Home SK - Stocks, Property, Investment Chamas - Investment Groups BIZ - Small Business Soko - Market Wazua Life About Wazua
SIGN IN REGISTER
Tuesday, Nov 24, 2020
Investor
We’re investing funds for profit. Join us and wazua!
LATEST DISCUSSIONS
Carbacid Investments FY 2020 [4]
KCB buy buy buy [1286]
CIC Insurance 2019 [128]
Realities of Trading Bitcoin etc [1]
Why dustbowl is the future [712]
Kenya Power HY 2019 [314]
Bitcoin: Does it have a future ? [1282]
Mumias Sugar huge demand [2858]
JUBILEE HOLDINGS [54]
411 on dividend and AGM [969]
Mansa-X Fund by SIB. Anyone who has invested with ... [20]
Estimated 71 Billion Barrels... [1184]
Exchange Bar: Results forecast [2260]
Kenya Economy Watch [2567]
Equity Bank 2020 [81]
 
Forum Jump








Welcome Guest Search | Active Topics | Log In | Register

2 Pages<12
DTB Group FY 2018
Ericsson
#21 Posted : Wednesday, October 28, 2020 7:34:08 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,102
Location: NAIROBI
Tuskys has defaulted on a ksh.2.6bn loan owed to DTB
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
KaunganaDoDo
#22 Posted : Wednesday, October 28, 2020 10:34:38 AM
Rank: Member


Joined: 8/6/2018
Posts: 279
Ericsson wrote:
Tuskys has defaulted on a ksh.2.6bn loan owed to DTB


They were fooled by Tuskys about Recovery bla bla bla...Now add the 3.5 Billion they lost in Nakumatt.

So DTB has blocked Tuskys Account which has only 34'Million shillings...

Fyatu
#23 Posted : Wednesday, October 28, 2020 10:50:20 AM
Rank: Veteran


Joined: 1/20/2011
Posts: 1,781
Location: Nakuru
KaunganaDoDo wrote:
Ericsson wrote:
Tuskys has defaulted on a ksh.2.6bn loan owed to DTB


They were fooled by Tuskys about Recovery bla bla bla...Now add the 3.5 Billion they lost in Nakumatt.

So DTB has blocked Tuskys Account which has only 34'Million shillings...



Wololo yaye...in other jurisdictions like USA, someone would have been jailed for 350 years without bail/bond
Dumb money becomes dumb only when it listens to smart money
VituVingiSana
#24 Posted : Wednesday, October 28, 2020 10:56:38 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,314
Location: Nairobi
KaunganaDoDo wrote:
Ericsson wrote:
Tuskys has defaulted on a ksh.2.6bn loan owed to DTB


They were fooled by Tuskys about Recovery bla bla bla...Now add the 3.5 Billion they lost in Nakumatt.

So DTB has blocked Tuskys Account which has only 34'Million shillings..
Laughing out loudly Laughing out loudly Laughing out loudly Even though I have some DTB shares, I find this rather amusing. After losing 3.5bn in Nakumatt, you give 2.6bn to its sibling in crime? Laughing out loudly
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
KaunganaDoDo
#25 Posted : Wednesday, October 28, 2020 12:19:06 PM
Rank: Member


Joined: 8/6/2018
Posts: 279
VituVingiSana wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Tuskys has defaulted on a ksh.2.6bn loan owed to DTB


They were fooled by Tuskys about Recovery bla bla bla...Now add the 3.5 Billion they lost in Nakumatt.

So DTB has blocked Tuskys Account which has only 34'Million shillings..
Laughing out loudly Laughing out loudly Laughing out loudly Even though I have some DTB shares, I find this rather amusing. After losing 3.5bn in Nakumatt, you give 2.6bn to its sibling in crime? Laughing out loudly


So DTB is really in the thick of things...They gave out the money in July 2020 when Tuskys was doing PR campaign, even Vimal Shah was the one of the guests in the PR show....Equity Bank has 280M debt also...

