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Centum 2019/2020
VituVingiSana
#101 Posted : Monday, March 30, 2020 1:54:53 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,005
Location: Nairobi
whiteowl wrote:
Ericsson wrote:
watesh wrote:
Ericsson wrote:
After acquiring the 49.99% stake,Kirubi will then sell his stake to the highest bidder.

Or just wait for the buy back program. He is in the board so he can influence a huge chunk of cashflow to go to the buy back program at the highest price possible. Easy money for him.



Let's wait and see


You can't play against the market only against other players. Let him try sinking billions and they'll be washed away as this thing heads to 10/=
The "market price" is not always an indicator of "intrinsic value" and this has been written & talked about by Warren Buffett as well as Ben Graham. I think CK is smart bu buying up Centum when the prices are in the dumps.

Centum has debt but it is not overly leveraged at the Holdings level. I wish I too had the cash to buy more Centum as CK mops up the available shares in the low 20s.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#102 Posted : Monday, March 30, 2020 2:01:31 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,005
Location: Nairobi
rwitre wrote:
whiteowl wrote:
Ericsson wrote:
watesh wrote:
Ericsson wrote:
After acquiring the 49.99% stake,Kirubi will then sell his stake to the highest bidder.

Or just wait for the buy back program. He is in the board so he can influence a huge chunk of cashflow to go to the buy back program at the highest price possible. Easy money for him.



Let's wait and see


You can't play against the market only against other players. Let him try sinking billions and they'll be washed away as this thing heads to 10/=


Centum is oversold.

On NAV, EPS, DPS, track record over the years, future projection- its numbers are calling for value investors to board.

Management is solid.
Diversified portfolio with easy-to-understand businesses.
CEO even has skin in the game
Largest individual shareholder is stocking up more

Top reasons for selling:
1. Shareholders looking for liquidity.
2. Panic over falling prices across the market.

The company is fundamentally sound.

Can we time the bottom? No.
Is the share insanely cheap at the moment? Yes.

Will you buy?

Keep in mind: Markets can remain irrational longer than you can remain solvent
Applause Applause Applause
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#103 Posted : Monday, March 30, 2020 2:06:12 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,005
Location: Nairobi
RIEK01 wrote:
News was designed to try and stabilize price.There are many far better companies to put your money in. Solid management ??? Sidian, Akira, Amu power & RVR investments?
Kelele ya chura Laughing out loudly Laughing out loudly Laughing out loudly

Akiira - Centum knows what the issue is and progress is being made. It's valued at cost on its books. The information is free and available.
Amu Power - 100% has been provisioned. End of story.
RVR - Liar Liar Liar Centum exited RVR 7+ years ago! It was a pre-JM acquisition. Apart from fear-mongering, was there a reason why this was brought up?

Duds will happen.

Apple had failures. Microsoft had failures. Exxon. Facebook. Google. All have had failures. And many, many more successes.

Warren Buffett has had duds. Yes, Mr. Warren Buffett. Heck, Berkshire Hathaway the "textile mill business" was a dud. As was Dexter. And many others.

How is Berkshire Hathaway doing today despite all the duds and crazy volatile markets?

Centum:
What are Centum's CURRENT businesses?
What is the current debt level?
What is the cash on hand?

After so many years of Wazua, I hope the level of discussion rises to a level that comes with maturity.

@RIEK - Please share these "many far better companies to put your money in" with us and explain why.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
nairobby
#104 Posted : Monday, March 30, 2020 4:45:31 PM
Rank: Member


Joined: 1/18/2019
Posts: 178
Location: kenya
Have they made any moves with that huge cash pile? The bottlers deal was completed in October right?
the deal
#105 Posted : Monday, March 30, 2020 6:42:36 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,525
Location: Windhoek/Nairobbery
Impact of covid19 lockdown on Two rivers?

Has it been factored in the share price?

Apart from the cash...any attractive assets left in Centums portfolio?
watesh
#106 Posted : Monday, March 30, 2020 6:44:21 PM
Rank: Member


Joined: 8/10/2014
Posts: 810
Location: Kenya
nairobby wrote:
Have they made any moves with that huge cash pile? The bottlers deal was completed in October right?

Nothing that I have heard. A chunk of it was to go to fixed income to create liquidity for the company to cater for the expenses and future dividends and the other chunk was to go to what they call Fund 2 where they would invest in distressed companies with solid fundamentals. In a few months, if the current trend continues, they will have lots of opportunities. However, they were banking on cash collections from their real estate sales to pay the upcoming maturing corporate bond in June. If something happens to those payments in this current stress they may have to allocate some of their cash pile there.
Ericsson
#107 Posted : Tuesday, March 31, 2020 12:29:29 AM
Rank: Elder


Joined: 12/4/2009
Posts: 8,395
Location: NAIROBI
nairobby wrote:
Have they made any moves with that huge cash pile? The bottlers deal was completed in October right?

was deployed in reducing debt
VituVingiSana
#108 Posted : Tuesday, March 31, 2020 8:18:40 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,005
Location: Nairobi
Ericsson wrote:
nairobby wrote:
Have they made any moves with that huge cash pile? The bottlers deal was completed in October right?

was deployed in reducing debt
Part of it was used to pay off one large loan and ODs. There is another large loan coming up for repayment but the cash (held at Nabo) is available.
Interesting times.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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