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Uchumi - A value play?
Rank: New-farer Joined: 9/13/2014 Posts: 10 Location: Kenya
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What do you guys think about Uchumi? The counter looks good and is a highly successful turnaround story, so why is the share price not going up? No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation - Robert Rhea
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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a_abbass wrote:What do you guys think about Uchumi?
The counter looks good and is a highly successful turnaround story, so why is the share price not going up? Because they are not yet out of the woods. They have numerous debts to settle, and a rights issue in the offing probably to expand and get their stores in 'shopable' condition.. Until then, guys are keeping away Seeing is believing
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Rank: Member Joined: 5/6/2014 Posts: 268 Location: Nairobi, Kenya
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a_abbass wrote:What do you guys think about Uchumi?
The counter looks good and is a highly successful turnaround story, so why is the share price not going up? On the contrary it looks like a value trap with a heavy burden of expensive loans and increasing staff costs across the industry. I won't mind having it at sub 10 though
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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a_abbass wrote:What do you guys think about Uchumi?
The counter looks good and is a highly successful turnaround story, so why is the share price not going up? you can get it sub 10 from next week. Price is what you pay, value is what you get
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Rank: New-farer Joined: 9/13/2014 Posts: 10 Location: Kenya
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mkonomtupu wrote:a_abbass wrote:What do you guys think about Uchumi?
The counter looks good and is a highly successful turnaround story, so why is the share price not going up? you can get it sub 10 from next week. Price is what you pay, value is what you get That seems likely, considering the fact that it goes ex-div on Monday. I still like the prospects, especially inthe wake of a reducing debt burden. Moderate growth in EPS and book value. I think this counter will shine once people wake up to the overstretched valuations in some of the key financials. No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation - Robert Rhea
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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a_abbass wrote:mkonomtupu wrote:a_abbass wrote:What do you guys think about Uchumi?
The counter looks good and is a highly successful turnaround story, so why is the share price not going up? you can get it sub 10 from next week. Price is what you pay, value is what you get That seems likely, considering the fact that it goes ex-div on Monday. I still like the prospects, especially inthe wake of a reducing debt burden. Moderate growth in EPS and book value. I think this counter will shine once people wake up to the overstretched valuations in some of the key financials. Yes but the management is not aggressive or innovative, there were some issues with suppliers not been paid on time in the last month as result the shelves were empty. They took loans from COOP, KCB and ICDC so finance costs are going up. The company then goes ahead to pay dividends and ask shareholders for a rights issue when the price is down.  Why not pay bonus share and retain earnings? I keep it on my watch list though
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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The CEO looks bored or has run out of ideas.....maybe turn around CEO's are just good at turnarounds not driving a growth agenda.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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“The journey has started. We are not opening branches to please anybody, but in line with the economic growth in the region,” said Ciano.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Cde Monomotapa wrote:“The journey has started. We are not opening branches to please anybody, but in line with the economic growth in the region,” said Ciano. They been opening branches in wrong places thus average sales per store has not been increasing...competition has locked them out of all the prime spots in the CBD i.e those next to busy bus terminals...If I'm going to Kikuyu and my bus terminal is at Odeon you don't expect me to walk all the way to Aga Khan walk to shop at Uchumi and leave Tuskys near by...look at what happened to them in Westlands...Naivas just opened a branch next to the stage...since that branch opened i have never stepped in the Uchumi across the road 
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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the deal wrote:Cde Monomotapa wrote:“The journey has started. We are not opening branches to please anybody, but in line with the economic growth in the region,” said Ciano. They been opening branches in wrong places thus average sales per store has not been increasing...competition has locked them out of all the prime spots in the CBD i.e those next to busy bus terminals...If I'm going to Kikuyu and my bus terminal is at Odeon you don't expect me to walk all the way to Aga Khan walk to shop at Uchumi and leave Tuskys near by...look at what happened to them in Westlands...Naivas just opened a branch next to the stage...since that branch opened i have never stepped in the Uchumi across the road You've been lost Karibu. I'd say there is safer/easier parking at the Westlands branch and the Aga Khan one is mostly busy during lunch hours. + the value adds like booze, Cigs, Easy Coach (travel & courier) & Mpesa (ask Safcom how Uchumi drives numbers) attract/retain. Security concerns aside, the KU branch should be a hit!
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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the deal wrote:The CEO looks bored or has run out of ideas.....maybe turn around CEO's are just good at turnarounds not driving a growth agenda. True they should have brought in a new guy to take charge of the next phase. possunt quia posse videntur
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Cde Monomotapa wrote:the deal wrote:Cde Monomotapa wrote:“The journey has started. We are not opening branches to please anybody, but in line with the economic growth in the region,” said Ciano. They been opening branches in wrong places thus average sales per store has not been increasing...competition has locked them out of all the prime spots in the CBD i.e those next to busy bus terminals...If I'm going to Kikuyu and my bus terminal is at Odeon you don't expect me to walk all the way to Aga Khan walk to shop at Uchumi and leave Tuskys near by...look at what happened to them in Westlands...Naivas just opened a branch next to the stage...since that branch opened i have never stepped in the Uchumi across the road You've been lost Karibu. I'd say there is safer/easier parking at the Westlands branch and the Aga Khan one is mostly busy during lunch hours. Just took a break from the madness but now I'm back, thanks for the welcome the Aga Khan one has a fast food restraunt inside...but the service has detriorated...I will not wish to eat there again ...I thought that was a brilliant idea of having those instore fast food resraunts but ala management is not focusing on them anymore given the deterioration in service...anyways most people do their shopping after work hours or over the weekends...thats the traffic Uchumi is missing...look on Thika road...Nakumatt everywhere...Uchumi just a ka small branch near the Juja stage...what a shame hahahaha! They need to bring that rights issue...if they tell me...they will be more aggressive locally (per capita income highest in the region) & more cautious regionally I will invest
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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@deal, let's see. As they say, "Don't mistake activity for productivity." That must be what the CEO is alluding to.
The competitors might be swanky but how are their numbers, since being private? Could be even more dire!
Apologies. Was adding the following while you were replying to my post;
+ the value adds like booze, Cigs, Easy Coach (travel & courier) & Mpesa (ask Safcom how Uchumi drives numbers) attract/retain.
Security concerns aside, the KU branch should be a hit! (This branch alone comes with a guaranteed* catchment w/o having to compete on the main road - Thika Highway #smart)
As a btw, like Blankets & Wine & Uchumi Langata have a very lucrative relationship. ;-)
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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Jonathan Ciano on citizen business centre.. watch out uchumis share price tomorrow .. Seeing is believing
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Rank: Member Joined: 1/13/2014 Posts: 386 Location: Denmark
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I guess it was a rights issue campaign for ciano ... 3 rights for every 8 shares held it is Seeing is believing
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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Uchumi touches 8/= coming back to the stage where i last boarded. Prayers for the shareholders as they watch carnage  Kengen should learn from Uchumi
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Useless supermarket... possunt quia posse videntur
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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I learnt a very expensive lesson with the KQ/TN team. I'm not repeating the same mistake with the UCH/JC team. I will sit out my rights, unless JC is removed from the equation now. And to imagine he rakes in a metre and change each month - very painful.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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If only Uchumi had continued on the same trajectory they were on 14 yrs ago, I would be a very rich man! Life is short. Live passionately.
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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sparkly wrote:If only Uchumi had continued on the same trajectory they were on 14 yrs ago, I would be a very rich man! @sparkly so you're poor than you were courtesy of uchumi,MSC,kk,...I see this 2014 wasn't on your side.....2015-2016 ni yako kuwa very rich. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Uchumi - A value play?
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