Wazua
»
Investor
»
Stocks
»
Is it the right time to buy CENTUM?
Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
|
Centum is dead;there is still no development on their real estate project at Two Rivers. That's the reason Mworia reduced his shareholding in the company Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
|
Centum will recover by 2017. They went into capital intensive ventures without proper cash outlays hence the mess they are in Thieves
|
|
|
Rank: Member Joined: 8/11/2009 Posts: 302
|
King G wrote:Centum will recover by 2017. They went into capital intensive ventures without proper cash outlays hence the mess they are in Even if your 2017 prediction is right, I don't know what your basis, that a very long time to lock your money in a hybernating, maybe braindead stock. I had bought at 27 but painfully decided to cut my losses at sub 15 and shift to another stock. When things look up, I will cross that bridge.
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
|
How sure are you they will recover. Real estate projects have a very slow return Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
The company has a number of ambitious projects but it doesn’t have cash and the BIG Q remains where they will get the cash:
•KES 60B for Two Rivers project, Runda
•KES 6.8B to invest in four new companies in power, telecoms, financial services and manufacturing sectors in Kenya, Uganda, and Rwanda
With the current market sentiments, a rights issue will not do. So, how will they get these funds?
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
No dividend, No bonus, unethical CEO & the CEO selling his shares. Such doesn’t auger well with the market.
|
|
|
Rank: Elder Joined: 2/10/2007 Posts: 1,587
|
mwekez@ji wrote:No dividend, No bonus, unethical CEO & the CEO selling his shares. Such doesn’t auger well with the market. The CEO owned too few shares in CENTUM. To me if he sells or not is neither here nor there unless he had 2M plus shares in the company.
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
PKoli wrote:mwekez@ji wrote:No dividend, No bonus, unethical CEO & the CEO selling his shares. Such doesn’t auger well with the market. The CEO owned too few shares in CENTUM. To me if he sells or not is neither here nor there unless he had 2M plus shares in the company. The signal he has sent by selling the shares is very negative. If he was on the buying side, the signal would be very different.
|
|
|
Rank: Member Joined: 2/1/2010 Posts: 272 Location: Nairobi
|
mwekez@ji wrote:PKoli wrote:mwekez@ji wrote:No dividend, No bonus, unethical CEO & the CEO selling his shares. Such doesn’t auger well with the market. The CEO owned too few shares in CENTUM. To me if he sells or not is neither here nor there unless he had 2M plus shares in the company. The signal he has sent by selling the shares is very negative. If he was on the buying side, the signal would be very different. You're right @mwekezaji, it's about the perception. There is also no incentive to hold on to this stock for the long-term... except maybe rosy promises from management The harder you work, the luckier you get
|
|
|
Rank: Elder Joined: 6/20/2012 Posts: 3,855 Location: Othumo
|
mwekez@ji wrote:The company has a number of ambitious projects but it doesn’t have cash and the BIG Q remains where they will get the cash:
•KES 60B for Two Rivers project, Runda
•KES 6.8B to invest in four new companies in power, telecoms, financial services and manufacturing sectors in Kenya, Uganda, and Rwanda
With the current market sentiments, a rights issue will not do. So, how will they get these funds?
What about Bonds Thieves
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
mwekez@ji wrote:The company has a number of ambitious projects but it doesn’t have cash and the BIG Q remains where they will get the cash:
•KES 60B for Two Rivers project, Runda
•KES 6.8B to invest in four new companies in power, telecoms, financial services and manufacturing sectors in Kenya, Uganda, and Rwanda
With the current market sentiments, a rights issue will not do. So, how will they get these funds?
@mwekez@ji, my sentiments exactly see post #6. Life is short. Live passionately.
|
|
|
Rank: Member Joined: 3/20/2009 Posts: 348
|
PKoli wrote:mwekez@ji wrote:No dividend, No bonus, unethical CEO & the CEO selling his shares. Such doesn’t auger well with the market. The CEO owned too few shares in CENTUM. To me if he sells or not is neither here nor there unless he had 2M plus shares in the company. i questioned the fact that he owned very few shares.If a CEO has confidence in a company they buy shares,why mworia doesn't have more shares than the 2m worth is baffling to say the least
|
|
|
Rank: Member Joined: 3/20/2009 Posts: 348
|
Ericsson wrote:Centum is dead;there is still no development on their real estate project at Two Rivers.
