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Uchumi - A value play?
Rank: Chief Joined: 1/3/2007 Posts: 18,344 Location: Nairobi
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Aguytrying wrote:VituVingiSana wrote:Aguytrying wrote:I like CEO's like this. When the company is in financial trouble, drastic, decisive, swift efficient measures need to be taken. Ohana did the same with KK.
The land issue is stumbling block,i hopw he overcomes "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact." - Warren Buffett Does that really apply in this case, airlines have bad reputation and maybe tourism right now. But retail? I think Uchumi just has many ghosts that need exorcising, I wish him well, I like his moves, he's my kind of CEO. Meanwhile while am happy to buy recoverd profit making kk at the same price that investors think loss making recovering Uchumi is worth (8.00). I'll take those thank-you very much Chief! I am just quoting WB. Yes... KK @ 8 is a far better choice than Uchumi @ 8 I was looking at KK today. Stated NAV 5.45 & EPS for 2H expected to beat 1H [HY commentary was upbeat] so EPS of 1.25 expected. What's not to like? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 14,211 Location: nairobi
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obiero wrote:sparkly wrote:mkonomtupu wrote:sparkly wrote:mkonomtupu wrote:Gatheuzi wrote:sparkly wrote:www.businessdailyafrica.com/Corporate-News/Uchumi-acquires-Dar-supermarket-in-growth-drive/-/539550/2509572/-/24g47z/-/index.html
Uchumi on an acquisition spree.
While Shoprite is exiting TZ.
They have not paid suppliers in Kenya.
They have taken loan of KES 600m from KCB.
Acquisition was financed by debt.
Rights issue to expand into small and insignificant markets of Rwanda Burundi.
Shareholders should be very afraid... Insolvency 2.0 coming soon. A loan at 18% interest from KCB. And another 405M from Coop bank. That means close to 200M per annum will go in payment of interest leave alone the principal. I wish they were applying the rights to reduce these expensive loans. We have bonds, so why not consider such or place a commercial paper What insolvency  ? if your annual turnover is 14 billion, your annual profits 400 million, and you are borrowing 1 billion secured by 2.2 billion assets. Stop fearing leverage. If your suppliers have claims to your 2.2B assets and you only get 2.85% return from your 14B turnover, then you have a problem. Aiii wee mboss... in retail you look at credit lines in most suppliers tell you lets put this on the shelf once sold pay us. Anyway looking at the IM Uchumi paid 675m to GoK and 956m to KCB and PTA banks without default or insolvency. Management says "with benefit of hindsight, the management now observes strict controls on debt management" You can see this from the fact that the ICDC loan of 300m about 109m has been paid and balance outstanding at 191m KCB overdraft of 200m and short term of 600m- 150m repaid balance of 650m Now turning to Tanzania, sales grew 10%. The TZ economy grew at 7% in the last 2 years and the formal retail penetration is less than 10%. Now that's huge potential even if it was to get to Kenya's 30% penetration. Uchumi shareholders you will make me rich again @Mkonomtupu looks like I get to have the last laugh. Kipngetich has closed the Uganda and Tanzania branches. This decision should have been made much earlier instead of wasting rights money. The new CEO may get the firm back to normalcy in terms of increased profits, but he may not make it to heaven. Why fire 900 staff with no notice and no severence pay?? Why abolish signed contracts with the inhouse stores at less than minimum required notice?? As forecasted, another court case. These are human beings, not wanyama wa pori.. www.businessdailyafrica....2/-/l0mqmqz/-/index.html
KQ ABP 4.26
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Rank: Veteran Joined: 8/11/2010 Posts: 1,011 Location: nairobi
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kenyanwallstreet.com/uganda-a-sanitary-products-company-sues-uchumi-supermarkets-over-uncleared-debt-of-sh-63-4m
Also
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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http://www.businessdaily.../-/10vcgu9/-/index.html
Uchumi loss of ksh.3.2bn after tax.Kipngetich ako na kibarua kigumu Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 14,211 Location: nairobi
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obiero wrote:sparkly wrote:mkonomtupu wrote:sparkly wrote:mkonomtupu wrote:Gatheuzi wrote:sparkly wrote:www.businessdailyafrica.com/Corporate-News/Uchumi-acquires-Dar-supermarket-in-growth-drive/-/539550/2509572/-/24g47z/-/index.html
Uchumi on an acquisition spree.
