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Monday 14th of November 2016 |
Morning Africa |
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The Latest Daily PodCast can be found here on the Front Page of the site http://www.rich.co.ke
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14-NOV-2016 :: Here comes President Trump @TheStarKenya Africa |
Donald Trump won the US election all ends up and for the first time since 1928 won the Presidential vote, the Senate, the House and will decide the Supreme Court's composition. It is a breath-taking win especially when you consider that Trump was an insurgent candidate and his Make America Great Again movement similarly an insurgent movement.
Trump confounded the pollsters and the traditional media echo chamber and was ranked a rank outsider at 4-1 in a two horse race just a few short hours before the final result was known. The result in the US mimicked the Brexit result and what is clear to me is that we are watching a populist wave or zeitgeist (some have characterised it as a ''whitelash'') which has now swept the United Kingdom and the US and has Italy (where Matteo Renzi has called for a Referendum), France (where Marine Le Pen is the most popular politician by a street) and the Netherlands all in its crosshairs.
Comic-turned-politician Beppe Grillo, co-founder of Five Star, said
“This is the deflagration of an epoch. It’s the apocalypse of this information system, of the TVs, of the big newspapers, of the intellectuals, of the journalists.”
And this is another important point, traditional media has lost its position of control. It’s been upended by the internet which allowed insurgent politics to broadcast over the top.
Returning to President-elect Trump who deployed linguistic warfare with devastating effect. The names he gave his opponents — Crooked Hillary, Lyin’ Ted, Little Marco, ‘Low-energy’ Jeb — were devastating.
The open question now is how many of his campaign promises will he fulfill and which ones because on a continuum they are some serious outlier promises. The US Stock market slumped by its biggest single percentage drop in the pre-market on Wednesday before taking back the entire precipitous fall and closing at a fresh all time high by the end of the day. The catalyst for that spectacular recovery was Trump's victory speech which many took to signal a pivot. The speech was conciliatory and the flavour was captured in comments Trump made when he met with President Obama
US President-elect Donald Trump has said it was a "great honour" to meet President Barack Obama for transition talks at the White House.
Mr Obama said he was "encouraged" by their "excellent" and "wide-ranging" conversation, lasting over an hour.
Ian Bremmer of Eurasia Group opined that the Trump victory was "the most profound domestic political transition of my lifetime."
“There are three aspects of American leadership that will be affected by the Trump administration and the growing geopolitical recession: the United States' role as world policeman, architect of global trade, and cheerleader of global values.”
I am a Seller of Ian Bremmer's rather hyperbolic critique. Putting a Stop-Loss into play with the Syrian rebels (who are a bunch of ne'er-do-wells and paid mercenaries), reaching out to Vladimir Putin indicate a trend-change in the way the US engages with the rest of the World strikes me as an entirely sensible mid course correction. As Trump has indicated China is the main adversary and its difficult to understand why the US was seeking to send Vladimir into Xi Jinping's ready embrace. To triangulate China, the US needs Russia on its side and not on China's. Therefore, I see Trump playing a Ronald Reagan Game.
From an economic and trade perspective, I expect Trump to be much more aggressive with China. I think the QE [Quantitative Easing] consensus is now a busted Flush. Remember a vast swathe of the pro-Brexit and pro-Trump camps were the older white folks who have seen their savings evaporate in the world of negative interest rates. This is the point. They want a return on their savings and Theresa May and Trump get that. The bond markets get it as well.
The US 30- year yield surged 32 basis points higher last week which is the biggest weekly rise in seven years. There is more to come as the cost of money is normalised. I like the tax cutting agenda. My theory remains (and interestingly was validated a few years ago in Russia) that when you reduce taxes to a level that folks feel is just and equitable, The tax take surges because its just more convenient to pay it. The infrastructure spend is long overdue. Higher interest rates are going to propel a big Dollar rally from here on in and its only just getting going. Emerging markets currencies which took a big tumble last week are set to crater, I am afraid.
Let me leave with you a Transcript from the Sidney Lumet movie Network (1976)
''You think you merely stopped a business deal. That is not the case. The Arabs have taken billions of dollars out of this country, and now they must put it back! It is ebb and flow, tide and gravity. It is ecological balance'' Sidney Lumet Network 1976.
