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Uchumi taking off
Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Gatheuzi wrote:mwekez@ji wrote:Dividend - KES 0.30 per share. .... Paying dividend yet their accumulated losses now stand at KES 392,653,000
There are no accumulated losses, in fact they have reserves of KES1.3bn. What has made Uchumi not to pay dividends is not the accumulated losses but the cash position, as at end of June they had overdrafts of Kes437M. Mate, see the accumulated losses in page 6 http://www.nse.co.ke/listed-com...ear-ended-30th-june-2012
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Rank: Veteran Joined: 5/23/2010 Posts: 868 Location: La Islas Galápagos
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mwekez@ji wrote:Gatheuzi wrote:mwekez@ji wrote:Dividend - KES 0.30 per share. .... Paying dividend yet their accumulated losses now stand at KES 392,653,000
There are no accumulated losses, in fact they have reserves of KES1.3bn. What has made Uchumi not to pay dividends is not the accumulated losses but the cash position, as at end of June they had overdrafts of Kes437M. Mate, see the accumulated losses in page 6 http://www.nse.co.ke/listed-com...ear-ended-30th-june-2012 Am not sure how you are interpreting this. The company has made profits 6 years in a row, and shareholder funds are now 2.6b However, this profit streak still has not paid for the stellar losses from early 2000's. As you may know, corporates are allowed to carry forward losses for tax purposes. A bad day fishing is better than a good day at work
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Rank: Veteran Joined: 5/23/2010 Posts: 868 Location: La Islas Galápagos
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And for anyone looking out for the next Apple or ARM, uchumi will be trading past 50 bob this time next year A bad day fishing is better than a good day at work
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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@StatMeister
That Total of KES 2,657,810,000 is composed of the following:
Share capital KES 1,327,133,000
Share premium KES 1,090,015,000
Revaluation reserve KES 700,658,000
Translation reserve KES (67,343,000)
Accumulated losses KES (392,653,000)
You can see losses made in the past years have not yet been offset by the profits made. I have noted NBK cleared all accumulated losses before ending dividend drought. I think it would have made good sense if Uchumi did the same. This is also what analysts expected.
How do you arrive at the 12 months Target Price of KES >50?
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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mwekez@ji wrote:@Pesa Nane, we have no doubt that the top line will grow again this financial year by about 30% to KES 18 B Link on top line growth projectionHowever, if in the latest financial year the bottom line declined by 30% because of opening 6 new branches, what will happen in this financial year where they plan to open 12 new branches @Mwekezaji I feel you. In fact I appreciate the haunting past of Uchumi expansion. I am just not agreeing with the recommendation of 'PANIC SELL' suggested by some. I will hold to dispose later to the dividend hunters (Mr. Soko has decided not to punish the profit drop in the near term). My pesanane... Pesa Nane plans to be shilingi when he grows up.
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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Does the Company Act allow for the payment of a Dividend as long as the Revenue Reserves are negative? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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mwekez@ji wrote:@StatMeister
That Total of KES 2,657,810,000 is composed of the following:
Share capital KES 1,327,133,000
Share premium KES 1,090,015,000
Revaluation reserve KES 700,658,000
Translation reserve KES (67,343,000)
Accumulated losses KES (392,653,000)
You can see losses made in the past years have not yet been offset by the profits made. I have noted NBK cleared all accumulated losses before ending dividend drought. I think it would have made good sense if Uchumi did the same. This is also what analysts expected.
How do you arrive at the 12 months Target Price of KES >50?
Thanks @Mwekez@ji - I had not looked at the details to see the make up of the reserves. U are right on this. Going by the current profit trend we may need a year or 2 to clear the accummulated losses. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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VituVingiSana wrote:Does the Company Act allow for the payment of a Dividend as long as the Revenue Reserves are negative? Nope, for capital preservation, a company can't pay dividends until it clears the negative revenue reserves. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Member Joined: 3/20/2009 Posts: 348
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StatMeister wrote:And for anyone looking out for the next Apple or ARM, uchumi will be trading past 50 bob this time next year costs are only going higher,the only thing that would get it to 50 bob is a buyout offer at 51 bob.It will be trading at this range of 14-20 this time next year, uchumi is no apple
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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Gatheuzi wrote:VituVingiSana wrote:Does the Company Act allow for the payment of a Dividend as long as the Revenue Reserves are negative? Nope, for capital preservation, a company can't pay dividends until it clears the negative revenue reserves. Then how can Uchumi pay a dividend? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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