Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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VituVingiSana wrote:biddii wrote:jerry wrote:Gordon Gekko wrote:Jaina wrote:Monkey business it is. 62% gain in a day on news of closure of factory. This defies any professor's theories
Management accounting. Open/close decisions, eliminate fixed costs. Fixed costs here are salaries, electricity which are eliminated by closing. The fixed costs associated with other lines can support themselves. Addition: The mgt can re-engineer the business. @bidii, "...got in last week ..." Are you an insider? Not an insider in any way. Just sensed that the real estate play was the right thing to do. They had mentioned earlier that they were registered Flamingo Kenya for such a project. Closure of the factory just turned out to be an additional plus at it was expensive to run And that is smart. Reading between the lines using PUBLICLY AVAILABLE information  ... Though, I think merali will screw shareholders over with a JV like he did Firestone shareholders. @VVS you are absolutely right. Merali is a corporate scavenger, very skilled at making deals that earn him money at the expense of minority shareholders. A saying goes that a leopard does not change its spots. Life is short. Live passionately.
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