That's the reason Mworia reduced his shareholding in the company they can offload the land for a good profit
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
|
Who remembers the fast (unsustainable) expansion of Uchumi under kirubi's management group? The careful but very profitable expansion under Suresh Shah was dumped for rapid expansion using loans, delayed creditor payments and poor controls. Within 2-3 years after Shah had left as CEO, when Uchumi was flush with cash, the firm unraveled. Next thing we knew Uchumi was bankrupt. ICDCIC (Centum) had dumped its shares since it knew things were not well. Will Centum make the same errors? Expand rapidly beyond its management capabilities? Expand using loans at high interest rates? Insiders dumping shares to unsuspecting investors? Does a leopard change its spots? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Chief Joined: 5/31/2011 Posts: 5,121
|
Good questions above @VVS. Reading, Centum is still looking to raise more funds to boost its foray into real estate, it has disclosed. It recently raised Sh3.2 billion via bond on private placement but says it will soon be back in the debt markets. http://allafrica.com/stories/201210180148.html
|
|
|
Rank: New-farer Joined: 8/1/2018 Posts: 60 Location: Nairobi
|
Pronounced dead in 2012 while trading @12/=.
8 years later and trading at covid discount of 21.50/= I'd say it's the right time to buy. What say you @Ericsson and the rest of wazua community?
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
|
Kibe21 wrote:Pronounced dead in 2012 while trading @12/=.
8 years later and trading at covid discount of 21.50/= I'd say it's the right time to buy. What say you @Ericsson and the rest of wazua community? Have you found out what excites you about Centum and your projected returns? Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
|
|
|
Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
|
Kibe21 wrote:Pronounced dead in 2012 while trading @12/=.
8 years later and trading at covid discount of 21.50/= I'd say it's the right time to buy. What say you @Ericsson and the rest of wazua community? I am piling up this stock. In my opinion it's cheap on a valuation basis. First with the new dividend policy, we essentially have a guaranteed dividend every year that either goes up or stays the same. Their real estate investments are finally coming into the revenue section of the income statement since their first hand overs of the Vipingo Dev were to be in August and others December. They already sold land worth Ksh2.6 billion and it's still hasn't been recognized in the income statement till all the legal steps are done. Two new real estate projects have been announced in ideal locations. They have a sizeable cash pile ready to be deployed, talks are ongoing but I dont see anything being announced any time soon, maybe next year. Two Rivers has added a number of tenants this year and more to come. Ace Holding is close to breaking even. Debt has been fully paid down. Stock is cum dividend and it is trading lower than what it was trading in 2013. Headwinds: Longhorn (their biggest dividend payer currently) will be in challenges for the next 2 years minimum, Sidian bank is back to losses. Isuzu for sure has recorded decreased sales. Nas Servair hasnt been operational since airport was closed.
|
|
|
Rank: Elder Joined: 9/23/2010 Posts: 2,220 Location: Sundowner,Amboseli
|
Supply is at 21.50 levels. Price will turn once these shares are bought. @SufficientlyP
|
|
|
Rank: Member Joined: 9/27/2006 Posts: 503
|
watesh wrote:Kibe21 wrote:Pronounced dead in 2012 while trading @12/=.
8 years later and trading at covid discount of 21.50/= I'd say it's the right time to buy. What say you @Ericsson and the rest of wazua community? I am piling up this stock. In my opinion it's cheap on a valuation basis. First with the new dividend policy, we essentially have a guaranteed dividend every year that either goes up or stays the same. Their real estate investments are finally coming into the revenue section of the income statement since their first hand overs of the Vipingo Dev were to be in August and others December. They already sold land worth Ksh2.6 billion and it's still hasn't been recognized in the income statement till all the legal steps are done. Two new real estate projects have been announced in ideal locations. They have a sizeable cash pile ready to be deployed, talks are ongoing but I dont see anything being announced any time soon, maybe next year. Two Rivers has added a number of tenants this year and more to come. Ace Holding is close to breaking even. Debt has been fully paid down. Stock is cum dividend and it is trading lower than what it was trading in 2013. Headwinds: Longhorn (their biggest dividend payer currently) will be in challenges for the next 2 years minimum, Sidian bank is back to losses. Isuzu for sure has recorded decreased sales. Nas Servair hasnt been operational since airport was closed. Aren't all the above significant chunks of their portfolio? How do you know ACE is breaking even, and what's the likelihood they'll strike a geothermal well? That said, there is a proposed stock buyback plan, which has worked wonders for companies in the US.
|
|
|
Wazua
»
Investor
»
Stocks
»
Is it the right time to buy CENTUM?
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|