the past Kenol area (forgotten the name of the place but is like kikuyu)and Siret in Nandi hills
The operations manager told me that tea returns has more than doubled and they don't intend to sell their land soon. Maybe after 100 yrs.
He said he was disappointed by the low price of Kakuzi at 87 as he believes the shares are worth anywhere between 150 and 200.
This is leaked data. He said the parent company of Kakuzi, Camellia Inc, has asked the company to pay maximum dividends. They control over fifty percent of the company (slightly over 10 million shares) and thus expect their request to be met as they need cash at home - Britain.
"Kama Williamson made 96 EPS, what do you think Kakuzi has made", he said.
Made a call and bought 10,000 Kakuzi yesterday at 88 before I left for Nandi hills.
 just eat the humble pizza...careful u might turn a million into a few thousands....with the scarnt rains...i dont see how Kakuzi will be so rewarding even by May.
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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The moral of this story is that managers will say ANYTHING to promote their businesses GOD BLESS YOUR LIFE
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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 youcan'tstopusnow wrote:The moral of this story is that managers will say ANYTHING to promote their businesses And, you can take that to the bank!
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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Well, the issue has to do with profits vs share price... Ancient discussions... You can only get a bargain when folks are depressed about the future... AND do your research! My biggest 'miss' was ARM... It had gone down to 3/- & I thought [well, derided] it coz I thought it had no future... I even met the CEO at some party & spent a few minutes with him... He explained the strategy but I was tone deaf... It was his company but I was close-minded. I did not even buy a few shares! I had Bamburi & even some EAPCC... Bamburi made me money then I sold out. EAPCC - the less said the better! ARM went from 3/- to 200/-... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 9/12/2009 Posts: 312
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[b]Pineapples are bought by Del Monte[/b
That is sooo not true!!! That I know for a fact.
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Rank: Veteran Joined: 5/24/2010 Posts: 846 Location: KENYA
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@the deal....Kakuzi has a dam, drought is not a big issue for them, says the MD....
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Rank: Member Joined: 12/24/2008 Posts: 112
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With less than 20m shares in issue pity they didn't give a bonus 
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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I have seen the Dam. I think it can be seen from Thika Rd as well but I hope it rains... not just for Kakuzi but for all Kenyan farmers! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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VituVingiSana wrote:I have seen the Dam. I think it can be seen from Thika Rd as well but I hope it rains... not just for Kakuzi but for all Kenyan farmers! They announced a lower profits in what was a super 2010 for the other agricultural companies.. Thats why I sold out immediately. Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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It has almost been a year since Sure Alligator started this thread.
It was somewhat unfortunate that his thread raised expectations for Kakuzi rather too high. And when those expectations were not met, the share price inevitably fell.
I for one was not such a big fan of Kakuzi, especially as I have been considering their earnings to be rather pedestrian relative to my favourite Agric - WTK.
However, I took some time to study it and as the share price tumbled to below Kshs 70, I have been quietly accumulating. While Kakuzi has had decent (but not spectacular) earnings, I have come to the conclusion that they could be ramped up significantly over the coming years. But the real clincher is the vast amount of land that they sit on - not too far from Nairobi.
With WTK share price having risen over 50% in a such a short span of time, I believe it is just a matter of time before the market rerates Kakuzi's price as well - and it could be quite a big one. In any case, In the next 5 years, this counter could easily be a ten bagger!
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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mwanahisa, do you know the exact locations of the land they have? What about WTK's? GOD BLESS YOUR LIFE
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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youcan'tstopusnow wrote:mwanahisa, do you know the exact locations of the land they have? What about WTK's? Unlike Sure Alligator, I have never actually been on their land. Nonetheless, I have seen some of it on the road past Kenol on the main Thika - Nyeri Highway. In addition, there is the land on which they grow their tea in Nandi Hills. WTK's land is all in the Rift Valley, I am not sure in which County! Their report gives their Tea Estates as Changoi Estate (incorporating LELSA ESTATE); KAIMOSI ESTATE; TINDERET ESTATE & KAPCHORUA ESTATE. From those names you may be able to make a guess where they are located.
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Rank: Member Joined: 8/17/2010 Posts: 116
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youcan'tstopusnow wrote:mwanahisa, do you know the exact locations of the land they have? What about WTK's? WTK - NANDI HILLS (TEA) KERCHO (TEA) TOTAL 5274 ACRES KAKUZI - NANDI HILLS (TEA) THIKA (PINEAPPLES, LIVESTOCK, FORESTY, AVACADO) TOTAL 8266 ACRES KAPCHORUA - NANDI HILLS(TEA) KERICHO (TEA) TOTAL 1656 ACRES
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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KIRTI wrote:youcan'tstopusnow wrote:mwanahisa, do you know the exact locations of the land they have? What about WTK's? WTK - NANDI HILLS (TEA) KERCHO (TEA) TOTAL 5274 ACRES KAKUZI - NANDI HILLS (TEA) THIKA (PINEAPPLES, LIVESTOCK, FORESTY, AVACADO) TOTAL 8266 ACRES KAPCHORUA - NANDI HILLS(TEA) KERICHO (TEA) TOTAL 1656 ACRES Kirti, Thanks for the locations esp. re. WTK. However, what's your source for the land sizes. I have got a different figure for Kakuzi's holdings. Much bigger than indicated above. Or have you taken the area under crop?
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Rank: User Joined: 8/6/2010 Posts: 594
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8266 Makuyu land has avacados, pine trees for wood and poles, am not sure about pineapples but 8 thousand acres is something to consider for a tatu like Satelite city or technopolis. Kakuzi should be trading at 160 not 70 bob.  "One man gives freely, yet gains even more; another withholds unduly, but comes to poverty. A generous man will prosper; he who refreshes others will himself be refreshed." Rev Canon Karanja.
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Rank: Member Joined: 8/17/2010 Posts: 116
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I got following information from Apex Africa.
Company Acres location
WTK 5274 Nandi Hills(tea)Kericho (tea)
KAKUZI 8266 Nandi Hills(tea) Thika (Pineapples, livestock, foresty, Avacado)
REA VIPINGO 59,382 Kibvezi,Voi, Vipingo, Amboni(Tz)SISAL
LIMURU TEA 684 Limuru (tea)
EAAGADS 487 Ruiru (coffee)
SASINI TEA 5779 Githiga Kiambu,Mweiga, Nyeri(coffee)Sotik (tea)
KAPCHORUA 1656 Nandi Hills(tea) Kericho (tea)
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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Maybe Kakuzi will be so rewarding by March 2012
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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KIRTI wrote:I got following information from Apex Africa.
Company Acres location
WTK 5274 Nandi Hills(tea)Kericho (tea)
KAKUZI 8266 Nandi Hills(tea) Thika (Pineapples, livestock, foresty, Avacado)
REA VIPINGO 59,382 Kibvezi,Voi, Vipingo, Amboni(Tz)SISAL
LIMURU TEA 684 Limuru (tea)
EAAGADS 487 Ruiru (coffee)
SASINI TEA 5779 Githiga Kiambu,Mweiga, Nyeri(coffee)Sotik (tea)
KAPCHORUA 1656 Nandi Hills(tea) Kericho (tea)
Most of the info appears to be right. Nonetheless, I believe it has been dervived from the companies annua reports. These reports give the area that has been cultivated or "ünder crop". It does not take account land that is unutilized, under pasture etc.
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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FUNKY wrote:Maybe Kakuzi will be so rewarding by March 2012 You may be on to something....
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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mwanahisa, KIRTI, Insurgent, thanks a lot GOD BLESS YOUR LIFE
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