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FlameTree introduction instead of ipo
jerry
#11 Posted : Thursday, October 30, 2014 1:56:26 PM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
whiteowl wrote:
I'll be watching this from a far for at least 2 years before I can consider jumping in.

Have you seen the IM?
The opposite of courage is not cowardice, it's conformity.
Mart_Consult
#12 Posted : Thursday, October 30, 2014 3:04:49 PM
Rank: Member

Joined: 11/7/2013
Posts: 127
Location: Nairobi, Kenya
jerry wrote:
whiteowl wrote:
I'll be watching this from a far for at least 2 years before I can consider jumping in.

Have you seen the IM?


Has anyone actually?? ProverB seems to have more info though...were you @ the Stanley perhaps? Kindly do tell/ share...esp. that their private placement was over-subscribed, hmm..
I went into the (Ferry) industry knowing the same thing I knew with all other businesses I went into- Nothing. Then I built it from there. - Sheldon Adelson (Titans at the Table- Giants of Macau)
wazua
#13 Posted : Thursday, October 30, 2014 4:45:40 PM
Rank: Administration

Joined: 11/19/2009
Posts: 679


shocks
#14 Posted : Friday, October 31, 2014 1:01:53 AM
Rank: Member

Joined: 3/15/2009
Posts: 362
Business Daily wrote:

Flame Tree Group will list on the Growth and Enterprises Market Segment (GEMS) next week, adding Sh1.52 billion valuation to the NSE. The firm will list 190 million shares at a price of Sh8 each on November 6 after it received regulatory approval.

“We had an oversubscribed placing which closed raising Sh194 million, that translates to an issue of 24.3 million shares mostly subscribed by local institutional and individual investors,” said Burbidge Capital founder and CEO Edward Burbidge.

The company has been recording an annual turnover of between Sh1.6 billion and Sh2 billion from its operations in Eastern Africa, with a workforce of 1,000 employees.

http://www.businessdailyafrica....22/-/o7yji7/-/index.html



Is valuation less than turnover? It appears they have very low margins then.
Gatheuzi
#15 Posted : Friday, October 31, 2014 7:52:48 AM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
@shocks, low margins may be the reason for this or probably declining turnover. Like you can see at one point turnover was 2b but had moved to 1.6b.If they give us a PE of 10(expensive if you ask me), the EPS should be around 0.8, implying net profits of 152M. The net margin will be 9.5 %, not so bad.

Verdict: buy only if net profis are above 152M and compared to other years the have been on an upward trend. Interesting though is why they desperately needed a private placement just before listing to raise working capital to buy raw materials.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
KulaRaha
#16 Posted : Friday, October 31, 2014 9:31:07 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
Plastic industry is dogged by huge raw material costs, tiny margins and extended credit.
Business opportunities are like buses,there's always another one coming
muganda
#17 Posted : Friday, October 31, 2014 9:39:36 AM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
KulaRaha wrote:
Plastic industry is dogged by huge raw material costs, tiny margins and extended credit.

Hmmn, could explain absence of Information Memorandum, private listing, continual reference to growth in profits with no net-profit figures etc.
KulaRaha
#18 Posted : Friday, October 31, 2014 10:18:58 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
muganda wrote:
KulaRaha wrote:
Plastic industry is dogged by huge raw material costs, tiny margins and extended credit.

Hmmn, could explain absence of Information Memorandum, private listing, continual reference to growth in profits with no net-profit figures etc.


None of that is available?
Business opportunities are like buses,there's always another one coming
hisah
#19 Posted : Thursday, November 06, 2014 12:07:31 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
I can see this thing is trading, but can't get the ticker. Only mystocks has the symbol up.




Current VWAP @13.95 means the spike up is 74.34% from listing @8.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Boris Boyka
#20 Posted : Thursday, November 06, 2014 12:23:33 PM
Rank: Veteran

Joined: 11/15/2013
Posts: 1,977
Location: Here
hisah wrote:
I can see this thing is trading, but can't get the ticker. Only mystocks has the symbol up.




Current VWAP @13.95 means the spike up is 74.34% from listing @8.

Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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