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SME MARKET LAUNCHED
Rank: Elder Joined: 7/11/2010 Posts: 5,040
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http://www.nation.co.ke/...-/12453sdz/-/index.html
investment opportunity, or dangerous investing in small companies? The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Aguytrying wrote:http://www.nation.co.ke/business/news/Bourse-launches-SMEs-trading-platform/-/1006/1672208/-/12453sdz/-/index.html
investment opportunity, or dangerous investing in small companies? Personally, i will take it to be 'dangerous investing'. But as its always said, the higher the risk, the ........ Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 1/27/2011 Posts: 1,777
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Maybe it's going to be an opportunity to invest in those oil and mineral prospecting companies especially now that there is the 35% local shareholding rule.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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dunkang wrote:Aguytrying wrote:http://www.nation.co.ke/business/news/Bourse-launches-SMEs-trading-platform/-/1006/1672208/-/12453sdz/-/index.html
investment opportunity, or dangerous investing in small companies? Personally, i will take it to be 'dangerous investing'. But as its always said, the higher the risk, the ........ I agree. The stocks in this segment will be more risky than the Giants of the main market. However the star performers will really make people money. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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The GEMS Board remains restrictive. One can't raise money to launch a new firm. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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VituVingiSana wrote:The GEMS Board remains restrictive. One can't raise money to launch a new firm. Is that even acceptable, as in, one will be investing in an idea instead of a product/service. Educate me please. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Member Joined: 2/8/2007 Posts: 808
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I will be a pessimist and say we will not see much activity here. This idea is not well thought out. For one, you can't raise money here to start a new firm. Think of it this way, why should I bring my high earnings margin SME business to the bourse to raise money yet I can talk to my banker or a few friends to sort me out. Culturally we are obsessed with ownership in this country so you can be sure the good SME's will not come to the bourse. However we are also a very dishonest and greedy society so expect very suspect SME's to list as the owners seek to profiteer/con the public!
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Kausha wrote:I will be a pessimist and say we will not see much activity here. This idea is not well thought out. For one, you can't raise money here to start a new firm. Think of it this way, why should I bring my high earnings margin SME business to the bourse to raise money yet I can talk to my banker or a few friends to sort me out. Culturally we are obsessed with ownership in this country so you can be sure the good SME's will not come to the bourse. However we are also a very dishonest and greedy society so expect very suspect SME's to list as the owners seek to profiteer/con the public! Direct to the Point Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Kausha wrote:I will be a pessimist and say we will not see much activity here. This idea is not well thought out. For one, you can't raise money here to start a new firm. Think of it this way, why should I bring my high earnings margin SME business to the bourse to raise money yet I can talk to my banker or a few friends to sort me out. Culturally we are obsessed with ownership in this country so you can be sure the good SME's will not come to the bourse. However we are also a very dishonest and greedy society so expect very suspect SME's to list as the owners seek to profiteer/con the public! There r 3Fs of financing, the 3rd - FOOLS, is the best way to get money....list your firm just when u want to share in the loss....good example Olympian capital "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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'Penniest' of the penny stocks. A volatility playground with outsize gains as well as losses if the bet goes awry. Will I get the mongolia on the miners  Will GEMS fly like the Nasdaq... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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dunkang wrote:VituVingiSana wrote:The GEMS Board remains restrictive. One can't raise money to launch a new firm. Is that even acceptable, as in, one will be investing in an idea instead of a product/service. Educate me please. Why not? Of course, there are greater risks. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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hisah wrote:'Penniest' of the penny stocks. A volatility playground with outsize gains as well as losses if the bet goes awry. Will I get the mongolia on the miners Will GEMS fly like the Nasdaq... I would like to see those oil exploration companies come to GEMS. We profit from our oil, those in ke. @ hisah u once talked of smes a soro's fund something, are those plays still on the cards The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Aguytrying wrote:hisah wrote:'Penniest' of the penny stocks. A volatility playground with outsize gains as well as losses if the bet goes awry. Will I get the mongolia on the miners Will GEMS fly like the Nasdaq... I would like to see those oil exploration companies come to GEMS. We profit from our oil, those in ke. @ hisah u once talked of smes a soro's fund something, are those plays still on the cards Yes. PEs are raising funds for more plays in sub-sahara especially energy, infrastructure etc. Sub-sahara region is still at the basement of an economy boom! I'm sure some of those PEs will want to cash out at some point or swap with other PEs through the exchange.