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One's relationship to windows changed in the city. A window was the border through which death was possibly likeliest to come. Africa |
One’s relationship to windows changed in the city. A window was the border through which death was possibly likeliest to come. Windows could not stop even the most flagging round of ammunition: any spot indoors with a view of the outside was a spot potentially in the crossfire. Moreover, a windowpane itself could so easily become shrapnel, shattered by a nearby blast, and everyone had heard of someone or other who had bled out after being lacerated by shards of flying glass.
The effect doors had on people altered as well. Rumors had begun to circulate of doors that could take you elsewhere, often to places far away, well removed from this death trap of a country. Some people claimed to know people who knew people who had been through such doors. A normal door, they said, could become a special door, and it could happen, without warning, to any door at all. Most people thought these rumors to be nonsense, the superstitions of the feeble-minded. But most people began to gaze at their own doors a little differently nonetheless.
They did not hear the agent approaching—or perhaps he had been there all along—and they were startled by his voice just behind them. The agent spoke softly, almost sweetly, his whisper bringing to mind that of a poet or a psychopath. He instructed them to stand still and not to turn around. He told Nadia to uncover her head, and when she asked why he said it was not a request.
Nadia had the sense that he was extremely close to her, as if he were about to touch her neck, but she could not hear his breathing. There was a faint sound in the distance, and she and Saeed realized that the agent might not be alone. Saeed asked where the door was and where it led to, and the agent replied that the doors were everywhere, but finding one the militants had not yet found, a door not yet guarded, that was the trick, and might take a while. The agent demanded their money and Saeed gave it to him, uncertain whether they were making a down payment or being robbed.
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Asked whether he thought his rhetoric had gone too far in the campaign, Mr. Trump responded: "No. I won." Law & Politics |
Although he wasn’t specific, Mr. Trump suggested a shift away from what he said was the current Obama administration policy of attempting to find moderate Syrian opposition groups to support in the civil war there. “I’ve had an opposite view of many people regarding Syria,” he said.
He suggested a sharper focus on fighting Islamic State, or ISIS, in Syria, rather than on ousting Syrian President Bashar al-Assad. “My attitude was you’re fighting Syria, Syria is fighting ISIS, and you have to get rid of ISIS. Russia is now totally aligned with Syria, and now you have Iran, which is becoming powerful, because of us, is aligned with Syria. … Now we’re backing rebels against Syria, and we have no idea who these people are.”
If the U.S. attacks Mr. Assad, Mr. Trump said, “we end up fighting Russia, fighting Syria.”
On a different foreign hot spot, the Israel-Palestine situation, which Mr. Trump called “the war that never ends,” he said he hoped to help craft a resolution between them.
“That’s the ultimate deal,” Mr. Trump said. “As a deal maker, I’d like to do…the deal that can’t be made. And do it for humanity’s sake.”
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Donald Trump Picks Reince Priebus as Chief of Staff and Stephen Bannon as Strategist Law & Politics |
President-elect Donald J. Trump on Sunday chose Reince Priebus, the chairman of the Republican National Committee and a loyal campaign adviser, to be his White House chief of staff, turning to a Washington insider whose friendship with the House speaker, Paul D. Ryan, could help secure early legislative victories.
In selecting Mr. Priebus, Mr. Trump passed over Stephen K. Bannon, a right-wing media provocateur. But the president-elect named Mr. Bannon his senior counselor and chief West Wing strategist, signaling an embrace of the fringe ideology long advanced by Mr. Bannon and of a continuing disdain for the Republican establishment.
The dual appointments — with Mr. Bannon given top billing in the official announcement — instantly created rival centers of power in the Trump White House.
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Asia Leaders Race to Decode Trump on the Future of Obama's Pivot Law & Politics |
An article published last week by Trump campaign advisers Alexander Gray and Peter Navarro said Obama’s policy was “talking loudly but carrying a small stick,” with the deployment of warships to Singapore and marines to Darwin “token gestures.” Under Trump the Navy would be expanded to “reassure our allies that the United States remains committed in the long term to its traditional role as guarantor of the liberal order in Asia.”
With his campaign slogan to “Make America Great Again,” Trump can ill-afford to pull back from Asia and the Pacific. The region boasted six of the top 15 U.S. export markets last year, its companies selling everything from power systems to fuel, high quality foods and financial services. More than $5 trillion in trade passes each year through the South China Sea, of which $1.2 trillion is U.S. related.
