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Centum FY 2019 eps up 69% with div of 1.20/-
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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VituVingiSana wrote:littledove wrote:Ericsson wrote:Centum announced on Wednesday that it has suspended further capital expenditure and will put key investments on auction to pay off its mounting debt. The Nairobi-based investment firm’s latest move is part of a recalibration of its recent expansion as the company’s cash flow tightened and debt-coverage ratio fell. The firm’s latest debt-driven policy shift is in stark contrast to most analysts’ views that its debt could be paid off using internally generated funds. Centum, which is cross-listed on the Uganda Securities Exchange, also said it had dropped the “development” aspect of its investment portfolio and shifted focus to “real estate, private equity and marketable securities over the next five years (2019-2024).” The company has suspended investments in education, agribusiness, power, infrastructure, manufacturing, health, and ICT. “Over the next five years, our focus is on cash annuity income and holding optimal liquidity reserve. Investments will be in cash-generating assets with no further capital deployments in the development portfolio,” said James Mworia, the firm’s chief executive. https://www.theeastafric...62028-f7y48e/index.html
This was said here earlier and has come to pass I thought sale of almasi will sort their debt issues Proceeds of the asset sale will repay debts of Ksh7.5 billion ($75 million) and the balance will be invested in the private equity fund and marketable securities. Mr Mworia said “the company is on course to settling the term loans in 2019 and the bond maturity in 2020.” As a net buyer of Centum on dips, I should be moaning and groaning like some of you so I can get a better price.
 Their profits and NAV growth been based on revaluations and provisioning without cash inflows from investments. The strategy was bound to run out of steam at some point. Life is short. Live passionately.
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Rank: Hello Joined: 6/23/2019 Posts: 1 Location: Nakuru
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has this company ever made a loss?
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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sparkly wrote:VituVingiSana wrote:littledove wrote:Ericsson wrote:Centum announced on Wednesday that it has suspended further capital expenditure and will put key investments on auction to pay off its mounting debt. The Nairobi-based investment firm’s latest move is part of a recalibration of its recent expansion as the company’s cash flow tightened and debt-coverage ratio fell. The firm’s latest debt-driven policy shift is in stark contrast to most analysts’ views that its debt could be paid off using internally generated funds. Centum, which is cross-listed on the Uganda Securities Exchange, also said it had dropped the “development” aspect of its investment portfolio and shifted focus to “real estate, private equity and marketable securities over the next five years (2019-2024).” The company has suspended investments in education, agribusiness, power, infrastructure, manufacturing, health, and ICT. “Over the next five years, our focus is on cash annuity income and holding optimal liquidity reserve. Investments will be in cash-generating assets with no further capital deployments in the development portfolio,” said James Mworia, the firm’s chief executive. https://www.theeastafric...62028-f7y48e/index.html
This was said here earlier and has come to pass I thought sale of almasi will sort their debt issues Proceeds of the asset sale will repay debts of Ksh7.5 billion ($75 million) and the balance will be invested in the private equity fund and marketable securities. Mr Mworia said “the company is on course to settling the term loans in 2019 and the bond maturity in 2020.” As a net buyer of Centum on dips, I should be moaning and groaning like some of you so I can get a better price.
Their profits and NAV growth been based on revaluations and provisioning without cash inflows from investments. The strategy was bound to run out of steam at some point. Not a problem for investors with long-term views as long as the underlying portfolios are increasing in value. BUT As a net buyer of Centum on dips, I should be moaning and groaning like some so I can get a better price. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 6/26/2008 Posts: 384
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Waa, it seems VVS you will get your price. It seems other investors are not happy with the news. Supply is 10x demand
ICDC 22,800 220,300
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Rank: Member Joined: 3/8/2018 Posts: 507 Location: Nairobi
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Come Baby Come 
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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I think this is conspiracy by CK to bring it down near 20 and buy more shares.Some years back the price shot up after the "1 Billion war chest" story and I don't think he was done buying.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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whiteowl wrote:I think this is conspiracy by CK to bring it down near 20 and buy more shares.Some years back the price shot up after the "1 Billion war chest" story and I don't think he was done buying. Well, then join him Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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whiteowl wrote:I think this is conspiracy by CK to bring it down near 20 and buy more shares.Some years back the price shot up after the "1 Billion war chest" story and I don't think he was done buying. At that time the company was not in a debt distress position. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:littledove wrote:Ericsson wrote:Centum announced on Wednesday that it has suspended further capital expenditure and will put key investments on auction to pay off its mounting debt. The Nairobi-based investment firm’s latest move is part of a recalibration of its recent expansion as the company’s cash flow tightened and debt-coverage ratio fell. The firm’s latest debt-driven policy shift is in stark contrast to most analysts’ views that its debt could be paid off using internally generated funds. Centum, which is cross-listed on the Uganda Securities Exchange, also said it had dropped the “development” aspect of its investment portfolio and shifted focus to “real estate, private equity and marketable securities over the next five years (2019-2024).” The company has suspended investments in education, agribusiness, power, infrastructure, manufacturing, health, and ICT. “Over the next five years, our focus is on cash annuity income and holding optimal liquidity reserve. Investments will be in cash-generating assets with no further capital deployments in the development portfolio,” said James Mworia, the firm’s chief executive. https://www.theeastafric...62028-f7y48e/index.html
This was said here earlier and has come to pass I thought sale of almasi will sort their debt issues Proceeds of the asset sale will repay debts of Ksh7.5 billion ($75 million) and the balance will be invested in the private equity fund and marketable securities. Mr Mworia said “the company is on course to settling the term loans in 2019 and the bond maturity in 2020.” As a net buyer of Centum on dips, I should be moaning and groaning like some of you so I can get a better price.
