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Equity Bank - Founders stealthly reducing their stakes
My 2 cents
#1 Posted : Monday, March 14, 2011 10:27:18 AM
Rank: Veteran


Joined: 6/2/2010
Posts: 1,075
Papa Investor
#2 Posted : Monday, March 14, 2011 10:38:00 AM
Rank: New-farer


Joined: 6/3/2010
Posts: 96
cash is king....
youcan'tstopusnow
#3 Posted : Monday, March 14, 2011 11:29:55 AM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Kwani hamtaki ainvest IPO za BRITAK na Transcentury?Laughing out loudly He needs cash to do this. I believe James Mwangi still has big plans for Equity. Ati maturity? Haha. Bado hata growth. Watch this space...
GOD BLESS YOUR LIFE
My 2 cents
#4 Posted : Monday, March 14, 2011 11:31:37 AM
Rank: Veteran


Joined: 6/2/2010
Posts: 1,075
youcan'tstopusnow wrote:
Kwani hamtaki ainvest IPO za BRITAK na Transcentury?Laughing out loudly He needs cash to do this. I believe James Mwangi still has big plans for Equity. Ati maturity? Haha. Bado hata growth. Watch this space...


The IPOs you mention are also exit strategies for founder members of those companies.ABK!!!
Burning Spear
#5 Posted : Monday, March 14, 2011 11:31:53 AM
Rank: Veteran


Joined: 7/22/2008
Posts: 1,139
they are taking profits but the same big boys will re-enter the markets through proxy (though to be phased out soon by CMA) or by registering companies in Guernsey and other islands and re-enter the market as foreign investors.
Equity is expanding to Tanzania and the future remains bright and cannot be ignored.
"You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it". Malcolm X
innairobi
#6 Posted : Monday, March 14, 2011 11:45:22 AM
Rank: Member


Joined: 9/2/2010
Posts: 845
Nothing unusual here. You would have to be crazy to continue to hold all your wealth in a single stock. Even Bill Gates has been gradually exiting Microsoft stock which now comprises about 30% of his holdings.
All my friends are heathens, take it slow. Wait for them to ask you who you know. Please don't make any sudden moves.
My 2 cents
#7 Posted : Monday, March 14, 2011 12:53:33 PM
Rank: Veteran


Joined: 6/2/2010
Posts: 1,075
When it comes to EB; it amazes me how many people are willing to stick their heads in the sand. WB is totally invested in HB, if you are minding the basket and are totally aware and confident in the prospects of your business why would you want to diversify?

People do things in their self interest. The only reason why the CEO would want to divest is because he believes the stock is overvalued and he is better off cashing out. If he still believed in further growth, he'd continue to hold!!!
Wendz
#8 Posted : Monday, March 14, 2011 1:11:38 PM
Rank: Elder


Joined: 6/19/2008
Posts: 4,268
My 2 cents wrote:
When it comes to EB; it amazes me how many people are willing to stick their heads in the sand. WB is totally invested in HB, if you are minding the basket and are totally aware and confident in the prospects of your business why would you want to diversify?

People do things in their self interest. The only reason why the CEO would want to divest is because he believes the stock is overvalued and he is better off cashing out. If he still believed in further growth, he'd continue to hold!!!


That would be one reason, but not the only reason. For example, why would you want to hold up billions in one company when you can diversify to other companies... Its the same way we do..... Equity still has growth unless you are confident that everyone in kenya is fully banked and totally loaned out... which is far from truth... but there are other vehicles you want to board. Why? because you see a higher growth prospect than what you are holding or for diversification in an equally potential industry........

So in my view, some people are just pressing panic buttons on just a natural process of investments.....
innairobi
#9 Posted : Monday, March 14, 2011 1:18:00 PM
Rank: Member


Joined: 9/2/2010
Posts: 845
Two points to note in your surprisingly ignorant outburst:

1. What is HB? I only know of Berkshire Hathaway (BH).

2. Berkshire Hathaway is a diversified conglomerate that is in everything from financial services, steel and apparel, to energy, furniture and the media. It is completely different from homogeneous entities like Microsoft and Equity Bank. http://www.berkshirehath...com/subs/sublinks.html.


My 2 cents wrote:
When it comes to EB; it amazes me how many people are willing to stick their heads in the sand. WB is totally invested in HB, if you are minding the basket and are totally aware and confident in the prospects of your business why would you want to diversify?

People do things in their self interest. The only reason why the CEO would want to divest is because he believes the stock is overvalued and he is better off cashing out. If he still believed in further growth, he'd continue to hold!!!

