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EABL half year 2019/2020 results
Rank: Member Joined: 11/21/2018 Posts: 564 Location: Britain
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Ericsson wrote:VituVingiSana wrote:Absa breaches lending law in Sh18.8bn loan to EABL https://www.businessdail...8bn-loan-to-eabl-3575148 They need 11bn to pay off an 11bn loan coming due in July 2022. Their cashflow position not good. The share price responding accordingly.
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Rank: Veteran Joined: 6/2/2010 Posts: 1,089
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Will this company ever wean itself off debt?
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Rank: Veteran Joined: 6/2/2010 Posts: 1,089
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Most expensive share in the NSE on a PE basis (30). I wonder why people are willing to buy EABL when better value can be found in other shares.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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My 2 cents wrote:Most expensive share in the NSE on a PE basis (30). I wonder why people are willing to buy EABL when better value can be found in other shares. They like its products Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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My 2 cents wrote:Will this company ever wean itself off debt? When the Kenyan economy and their sales starts growing double digits with no hikes in taxes and levies for EABL products Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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VituVingiSana wrote:Absa breaches lending law in Sh18.8bn loan to EABL https://www.businessdail...8bn-loan-to-eabl-3575148 They need 11bn to pay off an 11bn loan coming due in July 2022. The ksh.11bn to be paid off;part of it was used to retire the ksh.6 billion medium term note which they were repaying at an interest of 14.95% and the remainder to acquire the additional 30% stake in Serengeti Breweries Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 6/2/2010 Posts: 1,089
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Why lend to EABL at 12% when you can lend the government at 13%? Ours is a strange market.
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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My 2 cents wrote:Why lend to EABL at 12% when you can lend the government at 13%? Ours is a strange market. 5 year government bond at 13%? Show us one. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 6/2/2010 Posts: 1,089
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One can buy the 20 year bond, and then sell it after 5 years with little erosion on yield. And bear in mind the infrastucture 20 year bond is a 13% tax free while the yield on EABL one after tax is 10.2%
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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My 2 cents wrote:One can buy the 20 year bond, and then sell it after 5 years with little erosion on yield. No guarantees over the next 5 years on yields. If the yields rise then there could be loss on the principal whereas EABL will pay 100%
And bear in mind the infrastucture 20 year bond is a 13% tax free while the yield on EABL one after tax is 10.2% Good point on taxes but can you buy the IFB at 13%? Pricing I have has it at 12.5% at the most Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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EABL half year 2019/2020 results
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