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Hybrid Wars: Strategies against Africa By Andrew Korybko Africa |
This tinderbox of a locale is defined as the convergence area between Chad, the Central African Republic (CAR), Sudan, and South Sudan, and it’s marked by an array of interlinked involvement between state and non-state actors in each other’s affairs.
he next most conflict-prone area of regional overlap is the mountainous area that straddles the DRC and Uganda, Rwandan, and Burundian borders. After the end of the Second Congo War (“Africa’s World War”), Ugandan and Rwandan pro- and anti-government militia groups ended up controlling this part of the DRC and seizing the profitable mining deposits located here. There’s a lot of legal and illegal cross-border traffic between the two sides, and it’s well known that conflicts from one part of the mountains could easily spill over to the other due to the well-established economic and demographic connections that link them. Burundi figures into the equation because it’s the ‘weak man of East Africa’, a recent civil war state that is now being pushed back to the brink as part of the US’ Hybrid War agenda against China
The next interregional conflict overlap in Africa deals with terrorist groups in the Sahara, in particular the interplay between transnational militant organizations operating in the broad expanse between Mali, Mauritania, Algeria, Niger, and Libya. The NATO War on Libya destroyed the most prosperous and stable state in Africa and was the catalyst for destabilizing the rest of the aforementioned states ‘downstream’ via the newly opened weapon and militant channel that was created in the former Jamahiriya.
Formerly part of the British Empire and administered together with Zambia and Zimbabwe as a member of the “Central African Federation” in the closing days of colonialism, Malawi is categorized as part of the Southern Cone sphere of regional influence because most of its international trade runs through Mozambique. The landlocked country is one of the world’s poorest and least-developed nations, and the state’s dire poverty has created a situation where anti-government sentiment can be easily manipulated.
While Malawi isn’t directly a part of China’s larger integrated Silk Road network in Africa, the two countries have quickly moved closer to one another economically over the past couple of years after the African state disowned its prior decades-long relationship with Taiwan, thus raising the covert consternation of the US and pushing Washington to order its top diplomat in the country to prepare for a coup and possible Hybrid War attempt.
Malawi’s geopolitical position is such that any large-scale destabilization within the country’s borders could easily spread to Mozambique, but most important for the research’s focus, it could also just as likely move northwards to Zambia and Tanzania, two pivotal countries that are involved in China’s transcontinental Silk Road projects.
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Zimbabwe Life after Bob Economist Africa |
IN MANY of the poorest African dictatorships of recent decades, the best-paved road ran from the presidential palace to the airport, in case the Big Man and his entourage needed to escape in a hurry. That is still the case in Harare, Zimbabwe’s capital, where the president’s cronies know that they are not universally popular.
Some leading figures in ZANU-PF, the ruling party, are said to have shipped belongings abroad already. Some apparently keep bags packed for the moment that Robert Mugabe, the 92-year-old president who has ruled for 36 years, keels over or is pushed aside in a palace coup. Others are said to be sleeping in different places every night, to confound potential assassins or soldiers who they think might be sent to kill or arrest them.
Recently he is said to have delayed the start of a cabinet meeting because he was waiting for Joice Mujuru to arrive, forgetting that he had fired her as vice-president two years ago.
Old habits die hard. Mr Mugabe’s government has again been spending too much. Despite solemn promises to the IMF to come close to balancing its budget, the deficit this year will be about $1bn, a massive 8% of GDP. It has been burning through its dollar reserves at such a clip that earlier this year it seemed unable to pay civil servants.
But the Reserve Bank of Zimbabwe can still be creative. It came up with a ploy to “print” American dollars by filching them from accounts in Zimbabwean banks and replacing them with worthless IOUs. Thus it turned each dollar into two dollars: one in electronic form in a bank (one might call it the Electronic Zimbabwe Dollar, or EZD) and the second a normal dollar that the government gets to spend.
Although Zimbabwe does not officially have its own currency, its EZD is behaving a lot like one. It can be used at home (in electronic format) but not abroad. When banks ask the central bank for real dollars to pay for imports they wait months for the money, if they get it at all. Black-market dealers now convert electronic dollars into real ones at a premium of 10-15%. Many market traders now insist on being paid in cash. Airlines are doing the same.
How long can all this last? The soldiers who prop up Mr Mugabe’s regime are said to have insisted on being paid in real cash, not funny electronic dollars. Imported goods are running out. Inflation will soon reflect the growing spread between real dollars and electronic ones.
Zimbabweans have long yearned for the post-Mugabe era. Sadly, it will probably not mean a restoration of real democracy. And cleaning up the mess Mr Mugabe has made will take years.
