Diamond: BUY Zimbabwe
Diamonds & Dogs picks up from where Bullish Thoughts left off the Buy
Zimbabwe discussion. He does not apologise for repeating this topic! Unusual
situations do call for unusual measures.
In fact, Diamonds
& Dogs would like to thank Bullish Thoughts for the provoking point regarding
Buy
Zimbabwe Campaign. It is true that Zimbabweans are enemies to
themselves.
We are
selfish, period! The big companies are even more selfish than small and medium
companies.
Diamonds
& Dogs emphasizes that there is need to raise the Buy Zimbabwe argument
higher and establish the cost of unemployment to our nation
Zimbabwe.
Consumers
have divergent views but surely no rational person should expect that Zimbabwe,
a land-locked country have comparable costs
with those countries who have access to
oceans.
Even Rhodesia
allowed up to 20% price difference
of locally produced and imports in favor
of locally produced product.
On the
extreme, one can conclude that not to support locally manufactured goods is
treason of highest order.
We need to also educate each other that buying foreign goods is killing jobs for our families and
leading to the export of our own children to become slaves in foreign countries.
Government needs steel balls…
There should be strong will from the Government lest there be no progress at
all. Someone comes in with a brilliant idea of banning unnecessary imports like flour, margarine, chicken ofals (chicken ofals…please!!)
and even whole chickens and the next thing because some DJs and commentators have said it’s a bad thing after getting calls
from some loafers (most of them good for nothing), the
ministers reverse decisions on duty.
The country does not need short
term policies but policies that benefit us in the long run. There should be
quotas on most commodities, that is
how the EU and USA survive.
And we want to say it’s backward for Zimbabwe to be protectionist? These
are difficult times and they call for hard decisions.
Manufacturers are coming to the party committing to shave off some margins and meet consumers half way.
Diamonds & Dogs rolls the ball into your court. Are you buying
Zimbabwe products for the next 33 days
to make a difference?
Diamonds & Dogs has already started.
Dog: Colcom (24c, YTD: -32.41%, Market Cap $39,776,125)
Diamonds & Dogs tends to see to many conspiracy movies like Wall
Street by Michael Douglas perhaps!
Unfortunately, that’s just the way he is wired.
The Colcom share price collapsed
a few weeks ago to 22c, a 27% decline in one trading session.
Many analysts or at least market watchers will be aware that Colcom had
almost established a support level at
30c. Or let’s just say 26c lately…or
the past few weeks that is.
It had been like that for a long time…30c, 30c, 30c, 30c, 30c!!!!!
Then it happened on 22 October…the share price collapsed from 30c to 22c!
Diamonds & Dogs could tell something was wrong…no sane person is not
worried when Delta price is to say collapse
from 93c to 80c in one trading session. Not that Colcom is a lot like Delta,
but it was perceived to be a fairly & reasonably managed company
and a stable one too.
After all what would go wrong in a business model just meant to kill as many pigs as possible and let as many Zimbos as possible eat the swine
meat products!
However after weeks of rumor mongering about
shenanigans at Innscor-Colcom, the latter finally came to the market with a
cautionary advising shareholders that “it
had come to the attention of the board” that the control and governance
environment of the company had been compromised and the board had initiated a
forensic audit.
Fair and fine! The come Sunday and the papers were
saying the FD was arrested over a $16,500 fraud. Seriously! Engaging a forensic
audit that will cost upwards of $50,000 to investigate a $16,500 fraud?
Diamonds & Dogs feels there was too much PR from the Colcom spin doctors.
Anyway, the rumor mill which broke the story long
back has it that the real embezzlement could be somewhere around $3m orchestrated
through the procurement channels, etc. Not much of a surprise though…just that
the quantum of the loot was a bit on the high side this time!
Shareholders be very scared…there might not be cash
for dividend payout!
Invest Wisely!
Notes
**The author of this report does not hold shares in any of the companies
discussed/ mentioned in this report.
Bulls n Bears
|
|
CONFIDENTIALITY NOTE:
This
message is intended for the addressee only, as it contains information that is
privileged, private and confidential. If you are not the intended recipient of
this message, you are notified that any distribution, use of copying of this
communication is strictly prohibited. If you have received this communication
in error, please notify the sender immediately. Bullish Thoughts, Diamonds
& Dogs and Bulls n Bears are products of Faith Capital (Pvt) Ltd. Faith
Capital (Pvt) does not and cannot warrant the information sent via electronic
mail or results obtained by using this information. This report has been
prepared by Faith Capital (Pvt) Ltd for general information purposes only and
does not constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has been
compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Faith Capital nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other Indices quoted herein are for
guideline purposes only and sourced from third parties.
No comments:
Post a Comment