Meanwhile Tuskys has about 3.1 Billion in loans and 6.9 B in suppliers debt...against no Asset just the name...
winmak
#26 Posted : Wednesday, October 28, 2020 3:14:30 PM
Rank: Member


Joined: 12/1/2007
Posts: 520
Location: Nakuru
KaunganaDoDo wrote:
VituVingiSana wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Tuskys has defaulted on a ksh.2.6bn loan owed to DTB


They were fooled by Tuskys about Recovery bla bla bla...Now add the 3.5 Billion they lost in Nakumatt.

So DTB has blocked Tuskys Account which has only 34'Million shillings..
Laughing out loudly Laughing out loudly Laughing out loudly Even though I have some DTB shares, I find this rather amusing. After losing 3.5bn in Nakumatt, you give 2.6bn to its sibling in crime? Laughing out loudly


So DTB is really in the thick of things...They gave out the money in July 2020 when Tuskys was doing PR campaign, even Vimal Shah was the one of the guests in the PR show....Equity Bank has 280M debt also...

Meanwhile Tuskys has about 3.1 Billion in loans and 6.9 B in suppliers debt...against no Asset just the name...


Govt should just criminalize this 'consignment model' of running retail stores
For investors as a whole, returns decrease as motion increases ~ WB
Ericsson
#27 Posted : Wednesday, October 28, 2020 7:27:54 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,102
Location: NAIROBI
winmak wrote:
KaunganaDoDo wrote:
VituVingiSana wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Tuskys has defaulted on a ksh.2.6bn loan owed to DTB


They were fooled by Tuskys about Recovery bla bla bla...Now add the 3.5 Billion they lost in Nakumatt.

So DTB has blocked Tuskys Account which has only 34'Million shillings..
Laughing out loudly Laughing out loudly Laughing out loudly Even though I have some DTB shares, I find this rather amusing. After losing 3.5bn in Nakumatt, you give 2.6bn to its sibling in crime? Laughing out loudly


So DTB is really in the thick of things...They gave out the money in July 2020 when Tuskys was doing PR campaign, even Vimal Shah was the one of the guests in the PR show....Equity Bank has 280M debt also...

Meanwhile Tuskys has about 3.1 Billion in loans and 6.9 B in suppliers debt...against no Asset just the name...


Govt should just criminalize this 'consignment model' of running retail stores


The cartels won't agree.
Kenya is a man eat man society
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#28 Posted : Thursday, October 29, 2020 6:53:13 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,314
Location: Nairobi
winmak wrote:
KaunganaDoDo wrote:
VituVingiSana wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Tuskys has defaulted on a ksh.2.6bn loan owed to DTB


They were fooled by Tuskys about Recovery bla bla bla...Now add the 3.5 Billion they lost in Nakumatt.

So DTB has blocked Tuskys Account which has only 34'Million shillings..
Laughing out loudly Laughing out loudly Laughing out loudly Even though I have some DTB shares, I find this rather amusing. After losing 3.5bn in Nakumatt, you give 2.6bn to its sibling in crime? Laughing out loudly


So DTB is really in the thick of things...They gave out the money in July 2020 when Tuskys was doing PR campaign, even Vimal Shah was the one of the guests in the PR show....Equity Bank has 280M debt also...

Meanwhile Tuskys has about 3.1 Billion in loans and 6.9 B in suppliers debt...against no Asset just the name...

Govt should just criminalize this 'consignment model' of running retail stores
The "Consignment Model" is common and makes sense for retailers. The retailer doesn't want to be stuck with slow moving goods whereas the seller/importer/manufacturer finds a place to sell his goods.

Without the consignment model, a retailer may choose to stock what is guaranteed to move vs try new brands or products.

The weakness lies in the corporate governance and laws. There are contracts in place and they should be adhered to but that's where the problem starts. Going to court is expensive and takes ages.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
winmak
#29 Posted : Thursday, October 29, 2020 6:30:26 PM
Rank: Member


Joined: 12/1/2007
Posts: 520
Location: Nakuru
VituVingiSana wrote:
winmak wrote:
KaunganaDoDo wrote:
VituVingiSana wrote:
KaunganaDoDo wrote:
Ericsson wrote:
Tuskys has defaulted on a ksh.2.6bn loan owed to DTB


They were fooled by Tuskys about Recovery bla bla bla...Now add the 3.5 Billion they lost in Nakumatt.

