2012 wrote:Many people made their cash but greed won't let them sell. I still wonder what people were doing holding this counter at 15/-.
Right now if I'm Puma, I wouldn't pay more than 13/- a share! Why should I while I'm coming in as the messiah? It makes business sense.
Simple. Most shareholders (including the majority) have 'eaten' the loss. Then it is time to look ahead. KK remains in a strong position in the market. 1) It has cut back on Deal Poa hence it will sell lower volumes at a higher margin but probably (overall) higher profits.
2) K-Card in so many hands. The 2/- discount will still keep me going to KK.
3) The EAC economies continue expanding so volumes will increase over time.
4) Lower financing costs as interest rates drop from 28% to 20% and probably lower towards December.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett