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Centum 2014 business card
Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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The amount of debt this company is taking is getting toxic and it may go burst when the investments refuse to generate the expected returns. In the annual report one of the key shareholder UAP is reducing stake in the company slowly. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 2/20/2007 Posts: 767
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According to business daily, Centum execs earn about 1 million Ksh a month. That is ok with me. They then earn about 14m each in bonus last year. This is also okay. What is ridiculous is the method of calculating the bonus. It is based on appreciation in asset value which can easily be manipulated. In addition, why pay fat cash bonuses based on a non cash increase in value and yet claim you cant pay dividends..... Ukora kabisa.... And I thought wakora were only in parliament. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Elder Joined: 8/16/2011 Posts: 2,297
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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tom_boy wrote:According to business daily, Centum execs earn about 1 million Ksh a month. That is ok with me. They then earn about 14m each in bonus last year. This is also okay. What is ridiculous is the method of calculating the bonus. It is based on appreciation in asset value which can easily be manipulated. In addition, why pay fat cash bonuses based on a non cash increase in value and yet claim you cant pay dividends..... Ukora kabisa.... And I thought wakora were only in parliament. companies that do not pay dividends are dishonest, and here is the proof The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 1/2/2008 Posts: 268 Location: Nairobi
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Aguytrying wrote:tom_boy wrote:According to business daily, Centum execs earn about 1 million Ksh a month. That is ok with me. They then earn about 14m each in bonus last year. This is also okay. What is ridiculous is the method of calculating the bonus. It is based on appreciation in asset value which can easily be manipulated. In addition, why pay fat cash bonuses based on a non cash increase in value and yet claim you cant pay dividends..... Ukora kabisa.... And I thought wakora were only in parliament. companies that do not pay dividends are dishonest, and here is the proof They earn millions in salaries and bonuses which are dubiously calculated? If you own shares in this company, did you factor in these issues in your research? or which fundamentals?.. asking for a friend..
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Rank: Member Joined: 1/15/2010 Posts: 625
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You have to be willing to pay for quality. Simple as that. At least with Centum you know your money is not getting siphoned away a la MSC. Based on the performance they are definitely worth the money - they are definitely hustling to get this company going. Compare them with Transcentury for example, top salaries but poor execution. Ofcourse there has to be a cap on employee compensation and it makes more sense to pay the bonus in company shares than cash. It would be interesting to compare Centum compensation with other companies as well to get a feel. These guys are making 300,000 USD a year, they're definitely lucky.
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Rank: Member Joined: 1/2/2008 Posts: 268 Location: Nairobi
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Instead of paying themselves millions in bonuses, why don't they reward loyal shareholders with even bonus shares then?
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Rank: Member Joined: 2/20/2007 Posts: 767
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mv_ufanisi wrote:You have to be willing to pay for quality. Simple as that. At least with Centum you know your money is not getting siphoned away a la MSC. Based on the performance they are definitely worth the money - they are definitely hustling to get this company going. Compare them with Transcentury for example, top salaries but poor execution. Ofcourse there has to be a cap on employee compensation and it makes more sense to pay the bonus in company shares than cash. It would be interesting to compare Centum compensation with other companies as well to get a feel. These guys are making 300,000 USD a year, they're definitely lucky. The issue for me is not the amount paid out. It is the way the bonus is calculated. Why cant the bonus be based on increase in cash profits to the company. The idea of all these investments is to make a cash return. Therefore, bonus should be based on how well the execs convert the assets into cash earnings. This is a more objective way of doing things. Basing bonus on growth in asset value is deceptive, open to manipulation and gives no incentive to invest in highest cash returning assets available. Asset value means nothing. Its what the asset puts into your pocket that matters. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Member Joined: 5/14/2014 Posts: 288 Location: nairobi
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tom_boy wrote:mv_ufanisi wrote:You have to be willing to pay for quality. Simple as that. At least with Centum you know your money is not getting siphoned away a la MSC. Based on the performance they are definitely worth the money - they are definitely hustling to get this company going. Compare them with Transcentury for example, top salaries but poor execution. Ofcourse there has to be a cap on employee compensation and it makes more sense to pay the bonus in company shares than cash. It would be interesting to compare Centum compensation with other companies as well to get a feel. These guys are making 300,000 USD a year, they're definitely lucky. The issue for me is not the amount paid out. It is the way the bonus is calculated. Why cant the bonus be based on increase in cash profits to the company. The idea of all these investments is to make a cash return. Therefore, bonus should be based on how well the execs convert the assets into cash earnings. This is a more objective way of doing things. Basing bonus on growth in asset value is deceptive, open to manipulation and gives no incentive to invest in highest cash returning assets available. Asset value means nothing. Its what the asset puts into your pocket that matters. reminds me of the wolf of w*llstreet where investors are sold illussion after illussion while the brokers read mgt take home the real hard cash in form of commissions and bonuses Am in this stock but am not increasing my petty holdings anymore I find satisfaction in owning great business,not trading them
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Aguytrying wrote:tom_boy wrote:According to business daily, Centum execs earn about 1 million Ksh a month. That is ok with me. They then earn about 14m each in bonus last year. This is also okay. What is ridiculous is the method of calculating the bonus. It is based on appreciation in asset value which can easily be manipulated. In addition, why pay fat cash bonuses based on a non cash increase in value and yet claim you cant pay dividends..... Ukora kabisa.... And I thought wakora were only in parliament. companies that do not pay dividends are dishonest, and here is the proof Good point/s by @tom_boy but @Aguy did you know Berkshire Hathaway doesn't pay dividends either while Olympia Capital does? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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VituVingiSana wrote:Aguytrying wrote:tom_boy wrote:According to business daily, Centum execs earn about 1 million Ksh a month. That is ok with me. They then earn about 14m each in bonus last year. This is also okay. What is ridiculous is the method of calculating the bonus. It is based on appreciation in asset value which can easily be manipulated. In addition, why pay fat cash bonuses based on a non cash increase in value and yet claim you cant pay dividends..... Ukora kabisa.... And I thought wakora were only in parliament. companies that do not pay dividends are dishonest, and here is the proof Good point/s by @tom_boy but @Aguy did you know Berkshire Hathaway doesn't pay dividends either while Olympia Capital does? that's a factual epic comparison 
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Rank: Elder Joined: 8/16/2011 Posts: 2,297
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Micro-lender K-Rep Bank records 99pc profit rise to Sh120mcould centum share rise to beyond 80 in the short term. What will the Centum-Rea result in?
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Rank: Member Joined: 1/15/2010 Posts: 625
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Centum is a long term play. It's unrealistic for you to expect share price at 80 in such a short period. I prefer slow and steady rise in the share price otherwise some people will get over excited. I hope it can get to 80 by end of 2015. 2015 should be a great year for Centum I believe. Two Rivers should be almost done and UAP will list on the NSE. Hopefully James and his team can also find some sweet deals for us in the meantime.
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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mv_ufanisi wrote:Centum is a long term play. It's unrealistic for you to expect share price at 80 in such a short period. I prefer slow and steady rise in the share price otherwise some people will get over excited. I hope it can get to 80 by end of 2015. I retaliate, if the REA case goes their way, then even 100 is possible in the near future. Otherwise it will experience stagnation and continued booking of paper gains. Seeing is believing
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Rank: Member Joined: 1/15/2010 Posts: 625
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jawgey wrote:mv_ufanisi wrote:Centum is a long term play. It's unrealistic for you to expect share price at 80 in such a short period. I prefer slow and steady rise in the share price otherwise some people will get over excited. I hope it can get to 80 by end of 2015. I retaliate, if the REA case goes their way, then even 100 is possible in the near future. Otherwise it will experience stagnation and continued booking of paper gains. I remember a quote from a high school literature book; Great expectations make frustrated men by Hama Tuma.
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Rank: Member Joined: 9/12/2009 Posts: 312
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VituVingiSana wrote:Aguytrying wrote:tom_boy wrote:According to business daily, Centum execs earn about 1 million Ksh a month. That is ok with me. They then earn about 14m each in bonus last year. This is also okay. What is ridiculous is the method of calculating the bonus. It is based on appreciation in asset value which can easily be manipulated. In addition, why pay fat cash bonuses based on a non cash increase in value and yet claim you cant pay dividends..... Ukora kabisa.... And I thought wakora were only in parliament. companies that do not pay dividends are dishonest, and here is the proof Good point/s by @tom_boy but @Aguy did you know Berkshire Hathaway doesn't pay dividends either while Olympia Capital does? Hey Good people, Did you see DJ CK jana on TV...? I think This guy knows his stuff....
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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Dj. CK's interview definitely had a ripple effect on investors. Look at the price now.. Seeing is believing
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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jawgey wrote:Dj. CK's interview definitely had a ripple effect on investors. Look at the price now.. @52,that gives me a 65% paper return.
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Rank: Member Joined: 1/15/2010 Posts: 625
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cnn wrote:jawgey wrote:Dj. CK's interview definitely had a ripple effect on investors. Look at the price now.. @52,that gives me a 65% paper return. This stock is likely to become a ten-bagger over the next 5 years or so. It's got huge potential and the team is on point. Been my favorite stock at the NSE for a while now. Pluses; - very well diversified (across industries and countries) - great team (James Mworia and team - young but humble guys with focused ambition) - DJ CK wants to make a name for himself through this company - excellent execution (Two Rivers is going to be the most amazing development in Nairobi when complete) - there's massive opportunities in Africa and these guys have what it takes to take advantage of most of them so outlook going forward is quite high.
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Rank: Member Joined: 2/18/2011 Posts: 448
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Indeed there are many guys waiting to be influenced to make a decision. DJ CKs interview resulted in this.
@SMutangaIII its obvious,no fundamentals changed overnight to result in 8.3% change overnight other than sentiment as expressed by DJ CK and received by investors.This is what makes the NSE an exciting money making venture.
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