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Julien Paluku, governor of DRC's North Kivu province, said Ugandan authorities no longer knew the whereabouts of Sultani Makenga, who was the military chief of the M23 rebellion. Africa |
"We were in contact with the Ugandan intelligence services who confirmed that, since Friday, ex-Colonel Makenga may have fled and the Ugandan services have not been able to locate him," Paluku told Reuters on Saturday.
Julien Paluku, governor of Democratic Republic of Congo's North Kivu province, said Ugandan authorities no longer knew the whereabouts of Sultani Makenga, who was the military chief of the M23 rebellion.
"We were in contact with the Ugandan intelligence services who confirmed that, since Friday, ex-Colonel Makenga may have fled and the Ugandan services have not been able to locate him," Paluku told Reuters on Saturday.
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Eskom CEO Brian Molefe to Step Down Following Gupta Graft Report Africa |
Brian Molefe, the chief executive officer of South Africa’s state-owned power utility, said he will leave Eskom Holdings SOC Ltd. following the release of a report by the nation’s graft ombudsman into the influence of the wealthy Gupta family on the state and the company.
Molefe, who joined Eskom in April 2015, was accused in a report by the Public Protector published Nov. 2 of favoring the Gupta family, which is in business with President Jacob Zuma’s son, by handing out coal-supply contracts and helping them buy Optimum Coal Holdings Ltd. He and Eskom deny wrongdoing.
“Brian is the fallen angel for investors,” said Peter Attard Montalto, a London-based economist at Nomura International Plc. He is “now implicated in alleged grand corruption and rent extraction.”
Molefe is leaving “in the interests of good corporate governance,” he said in a statement e-mailed by the Johannesburg-based power utility Friday. “I do so voluntarily.”
Mobile-phone records show Molefe called Ajay Gupta 44 times from August last year through March, while Gupta called the Eskom CEO 14 times, according to the report.
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Rand Set for Biggest Weekly Slump Since August as Bonds Dumped Africa |
South Africa’s rand extended losses to a third day and headed for the biggest weekly slump since August on concerns that Donald Trump will pursue policies that will spur capital outflows from developing economies and weaken their exports.
The rand fell as much as 2.5 percent before trading 1.4 percent weaker at 14.3120 per dollar by 3:30 p.m. in Johannesburg. The weekly decline of 5.1 percent is the most since the five days ended Aug. 26, when local markets were roiled by concerns that Finance Minister Pravin Gordhan would be arrested. The most the rand had lost before that was in December, when President Jacob Zuma fired then-Finance Minister Nhlanhla Nene. Three-month implied volatility on the rand is at the highest since Oct. 17 and the most among emerging markets.
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Tullow, Total's Uganda Oil Exports Face Delays on Infrastructure Africa |
Output from Ugandan crude deposits being developed by companies including Tullow Oil Plc and Total SA is unlikely to be exported as soon as the nation expects because of the scale of the infrastructure projects required to transport the fuel out of the country.
The government of Uganda, where oil was discovered in 2006, has said it expects to begin shipping crude within five years. To do that, it must overcome challenges facing other countries in the region like Mozambique and Tanzania, where a lack of finance and technical capacity to build multiple, capital-intensive infrastructure projects is delaying the start of natural-gas production.
Landlocked Uganda has an estimated 1.7 billion barrels of recoverable oil at fields in the Lake Albert basin that the government expects Tullow, Total and China’s Cnooc Ltd. to start pumping by 2021. The government has estimated it will receive $43 billion of revenue from the resource over 25 years.
Developing the fields to commercial production requires about $8 billion, though engineering design work on the project has “yet to start,” said George Cazenove, a spokesman for Tullow. For production to start in 2021, Tullow would have to make a final investment decision on the project by 2018, according to Cazenove. The crude would then need to be ferried along a yet-to-be constructed 1,400-kilometer (870-mile) pipeline to the Indian Ocean port of Tanga in neighboring Tanzania. The government this week opened a tender for surveys of the route for the conduit.
“Market realities will also likely contribute to delays,” with crude prices having dropped 45 percent over the past two years .
“Low oil prices will be a drag on project timelines as operators grapple with a difficult financing environment,” Allenson said.
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Hedge Funds Line Up Against Mozambique in Tuna Bond Battle Africa |
Hedge funds and some of the world’s biggest emerging-market bond investors are girding for a fight with Mozambique and its other creditors.
