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Jumia IPO and Short Seller Criticism
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passiveinvestor
#1 Posted : Friday, May 10, 2019 10:39:06 AM
Rank: Member


Joined: 12/8/2006
Posts: 104
After Jumia's IPO, some people have rushed to claim Jumia as African. However, others have argued that Jumia's non-African listing, ownership and, legal domicile and bulk of senior decision makers render it a non-african business operating in Africa.
And now, THIS:
https://seekingalpha.com...hares-tumble-13-percent

AND access to the Citron report:
https://citronresearch.c...-equal-jumia-is-a-fraud/
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maka
#2 Posted : Friday, May 10, 2019 10:48:30 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
[quote=passiveinvestor]After Jumia's IPO, some people have rushed to claim Jumia as African. However, others have argued that Jumia's non-African listing, ownership and, legal domicile and bulk of senior decision makers render it a non-african business operating in Africa.
And now, THIS:
https://seekingalpha.com...hares-tumble-13-percent

AND access to the Citron report:
https://citronresearch.c...equal-jumia-is-a-fraud/[/quote]


Was just reading that same article this morning... Very interesting..."In 18 years of publishing Citron has never seen such an obvious fraud as Jumia,"
possunt quia posse videntur
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passiveinvestor
#3 Posted : Friday, May 10, 2019 10:52:54 AM
Rank: Member


Joined: 12/8/2006
Posts: 104
maka wrote:
[quote=passiveinvestor]After Jumia's IPO, some people have rushed to claim Jumia as African. However, others have argued that Jumia's non-African listing, ownership and, legal domicile and bulk of senior decision makers render it a non-african business operating in Africa.
And now, THIS:
https://seekingalpha.com...hares-tumble-13-percent

AND access to the Citron report:
https://citronresearch.c...equal-jumia-is-a-fraud/[/quote]


Was just reading that same article this morning... Very interesting..."In 18 years of publishing Citron has never seen such an obvious fraud as Jumia,"


Naija, oh! Look at the section on Jforce Consultants providing sales services using their ID's on behalf of other sellers.
Kenya, ah! Majority of EUR720M paid in cash after delivery so NO commissions paid to Jumia!

I am abit miffed though about the generalization of Africa so terrible a market that Amazon and Naspers avoided / exited it. First not true. Naspers still operates in Africa and Amazon is making gradual acquisitions, notably Souq.com covering Middle East and some North African countries. I suspect this is the track / argument Jumia will take in their rebuttal conference call next week.
But don't know how anyone took their ADR filing seriously, even their financials were in 2 different currencies for the past 2 comparable years.
Totally sloppy filing!
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maka
#4 Posted : Friday, May 10, 2019 11:02:58 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
passiveinvestor wrote:
maka wrote:
[quote=passiveinvestor]After Jumia's IPO, some people have rushed to claim Jumia as African. However, others have argued that Jumia's non-African listing, ownership and, legal domicile and bulk of senior decision makers render it a non-african business operating in Africa.
And now, THIS:
https://seekingalpha.com...hares-tumble-13-percent

AND access to the Citron report:
https://citronresearch.c...equal-jumia-is-a-fraud/[/quote]


Was just reading that same article this morning... Very interesting..."In 18 years of publishing Citron has never seen such an obvious fraud as Jumia,"


Naija, oh! Look at the section on Jforce Consultants providing sales services using their ID's on behalf of other sellers.
Kenya, ah! Majority of EUR720M paid in cash after delivery so NO commissions paid to Jumia!

I am abit miffed though about the generalization of Africa so terrible a market that Amazon and Naspers avoided / exited it. First not true. Naspers still operates in Africa and Amazon is making gradual acquisitions, notably Souq.com covering Middle East and some North African countries. I suspect this is the track / argument Jumia will take in their rebuttal conference call next week.
But don't know how anyone took their ADR filing seriously, even their financials were in 2 different currencies for the past 2 comparable years.
Totally sloppy filing!



possunt quia posse videntur
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alma1
#5 Posted : Friday, May 10, 2019 11:33:03 AM
Rank: Elder


Joined: 9/19/2015
Posts: 2,871
Location: hapo
When you know you know.

Jumia's game plan was there for all to see. Run loses for years then go the IPO route. After all suckers will call it the "Amazon" of Africa, and they did.

Rocket Internet investing your business is the beginning of the end.

But don't believe me. Last time I decided to get their weekly mobile deals. Or so they said. Only to realise that they had hiked the price of the phone and then discounted it to it's normal price.

Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly
Thieves are not good people. Tumeelewana?
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Mike Ock
#6 Posted : Friday, May 10, 2019 1:33:14 PM
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Joined: 1/22/2015
Posts: 682
Looks to me like an activist investor looking for a correction.
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passiveinvestor
#7 Posted : Monday, May 20, 2019 6:22:18 PM
Rank: Member


Joined: 12/8/2006
Posts: 104
alma1 wrote:
When you know you know.

Jumia's game plan was there for all to see. Run loses for years then go the IPO route. After all suckers will call it the "Amazon" of Africa, and they did.

Rocket Internet investing your business is the beginning of the end.

But don't believe me. Last time I decided to get their weekly mobile deals. Or so they said. Only to realise that they had hiked the price of the phone and then discounted it to it's normal price.

Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly

....and the slide continues. $19 now!
https://www.google.com/s...LiXMGzFPKZlwSV1LDoBA2:0

Shameful call by management not to respond to Citron.
https://finance.yahoo.co...uire-p-c-230000510.html
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VituVingiSana
#8 Posted : Tuesday, May 21, 2019 4:29:31 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,103
Location: Nairobi
Mike Ock wrote:
Looks to me like an activist investor looking for a correction.
Andrew Left of Citron isn't an activist but a short-seller.
Activists usually want to see change and may hold their shares for long(er) periods. They want the stock to rise in price.
Short Sellers want the price to fall.

As @SuraMbaya said above, Citron would have taken a short position and now want to drive the price down. Then they will close out their positions and move to the next firm.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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passiveinvestor
#9 Posted : Wednesday, May 22, 2019 12:59:37 PM
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Joined: 12/8/2006
Posts: 104
VituVingiSana wrote:
Mike Ock wrote:
Looks to me like an activist investor looking for a correction.
Andrew Left of Citron isn't an activist but a short-seller.
Activists usually want to see change and may hold their shares for long(er) periods. They want the stock to rise in price.
Short Sellers want the price to fall.

As @SuraMbaya said above, Citron would have taken a short position and now want to drive the price down. Then they will close out their positions and move to the next firm.

Now up 14%! Driven by this below (where they state that Jumia is based in Germany?)
https://www.uspostnews.c...s-ag-jmia-fundamentals/

Or this link (which leads nowhere but has the blazing headline about new research)?
https://www.benzinga.com...36-tgt-based-on-expecta
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aemathenge
#10 Posted : Wednesday, December 11, 2019 4:19:48 AM
Rank: Elder


Joined: 10/18/2008
Posts: 3,434
Location: Kerugoya
Jumia sends home staff as losses rise

DATED: TUESDAY, DECEMBER 10, 2019 22:00

Quote:
E-commerce firm Jumia Kenya has sent home about six percent of its local employees, coming days after its parent company announced the closure of its operations in three countries.

Berlin-based Jumia Technologies recently shut down operations in Cameroon, Tanzania and Rwanda.

“After careful consideration, we have made the difficult decision to undergo some headcount reductions across our business verticals and geographies,” Jumia’s local office said in a statement.

“While decisions like these are always difficult, we need to put our focus and resources where they can bring the best value and help Jumia thrive. We are supporting all impacted employees during this period of transition.”

The company did not specify the number of affected employees. Kenya is its largest market in East Africa where it had 686 employees as of December 2018.


SOURCE: https://www.businessdail...381132-peyv7s/index.html
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passiveinvestor
#11 Posted : Saturday, December 14, 2019 10:33:53 AM
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Joined: 12/8/2006
Posts: 104
See their latest Exchange filing: Note 6. Pg. 9 is of interest.

https://secfilings.nasda...mType=6-K&View=html

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alma1
#12 Posted : Saturday, December 14, 2019 10:56:54 AM
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Joined: 9/19/2015
Posts: 2,871
Location: hapo
Jumia may single handedly affect the future of tech in Africa.

If I was in gov't this company would not be allowed to exist. It's simply a ponzi scheme.

Gov'ts should be made aware of the types of characters coming to Kenya with their so called Digital commerce ideas.

Jumia is one.

We now have another bunch of thieves called mobile lenders with African names yet fully owned by mkolonis. Who have no qualms whatsoever charging over 100% interest to Kenyans. They then band together with credit bureaus that they created to effectively kill the African with debt.

There should be a department in gov't dealing with ethics in the digital space.

Not this KRA nonsense of taxing facebook and whatasaap use. But dealing with the real criminals in our midst.

This company was useless before and it's useless now and shall forever be useless.
Thieves are not good people. Tumeelewana?
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VituVingiSana
#13 Posted : Saturday, December 14, 2019 11:48:43 AM
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Joined: 1/3/2007
Posts: 18,103
Location: Nairobi
alma1 wrote:
Jumia may single handedly affect the future of tech in Africa.

If I was in gov't this company would not be allowed to exist. It's simply a ponzi scheme.

Gov'ts should be made aware of the types of characters coming to Kenya with their so called Digital commerce ideas.

Jumia is one.

We now have another bunch of thieves called mobile lenders with African names yet fully owned by mkolonis. Who have no qualms whatsoever charging over 100% interest to Kenyans. They then band together with credit bureaus that they created to effectively kill the African with debt.

There should be a department in gov't dealing with ethics in the digital space.

Not this KRA nonsense of taxing facebook and whatasaap use. But dealing with the real criminals in our midst.

This company was useless before and it's useless now and shall forever be useless.

Laughing out loudly Laughing out loudly Laughing out loudly Kwani Jumia ate your money?

1) Jumia may fail but e-commerce is coming to Africa.
2) Amazon was one of many startups during the Dotcom boom. Many died along the way.
3) It is silly to ban ideas. Some may fail. It's not news. Scams set up as scams is a different story.
4) Digital lending. No-one forces you to borrow. The largest lenders are KCB and CBA via Safaricom. Who owns the 2 banks? And who owns 35% of Safcom?
4) Ethics and GoK? Laughing out loudly

*I am not commenting on Jumia's financials. I do not know nor care about them. I am a fan of e-commerce.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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