So DTB has blocked Tuskys Account which has only 34'Million shillings..
Laughing out loudly Laughing out loudly Laughing out loudly Even though I have some DTB shares, I find this rather amusing. After losing 3.5bn in Nakumatt, you give 2.6bn to its sibling in crime? Laughing out loudly


So DTB is really in the thick of things...They gave out the money in July 2020 when Tuskys was doing PR campaign, even Vimal Shah was the one of the guests in the PR show....Equity Bank has 280M debt also...

Meanwhile Tuskys has about 3.1 Billion in loans and 6.9 B in suppliers debt...against no Asset just the name...

Govt should just criminalize this 'consignment model' of running retail stores
The "Consignment Model" is common and makes sense for retailers. The retailer doesn't want to be stuck with slow moving goods whereas the seller/importer/manufacturer finds a place to sell his goods.

Without the consignment model, a retailer may choose to stock what is guaranteed to move vs try new brands or products.

The weakness lies in the corporate governance and laws. There are contracts in place and they should be adhered to but that's where the problem starts. Going to court is expensive and takes ages.


Clearly in Kenya it is being abused.

Pardon my rudimentary understanding of complex businesses but if you are going to take some form of credit (corporate bond, commercial loan), shouldn't there be some form of asset backing? that the lender can resort to in case of default? Can't the regulator insist on a fraction of their profits be used to have fixed assets so that in future access to secured credit is easier?
For investors as a whole, returns decrease as motion increases ~ WB
VituVingiSana
#30 Posted : Friday, October 30, 2020 2:50:15 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,314
Location: Nairobi
Loans come in ALL shapes and sizes. It all depends on the Lender and the Borrower.

From zero collateral e.g. Fuliza to heavily collateralized e.g. real estate loans/mortgages. Even then there are issues for the latter!

What hard assets would a bank e.g. DTB collateralize when Tuskys probably rents/leases the stores, furniture and buys goods on credit?

The "regulator" - who would that be? - can enact rules based on laws but there are issues with that too. Who should be regulated?
The supermarkets?
Which ones?
Which size?
Who will monitor that?

As they say, do check out who you go into business with!

Perhaps it is time for a group of "suppliers" to start their own supermarket chain. Not easy though!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Fyatu
#31 Posted : Friday, October 30, 2020 8:05:30 AM
Rank: Veteran


Joined: 1/20/2011
Posts: 1,781
Location: Nakuru
VituVingiSana wrote:
Loans come in ALL shapes and sizes. It all depends on the Lender and the Borrower.

From zero collateral e.g. Fuliza to heavily collateralized e.g. real estate loans/mortgages. Even then there are issues for the latter!

What hard assets would a bank e.g. DTB collateralize when Tuskys probably rents/leases the stores, furniture and buys goods on credit?

The "regulator" - who would that be? - can enact rules based on laws but there are issues with that too. Who should be regulated?
The supermarkets?
Which ones?
Which size?
Who will monitor that?

As they say, do check out who you go into business with!

Perhaps it is time for a group of "suppliers" to start their own supermarket chain. Not easy though!



Did DTK write-off Nakumatt loan from its books? forgive my ignorance
Dumb money becomes dumb only when it listens to smart money
VituVingiSana
#32 Posted : Friday, October 30, 2020 4:37:15 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,314
Location: Nairobi
Fyatu wrote:
VituVingiSana wrote:
Loans come in ALL shapes and sizes. It all depends on the Lender and the Borrower.

From zero collateral e.g. Fuliza to heavily collateralized e.g. real estate loans/mortgages. Even then there are issues for the latter!

What hard assets would a bank e.g. DTB collateralize when Tuskys probably rents/leases the stores, furniture and buys goods on credit?

