Lonzim Share Discussion Threads

[tenapen] 15/9/2010 09:15

Anyone here ?

[cambium] 23/8/2010 15:37

good day today

[gingerplant] 20/8/2010 14:05

Today's free email from MoneyWeek mentions Lonzim in the very last paragraph:

Zimbabwe: a world leader in hyperinflation

Mention Zimbabwe to almost all investors and you'll probably get a very negative reaction. And that would be no surprise at all. It's an African state that's gone horribly wrong - and then some.

Now I'm not going to attempt even a potted political history here. That's not what Money Morning is about. But this quote from the independent Zimbabwean economist Vince Musewe, writing in MoneyWeb, just about sums it up.

After Zimbabwe got its independence in 1980, "in our naiveté we assumed we'd witness the rise and rise of a liberal and democratic social economy", he says. "With an educated populace, our expectations were that we'd inevitably become the 'intellectual' capital of Southern Africa, if not Africa. How wrong we were!".

To cut a long story short, the economy became a total disaster area. The government mismanaged things badly. The 'land grab' from white farmers ten years ago led to a collapse in food production. GDP and exports slumped, while unemployment hit a staggering 80%. The country got involved in the war in the Congo, which proved terribly expensive. And the whole place has been riddled with corruption.

Indeed the only area where Zimbabwe actually became a world leader was in its inflation rate. Or to be more precise, its hyperinflation rate.

The country had long had a nasty inflation problem. But when the government started minting money by the ton to pay its bills, the rate really took off. It reached over 100% a year in 2001. Yet the printing presses were simply cranked up even more. Arrears owed to the IMF, salary payments for public workers and soldiers - they were all paid for by simply producing more and more banknotes.

Of course, this doesn't create any more wealth. It just pushes up prices. By December 2008, the cost of living was rising at "6.5 quindecillion novemdecillion %" a year, according to Wikipedia. I'll take their word for it - but in practice, it means prices were doubling every 1.3 days.

That puts the problems of Bank of England governor Mervyn King, who's wrestling with the UK's cost of living rising at just over 3% a year, right into perspective.

Why would anyone invest in Zimbabwe?

In fact, Zimbabwe seems like it's been on a completely different planet. So why on earth, you're probably asking, would anyone want to invest good money in a country like this? Surely there's no point in even thinking about such a place?

Well, here's the surprising bit. The outlook for the country is gradually picking up. Just over a year ago, the government stopped printing the Zimbabwean dollar. Zimbabwe now allows trade in the US$ and the euro, sterling, South African rand and Botswana's pula. Inflation actually fell below zero within weeks of the move.

Sure, the inflation danger hasn't gone away. And there are still "smart" economic sanctions in place. Without getting into the politics, President Mugabe doesn't have a good reputation on the human rights front.

But the economy is starting to recover. Civil servants are being paid again, which has meant schools and hospitals could re-open. There are plans for a privatisation programme. And the economy is backed by significant mineral wealth that's yet to be exploited. It could yet realise those hopes of 30 years ago.

Now we've heard this sort of thing before about Zimbabwe. At the end of last year it was described as the "ultimate recovery story" by Ambrose Evans-Pritchard in The Telegraph. Yet the economy is still hugely dependent on imports to survive.

But this month, another reason for eyeing Zimbabwe has just appeared. Top fund manager Neil Woodford has just used over £15m of the money he manages for Invesco Perpetual, to buy a near-30% stake in a Zimbabwean firm called Masawara (LN: MASA).

The group invests in the country's agro-chemical, insurance and property sectors. It's also planning to move into oil, mining and agriculture, as well as buy privatised assets. Masawara has just floated on London's AIM market at 50p/share - the shares were trading at 54p yesterday, and 59,000 changed hands according to Bloomberg.

Should you invest in Zimbabwe?

So what should private investors make of all this? And should they follow Woodford by buying into Zimbabwe?

Of course, the Invesco Perpetual star player doesn't get it right all the time. He's backed a few wrong horses, and clearly Zimbabwe is a high risk and controversial bet that could yet go very awry.

But Woodford is no short-term punter. He's a long-run income fund investor who can sniff out a real bargain, and is prepared to give it enough time to be recognised by the rest of the market. So when he put that amount of money into somewhere as offbeat as Zimbabwe, it's enough to make me think it's worth doing likewise.

To repeat, this would be a high risk, long-term investment. It would be sensible to keep it as a relatively small part of your portfolio. But over several years it could pay off incredibly well. Remember China.

If you feel like following Woodford, but don't like the idea of Masawara, alternatively there's LonZim (LN: LZM). This deals in hotels, pharma distribution and electronic payment services, and is planning to invest in a wide spectrum of businesses in the country.

[tenapen] 15/8/2010 14:19

Masawara to float at 50p a share

Fri 13 Aug 2010
LONDON (SHARECAST) - Zimbabwe-focused investment firm Masawara is on course to join AIM on 19 August.

Masawara is raising £15.5m in a share placing at 50p a share, which values the company at £50m.

Cont....

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LZM look cheap in comparison !

[petemorr] 05/8/2010 13:11

saw this...