While Shoprite is exiting TZ.
They have not paid suppliers in Kenya.
They have taken loan of KES 600m from KCB.
Acquisition was financed by debt.
Rights issue to expand into small and insignificant markets of Rwanda Burundi.
Shareholders should be very afraid... Insolvency 2.0 coming soon. A loan at 18% interest from KCB. And another 405M from Coop bank. That means close to 200M per annum will go in payment of interest leave alone the principal. I wish they were applying the rights to reduce these expensive loans. We have bonds, so why not consider such or place a commercial paper What insolvency ? if your annual turnover is 14 billion, your annual profits 400 million, and you are borrowing 1 billion secured by 2.2 billion assets. Stop fearing leverage. If your suppliers have claims to your 2.2B assets and you only get 2.85% return from your 14B turnover, then you have a problem. Aiii wee mboss... in retail you look at credit lines in most suppliers tell you lets put this on the shelf once sold pay us. Anyway looking at the IM Uchumi paid 675m to GoK and 956m to KCB and PTA banks without default or insolvency. Management says "with benefit of hindsight, the management now observes strict controls on debt management" You can see this from the fact that the ICDC loan of 300m about 109m has been paid and balance outstanding at 191m KCB overdraft of 200m and short term of 600m- 150m repaid balance of 650m Now turning to Tanzania, sales grew 10%. The TZ economy grew at 7% in the last 2 years and the formal retail penetration is less than 10%. Now that's huge potential even if it was to get to Kenya's 30% penetration. Uchumi shareholders you will make me rich again @Mkonomtupu looks like I get to have the last laugh. Kipngetich has closed the Uganda and Tanzania branches. This decision should have been made much earlier instead of wasting rights money. The new CEO may get the firm back to normalcy in terms of increased profits, but he may not make it to heaven. Why fire 900 staff with no notice and no severence pay?? Why abolish signed contracts with the inhouse stores at less than minimum required notice?? 15.10.2015 signs of trouble were evident
KQ ABP 4.26
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Rank: Elder Joined: 6/23/2009 Posts: 14,211 Location: nairobi
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obiero wrote:enyands wrote:obiero wrote:VituVingiSana wrote:mlennyma wrote:enyands wrote:VituVingiSana wrote:enyands wrote:VituVingiSana wrote:Gatheuzi wrote:Just wondering if any creditor say a bank might have relied on Lang'ata Branch title to secure a loan against Uchumi. Was the branch built during the days of good old dj? The issue may not be the branch [or where it is located] but the 'other' land adjacent to Wilson. The original hypermart was built in the 90s when Suresh Shah was the MD when Uchumi was already a public company. Hope DJ didn't have any hand in this It would not surprise me. Not at all. If that's the case let the shafting continue .... kenyan land cases take ages,si wata collapse? This can be tied up in court for upto 5 years! Poor Uchumi if they are on the winning side because it means it needs to spend cash to fight the case and cannot sell the property until the case is over. hence reason it still appears on yasserbigchair stocks to sell I would sell if I had shares here. This is a time bomb in the making . I feel sorry for the former kws, I guess he should go back to equity I told you this guy is disruptive. Too quick to act. Simply asking around, would have made him aware that the Langata hyper land was illegally acquired. Heck, he could even have searched wazua! 21.11.2015
KQ ABP 4.26
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Rank: Member Joined: 5/30/2016 Posts: 332 Location: Kayole
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Another struggling monkey. 70 % down YTD NSE is becoming a joke KEGN, KPLC, KQ, SCOM
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Rank: Member Joined: 7/3/2014 Posts: 245
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Departure of COO tells you alot. In the world of securities, courage and patience become the supreme virtues after adequate knowledge and a tested judgment are at hand.
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Rank: Member Joined: 5/26/2009 Posts: 326 Location: Nairobi
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TheGeek wrote:Departure of COO tells you alot. That is a test tube COO. When they announced his joining I wrote off uchumi. From point of knowledge, uchumi is now better off. (Thanks to wazua anonymity....That guy is my buddy)
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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wa P wrote:TheGeek wrote:Departure of COO tells you alot. That is a test tube COO. When they announced his joining I wrote off uchumi. From point of knowledge, uchumi is now better off. (Thanks to wazua anonymity....That guy is my buddy)   "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
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Uchumi - A value play?
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