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Williamson to pay 50/= interim
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Cde Monomotapa
#101 Posted : Saturday, February 11, 2012 9:34:25 PM
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guru267
#102 Posted : Saturday, February 11, 2012 10:20:18 PM
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stocksmaster wrote:
Its worth noting that what Williamson Tea is paying is not a special dividend (from the sale of Williamson House) but an Interim dividend from ' the financial performance of the company'.


@stocksmaster just some small corrections.
The definition of an interim dividend is any dividend paid before the AGM of the company and includes any special dividends paid..

The board commented on financial not operating performance..
note the difference between financial performance and operating performance.. Financial performance definitely includes gains from asset sales while operating performance does not..

Conclusion: There is a very high probability that the dividend paid was a special interim dividend resulting from the sale of williamson house which greatly boosted the 2011-2012 financial performance...

Mark 12:29
Deuteronomy 4:16
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stocksmaster
#103 Posted : Saturday, February 11, 2012 10:36:54 PM
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guru267 wrote:
stocksmaster wrote:
Its worth noting that what Williamson Tea is paying is not a special dividend (from the sale of Williamson House) but an Interim dividend from ' the financial performance of the company'.


@stocksmaster just some small corrections.
The definition of an interim dividend is any dividend paid before the AGM of the company and includes any special dividends paid..

The board commented on financial not operating performance..
note the difference between financial performance and operating performance.. Financial performance definitely includes gains from asset sales while operating performance does not..

Conclusion: There is a very high probability that the dividend paid was a special interim dividend resulting from the sale of williamson house which greatly boosted the 2011-2012 financial performance...



Thank you for the correction...........from the Ksh 89 EPS for the half year, how much of that did the gains from disposal of Williamson House account for?

Happy Hunting
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jerry
#104 Posted : Saturday, February 11, 2012 11:01:20 PM
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Does @guru suggest/imply that a dividend is interim coz it hasn't been approved in an AGM? I've no doubt that the tea sector is minting money!
The opposite of courage is not cowardice, it's conformity.
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jerry
#105 Posted : Saturday, February 11, 2012 11:06:48 PM
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jerry wrote:
Does @guru suggest/imply that a dividend is interim coz it hasn't been approved in an AGM? I've no doubt that the tea sector is minting money!

... can we also say that dividends cannot be paid unless they've been approved in an AGM?
The opposite of courage is not cowardice, it's conformity.
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VituVingiSana
#106 Posted : Sunday, February 12, 2012 12:03:40 AM
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Location: Nairobi
stocksmaster wrote:
guru267 wrote:
stocksmaster wrote:
Its worth noting that what Williamson Tea is paying is not a special dividend (from the sale of Williamson House) but an Interim dividend from ' the financial performance of the company'.


@stocksmaster just some small corrections.
The definition of an interim dividend is any dividend paid before the AGM of the company and includes any special dividends paid..

The board commented on financial not operating performance..
note the difference between financial performance and operating performance.. Financial performance definitely includes gains from asset sales while operating performance does not..

Conclusion: There is a very high probability that the dividend paid was a special interim dividend resulting from the sale of williamson house which greatly boosted the 2011-2012 financial performance...



Thank you for the correction...........from the Ksh 89 EPS for the half year, how much of that did the gains from disposal of Williamson House account for?

Happy Hunting
Sale price KES 450mn (for the 50% WTK owned) less expenses divided by 8.7mn shares = 50/-
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mukiha
#107 Posted : Sunday, February 12, 2012 12:18:03 AM
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Joined: 6/27/2008
Posts: 4,114
VituVingiSana wrote:
stocksmaster wrote:
guru267 wrote:
stocksmaster wrote:
Its worth noting that what Williamson Tea is paying is not a special dividend (from the sale of Williamson House) but an Interim dividend from ' the financial performance of the company'.


@stocksmaster just some small corrections.
The definition of an interim dividend is any dividend paid before the AGM of the company and includes any special dividends paid..

The board commented on financial not operating performance..
note the difference between financial performance and operating performance.. Financial performance definitely includes gains from asset sales while operating performance does not..

Conclusion: There is a very high probability that the dividend paid was a special interim dividend resulting from the sale of williamson house which greatly boosted the 2011-2012 financial performance...



Thank you for the correction...........from the Ksh 89 EPS for the half year, how much of that did the gains from disposal of Williamson House account for?

Happy Hunting
Sale price KES 450mn (for the 50% WTK owned) less expenses divided by 8.7mn shares = 50/-


So the 50bob might very well be from the sale of the house... If so, what does that spell for the future of the company? Generally, companies sell non-essential assets to invest the money in their core business.

What does it mean for a company to sell an asset and dish out the cash as dividend to shareholders? Not very wise, is it?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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guru267
#108 Posted : Sunday, February 12, 2012 12:42:40 AM
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stocksmaster wrote:
how much of that did the gains from disposal of Williamson House account for?


@stocksmaster The 50bob dividend was paid out of proceeds from disposal and not from gains from disposal.. There is a huge difference between the two figures..

Gains from disposal was 144 million representing 16.5bob of the 89bob EPS so even if this is stripped out of earnings there was still an EPS of 73 from operations & biological assets which is still great by any means..

That said I do not think there is a change in the dividend policy of WTK yet otherwise we would see the same in its sister kapchorua with whom it shares identical dividend policy..

