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What happen to CMC??
wanyina
#1 Posted : Friday, July 30, 2010 9:53:52 PM
Rank: Member


Joined: 4/1/2008
Posts: 141
This stock has been stagnant ever since it splitted those old good days..when CMC was shinning..has anyone has an idea what are chances of upwards trend..lets discuss this stock ...
the deal
#2 Posted : Friday, July 30, 2010 11:49:50 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
CMC is a cyclical...but its a stock to watch in 2011...its top of my list....
guru267
#3 Posted : Saturday, July 31, 2010 2:07:33 AM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
I agree with @the deal... This stock can only shine next year at the earliest
Mark 12:29
Deuteronomy 4:16
Ali Baba
#4 Posted : Saturday, July 31, 2010 4:05:47 AM
Rank: Member


Joined: 8/29/2008
Posts: 571
That's one stock I can't touch.
Gordon Gekko
#5 Posted : Saturday, July 31, 2010 5:17:41 AM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
I still have my three share certificates for Lonhro Motors. That summarizes my attitude to car stocks.
speculator
#6 Posted : Saturday, July 31, 2010 8:27:54 AM
Rank: New-farer


Joined: 12/1/2009
Posts: 75
Location: nairobi
It was in a good ride until 31 percent drop in profits was announced. I bought after they sold Passat to GOK. Why drop in profit with that deal?.
sheep
#7 Posted : Saturday, July 31, 2010 10:14:28 AM
Rank: Veteran


Joined: 7/24/2008
Posts: 781
CMC relies on GOK to make ends meet...They are unrealistically expensive..was once looking to repair a mazda etude/familia engine and the fools quoted 300k which was more expensive than the value of the car...similar experience are echoed in all their products....Iveco,landrover,vw are all unbelievably expensive to repair with cmc.
The utimate goal of investing is to buy low sell high;if we re-write this core equation in psychology terms it becomes buy fear sell greed.
tkzee
#8 Posted : Saturday, July 31, 2010 10:24:09 AM
Rank: Member


Joined: 7/13/2010
Posts: 160
Location: rift Valley-Naks
@ speculator ,i equally thot that the passat deal would impact their profits.Last yr was a tough year for auto dealers as most of them saw a decrease in sales due to recession.Motor industry is cyclical as somebody has pointed out.
As the economy peaks,it could be a turning point for the stock.
''i can calculate the motion of heavenly bodies,but not the madness of people''-Isaac Newton
guru267
#9 Posted : Saturday, July 31, 2010 2:53:53 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
tkzee wrote:
@ speculator ,i equally thot that the passat deal would impact their profits.Last yr was a tough year for auto dealers as most of them saw a decrease in sales due to recession.Motor industry is cyclical as somebody has pointed out.
As the economy peaks,it could be a turning point for the stock.

So why not buy C&G instead of CMC... It has got way more pocket friendly products that suit the EA market
Mark 12:29
Deuteronomy 4:16
shauriyako
#10 Posted : Saturday, July 31, 2010 3:39:24 PM
Rank: New-farer


Joined: 6/17/2010
Posts: 71
Location: Kenya
@ all
I loved CMC in years past despite the fact that I sold just before the price explosion that resulted in the split.
In the recent past CMC has hsd opportunities to do "potentialy lucrative" deals - over 100 tractors to ADC fundend by UNDP and the recent Passats to GOK. However they dont seem to watch their margins when doing such deals rather they are more keen on undercutting the competition. Granted such big deals would warrant huge price concessions. What I do not agree with is selling at cost expecting to make money from the after market when we have spare part shops mushrooming everywhere.
When we wake up in the morning, we have two simple choices. Go back to sleep and dream, or wake up and chase those dreams. The choice is yours! .
Ali Baba
#11 Posted : Saturday, July 31, 2010 10:49:05 PM
Rank: Member


Joined: 8/29/2008
Posts: 571
I think lots of you guys have strange genes- just like someone said in another thread.I still don't believe how somebody can buy such kind of stock while there are other good companies at NSE !!
guru267
#12 Posted : Saturday, July 31, 2010 11:07:19 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Ali Baba wrote:
I think lots of you guys have strange genes- just like someone said in another thread.I still don't believe how somebody can buy such kind of stock while there are other good companies at NSE !!