The country’s attempt to reach a restructuring agreement by the end of the year suffered a blow when a group of five investors, who hold 60 percent of its $727 million of Eurobonds, said the notes should be treated differently from loans to two state companies and talks couldn’t begin until an International Monetary Fund program was in place. Mozambique wanted to negotiate with creditors as one group, while the Washington-based lender has said a deal with the bond and loan holders should come first.
The move by the investors, who include Franklin Templeton and New York-based hedge fund Greylock Capital Management LLC, came two weeks after the government said it needed to restructure around $2 billion of foreign debt, including the Eurobonds, which were sold barely six months ago in a swap for more expensive debt owed by a state tuna-fishing business known as Ematum. Yields on the sovereign securities, due in January 2023, soared by more than 900 basis points to almost 25 percent and overtook Venezuela’s to become the highest in the world.
“It’s not the fault of bondholders and they shouldn’t expect any willingness by us to accept” writedowns, Lutz Roehmeyer, who helps oversee about $12 billion in assets at Landesbank Berlin Investment, including Mozambique’s Eurobonds, said by phone. “They should go into default on those loans to the state companies. There’s no need to pay the loans on time.”
Mozambique, one of the world’s poorest nations, went from being lauded two years ago by the IMF’s Managing Director Christine Lagarde to being ravaged by a combination of excessive borrowing, plummeting commodity prices and delayed investments in massive natural gas fields. The crisis worsened in April when the IMF and other donors cut aid after they discovered around $1.4 billion of secret loans issued several years ago by two state firms, Proindicus and Mozambique Asset Management.
Finance Minister Adriano Maleiane was “visibly stressed” when he made a presentation to investors on Oct. 25, according to Anne Fruhauf, an analyst at New York-based Teneo Intelligence. Public debt has rocketed from 40 percent of gross domestic product in 2012, the year before Mozambique took on the loans, to 113 percent, higher than anywhere in sub-Saharan Africa apart from Eritrea and Cape Verde, according to the IMF. Mozambique forecasts its net foreign reserves will be $1.1 billion next year, down almost 60 percent from 2014.
The government said it would have no money left over for debt payments in 2017, which include a $60 million coupon on the Eurobond due Jan. 18. In Maputo, the capital, many stores are empty and Mozambicans are battling inflation of 26 percent. Since the start of 2015, the local metical has lost 58 percent of its value against the dollar, making external debt more expensive to service.
“Mozambique is in a really, really difficult place,” Alex Vines, head of the Africa Program at London-based Chatham House, said in an interview in Johannesburg on Nov. 4. “They’re on this cliff-edge. They don’t have money.”
The creditor group comprises Franklin Templeton and AllianceBernstein LP, which between them manage $1.2 trillion of assets, and three hedge funds: Greylock and NWI Management LP, both New York-based, and London’s Pharo Management LLC. They called on other bondholders to join their group, but said it will be closed to the loan investors. Charles Blitzer, who spent 8-1/2 years at the IMF, most recently as assistant director in the capital markets department, is advising the bondholders.
The loans to Proindicus and MAM, due in 2020 and 2021 respectively, were originally provided by Credit Suisse Group AG and Russia’s VTB Group, though the banks syndicated some of the debt. Mozambique is being advised by Lazard Freres, an investment bank, and law firm White & Case. What is Mozambique trying to do?
Maleiane and President Filipe Nyusi want to delay debt payments until the country starts profiting from offshore gas fields that were discovered by Anadarko Petroleum Corp. and Eni SpA at the start of the decade. Until then, money will be tight. In its presentation, Mozambique said exports are “expected to significantly increase in the early 2020s,” with government revenue rising to $12.3 billion in 2025 from $2.5 billion today.
“They need to buy themselves time,” Phillip Blackwood, a managing partner at EM Quest Ltd., which advises Denmark’s Sydbank A/S on about $2.5 billion of emerging-market assets including Mozambique’s bonds, said by phone from London.
Mozambique hoped to talk to investors this month before concluding a framework for a “debt resolution proposal” in December, according to the presentation. That was meant to help it negotiate new funding from the IMF early next year. The formation of the creditor group and its demands mean that timetable probably won’t be kept.
“There’s not a basis for trust,” said Roehmeyer. “I think it’ll take roughly half to three-quarters of a year to sort out.”
The bond group has also said that it won’t start talks until an audit of Proindicus, MAM and Ematum is completed. The government has chosen New York-based risk analysis firm Kroll to carry that out.
A spokesman for the Finance Ministry said Nov. 3 in an interview that the government wants to extend its maturities to 2023 and 2024, rather than impose outright losses on creditors. A day later, the ministry backtracked, saying in a statement it was looking at all options.
