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EABL Downgraded to Reduce/Sell

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the deal		#1 Posted : Saturday, August 27, 2011 11:38:28 AM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		In view of yesterdays sluggish numbers and the huge funding short fall the company faces, http://contrarianinvestingkenya.info has downgraded the stock to sell/reduce.
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youcan'tstopusnow		#2 Posted : Saturday, August 27, 2011 1:00:32 PM
Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa		At least they maintained the dividend... RenCap's analysis was way off though... GOD BLESS YOUR LIFE
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the deal		#3 Posted : Saturday, August 27, 2011 1:23:36 PM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		EBIT fell 26%, net profit margins dropped by 2%, SBL off to a slow start, company facing a funding gap of Sh11 Billion for the 19% stake in KBL, RI most likely http://contrarianinvesti...raded-to-sellreduce.html
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Ericsson		#4 Posted : Saturday, August 27, 2011 7:53:30 PM
Rank: Elder Joined: 12/4/2009 Posts: 10,778 Location: NAIROBI		Rights issue is not a priority on the list. EABL and SAB Miller are going to come into an agreement where the money will be paid spread over a couple of years and not a one-off cheque. EABL can also tap into the retained earnings and give the shareholders a bonus issue to allow them to use the retained earnings to pay for the stake in KBL. The future is also bright for EABL after they announced their intention to enter the SOuth SUdan market.They have already bought a piece of land. Their next target will be Rwanda,Burundi and Ethiopia where they are trying to overcome hurdles. Wealth is built through a relatively simple equation Wealth=Income + Investments - Lifestyle
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For Sport		#5 Posted : Saturday, August 27, 2011 8:18:43 PM
Rank: Veteran Joined: 12/23/2010 Posts: 1,229		I'll leave the fundamentals to you guys. My target for EABL (I know, usually the target is a price) is to own enough shares so the dividends can finance a bit more than my drinking. When I retire from drinking, I'll stop using their dividends to finance my drinking. I hope I'll get better prices following the pessimism the share has attracted in the recent past - Mututho (I hope the amendments to increase drinking hours are adopted by Parliament), beer wars, costs of operating in new markets and so on.
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the deal		#6 Posted : Saturday, August 27, 2011 8:35:27 PM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		Ericsson wrote: Rights issue is not a priority on the list. EABL and SAB Miller are going to come into an agreement where the money will be paid spread over a couple of years and not a one-off cheque. EABL can also tap into the retained earnings and give the shareholders a bonus issue to allow them to use the retained earnings to pay for the stake in KBL. The future is also bright for EABL after they announced their intention to enter the SOuth SUdan market.They have already bought a piece of land. Their next target will be Rwanda,Burundi and Ethiopia where they are trying to overcome hurdles. Well i'm sure SABMiller will have none of that...SABMiller would throw a party if EABL collapsed...look at the Serengeti stake EABL had to pay upfront...well the retained earnings are not enough considering brewing is a very cost intensive business especially when EABL is thinking of entering new territories...taping into retained earnings would stretch EABL finances forcing them to borrow to fund their expansion...in the mean time I anticipate the return of SABMiller to Kenya....BEER WARS PART 2 will EABL survive this time?
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Gordon Gekko		#7 Posted : Saturday, August 27, 2011 9:05:53 PM
Rank: Elder Joined: 5/27/2008 Posts: 3,760		Retained Earnings is not cash in the bank. You seem to be working from the position that profit is cash and makes up retained earnings. Profits can also be credit issued to buyers, meaning the company will be holding accounts receivable (debtors) which was recognised as profit when the transaction occured.
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For Sport		#8 Posted : Saturday, August 27, 2011 9:10:32 PM
Rank: Veteran Joined: 12/23/2010 Posts: 1,229		the deal wrote: in the mean time I anticipate the return of SABMiller to Kenya....BEER WARS PART 2 will EABL survive this time? Dont know..but wasn't the advertising great in Part 1? Exciting times those.
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Cde Monomotapa		#9 Posted : Saturday, August 27, 2011 9:11:55 PM
Rank: Chief Joined: 1/13/2011 Posts: 5,964		I think I read somewhere that stake will be offered on the DSE.
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For Sport		#10 Posted : Saturday, August 27, 2011 9:13:55 PM
Rank: Veteran Joined: 12/23/2010 Posts: 1,229		Gordon Gekko wrote: Retained Earnings is not cash in the bank. You seem to be working from the position that profit is cash and makes up retained earnings. Profits can also be credit issued to buyers, meaning the company will be holding accounts receivable (debtors) which was recognised as profit when the transaction occured. See, I've learnt something! Two questions (actually, the same question) 1. Does the company pay tax on accounts receivable ? 2. What happens if the creditor(s) default? Any tax write off?
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the deal		#11 Posted : Saturday, August 27, 2011 9:50:09 PM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		Gordon Gekko wrote: Retained Earnings is not cash in the bank. You seem to be working from the position that profit is cash and makes up retained earnings. Profits can also be credit issued to buyers, meaning the company will be holding accounts receivable (debtors) which was recognised as profit when the transaction occured. Yep Mr Gecko...free cash flow @Mr Ericsson
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the deal		#12 Posted : Saturday, August 27, 2011 9:52:53 PM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		Cde Monomotapa wrote: I think I read somewhere that stake will be offered on the DSE. Sorry the EABL stake in TBL is only available to Tanzanian's...unless u rent-a-darkie...
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