Wazua
»
Investor
»
Stocks
»
EQUITY MADNESS!!
Rank: Member Joined: 9/15/2006 Posts: 41
|
banks are in that business which can turn around down/up very fast so caution is very well in order but then we must give to the equity guys-they think seriously foward and new. if they already hold half of cds accounts as someone here says with just being an agent,then pleasethey need a candle held.
|
|
|
Rank: Member Joined: 8/20/2008 Posts: 16
|
@Livo
Whoever you are,you talk sense!!
Keep it up!
Mors Tua,Vita Mea. (latin)
|
|
|
Rank: Member Joined: 1/13/2009 Posts: 60
|
We can philosophize,theorize,hypothesize and even fantasize on how we ALL going to make it big courtesy of EB. Personally,gut feeling tells me its too rosy to be true. I can't help but think that something is afoot...It really can't be as easy as it looks or can it? As they say when the deal is too good its no deal.........Thats the stock market for you!
The opportunities lie in the challenge. Go for the challenge.
|
|
|
Rank: Elder Joined: 2/26/2008 Posts: 4,449
|
K-Rep Bank's Business Model
Basically target low-end market client who will walk into a bank,present a group of ten fellow commoners as loan guarantors to borrow a few hundreds of Kenya Shilling. No other security,just use individuals to secure one another when seeking a loan of a few hundreds.
Strategy Shift
After 10 years of steady growth,management felt in 2007 it was time to introduce top-level changes to engineer the next phase of growth for the micro-finance bank and address internal weaknesses.
Loss- The Mistakes & Weaknesses
1. They poached close to a whole dept of staff from a high-end bank. These staff were ineffective largely due to their previous background. A lot of changes including the hiring have had to be reversed.
2. Hiring of these purged top managers led to a near doubling of staff cost,from Ksh. 388M in 2007 to Ksh. 617M in 2008 with nothing in performance to cover for this.
3. The loan structures,groups of slum residents guaranteeing one another,was dismantled very early into the tribal based PEV...
4. K-Rep were stuck with a huge non-performing loans portfolio..with no security for it. Non-performing loans tripled from Ksh. 430M in 2007 to 1.1Billion in 2008 against a net book loan of Ksh. 5.9Billion. The bank's provision for doubtful debt increased from Ksh. 65M to a high of 337M in 2008.
5. Record inflation driven by sky rocketing food prices negatively impacting to the low-end market.
The Future
1. In what could also be a vote of confidence in the current management,shareholders have committed to inject over Ksh. 1 Billion as new capital to help recapitalise the banks balance sheet. Ksh. 400M has already been paid up.
2. Ksh 30M worth of technical assistance has been provided via seconding consultants to help the bank in its turnaround strategy and management training.
3. A move to also target the middle and high-end market in order to reduce operational risk is underway. The bank's HQ was already relocated to Kilimani from Kawangware as part of this pre-loss strategy.
4. The resilience of the lower end customer is noteworthy despite current economic conditions. K-Rep has decided to retain this as its bedrock as it moves further into the upper classes. A return to profitability is expected in 2009.
According to Mr Kimathi Mutua,K-Rep Group MD,these problems combined to result in a loss of KSh. 472M,its first since inception but as indicated above,he is optimistic about the future.
Ref: Summation of feature article,Daily Nation,Tuesday March 31st 2009.
|
|
|
Rank: Member Joined: 2/20/2007 Posts: 359
|
Tumesema mengi,na hiyo ni maendeleo.... haya..
mimi kama client na admirer wa EB,nina imani sana kwa hii mtu naitwa Mwangi. Na hii benki itaendelea mbele imara zaidi. Mimi naona vile wananipa innovative products at reasonable prices na attidute yao ni 'seek ye the customer,not vice-versa,and make coins from them without them feeling the pinch.'
Lagini mambo ya shares yake,wacha tu. Kama u r not a master of low entry - high exit,gama hii vichana chipugizi naitwa Jammo na Ecstacy,hii share inaweza kukuchambua gama chugu garanga,ni volatile sana.
I stay away from it,only coz my orders always take days n i seem to be always the last to be served at the NSE. And 3 days is a lifetime for the EB share.
