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CMC MOTORS Boardroom Wars
Rank: Elder Joined: 6/27/2008 Posts: 4,114
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FUNKY wrote:@ mnjoro - The boardroom changes have already occured in May 2011 and it was needed to bring the company back to profitability. Are you implying they have been making losses? All the 17 years I've been a shareholder I have never seen a loss... The issue is profit stagnation in the last three years. Tulikuwa tumezeoa 15% growth pa Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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@ the deal - i fully agree with you peter muthoka was the right man. Let's see what effect this will have on the share price today.
@ mukiha - yes thats what i meant after their profits of 927.1 million in 2008 it has more than halved in the later years so the board room changes were to bring CMC back to those profit level of 2008.
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Rank: Member Joined: 9/9/2010 Posts: 546 Location: Garissa
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mnjoro wrote:@Mukiha
Hear there are boardroom changes.
That stock i would keep off abit. You must be a man in the know! Wisdom to detect when share prices hit rock bottom.
When interest on bonds keep going up, you know the bear run is on high street. When interest on bonds start leveling, the bear has met the bull and they have hit rock bottom. When the interest rates on bonds start coming down, the bull has overpowered the bear and you better be riding the bull.
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Rank: Member Joined: 9/9/2010 Posts: 546 Location: Garissa
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FUNKY wrote:@ mnjoro - The boardroom changes have already occured in May 2011 and it was needed to bring the company back to profitability. Funky, Here, Mjoro seems to have been ahead of you in insider information. But your Andy Forwarders infor was sport on. They are now holding over 20% of CMC. Vested interest has never been good commercially and socially except in Africa where we allow a Chairman of a vehicle selling company to be running a forwarding company that buys trucks from the same. It is called Conflict of interest, from whatever angle you look at it. When it comes to the interests of minority share holders, Muthoka of course would act in his own interest first before considering others. Muthoka should go cabisa. Wisdom to detect when share prices hit rock bottom.
When interest on bonds keep going up, you know the bear run is on high street. When interest on bonds start leveling, the bear has met the bull and they have hit rock bottom. When the interest rates on bonds start coming down, the bull has overpowered the bear and you better be riding the bull.
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Rank: Member Joined: 9/9/2010 Posts: 546 Location: Garissa
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the deal wrote:Firms with Governance issues are very bad...look how marshalls has gone down...the same might happen to CMC...this Mr Muthoka guy was the right man for job atleast he knows the business...the appreciation in the share was because of Andy forwaders accumulating shares in anticipation of this board room wars...the moment I realised that I sold my lil shares btwn whats CMC without GoK and Andy Forwaders? Mr Lay is the one who knows the business. He was hired because he knows the business to give better returns to shareholders. Muthoka on the other hand is in the mix to protect his interests. Wisdom to detect when share prices hit rock bottom.
When interest on bonds keep going up, you know the bear run is on high street. When interest on bonds start leveling, the bear has met the bull and they have hit rock bottom. When the interest rates on bonds start coming down, the bull has overpowered the bear and you better be riding the bull.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Sure wrote:FUNKY wrote:@ mnjoro - The boardroom changes have already occured in May 2011 and it was needed to bring the company back to profitability. Funky, Here, Mjoro seems to have been ahead of you in insider information. But your Andy Forwarders infor was sport on. They are now holding over 20% of CMC. Vested interest has never been good commercially and socially except in Africa where we allow a Chairman of a vehicle selling company to be running a forwarding company that buys trucks from the same. It is called Conflict of interest, from whatever angle you look at it. When it comes to the interests of minority share holders, Muthoka of course would act in his own interest first before considering others. Muthoka should go cabisa. Supposing my C&F company lands the deal to clear CMC goods. Then from the profits I make out of it, I start buying CM shares on the stock market... then to further consolidate my gains, I decide to buy vehicle for my fleet from the same CMC... Soon enough, I will have enough shares to warrant a seat in the board, after all, if the company fails, I stand to lose substantially... Then I might have enough for two seats.... and eventually the Chairmanship.... Would you classify this as conflict of interest? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Sure wrote:the deal wrote:Firms with Governance issues are very bad...look how marshalls has gone down...the same might happen to CMC...this Mr Muthoka guy was the right man for job atleast he knows the business...the appreciation in the share was because of Andy forwaders accumulating shares in anticipation of this board room wars...the moment I realised that I sold my lil shares btwn whats CMC without GoK and Andy Forwaders? Mr Lay is the one who knows the business. He was hired because he knows the business to give better returns to shareholders. Muthoka on the other hand is in the mix to protect his interests. What are Muthoka's interests? Bigger profits, perhaps? Isn't that what we all want? the question is HOW to make that happen. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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MR MUTHOKA COMMENTED - “I buy trucks worth hundreds of millions from CMC and it makes sense to get a dividend from that kind of business,” Mr Muthoka told the Business Daily in an earlier interview. Andy also handles the supply chain and local distribution networks for big Kenyan corporations like East African Breweries Limited, Safaricom, Coca-Cola, and General Motors.