Their profits and NAV growth been based on revaluations and provisioning without cash inflows from investments. The strategy was bound to run out of steam at some point. Not a problem for investors with long-term views as long as the underlying portfolios are increasing in value. BUT As a net buyer of Centum on dips, I should be moaning and groaning like some so I can get a better price. Exercise caution. Life is short. Live passionately.
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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VituVingiSana wrote:whiteowl wrote:I think this is conspiracy by CK to bring it down near 20 and buy more shares.Some years back the price shot up after the "1 Billion war chest" story and I don't think he was done buying. Well, then join him I will.Right now this stock needs as much negative news as it can get.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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whiteowl wrote:VituVingiSana wrote:whiteowl wrote:I think this is conspiracy by CK to bring it down near 20 and buy more shares.Some years back the price shot up after the "1 Billion war chest" story and I don't think he was done buying. Well, then join him I will. Right now this stock needs as much negative news as it can get.  I saw a trade first thing at 30.25 but it looks pre-negotiated. Next trade at 31.75  Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Environmental tribunal cancels Environmental Impact Assessment license for Lamu coal project over failure by NEMA to comply with the law Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Ericsson wrote:Environmental tribunal cancels Environmental Impact Assessment license for Lamu coal project over failure by NEMA to comply with the law I knew this coal project was bound to bring controversy, that is Kenya for you. Whenever you have +3 & more regulator/regulatory bodies be very careful in your investment steps. Anyway let us see how it works out!!! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Angelica _ann wrote:Ericsson wrote:Environmental tribunal cancels Environmental Impact Assessment license for Lamu coal project over failure by NEMA to comply with the law I knew this coal project was bound to bring controversy, that is Kenya for you. Whenever you have +3 & more regulator/regulatory bodies be very careful in your investment steps. Anyway let us see how it works out!!! Hmmmm so what next for Centum? Lamu coal, sidian, 2 rivers in trouble. Almasi sold 
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Horton wrote:Angelica _ann wrote:Ericsson wrote:Environmental tribunal cancels Environmental Impact Assessment license for Lamu coal project over failure by NEMA to comply with the law I knew this coal project was bound to bring controversy, that is Kenya for you. Whenever you have +3 & more regulator/regulatory bodies be very careful in your investment steps. Anyway let us see how it works out!!! Hmmmm so what next for Centum? Lamu coal, sidian, 2 rivers in trouble. Almasi sold SELL! SELL! SELL! 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: 13,549 Location: nairobi
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VituVingiSana wrote:Horton wrote:Angelica _ann wrote:Ericsson wrote:Environmental tribunal cancels Environmental Impact Assessment license for Lamu coal project over failure by NEMA to comply with the law I knew this coal project was bound to bring controversy, that is Kenya for you. Whenever you have +3 & more regulator/regulatory bodies be very careful in your investment steps. Anyway let us see how it works out!!! Hmmmm so what next for Centum? Lamu coal, sidian, 2 rivers in trouble. Almasi sold SELL! SELL! SELL! I'm more worried about the founding father
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 2/20/2007 Posts: 767
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I have never trusted the managements motives. They pay themselves fat cash bonuses based on non cash revaluation profits. Maybe the chickens are finally coming home to roost. For me, its very clear that management motives and that of shareholders are not alligned. They give themselves current cash while promising shareholders future profits. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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obiero wrote:VituVingiSana wrote:Horton wrote:Angelica _ann wrote:Ericsson wrote:Environmental tribunal cancels Environmental Impact Assessment license for Lamu coal project over failure by NEMA to comply with the law I knew this coal project was bound to bring controversy, that is Kenya for you. Whenever you have +3 & more regulator/regulatory bodies be very careful in your investment steps. Anyway let us see how it works out!!! Hmmmm so what next for Centum? Lamu coal, sidian, 2 rivers in trouble. Almasi sold SELL! SELL! SELL! I'm more worried about the founding father Centum was founded in 1967 as investment arm of ICDC whereby individuals were admitted to invest alongside GOK. The "founding father" increased his stake by participating in cash calls and buying from open market. Life is short. Live passionately.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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tom_boy wrote:I have never trusted the managements motives. They pay themselves fat cash bonuses based on non cash revaluation profits. Maybe the chickens are finally coming home to roost.
For me, its very clear that management motives and that of shareholders are not alligned. They give themselves current cash while promising shareholders future profits. SELL! SELL! SELL! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Centum FY 2019 eps up 69% with div of 1.20/-
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