obiero wrote:[quote=yaserbigchair]I HOLD A BIG NO!
How about you guys???
Uchumi has current liabilities worth Sh1.3 billion, which exceed its current assets valued at Sh1.2 billion by about Sh100 million At year ended JUNE 2010.
Regulators sets a target of net current asset ratio of at least 1.5 for companies applying for listing at the bourse, meaning that the current assets should cover liabilities at least one-and-a-half times.
Even if it has reported a three years of profitability, their assets don't tell the whole story.
BE AWARE, NOT TO GET BURNT!
@yasserbigchair the legend... Now the company has extra GoK debt and less assets
http://www.businessdaily...28698-osmnt3/index.html[/quote]
They sell the land and repay the debt not converting debt to equity
The land has been offered as security for the GoK loan.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle