ProverB wrote:@sure kingangi..
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i wish i had the time to go thro your list thoroughly..but..maybe later..holiday season..
but i must ask.. why CMC? The dunn guys got the entire Govt souped up with VW Passats but still managed do a profit warning?..hata bila compeh!!!
What makes you think Matatu going coach will translate to business? consider compe also.. being an auditor by profession made me privy to 2M books.. proprietors of Double M.. their "Bus-Matatu Body Making side business is growing faster than their transit business.. meaning..matatu industry is unlikely to go to rather pricey CMC and stick to local shops..picking just the track n chassis from importers..
@Proverbial Son
If you note, I did not recommend buy or sell on the above list. I asked Yaser Arafat to look at the companies during his research time as I have not completed my due diligence on some of them and intend to acquire a considerable shareholding on some of the future winning stocks.
CMC and GM have the advantage of offering loan packages when giving businesses their vehicles. Have you noticed the White Nissan UDs lorries ferrying goods between Nakuru and Nairobi? The same lorries have invaded other major towns and have become the official mode of transport for Supermarkets, farm produce etc as they are well covered and thugs plus police cannot espy what is inside. (Muindi locks the lorry before it departs and his counterpart has a duplicate key in the other town).
Being an auditor, you must be aware of large stocks and unrealized cash owed to CMC and GM. Find out what that is all about and get us enlightened with what you discover.
NB: I thought Tata is cheaper than Mit and Niss UD? Why are Tata's not flooding the market. Marshall still stuck in the rut with Tata dealership.
CMC usually does not make considerable margins by selling Land and Range Rovers or Passats. Servicing them is where the catch is. Took my Land Rover there three yrs ago and without any major service, I went home minus 210k. I sold the landi four months later to a guy in South C who converted it into a green and light green sports machine.
Go overdrive in purchasing the goods when there's blood on the streets, expecially if the blood is your own