Even after making over 3 shillings in EPS, the share price deeps.
The most intriguing case is of Seaboard.
At one time in 2007, it was:
The management of Unga Group has extended the deadline for an offer it made to a US-based multinational, Seaboard Corporation, to buy up to a 50 per cent stake in one of its key subsidiaries.
If taken, the offer whose deadline is now fixed for October next year potentially puts Seaboard Corporation in virtual control of Unga Group. The deal will, however, not be subjected to shareholders' scrutiny since the subsidiary, Unga Holdings, is not listed.
http://allafrica.com/stories/200712051119.html
Other scenes:
From EastAfrican with Washington Gikunju;
The management of Unga Group has extended the deadline for an offer it made to a US-based multinational, Seaboard Corporation, to buy up to a 50 per cent stake in one of its key subsidiaries.
If taken, the offer whose deadline is now fixed for October next year potentially puts Seaboard Corporation in virtual control of Unga Group.
The deal will, however, not be subjected to shareholders' scrutiny since the subsidiary, Unga Holdings, is not listed.
The management contract includes a basic profit-based management fee that is subject to a minimum annual fee of Sh12 million and has no maximum.
Last year Unga Group purchased raw materials worth Sh1.3 billion from Seaboard Overseas Management Company and paid a further Sh101.5 million to the company in related party transactions.
These are deals made in hell.
If you read the current Unga Financial Report with a fine toothed comb, you will note changes in equity ownership that is ungodly.
Add to that the importation bill for the company.
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.