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NMG shareholders contend with 15% reduction in EPS
muganda
#1 Posted : Monday, March 22, 2010 11:23:41 AM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
After a very successful PanAfrica Media Conference, by the Nation Media Group, celebrating 50years; including launching of 'Birth of a Nation' book
..see separate thread http://www.wazua.co.ke/f...aspx?g=posts&t=6355

Today I've just see a one page showing decline of EPS by 15.4%. Sasa hii nini? Anticlimax
Sad http://www.nse.co.ke/new...ouncements/NMG%20ltd.pdf
guru267
#2 Posted : Monday, March 22, 2010 11:30:19 AM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
@muganda
last year wasnt so good for the ad biz but future outlook for NMG is very strong.. if you are the speculative kinda half year investor then sell... if you are in it for 2 years+ then hold it...

any idea on the dividends???
Mark 12:29
Deuteronomy 4:16
Gatheuzi
#3 Posted : Monday, March 22, 2010 11:51:51 AM
Rank: Veteran


Joined: 8/16/2009
Posts: 994
@ guru
Dividends were maintained at 5.50 (same as last year). No idea when the books will close or when they will pay.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
sparkly
#4 Posted : Monday, March 22, 2010 12:46:18 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
@muganda your title is misleading and totally wrong. Making 15% less profit is not the same as destroying shareholder value by 15%. You are an old hand in this game and very sharp. Think of how many in-experienced investors you are sending into a panic.
Life is short. Live passionately.
2012
#5 Posted : Monday, March 22, 2010 1:11:22 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
sparkly wrote:
@muganda your title is misleading and totally wrong.


I second that.

BBI will solve it
:)
VituVingiSana
#6 Posted : Monday, March 22, 2010 1:21:58 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,118
Location: Nairobi
@muganda - Wacha madharao... PAT down by 15% does NOT equal destruction of 'value' by 15%...

In fact, any PAT (ceteris paribus) means an increase in shareholder value!

So a firm that makes a loss does not mean it has lost 100% of shareholder value...

BUT each case in different...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
muganda
#7 Posted : Monday, March 22, 2010 6:23:20 PM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
Truce, truce! Pole pole Wazee! I've acquiesced to your requests and amended the title. I'm a NMG shareholder so I was over excitable and got ahead of myself.

You will note though, I presumed going forwards, perhaps erroneously:
- a corresponding decline in share price in near future thus reducing market capitalization
- a decline in what I saw as my present value in this investment

But I agree, technically the results show an increase in total equity of the firm, and an increase of free cash flows.
muganda
#8 Posted : Monday, March 22, 2010 7:32:17 PM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
1:10 bonus issue and crosslisting on top of 5.50 dividend - That's more like it!
sparkly
#9 Posted : Monday, March 22, 2010 8:02:40 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
I love this share. 15% reduction, given the fact that almost all corporates froze their advertising expenditure shows outstanding resilience.
Life is short. Live passionately.
VituVingiSana
#10 Posted : Monday, March 22, 2010 8:29:54 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,118
Location: Nairobi
@muganda - LOL... pulling your leg here...

@sparkly is right... Tough year in 2009... Uganda elections will help boost revenues/sales & profits...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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