Maybe that someone understands the automobile industry very well and doesn't understand the other businesses as well
Mark 12:29
Deuteronomy 4:16
slykat
#13 Posted : Saturday, July 31, 2010 11:57:43 PM
Rank: Member


Joined: 2/20/2007
Posts: 359
guru267 wrote:
Ali Baba wrote:
I think lots of you guys have strange genes- just like someone said in another thread.I still don't believe how somebody can buy such kind of stock while there are other good companies at NSE !!

Maybe that someone understands the automobile industry very well and doesn't understand the other businesses as well


@Guru247

Maybe Ali Baba thinks if you can understand the volatile Motor industry, u can understand all others...n he wud probably be right.
Surealligator
#14 Posted : Tuesday, November 09, 2010 1:02:40 PM
Rank: User


Joined: 6/27/2008
Posts: 709
Location: Velayat-e Faryab
Gordon Gekko wrote:
I still have my three share certificates for Lonhro Motors. That summarizes my attitude to car stocks.


@GG

Yani you have been around this long. My friend, Hararia Master aka Dejavu Kimindo series, still has his 100 of the African Great Lakes inc shares that were to shoot to 2000 each shortly.

They are still hanging on his wall. Wherever I mention the word shares, he points at those on the wall and darkness clouds his face before easing me out of his house for a Summit.

I still have those ones of OTC (Overseas Trading Company). Ama you didn't know OTC was once quoted at the stock market.

@Njung'e

Might you be having shares of Metal Box. Am now collecting medieval shares as mementos. You never know. They might become priceless in the future.

Go overdrive in purchasing the goods when there's blood on the streets, expecially if the blood is your own
Surealligator
#15 Posted : Tuesday, November 09, 2010 1:13:21 PM
Rank: User


Joined: 6/27/2008
Posts: 709
Location: Velayat-e Faryab
guru267 wrote:
tkzee wrote:
@ speculator ,i equally thot that the passat deal would impact their profits.Last yr was a tough year for auto dealers as most of them saw a decrease in sales due to recession.Motor industry is cyclical as somebody has pointed out.
As the economy peaks,it could be a turning point for the stock.

So why not buy C&G instead of CMC... It has got way more pocket friendly products that suit the EA market


@guru276

C&G has a reputation of paying odd cents even when they have made even shillings. With the new licensing rules on nissan matatus, the biggest gainers will be CMC and GM.

Add to it that the Passats will not be on the one year free service mileage. CMC charges a foot and arm for services but the government would not feel it as it comes from someone else pocket.

Farming is picking and demand for farming machinery is on the rise. CMC is in the sector.

Was it 30 billion Infrastructure bond, it went through and upgrading of roads will start earnestly next year with a good chunk of machinery coming from CMC.

Governors, Senators etc will be many in the country. The trend is that more 2011 model Passats will be purchased.

CMC is already preparing for the expected wind fall, just pass by their go down on Lusaka road, chat with the sales manager etc to get a feel of the facts on the ground.
Go overdrive in purchasing the goods when there's blood on the streets, expecially if the blood is your own
Sober
#16 Posted : Tuesday, November 09, 2010 1:28:45 PM
Rank: Elder


Joined: 11/27/2007
Posts: 3,604
is this share still listed at the bourse?
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
Dod
#17 Posted : Tuesday, November 09, 2010 1:39:58 PM
Rank: Member


Joined: 10/4/2010
Posts: 223
Location: Afghanistan
In the motor industry, the money is made on parts and service.Vehicle sales maybe good for the turnover but the margins are very low.
The fundamentals for CMC are bad compared to the other big 4.
Look at the last financial report..overstocking on units and parts, runaway debtors, negative cashflow,...
The rich have money working for them; the poor and the middle class are going to work for money.
Bettertry
#18 Posted : Tuesday, November 09, 2010 4:03:54 PM
Rank: Member


Joined: 9/19/2010
Posts: 237
Location: Republic of Graham & Doddsville
@Sober, yani when u look at NSE listed companies you don't see CMC??? Then u can't be sober!!!
We Will Either Find a Way or Create One - HANNIBAL
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