[tenapen] 24/7/2010 09:21

New investment policies on cards in Zimbabwe

Zimbabwe's ministry of Economic Planning and Investment Promotion is in the process of crafting new environmentally friendly investment policies that are set to enhance Zimbabwe's investment and economic standing.
Cont....

[tenapen] 21/7/2010 10:52

14 September 2009

LonZim is please to announce the appointment of Ian Colin Orr-Ewing (age 67) to the Board as a Non-Executive Director with immediate effect.

Mr Orr-Ewing is a graduate of Oxford University in Geography and has been involved in the natural resources sector for 35 years. He begun his career as an investment manager for the Shell Pension Fund in London after completing his education as a Certified Accountant. His experience covers both the oil and mining industries and he has been a director of UK and Canadian oil companies and Irish and Canadian mining companies. Currently, Mr Orr-Ewing also advises a fund management company on its natural resources portfolios. Mr Orr-Ewing also has extensive experience in international financial affairs. He was deeply involved in the oil industry from 1971 through to 1987 with numerous companies in the North Sea, Libya, Nigeria and Algeria.
END
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They have the experience at board level

[lufc5] 21/7/2010 09:17

Natural resources.....MMMMMMM......That's not like Leni....LOL

[tenapen] 21/7/2010 09:07

DOWN, 8-( I should have kept my mouth shut lol.

The Zimbabwe Situation, web site back online today.



Thursday, 08 July 2010 17:52

LONZIM, a company with interests in Zimbabwe and listed on AIM, will soon list on the ZSE, businessdigest has established.

Market sources say LonZim has approached a local corporate finance firm to assist in the listing

LonZim, an investment company focused on the recovery of Zimbabwe, has previously announced plans to list on the ZSE in the last half of this year.

Cont...

The company is considering investments in ..
tourism,
accommodation,
infrastructure,
transport,
commercial and residential property,
technology,
communications,
manufacturing,
retail,
services,
leisure,
agricultural
and natural resources sectors.
----------------------

not many sectors left ;-)

[thanksamillion] 21/7/2010 08:45

zzzzzzzzzzzzzzzzz

[tenapen] 20/7/2010 16:45

"I'm back"

A good call from Empirestate.

Fingers xxxx

[lufc5] 08/7/2010 15:18

Nice update so I jumped onboard.....that sent it up. LOL

[empirestate] 08/7/2010 10:06

looks like there is a sell order being filled here as usually this amount of buying would have improved the share price considerably more

[thanksamillion] 27/5/2010 15:41

Great news for Forgetmenot - see RNS.

[tenapen] 09/5/2010 16:22

:great:
As stated i only have a toe hold in LZM but i am watching and waiting for the revised Indig plan to be released and buy/sell on what is said.

[thanksamillion] 09/5/2010 11:31

No, tenapen, as stated earlier I am LTBH.

[tenapen] 08/5/2010 20:30

Looks like im the only one left here ! but just incase there is someone out there who as not been following the 'World Economic Forum in Africa,

[tenapen] 07/5/2010 18:54

Indian pharmaceutical firm eyes Zimbabwe market

Tuesday, 04 May 2010

Indian based pharmaceutical firm, Kumal International is discussing with local players to establish a drug manufacturing company in a move that will ease shortages in the country.

[tenapen] 06/5/2010 16:49

Zimbabwe's Mugabe joins rivals in investor appeal
Thu May 6, 2010 12:18pm GMT

Mugabe dismissed investor worries over new ownership laws which are designed to ensure that black Zimbabweans hold a stake of at least 51 percent in all companies and which have strained the unity government.

"People have said it will drive away investment. We say it won't," Mugabe said at the World Economic Forum for Africa.

"Companies have been forthcoming ... I don't think it's a painful thing for them. FORTY-NINE PERCENT IS A LOT," he told reporters.
Cont....

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He must be on the same stuff

LOL

[tenapen] 30/4/2010 09:14

Zimbabwe's DPM to lead delegation to World Economic Forum

Thursday, 29 Apr 2010

Deputy Prime Minister Arthur Mutambara will next week lead a Zimbabwe delegation of ministers, business executives and civic society leaders to the World Economic Forum on Africa that is set for Dar es salaam, Tanzania.
Cont...

"For us Zimbabwe it's a unique opportunity to go and showcase our country and say to the world and Africa that Zimbabwe is open for business.

"We will be showcasing our investment opportunities and potential as a country.

"We will be talking about opportunities in the mining sector, in the agriculture sector, in infrastructure and the manufacturing sector so that the global players, the big corporates are aware of the opportunities available in our country," he said.
Cont...

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I'll have a what he is on !

LOL

[tenapen] 21/4/2010 19:04

I noticed yesterday the Celsys last blogg had gone, It went by the title Celsys aims for $500,000 . Those days must have gone !.

[tenapen] 21/4/2010 06:58

Any comment is wellcome :-) it shows they are still there.

[cityfarmer] 20/4/2010 13:33

Leopard Rock Hotel has a new herb garden and we are up!

[tenapen] 19/4/2010 19:52

There is no hope for Zimbabwe and its poor people but The connected rich will continue to do very nicely out of this shamble. As for LZM who know ! as we have had nothing but silence from the company. The Celsys blogs have also dried up. I took out my origanal stake and just have 2,600 ish shares in this. I should have banked the profit and moved on.