The "regulator" - who would that be? - can enact rules based on laws but there are issues with that too. Who should be regulated?
The supermarkets?
Which ones?
Which size?
Who will monitor that?

As they say, do check out who you go into business with!

Perhaps it is time for a group of "suppliers" to start their own supermarket chain. Not easy though!



Did DTK write-off Nakumatt loan from its books? forgive my ignorance

Most banks do not directly comment on specific loans or clients so I cannot answer this for certain BUT in short it should have been provisioned. I assume they provisioned 100% after Nakumatt went into bankruptcy.

A write-off is technically different.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Fyatu
#33 Posted : Friday, October 30, 2020 6:46:27 PM
Rank: Veteran


Joined: 1/20/2011
Posts: 1,781
Location: Nakuru
VituVingiSana wrote:
Fyatu wrote:
VituVingiSana wrote:
Loans come in ALL shapes and sizes. It all depends on the Lender and the Borrower.

From zero collateral e.g. Fuliza to heavily collateralized e.g. real estate loans/mortgages. Even then there are issues for the latter!

What hard assets would a bank e.g. DTB collateralize when Tuskys probably rents/leases the stores, furniture and buys goods on credit?

The "regulator" - who would that be? - can enact rules based on laws but there are issues with that too. Who should be regulated?
The supermarkets?
Which ones?
Which size?
Who will monitor that?

As they say, do check out who you go into business with!

Perhaps it is time for a group of "suppliers" to start their own supermarket chain. Not easy though!



Did DTK write-off Nakumatt loan from its books? forgive my ignorance

Most banks do not directly comment on specific loans or clients so I cannot answer this for certain BUT in short it should have been provisioned. I assume they provisioned 100% after Nakumatt went into bankruptcy.

A write-off is technically different.


Thanks bwana @VVS. I am inside this bus and i don't like the Tusky's dossier even one bit. Nakumatt, Imperial and Chasebank collapse really messed up the financial markets sana sana some listed firms that held their commercial paper.

A Tusky's collapse could be fatal to some suppliers...
Dumb money becomes dumb only when it listens to smart money
VituVingiSana
#34 Posted : Saturday, October 31, 2020 1:50:26 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,314
Location: Nairobi
@Fyatu - The past is the past so for now forget about what price you bought the shares.

Let's look at the current price of 62/-.

At 62/-, the market has fully discounted DIRECT and KNOWN losses from Nakumatt and Tuskys.

Mambo za watu wengine, as much as it hurts, is not an issue for DTB shareholders UNLESS they owe money to DTB. What DTB needs to do is investigate those who have borrowed from DTB and are stuck with Tuskys debt.

E.g. Acme Limited supplied Widgets to Tuskys. Acme borrowed 1mn, imported raw materials and manufactured widgets it sent to Tuskys. Tuskys owes Acme 1mn and is not paying. Ouch.

DTB needs to follow up with Acme but also NPL the 1mn if Acme is struggling to pay. Acme may pay, but slowly from Acme's profits from sales to Carrefour, so there may not be a need to provision the full 1mn.

NPLs = There is a possibility of the loan going bad. A balance sheet item.

Provision = A certain % of the loan has gone bad or very likely to go bad. BUT the bank can wait patiently, restructure/renegotiate or go to court for breach. It shows up on the P&L and Balance Sheet (Look under Disclosures)

Write-off = Bank has given up. It cleans up the Balance Sheet. There is no "loss" on the P&L but the Balance Sheet shrinks.

*There are accounting conventions.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#35 Posted : Saturday, October 31, 2020 10:44:40 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,102
Location: NAIROBI
DTB 2020
Q1--2.95bn
Q2--1.53bn
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Users browsing this topic
Guest
2 Pages<12
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Home | . .. Investor | .. . Groups | .. . SME | . . . Market | .. . Club SK | . ..... About Wazua | . .. Search | . ..Sitemap | . ..Support | . ..Disclaimer | . ..Privacy Policy | . ..Terms of Use | . .. Contact Us
Copyright © 2020 Wazua.co.ke. All Rights Reserved.