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| Posted By: hassabu Posted On: May 26, 2002 Views: 599 | Let us cherish our common factor!!! Subject: Let us cherish our common factor!!! Seen, heard and get tired....no wonder it was and is so monotonous! We've wasted enough time on topics that might not bring a tangible change to everday people, at least in the near future. Let us have a shift of pardigm... is it not possible to work with the goverment of the day? by keeping our political differences aside just for the betterment of our beloved borthers, sisters, and by inlarge to the country. In such buring issues: the likes of campigns aginst Hiv/Aids, famine, and venturing ones expertise in areas where there is few or none expert exists in the country. I think it is time to entertain this kind of constructive ideas, rather than taking a ubquitous stand and not taking part in any of the socio-economical arena of the country. Dear fellows, regims comes and goes, but Ethiopia shall live forever! The question is can we play a role? Let us jot down areas where these could be realised. |
| Posted By: investor Posted On: May 27, 2002 Views: 595 | RE: Let us cherish our common factor!!! How to take part in Ethiopia. Lets say Brick Company worth 5.1 million birr. The easy way to sale this company is to sale it to million local investors instead of looking for one rich investor. How we can sale Brick Company to million local investors. Lets divided 5.1 million birr share in to 10,000 share that worth 510 birr. Now it is easy to find local investor that can invest only as little as 510 birr or as big as 5.1 million birr [if we find one]. The good part is if I invest 510 birr in Brick Proudct S.Co. Today and want to sale my share tomorrow the other 10,000 shareholder are not going to be affected. All I should do is find someone to buy my share. Selling my share doesn't affect the Brick Product co. In this way Brick co. share might be sold and bought million time over without affecting Brick co, operation or management. Who can handle this job any bank should handle this job. In Canada bank underwrite those share. What underwrite means EPA should not sit and wait for 10,000 investor to buy Brick Product. Any Bank should underwrite Brick Product co. share that means a local bank will pay 5.1 million birr on spot to EPA and EPA job will be done with in a second. Once the bank underwrite Brick Product co. the local bank will notified local investor to invest a little as 510 birr or as big as 5.1 million birr. Lets assume after one year Brick product co. making profit and worth 10.2 million birr that means my 510 birr share worth 1200 birr. The local bank every day post the rate for selling or buying Brick product co. share if people think next year Brick Product worth 3000 birr then they might be willing to pay 2000 birr instead of 1200 birr so the cycle of selling and buying will go forever. One more thing if Brick product lose money 510 birr share might go down or even lose everything but one investor only lose the amount of 510 birr only. If some one put 1000 dollars in the bank. He might get the interest only 10% which is 100 dollars. But if someone invested 1000 get even 200 dollars that means the share company paying you interest rate of 20% this means if someone put 2000 dollars in bank he only get 10% of interest therefore he might be willing to pay 2000 dollars for Birck company and asuming it as if it pay out 10% interest pluse the hope of geting more interest depend on how Birck does in future. This way almost 100,000 Ethiopia in Ameirca and in Canada could have take part in 1000 dollars investment bank only pay interest of 2% then it would be in the best interest of all Ethiopian to invest in Ethiopia and get back 10% Even if the share company pay 20% interest it would be proftiable even to take visa low interest loan and invest in Ethiopia and get 20% and pay 10 up 18% interest the visa loan you take. |
| Posted By: NEWETHIOPIA Posted On: Jun 3, 2002 Views: 576 | RE: Let us cherish our common factor!!! It's a great idea, investor. But in a country, where there is no capital market, investment banking can't be done. The private banks are weak to engage in these types of activities and CBE, just like any govt. owned enterprise, is slow to change. Also, most of these companies are old and need heavy cash infusion for modernization. This can only be done through a majority shareholder with expertise(eg. making brick) to make it more competetive and thus attract investors. A majority shareholder with also bring stability and provide confidence for the 'little investor'. I think if EPA concentrates in selling a stake(to be later divested to the public) rather than engage in 'take it or leave it' basis, it might quicken the privatization process and also provide ownership to the Ethiopian public. That's what is needed to create a market and develop investment banking. |
| Posted By: Terramed Posted On: Aug 5, 2002 Views: 539 | RE: Let us cherish our common factor!!! Come On Guys : hassabu , Investor , new Ethiopia come back don't dry up the forum there is no new ETHIOPIA without it's children new idea. - the Brick co. thruogh share holdres was a great idea. - But we saw that can't be done without a strong underwriter financial co. - And then we progress to 2nd idea that is to elaborate own exprtise to make our brick through majority holding co. Sel the brick to open market, attract local investor by creating value and trust. It sound great if I red you right Guys. I Beleive you know somthing, I'm eager to hear some more from you. The old saying teach us that thousands mile start just under your feet. thanks |