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Safaricom Investment Cooperative
murchr
#231 Posted : Tuesday, May 19, 2015 5:20:24 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
MaichBlack , there's no issue with the valuation. The shares trading on the floor go for 325 min and 350 max fair value
"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
.
Minor Mullah
#232 Posted : Monday, May 25, 2015 3:27:58 PM
Rank: New-farer

Joined: 1/21/2015
Posts: 10
Location: Nairobi
The key reason why I have joined SIC is because it is more tax efficient than an ordinary company. Look at it this way. The rebates to shareholders (i.e. dividends) in the case of a cooperative are paid out ABOVE THE LINE i.e. before payment of income taxes. This is allowed under section 19A of the Income Tax Act. When you receive the dividends, you only pay 5% withholding tax which is a final tax i.e. no further taxes are due from the investor.

In effect what this means is that since in the case of a company dividends would have been below the line, the dividends would have suffered 30% tax and a further 5% withholding tax on dividends when paid to you. So by investing in SIC, you save 30% corporation taxes which you would otherwise have suffered.

Now imagine all the gains SIC is making from the sales of land, apartments etc which are only taxed at 5%! SIC is in effect operating like a REIT without the difficulties associated with obtaining CMA approvals etc.

One other thing that I differ with MaichBlack's analysis. While he is looking at the valuation of the shares, he is not looking at the fundamentals of SIC i.e. what is the PBV or PE ratios. Bearing in mind that the amount of land and Work In Progress associated with the apartments they are constructing, in fact their balance sheet is undervalued rather than overvalued. The methodology of pricing the shares may be wrong but until we know what is the PBV and PE, we cannot say whether the share is actually overvalued or not.
Paul Owuor
#233 Posted : Monday, May 25, 2015 4:30:48 PM
Rank: New-farer

Joined: 7/3/2011
Posts: 30
Location: Nairobi
Unrealistic returns.Mr Charles Ponzi?:-O
I used to be a pig but I am now a bull-bear hybrid.
Mukiri
#234 Posted : Monday, May 25, 2015 9:39:03 PM
Rank: Elder

Joined: 7/11/2012
Posts: 5,222
Minor Mullah wrote:
The key reason why I have joined SIC is because it is more tax efficient than an ordinary company. Look at it this way. The rebates to shareholders (i.e. dividends) in the case of a cooperative are paid out ABOVE THE LINE i.e. before payment of income taxes. This is allowed under section 19A of the Income Tax Act. When you receive the dividends, you only pay 5% withholding tax which is a final tax i.e. no further taxes are due from the investor.

In effect what this means is that since in the case of a company dividends would have been below the line, the dividends would have suffered 30% tax and a further 5% withholding tax on dividends when paid to you. So by investing in SIC, you save 30% corporation taxes which you would otherwise have suffered.

Now imagine all the gains SIC is making from the sales of land, apartments etc which are only taxed at 5%! SIC is in effect operating like a REIT without the difficulties associated with obtaining CMA approvals etc.

One other thing that I differ with MaichBlack's analysis. While he is looking at the valuation of the shares, he is not looking at the fundamentals of SIC i.e. what is the PBV or PE ratios. Bearing in mind that the amount of land and Work In Progress associated with the apartments they are constructing, in fact their balance sheet is undervalued rather than overvalued. The methodology of pricing the shares may be wrong but until we know what is the PBV and PE, we cannot say whether the share is actually overvalued or not.

Their recent Ololua joint venture is REITS live live. Investors though should have been given preference for purchase.

Proverbs 19:21
murchr
#235 Posted : Friday, June 26, 2015 8:35:10 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
So Capitalization was moved from 1B to 1.5B. Was this resolution passed? Anyone with more information about Top Farm?
"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
.
BGL
#236 Posted : Friday, June 26, 2015 8:44:21 PM
Rank: Veteran

Joined: 10/11/2009
Posts: 1,223
murchr wrote:
So Capitalization was moved from 1B to 1.5B. Was this resolution passed?


YES! during the AGM held on 28.02.2015
History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
murchr
#237 Posted : Friday, June 26, 2015 8:48:27 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
BGL wrote:
murchr wrote:
So Capitalization was moved from 1B to 1.5B. Was this resolution passed?


YES! during the AGM held on 28.02.2015


Thanks BGL, do you have more details on Top Farm, like where it is and what they do etc
"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
.
BGL
#238 Posted : Friday, June 26, 2015 8:53:29 PM
Rank: Veteran

Joined: 10/11/2009
Posts: 1,223
murchr wrote:
BGL wrote:
murchr wrote:
So Capitalization was moved from 1B to 1.5B. Was this resolution passed?


YES! during the AGM held on 28.02.2015


Thanks BGL, do you have more details on Top Farm, like where it is and what they do etc


Top Farm made a presentation during the AGM. The CEO has a minority stake in the venture. They are in Kajiado county.
https://twitter.com/topfarm_
History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
murchr
#239 Posted : Friday, June 26, 2015 9:42:41 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
BGL wrote:
murchr wrote:
BGL wrote:
murchr wrote:
So Capitalization was moved from 1B to 1.5B. Was this resolution passed?


YES! during the AGM held on 28.02.2015


Thanks BGL, do you have more details on Top Farm, like where it is and what they do etc


Top Farm made a presentation during the AGM. The CEO has a minority stake in the venture. They are in Kajiado county.
https://twitter.com/topfarm_



Asante
"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
.
kabuu
#240 Posted : Monday, June 29, 2015 8:20:25 PM
Rank: Hello

Joined: 6/29/2015
Posts: 4
Location: Nairobi
Looking for a registered member to introduce me to investment co-operative. Joining with both feet.
Yahooo!!
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