Haaya,endeleeni kupiga odomo.
When buying shares,ask yourself,would you buy the whole company?
|
|
|
Rank: Member Joined: 12/9/2006 Posts: 186
|
What Equity has done can/will easily be replicated by KCB and others thus making Equity lose its competitive advantage. I remember when Wamu introduced free checking here in States,for a minute,they dominated the low-end market,wacha BOA and Chase entered that market,Wamu is no more,could not compete with the big boys.
Kwanza Mwangi ni mwizi,always keep that in mind. Him and that mhindi fleeced customers in the 90's with Trust Bank,the mhindi fled to Canada while Mwangi used his loot to buy Equity and politicians. Forewarned is forearmed.
|
|
|
Rank: Member Joined: 9/15/2006 Posts: 41
|
ok. Equity's model surely can easily be copied. but many times by the time compes taken sweet time propheting doom,waiting for fulfilment and finally scampering to implement the copy,the savvy business has moved foward to another thing and the cycle repeats.
By the way what happens if equity repeats same model success in UG? you could be surprised see them going ahead to do the same in rwand,TZ and many others- with compe just following everywhere. sometimes human behaviour can be just plain odd.
I think the important point willl be ability to move foward in a new way with whatever existing advantage. then also whether success is institutional or Mwangied.
|
|
|
Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
|
Martin Oduor is on record as telling his employees that their market is different from that of Equity so I think it will take a long time before they get into EB market segment!!! Make money.....then you will enjoy all the fine things in life!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
|
|
|
Rank: Elder Joined: 6/27/2008 Posts: 4,114
|
In today's papers.....the split shares expected to start trading on Tuesday next week....14th April This means CDSC accounts will be uploaded today! Check you balances by sending sms to2373...... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
|
|
|
Rank: Member Joined: 10/11/2008 Posts: 19
|
So can we predict an over supply of its shares in the market and prepare to get them at less than 10 bob?
|
|
|
Rank: Member Joined: 5/14/2008 Posts: 55
|
Which paper and which page?
Everything happens for a reason.
|
|
|
Rank: Member Joined: 10/11/2008 Posts: 19
|
A Public Announcement in todays Nation Daily Page 6
|
|
|
Rank: Member Joined: 5/14/2008 Posts: 55
|
Supply exceeds demand by a huge difference today,at this rate......
Everything happens for a reason.
|
|
|
Rank: Member Joined: 12/8/2008 Posts: 359
|
Share has dropped by close to 10 percent at start of trading...
|
|
|
Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
|
There was this thread on Equity Visa card,wat became of it???......would have like to know more!!! Make money.....then you will enjoy all the fine things in life!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
|
|
|
Rank: Member Joined: 7/3/2008 Posts: 238
|
CMA approves and gives 14th as the date for trading....
KSH 7! I am waiting for you Equity!
if the incompetent and the reckless compete,the result is a disaster.. MN
|
|
|
Rank: Elder Joined: 9/29/2006 Posts: 2,570
|
The question still remains; what happens when the NGEGEs(splits) start trading on 14-04-2009? Ecs 11.2 Give portions to seven,yes to eight,for you do not know what disaster may come upon the land. The opposite of courage is not cowardice, it's conformity.
|
|
|
Rank: Member Joined: 1/13/2009 Posts: 60
|
Kime bite! The bubble has gone puff!
The opportunities lie in the challenge. Go for the challenge.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
|
There are millions of shares waiting to be sold once uploaded... then the prices will fall. Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Member Joined: 12/9/2006 Posts: 186
|
@vitu
I bet you will buy Equity at even less than 7 bob,kwanza the way Mwangi is picking up a fight with stockbrokers,watch as they massacre Equity. All these Equity apologists are in for a big shock.
Equity knows its days are numbered( Kifaki's term),that's why they're trying to get into everything and expand while the political environment favors them. That model of one-stop shop has been discredited,just ask Citibank.
I still hold the belief that Equity is just another political bank,exit general Kiguoya and his Mt Kenya mafias and equity is finished!!
|
|
|
Wazua
»
Investor
»
Stocks
»
EQUITY MADNESS!!
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|