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Deacons slides to KES 38m loss FY12

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muganda		#11 Posted : Monday, June 17, 2013 5:19:33 PM
Rank: Elder Joined: 9/15/2006 Posts: 3,907		Pardon where my memory fails, but is there a stock with such a litany of broken promises: - IPO within a year - vibrant OTC trade at CDSC - venturing into school uniforms - looking to make new like acquisitions - new target market segment of middle income Well heck, it was a private placement spoof. By Wahome and Desimone no less. What the hell was I thinking?
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mwekez@ji		#12 Posted : Wednesday, June 19, 2013 12:09:43 AM
Rank: Chief Joined: 5/31/2011 Posts: 5,121		2013 will be a very bad year for this counter Deacons transferred its mainstay Woolworths brand to a new company in which it took a 49 per cent stake while the franchise owner Woolworths SA took a 51 per cent shareholding. Formation of the joint venture, dubbed Woolworths Kenya Proprietary Limited, has effectively diluted Deacon’s earnings from the profitable franchise and hurt the case for its listing at the Nairobi bourse. “Woolworths used to contribute 49 per cent of the group’s revenues. The new arrangement means the size of Deacons as a business has changed and we have decided to defer the company’s listing,” said Muchiri Wahome, Deacon’s chief executive officer. A smaller Deacons operation means the company’s valuation and earnings prospects have changed materially since the listing plan was first announced, with implications on the stock’s pricing. The joint venture was completed on April 1, ending an arrangement where Deacons would previously only pay franchise fees to the South African firm and keep all the profits. Mr Wahome said Deacons is running the new outfit for which it will be earning management fees. Analysts say the negative impact of the joint venture is likely to be felt immediately. “The company could suffer from a decline in (the year ending December) sales following the agreement,” Standard Investment Bank said in a statement.
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mwekez@ji		#13 Posted : Wednesday, June 19, 2013 12:22:04 AM
Rank: Chief Joined: 5/31/2011 Posts: 5,121		Would like to know how much these Deacons shares are trading at following the massive dilution (completion of the joint venture with Woolworths SA). Somebody in OTC? The current shareholders are really screwed!
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VituVingiSana		#14 Posted : Wednesday, June 19, 2013 12:31:57 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi		Uchumi is for the masses. Buy 'em cheap, pile 'em high, sell 'em cheap... And hopefully don't sell 'em too cheap! Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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mwekez@ji		#15 Posted : Wednesday, June 19, 2013 1:15:51 AM
Rank: Chief Joined: 5/31/2011 Posts: 5,121		VituVingiSana wrote: Uchumi is for the masses. Buy 'em cheap, pile 'em high, sell 'em cheap... And hopefully don't sell 'em too cheap! CBS VVS, expound pls. dint get that
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VituVingiSana		#16 Posted : Wednesday, June 19, 2013 8:40:58 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi		mwekez@ji wrote: VituVingiSana wrote: Uchumi is for the masses. Buy 'em cheap, pile 'em high, sell 'em cheap... And hopefully don't sell 'em too cheap! CBS VVS, expound pls. dint get that It's an American thing... Walmart style or discount store... Instead of catering to the snooty classes, you pile 'em high [so none of the Deacons style 10 shirts making 100% gross margins] & sell 'em cheap [make 20% but stock 100 shirts] Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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the deal		#17 Posted : Wednesday, June 19, 2013 8:52:33 AM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		VituVingiSana wrote: mwekez@ji wrote: VituVingiSana wrote: Uchumi is for the masses. Buy 'em cheap, pile 'em high, sell 'em cheap... And hopefully don't sell 'em too cheap! CBS VVS, expound pls. dint get that It's an American thing... Walmart style or discount store... Instead of catering to the snooty classes, you pile 'em high [so none of the Deacons style 10 shirts making 100% gross margins] & sell 'em cheap [make 20% but stock 100 shirts] Simple: Kenya is not SA, Nam or Bots...middle class here is still small...spending power still small...and the pricing....they wont make it!
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mwekez@ji		#18 Posted : Wednesday, June 19, 2013 8:55:20 AM
Rank: Chief Joined: 5/31/2011 Posts: 5,121		VituVingiSana wrote: mwekez@ji wrote: VituVingiSana wrote: Uchumi is for the masses. Buy 'em cheap, pile 'em high, sell 'em cheap... And hopefully don't sell 'em too cheap! CBS VVS, expound pls. dint get that It's an American thing... Walmart style or discount store... Instead of catering to the snooty classes, you pile 'em high [so none of the Deacons style 10 shirts making 100% gross margins] & sell 'em cheap [make 20% but stock 100 shirts] Cheer CBS. I get now it ;-)
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VituVingiSana		#19 Posted : Thursday, June 20, 2013 12:19:52 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi		@mwekezaji http://www.cookbrothers.com/ Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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mwekez@ji		#20 Posted : Thursday, June 20, 2013 8:57:04 AM
Rank: Chief Joined: 5/31/2011 Posts: 5,121		VituVingiSana wrote: @mwekezaji http://www.cookbrothers.com/ ;-) stack em deep and sell em cheap
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