Mark 12:29
Deuteronomy 4:16
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stocksmaster
#109 Posted : Sunday, February 12, 2012 1:49:17 AM
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guru267 wrote:
stocksmaster wrote:
how much of that did the gains from disposal of Williamson House account for?


@stocksmaster The 50bob dividend was paid out of proceeds from disposal and not from gains from disposal.. There is a huge difference between the two figures..

Gains from disposal was 144 million representing 16.5bob of the 89bob EPS so even if this is stripped out of earnings there was still an EPS of 73 from operations & biological assets which is still great by any means..

That said I do not think there is a change in the dividend policy of WTK yet otherwise we would see the same in its sister kapchorua with whom it shares identical dividend policy..



The Ksh 50 interim dividend seems to be interpreted by the majority of Wazuans to signify that WTK has paid out its entire cash reserves.....its good you have clarified that as at half year, WTK had generated Ksh 73 per share (discounting the gains from disposal of building) with a possible Ksh 120-140 by end of year. I estimate EPS from operations (less biological assets) for the year to be around Ksh 80.

Unless the plan to buy more tea farms, a large portion of this money could be distributed to shareholders as transfering it to the reserves (already at Ksh 4.5B) doesn't make much sense.

That is why, for the end year, i still expect an additional dividend of Ksh 20. (Put in another way:If what was distributed is the building proceeds then we are yet to touch the huge profits for the year).

Happy Hunting
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guru267
#110 Posted : Sunday, February 12, 2012 9:02:55 AM
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stocksmaster wrote:
That is why, for the end year, i still expect an additional dividend of Ksh 20. (Put in another way:If what was distributed is the building proceeds then we are yet to touch the huge profits for the year).

Happy Hunting


Yes here we agree..
I expect a full year EPS for WTK of 120-140 and 18-25 dividend in line with their normal policy..
I also expect a full year EPS for kapchoroua of 60-70 and a 12-15 dividend..

Hence I highly doubt they will change their dividend policy of below 20% of the EPS in 2012..

If we strip out the one off 50 bob dividend one will note that kapchorua is way cheaper than WTK by any metrics at current levels..
Mark 12:29
Deuteronomy 4:16
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FUNKY
#111 Posted : Monday, February 13, 2012 10:09:35 AM
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Demand is very low today.
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VituVingiSana
#112 Posted : Monday, February 13, 2012 2:31:21 PM
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@stocksmaster @guru267 Some folks are just haters... Let them be! LOL...

If a firm can't re-invest its cash for higher returns that offered elsewhere, then it is doing the shareholders a dis-service by holding onto their cash! Warren Buffett has said when he feels Berkshire can't 'beat' the market then he will distribute the cash...

I was at the AGM & the directors felt strongly that the RE market had peaked. I agreed with them. They have land in Karen where they may build a new HQ at the right time. In the meantime, they are re-investing in their existing farms, factories & T-Bills!!!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Layman
#113 Posted : Tuesday, February 14, 2012 12:38:03 PM
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....they sell their headquarter and use the proceeds to pay dividends..... noma!
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hisah
#114 Posted : Tuesday, February 14, 2012 12:49:19 PM
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Joined: 8/4/2010
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VituVingiSana wrote:
@stocksmaster @guru267 Some folks are just haters... Let them be! LOL...

If a firm can't re-invest its cash for higher returns that offered elsewhere, then it is doing the shareholders a dis-service by holding onto their cash! Warren Buffett has said when he feels Berkshire can't 'beat' the market then he will distribute the cash...

I was at the AGM & the directors felt strongly that the RE market had peaked. I agreed with them. They have land in Karen where they may build a new HQ at the right time. In the meantime, they are re-investing in their existing farms, factories & T-Bills!!!

T-bills smile
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Sure
#115 Posted : Wednesday, February 15, 2012 11:43:34 AM
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Williamson has changed the book closing date from Feb 15 to March 12 or something like that. Can someone confirm.
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.
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hisah
#116 Posted : Wednesday, February 15, 2012 1:29:24 PM
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Sure wrote:
Williamson has changed the book closing date from Feb 15 to March 12 or something like that. Can someone confirm.

The counter has been on almost no demand since Friday. Ama tuseme it is illiquid. Nop, still doesn't add up. Last Friday buyers had better hold on tight since no demand periods are ulcer centrals with no exit close by... Buying on or immediately after announcements is usually dangerous biz.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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mlennyma
#117 Posted : Wednesday, February 15, 2012 1:50:34 PM
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Who did they think they will excite?i think some top management were creating their golden handshake.
"Don't let the fear of losing be greater than the excitement of winning."
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guru267
#118 Posted : Wednesday, February 15, 2012 2:19:18 PM
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mlennyma wrote:
Who did they think they will excite?i think some top management were creating their golden handshake.


I think the top shareholders were in desperate need for cash.. And since they control the board they must've used them to extract cash from the firm...

But all in all WTK still remains seriously cash rich...
Mark 12:29
Deuteronomy 4:16
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guru267
#119 Posted : Wednesday, February 15, 2012 2:28:02 PM
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the deal wrote:
all I know is WTK needs the cash, they can't afford to dish it out like that.


@the deal Remember this???

http://www.contrarianinv...ash-should-you-be-happy

Not so good for your reputation as an adviser is it??
Mark 12:29
Deuteronomy 4:16
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FUNKY
#120 Posted : Wednesday, February 15, 2012 2:44:27 PM
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Something is cooking up in Limuru Tea also...the price has reached 400/- and it is a bad dividend payer also. Hope to Williamson in this level before 12th March.
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