The bondholders, who say they already made a concession earlier this year when they agreed to swap out of the Ematum notes into the longer-dated Eurobond, seem in no mood to back down. Some are also calling on Mozambique to cut its spending.
“The holders of the Eurobond are on firmer footing because they’ve already taken a restructuring, whereas the loan holders haven’t,” Blackwood said. “The loan holders really need to restructure and push out their payments, as the bondholders already have. Mozambique also has to make some budget cuts. It can’t just say that there’s no money left.”
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East African Portland Cement FY16 PAT -42.074% Earnings here Kenyan Economy |
Par Value: 5/- Closing Price: 27.00 Total Shares Issued: 90000000.00 Market Capitalization: 2,430,000,000 EPS: 46.06 PE: 0.58
A key provider of Cement and Cement products in Kenya for over 70 years.
Full Year Results through 30th June 2016
FY Revenue 8.871456b versus 8.417621b +5.39% FY Cost of Dales 7.283948b versus 6.591115b +10.511% Gross Profit 1.587508b versus 1.826506b -13.084% FY Other Operating Income 78.768m versus 208.751m FY Expenses [3.250847b] versus [2.612836b] +24.41% Other Operating Expenses [1.015803b] versus [347.202m] FY Loss from Operations [1.584571b] versus [0.577759b] FY Finance Costs [618.125m] versus [369.327m] FY Exchange [Loss] Gain [305.807m] versus 178.834m Gain on Land compulsorily acquired by Government for SGR 0 versus 836.962m Fair Value Gain on Investment Property 6.238797b versus 7.273113b FY PBT 3.734752b versus 7.342071b -49.13% FY PAT 4.145755b versus 7.157070b -42.074% FY EPS 46.06 versus 79.52
Conclusions
The Cement business served up a -1.584b loss for the FY 16. The Fair Value Gain on Investment Property was worth +6.238b
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Williamson Tea reports H116 loss After Tax of [263.114m] Earnings here Kenyan Economy |
Par Value: 5/- Closing Price: 182.00 Total Shares Issued: 17512640.00 Market Capitalization: 3,187,300,480 EPS: 40.3 PE: 4.516
Williamson Tea reports H116 Earnings through 30.09.2016 versus through 30.09.2015
H1 Turnover 1.731368b versus 1.529611b [Loss] Profit from Operations before biological assets valuation [96.276m] versus 207.536m [Decrease]/Increase in fair value of biological assets [200.478m] versus 159.216m Finance [costs]/Income [28.438m] versus 120.312m Share of results of associated Companies [50.685m] versus 56.748m [Loss] profit before Taxation [375.877m] versus 543.812m Tax credit/[charge] 112.763m versus [163.144m] [Loss] profit after Tax [263.114m] versus 380.668m [Loss] EPS [13.21] versus 41.66
Commentary
Turnover +13% due to higher crops Higher crops throughout tea growing areas depressed prices to very low levels last seen briefly in 2014 Cost of production continues to rise which when coupled with low prices has resulted to a loss In June 2016 an Industrial Court judgement awarded over 50% wage and benefit increases to our workers for years 2014 and 2015. Award was challenged by the Tea Industry and is awaiting Judgement by the court of Appeal The unknown Outcome of the next judgement adds considerably to the uncertainty of the next 6 months ''In short the outlook is gloomy''
Conclusions
Buy on dips. NAV is a multiple of the share price, notwithstanding the earnings dip.
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Kapchorua Tea reports H116 Loss after Tax 89.686m Earnings here Kenyan Economy |
Par Value: 5/- Closing Price: 82.00 Total Shares Issued: 7824000.00 Market Capitalization: 641,568,000 EPS: 29.95 PE: 2.738
Kapchorua Tea reports H116 Earnings through 30.09.2016 versus through 30.09.2015
H1 Turnover 675.744m versus 525.742m H1 [loss] Profit from Operations before biological assets valuation [60.501m] versus 43.870m H1 [Decrease]/Increase in fair value of biological assets [62.328m] versus 50.634m [Loss]Profit before Taxation [128.123m] versus 143.448m [Loss] Profit after Taxation [89.686m] versus 100.414m H1 EPS [11.46] versus 25.67
Commentary
Turnover increased by 29% due to higher crops. In short the outlook is gloomy
Conclusions
NAV is 272.00 but in fact is a lot higher - Buy on dips
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