The firm has direct operations in a number of countries in the region and has a global presence through its partnership with Hellman Global Logistics.
Mt Muthoka’s other business interests include a stake in Transglobal Cargo Centre – one of the largest fresh produce warehouses at the Jomo Kenyatta International Airport in Nairobi.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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On the business front: did you see the Jaguar Coupe at their stand at the Motor Show? They mentioned that they have already sold SIX units at 16m each! Some Kenyan's have serious money... And they have already sold some units of the yet-to-be-launched Ranger Rover Evoque.. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/19/2008 Posts: 4,268
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mukiha wrote:Sure wrote:FUNKY wrote:@ mnjoro - The boardroom changes have already occured in May 2011 and it was needed to bring the company back to profitability. Funky, Here, Mjoro seems to have been ahead of you in insider information. But your Andy Forwarders infor was sport on. They are now holding over 20% of CMC. Vested interest has never been good commercially and socially except in Africa where we allow a Chairman of a vehicle selling company to be running a forwarding company that buys trucks from the same. It is called Conflict of interest, from whatever angle you look at it. When it comes to the interests of minority share holders, Muthoka of course would act in his own interest first before considering others. Muthoka should go cabisa. Supposing my C&F company lands the deal to clear CMC goods. Then from the profits I make out of it, I start buying CM shares on the stock market... then to further consolidate my gains, I decide to buy vehicle for my fleet from the same CMC... Soon enough, I will have enough shares to warrant a seat in the board, after all, if the company fails, I stand to lose substantially... Then I might have enough for two seats.... and eventually the Chairmanship.... Would you classify this as conflict of interest? If a company is practicing good governance, it is Conflict of Interest "whichever angle you look at it"... Soon enough, he might start approving credit for his "trucks-buying" company exposing us to losses incase his company fails for (lets say)reasons beyond his control .... after all, "both" companies are his, right? Complete conflict of interest it does not matter if we are benefiting now or not......
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Rank: Member Joined: 2/21/2009 Posts: 573
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@FUNKY ,@The Deal
If i were you i would say you still hold and wait for the company to reorganize itself.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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The market seems to have taken this news positively as the share price has risen to 13.50/-.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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mukiha wrote: Supposing my C&F company lands the deal to clear CMC goods. Then from the profits I make out of it, I start buying CM shares on the stock market... then to further consolidate my gains, I decide to buy vehicle for my fleet from the same CMC...
Soon enough, I will have enough shares to warrant a seat in the board, after all, if the company fails, I stand to lose substantially...
Then I might have enough for two seats.... and eventually the Chairmanship....
Would you classify this as conflict of interest?
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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according to http://live.mystocks.co.ke CMC closed 7.14% up [13.50], but wazua hasn't recorded that as a top gainer... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 5/18/2008 Posts: 796
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Wendz wrote:
If a company is practicing good governance, it is Conflict of Interest "whichever angle you look at it"... Soon enough, he might start approving credit for his "trucks-buying" company exposing us to losses incase his company fails for (lets say)reasons beyond his control .... after all, "both" companies are his, right? Complete conflict of interest it does not matter if we are benefiting now or not......
Honestly, I think we're taking this "good governance" issue too far... Surely approval of credit falls under the purview of executive and/or operational management and not the board of governors.. For some of this stuff, its a balance, by giving an ESOP to employees KenolKobil runs the risk that the employees may deliberately mistate financials in order to buoy the share price... on the other hand the ESOP enhances loyalty and could actually drive the employees to work harder if tied to performance
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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mozenrat wrote:Wendz wrote:
If a company is practicing good governance, it is Conflict of Interest "whichever angle you look at it"... Soon enough, he might start approving credit for his "trucks-buying" company exposing us to losses incase his company fails for (lets say)reasons beyond his control .... after all, "both" companies are his, right? Complete conflict of interest it does not matter if we are benefiting now or not......
Honestly, I think we're taking this "good governance" issue too far... Surely approval of credit falls under the purview of executive and/or operational management and not the board of governors.. For some of this stuff, its a balance, by giving an ESOP to employees KenolKobil runs the risk that the employees may deliberately mistate financials in order to buoy the share price... on the other hand the ESOP enhances loyalty and could actually drive the employees to work harder if tied to performance @mozenrat; you've put it quite well. Actually, by getting the C&F deal, I become an "employee" of CMC - I do some work for them and they pay me. Actually, tender documents refer to the parties as "employer" and "employee".... So, my buying of the company shares is a kind of ESOP, only that I buy mine at the market rate... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Why is wazua "blind" to the price movements of this stock? It is now 4.4% DOWN and still doesn't feature on the list of top losers... actually that should be BOTTOM losers! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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Someone is offering 28,500 CMC shares at 14.85/-.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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The newly appointed chairman Mr. Joel Kibe, CEO Mr. Bill Lay,and finance director Mary Ngige have organised a mid morning press meeting at the Hilton Hotel Nairobi today to address the press on the boardroom changes.
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