[quote=mkonomtupu]PUMP N DUMP?

Fuel marketer KenolKobil is expanding along the east African coast with the hope of eventually becoming a takeover target for an Asian or Middle Eastern firm, its chairman and managing director said....
"We are developing a set of assets, an outfit, which would be a target for a takeover bid coming from India, China, Arabian Gulf players, or Malaysia."
http://www.businessdaily...0/-/f80ybo/-/index.html[/quote]

I have no problem with starting a business, running it profitably then selling it for a nice profit. I have done the same in Pharmaceuticals to handsome returns (Open a pharmacy, run it for a year, develop systems,volumes,clientele and then sell it with a nice goodwill) and start the cycle again...... this beats the returns of running the enterprise yourself.

I remember two weeks ago, i mentioned these reccurrent theme (take over target) in Kestrel's Investor Briefs and said i support the idea. The NBV becomes very critical in such a transaction (remember KK is trading at a price to book value of almost 1). With the assets being held at acquisition price (they shelved the idea of revaluing their assets this year), a revaluation of their assets with this real estate hype in Kenya would create a dramatic price to book value.

The price undercutting through this 'Deal Poa' now makes perfect sense as any suitor would be enticed by KK's market share which it is able to grow dramatically through the discounted pump prices.

Its also good to note that the company is set to meet its 2011 net profit target of $ 36m (Ksh 3.6B). This means a EPS of Ksh 2.44 and at current price of Ksh 9.50, a P/E of 3.89!!
With a total dividend of at Ksh 1 for 2011, this is a dividend yield of 10.5%. Not a bad return on investment as we await a wealthy buyer.........I like the way this man Segman thinks!

Happy hunting

Cde, I'm sure Segman also wants his payday as soon as his stock options are exercised

GG, contrast the performance of Jubilee and Pan Africa. Still same industry.

The share has been battered the past few days. Now that the horse (Segman) has outlined his intentions, will the share respond as favourable as Sasini did to the 'real estate' story? Kesho 9.30 asubuhi...

The company now makes more than 60 percent of its profits from operations outside of Kenya, Segman said.

Ah! That should clear a few things up

I'm backing a KES 1.2 dividend for FY2011. #Sitting.pretty#

I'd say JUB is much better than the others at investing its premiums. Pan Africa had a few investments of their own which didn't stop a decline in profitability

@ammy. However, difference is kenol is the market leader and making huge profits. You cant say the same about airtel. What they've done in kenya is to increase the volume of sales, and reducing the margin. They are still making good profits here, and kenya is still the largest single country they are in. I like how the company is reducing its reliance in kenya. Hadn't they not done that, they could've been in total kenya's shoes. I've also been thinking, with the oil in uganda, s. Sudan. Large oil multinationals are already showing a keen interest in the region, in exploration. The next thing is retail ie supplying that oil. Hello, kenol kobil.

You better turn that frown into a smile, when a company is taken over or takes over another company the share price shoots up into the sky. remember scan group? Being taken over is the pay day, and when a company is doing so well it wont be taken over at a throw away price, it will be awesome.

Its in their website cant send it to you now coz am using phone to browse

http://www.kenolkobil.co...eport%20september11.pdf
i will email it to you shortly

70/-??? LOL... I wish but probably a dream for 2012 or 2013 or 2014... unless the KES hits 200/US$