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Btw is Centum still funding some of the geothermal ventures by GDC? http://bloom.bg/iuBtcG (Jun 7, 2011). I wonder if GDC will be floated at some point, but due to the large balance sheet may be that will be on the main market. As for PE trends check the links below. Catalyst - http://www.catalystprinc...s-details.php?newsid=15 and http://www.catalystprinc...s-details.php?newsid=13
http://www.theeastafrica.../-/kbu0chz/-/index.html
http://www.standardmedia...s-in-East-Africa-region
About 53 funds are targeting East Africa this year and around 30 have already opened offices. Together they have raised approximately $633million (Sh52.54 billion). Kenya and the region has in the recent past experienced an influx of Private Equity, with large and relatively lower amounts. - http://www.the-star.co.k...-east-african-companies
There is a lot of info. I just posted published link, but more research is required to follow the money accurately and that info don't come for free  $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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VituVingiSana wrote:dunkang wrote:VituVingiSana wrote:The GEMS Board remains restrictive. One can't raise money to launch a new firm. Is that even acceptable, as in, one will be investing in an idea instead of a product/service. Educate me please. Why not? Of course, there are greater risks. ...we have aped a lot from the LSE on this and in reference to their AIM where the market is for trading of shares in unlisted companies and smaller companies seeking funds for expansion...the likes of small fast growing companies,management buyouts and family businesses...if you pick the right company with great growth prospects and a good strong management there is good money to be made...all said and done the investor base should consist of professional and experienced investors who are aware of the risks and rewards of investing in such companies... possunt quia posse videntur
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Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi
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I like the acronym, GEMS.
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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maka wrote:VituVingiSana wrote:dunkang wrote:VituVingiSana wrote:The GEMS Board remains restrictive. One can't raise money to launch a new firm. Is that even acceptable, as in, one will be investing in an idea instead of a product/service. Educate me please. Why not? Of course, there are greater risks. ...we have aped a lot from the LSE on this and in reference to their AIM where the market is for trading of shares in unlisted companies and smaller companies seeking funds for expansion...the likes of small fast growing companies,management buyouts and family businesses...if you pick the right company with great growth prospects and a good strong management there is good money to be made...all said and done the investor base should consist of professional and experienced investors who are aware of the risks and rewards of investing in such companies... That's my point. Let folks invest (with advice + realization of risks] so they can share in the meteoric rise (or fall) of these firms. Also this lets firms raise cash to start/grow/expand. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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VituVingiSana wrote: Also let firms raise cash to start/grow/expand. To grow or expand is OK with me, but to start, lets talk something else, like an informal deal (Safcom/Faulu type on MShwari). BTW, will that company have a name, how will it have registered to be listed? Valuation? It very complicated if its just an idea. Maybe i may be wrong on this one. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Chief Joined: 1/3/2007 Posts: 18,129 Location: Nairobi
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dunkang wrote:VituVingiSana wrote: Also let firms raise cash to start/grow/expand. To grow or expand is OK with me, but to start, lets talk something else, like an informal deal (Safcom/Faulu type on MShwari). BTW, will that company have a name, how will it have registered to be listed? Valuation? It very complicated if its just an idea. Maybe i may be wrong on this one. Good questions: 1) These firms are 'existing' but come to market to raise funds very early. The 'founders' may be known to the public [or investors]. It is not a 'new' firm from the get go but has been registered. It may have an idea but not a product. 2) The firm could look for VC funding or chooses to get it from the market. Not easy coz it bears more scrutiny. 3) The ideas/assets have to be in place but needs lots more capital. Say a firm secures an oil block for $1mn but needs $50mn to drill, etc. It's not the $1mn it comes for to GEMS but $50mn. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Yep. It will require a keen eye to profit from this. We'll keep our ears on the ground meanwhile The investor's chief problem - and even his worst enemy - is likely to be himself
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