Equity Bank FY 2016 results - Page 4 - Stocks - Wazua

Welcome Guest

Search | Active Topics | Log In | Register

Wazua » Investor » Stocks » Equity Bank FY 2016 results

4 Pages«<234

Equity Bank FY 2016 results

Options

Previous Topic · Next Topic

watesh		#61 Posted : Friday, April 21, 2017 7:21:33 PM
Rank: Veteran Joined: 8/10/2014 Posts: 976 Location: Kenya		sparkly wrote: watesh wrote: Horton wrote: So Procredit PBT 500m, equity valued it at 31.4B almost PE of almost 90!!!! Granted there is growth, wonder how much FCF they have Procredit congo is spending more on expansion and marketing. Profits will be low till they get past 50% coverage of the country. Congo has really bad technological infrastructure. So much investments need to began done. Mobile money is key. Expansion through Physical infrastructure in terms of brick and mortar branches is simply impossible. Banks make majority of their profits from businesses. These need access to brick and mortar to develop relationships and negotiate various deals. No business operates through mobile money. U cant deposit hundred of thousands daily through an agent. Retail customers need mobile money since they are waaaay too many to fit in a bank. Agents needs brick & mortar branches to manage their cash in hand. They cant hold too much cash coz of insecurity in the country. Electricity and internet access is an issue in DRC. Equity has to invest in expensive satellite internet and generators to run their branches full time.
Back to top		WWW Report Abusive \| Report SPAM
User Profile

Horton		#62 Posted : Friday, April 21, 2017 7:28:38 PM
Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi		VituVingiSana wrote: Horton wrote: So Procredit PBT 500m, equity valued it at 31.4B almost PE of almost 90!!!! Granted there is growth, wonder how much FCF they have Sometimes you buy "future" growth. Remember the days when Equity used to grow profits 100% per year? FCF may be negative but it's like Safcom in the early years. Branding, towers, free/cheap "locked" phones & modems, etc. As others have said the expansion efforts are probably driven through Equitel. As long as DRC remains stable (or improves) the payoff could be enormous. So paying 90 times for something that is an unkown (future or potential earnings) is tough to phathom for a student of Dodd and Ben G like myself. Nonetheless, the original stake Equity bought was a steal! Worth every dime what I am curious about is this latest purchase......could it be that Mr. Mwangi just wanted to consolidate and toghtwn his grip?!
Back to top		Report Abusive \| Report SPAM \| Edit by user: Friday, April 21, 2017 8:00 PM \| Reason: Not specified
User Profile

VituVingiSana		#63 Posted : Saturday, April 22, 2017 1:44:11 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,118 Location: Nairobi		Horton wrote: VituVingiSana wrote: Horton wrote: So Procredit PBT 500m, equity valued it at 31.4B almost PE of almost 90!!!! Granted there is growth, wonder how much FCF they have Sometimes you buy "future" growth. Remember the days when Equity used to grow profits 100% per year? FCF may be negative but it's like Safcom in the early years. Branding, towers, free/cheap "locked" phones & modems, etc. As others have said the expansion efforts are probably driven through Equitel. As long as DRC remains stable (or improves) the payoff could be enormous. So paying 90 times for something that is an unkown (future or potential earnings) is tough to phathom for a student of Dodd and Ben G like myself. Nonetheless, the original stake Equity bought was a steal! Worth every dime what I am curious about is this latest purchase......could it be that Mr. Mwangi just wanted to consolidate and toghtwn his grip?! There could be something we aren't privy to. I doubt Equity paid that amount without an analysis. I wish we had more details. Was this a payment based on a previous agreement that other shares would be purchased at a premium if the biz did well? Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
Back to top		Report Abusive \| Report SPAM
User Profile

sparkly		#64 Posted : Sunday, April 23, 2017 3:00:30 PM
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi		VituVingiSana wrote: Horton wrote: VituVingiSana wrote: Horton wrote: So Procredit PBT 500m, equity valued it at 31.4B almost PE of almost 90!!!! Granted there is growth, wonder how much FCF they have Sometimes you buy "future" growth. Remember the days when Equity used to grow profits 100% per year? FCF may be negative but it's like Safcom in the early years. Branding, towers, free/cheap "locked" phones & modems, etc. As others have said the expansion efforts are probably driven through Equitel. As long as DRC remains stable (or improves) the payoff could be enormous. So paying 90 times for something that is an unkown (future or potential earnings) is tough to phathom for a student of Dodd and Ben G like myself. Nonetheless, the original stake Equity bought was a steal! Worth every dime what I am curious about is this latest purchase......could it be that Mr. Mwangi just wanted to consolidate and toghtwn his grip?! There could be something we aren't privy to. I doubt Equity paid that amount without an analysis. I wish we had more details. Was this a payment based on a previous agreement that other shares would be purchased at a premium if the biz did well? Most likely. Venture Capitalists know how to structure their agreements. Life is short. Live passionately.
Back to top		Report Abusive \| Report SPAM \| Edit by user: Sunday, April 23, 2017 3:02 PM \| Reason: Not specified
User Profile

Users browsing this topic
Guest

4 Pages«<234

Wazua » Investor » Stocks » Equity Bank FY 2016 results

Forum Jump

You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Watch this topic
Email this topic
Print this topic
RSS Feed

Normal
Threaded