[Kictanet] Fwd: [Stock-Detective News] Alert - UCHUMI – Their Half-Way Proposition

[Bill Kagai]

---------- Forwarded message ----------
From: info <info at circuitspackets.co.ke>
Date: Jul 18, 2006 8:38 PM
Subject: [Stock-Detective News] Alert - UCHUMI – Their Half-Way Proposition
To: news at stock-detective.co.ke



'Don't worry, I will make them an offer they cannot refuse' - Don
Corleone in the God-Father.

That seems to be, what the dons in Uchumi are thinking at the moment.

The Stock-Detective has established that the Shareholders meeting for
Uchumi is as predicted on our website, scheduled for Friday, 21st July
2006 at KICC. We will not bother with the details on the time for it
will be in the press in the next few days. Let's dig into their more
interesting strategy.

Apparently, the 'big' shareholders of Uchumi have been talking to the
'management' since they do not want to see their cash go down the drain.
Their offer - They pump in more money into Uchumi to be converted into
equity...[but], they get to earn 6% interest in the new capital
injection. Apparently, 'the powers that be', did not like the 'big
shots' making this decision on their own and thus the need to call the
Friday meeting for all the shareholders.

The argument at the moment seems to be that since they stand to lose
all…they had better pump in a bit more, ensure Uchumi is profitable and
then reap in the future...albeit pegged on interest in regard to the new
capital injection. Of course, sideshows still ran paramount with antics
like Farmers Choice could not believe that their products were not in
the shelves and the MD (holed somewhere in London) summoned the
marketing guys to ensure all Uchumis stock our favourite sausages. Don't
we learn from past mistakes??

As we ponder whether CMA and NSE will accept this half-way proposition
by Uchumi big wits, why not focus on the sound business/investment to be
made here by the 'normal' shareholder?

Of course, it sounds lucrative to add more cash into Uchumi instead of
losing all. But that does not mean that you stand to lose if the
supermarket soars without your new investment. The issue really is - Is
it financially logical to pump in more money just because Government
bailed out an in-efficiently run supermarket??

Pundits argue that Uchumi has what it takes, ample parking, 'soon to be'
fully-stocked shelves and friendly customer service. But it's your money
that counts here. Is this an offer you cannot refuse??

Stock-Detective is only two weeks old and therefore feels too naive to
offer advice here. IT'S YOUR CALL!!

Reported by the 'Stock-Detective' somewhere around in Nairobi City!

Keep it here for more breaking news.

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With Kind Regards,
Bildad Kagai
MD - Circuits & Packets Communications Ltd
Content & Training Partner - JKUAT E-Government Academy
Suite B2, Tetu Apartments, State House Avenue
P. O. Box 20311 - 00200
Nairobi, Kenya
Tel. 254 20 2728332
Fax. 254 20 2726965
Cell. 254 722 379409
URL. www.circuitspackets.co.ke
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