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BOC Future prospects
PKoli
#1 Posted : Friday, April 23, 2010 7:50:08 PM
Rank: Elder


Joined: 2/10/2007
Posts: 1,587
Any one who has looked at the annual account of BOC? I got a copy yesterday and it looked plain. I could not get a proper strategy the company is employing going forward. Unless, they have masked their strategy after the Carbacid saga.

I have a feeling that this is the stock that will give returns like EABL in 10 years if they manage to penetrate into the CO2 business.

Any thoughts?
VituVingiSana
#2 Posted : Saturday, April 24, 2010 9:50:43 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,120
Location: Nairobi
I got hold of a copy as well... I need to read it...

BTW, I think their entrance into CO2 will eat into Carbacid's market...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Horton
#3 Posted : Sunday, April 25, 2010 5:11:52 PM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
VituVingiSana wrote:
I got hold of a copy as well... I need to read it...

BTW, I think their entrance into CO2 will eat into Carbacid's market...



They(BOC) have tried time and time again to penetrate the CO2 market...without much success mainly because of LT contracts carb have with the bottlers et al/....so good luck to them.

CArb has competitive advantage or moat..something that BOC will not have coz of resources and thereby ensuring their monopoly continues...
VituVingiSana
#4 Posted : Sunday, April 25, 2010 6:51:51 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,120
Location: Nairobi
@Horton - I disagree... EABL set up their own CO2 plant... and BOC has other uses for CO2 not just food/beverages...

It will not be easy to fight Carbacid but BOC has Linde's expertise...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Wa_ithaka
#5 Posted : Monday, April 26, 2010 7:15:04 AM
Rank: Veteran


Joined: 1/7/2010
Posts: 1,279
Location: nbi
Of the two, I'd rather Carbacid than BOC.
The Governor of Nyeri - 2017
Horton
#6 Posted : Monday, April 26, 2010 7:20:32 AM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
90% OF co2 is for the beverage industry.....mainly soft drinks...coz alcohol producers make their own co2 thru fermentation other uses are for dry ice and for fire extinguishing but the market there is quite small.

BOC's Kapsabet plant already puts them on a rear footing coz of distance...also by time they start harvesting commercially viable co2 for the food industry(the largest user of CO2), it will take at least 4-5years to get approval and etc

EABL, has been producing its own CO2 for years, but is still not enough to meet their requirements, so they still supplement with purchased co2.
There's also spectra international with molasses producing co2 bu agan, cant penetrate because of these LT contract carb holds with major consumers of co2
VituVingiSana
#7 Posted : Monday, April 26, 2010 8:21:15 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,120
Location: Nairobi
@Horton - 4 years to get approval sounds way too long lakini this is Kenya, where palms are always waiting to be greased...

There are other uses for CO2 (just not used in Kenya)... For now, Carbacid has a virtual monopoly but that can be broken...

I understand in the past political pressures kept others out coz matiba had his connections plus wanjigi (among other politicians) were also involved in the ownership...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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