All my friends are heathens, take it slow. Wait for them to ask you who you know. Please don't make any sudden moves.
For Sport
#10 Posted : Monday, March 14, 2011 1:41:59 PM
Rank: Veteran


Joined: 12/23/2010
Posts: 1,229
Does equity have a succession plan? i.e. the bank after Mwangi? Heard those stories where a woman asks another to please hold her baby and she’ll be back shortly – and then disappears? What I’m sure about is:
1. I’m not going to be left holding anyone’s baby
2. If the owner is getting out, I should also think about it. Seriously. Mercifully, my shares are so few there’ll barely be a blip when I sell.
erifloss
#11 Posted : Monday, March 14, 2011 2:01:48 PM
Rank: Member


Joined: 6/21/2010
Posts: 514
Location: Nairobi
My 2 cents wrote:
youcan'tstopusnow wrote:
Kwani hamtaki ainvest IPO za BRITAK na Transcentury?Laughing out loudly He needs cash to do this. I believe James Mwangi still has big plans for Equity. Ati maturity? Haha. Bado hata growth. Watch this space...


The IPOs you mention are also exit strategies for founder members of those companies.ABK!!!

Just but a reminder JM is also a major shareholder in Britak. Fishy is the word easy to connect the same with the forthcoming elections....
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
Njung'e
#12 Posted : Monday, March 14, 2011 2:51:20 PM
Rank: Elder


Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
Bollocks folks...Bollocks!....Unless we can say with finality that all CEOs have all their investments in the companies they head.
Nothing great was ever achieved without enthusiasm.
For Sport
#13 Posted : Monday, March 14, 2011 3:05:39 PM
Rank: Veteran


Joined: 12/23/2010
Posts: 1,229
Njung'e, we havent said that. Just that when they sell, we wonder why
MaichBlack
#14 Posted : Monday, March 14, 2011 3:23:23 PM
Rank: Elder


Joined: 7/22/2009
Posts: 7,561
What's with this pedestrian reasoning? JM should not sell his shares why?

Let me give you a scenario. JM has bought land in an upmarket area and needs a billion or so to put up an office building, apartments for sale or whatever. What would be easiest source of funding? What do you think the returns would be from the real estate venture in say 2 - 3 years? Would anything/anyone stop him from 'buying back' his shares?

There are a million reasons why one would want to sell his shares - some that are totally unrelated to the company/share!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
For Sport
#15 Posted : Monday, March 14, 2011 3:41:56 PM
Rank: Veteran


Joined: 12/23/2010
Posts: 1,229
Maich, good thing the market is not made up of pedestrians and other such people (and I don’t mean fishmongers). I’m sure you’ll have no problem holding the shares until we’re ready to buy them back. Connecting the dots………………..Britak, Equity, Transcentury, everyone seems to be building apartments. Or some other such thing.

Million reasons why anyone would sell, of course….if only someone would tell me what his is. Seeing as he’s in charge.

moneydust
#16 Posted : Monday, March 14, 2011 4:12:17 PM
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Joined: 1/31/2007
Posts: 304


However bullish JM might be on equity shares...it would be financial stupidity to put all his eggs in one basket especially after making such returns..and am very sure equity represents the biggest chunk of his wealth.
innairobi
#17 Posted : Monday, March 14, 2011 4:28:12 PM
Rank: Member


Joined: 9/2/2010
Posts: 845
And if anyone here has invested all their life savings in Equity Bank, they need to stop smoking such powerful weed.

moneydust wrote:
However bullish JM might be on equity shares...it would be financial stupidity to put all his eggs in one basket especially after making such returns..and am very sure equity represents the biggest chunk of his wealth.

All my friends are heathens, take it slow. Wait for them to ask you who you know. Please don't make any sudden moves.
the deal
#18 Posted : Monday, March 14, 2011 4:37:00 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery


“It is a case of profit taking as the business moves to maturity. It makes business sense for investors to reduce their interests gradually rather than wait until the stock matures,” said an analyst who cannot to be named because he consults for the ba
MaichBlack
#19 Posted : Monday, March 14, 2011 4:42:47 PM
Rank: Elder


Joined: 7/22/2009
Posts: 7,561
innairobi wrote:
And if anyone here has invested all their life savings in Equity Bank, they need to stop smoking such powerful weed.

moneydust wrote:
However bullish JM might be on equity shares...it would be financial stupidity to put all his eggs in one basket especially after making such returns..and am very sure equity represents the biggest chunk of his wealth.


Exactly. These guys - JM, Jimnah, Munga etc. have invested in different sectors of our economy and every now and then they will need to raise cash. For all we know, JM would be planning to do an 'equity' in a different sector and him and his golf buddies have decided to each raise a ka-loose billion each to fund the project.

The reasoning by some people here is funny to say the least. A good number of wazuans are business owners. Do they invest in the NSE [read other businesses]? Of course they do! Does that mean they've lost faith in their own businesses? Of course not! Many of us have sold part of our portfolio - even when the price is not right - because we have come across a red hot deal which we cannot let pass by.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
MaichBlack
#20 Posted : Monday, March 14, 2011 4:44:25 PM
Rank: Elder


Joined: 7/22/2009
Posts: 7,561
the deal wrote:


“It is a case of profit taking as the business moves to maturity. It makes business sense for investors to reduce their interests gradually rather than wait until the stock matures,” said an analyst who cannot to be named because he consults for the ba

Quoting Kenyan [business] journalists? Seriously!?
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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