Get Rich Fund now worth sh14m

The Get Rich Fund has returned and analysis shows that the fund is now worth sh13.8 million up from sh3million at the start in March 2011, a sh10.8 million growth largely due to British American Tobacco Uganda, Stanbic Bank and Jubilee Insurance shares on the Uganda Securities Exchange (USE).  

New Vision issued three individuals with a virtual sh3m to invest on the USE and Macrines Nyapendi has been the wisest investor so far as her portfolio rose to sh7.9m from sh1m. David Ssempijja also registered a healthy sh4.97million while David Mugabe's portfolio has shrunk to sh924,153. 

BATU's rise

The price per share of the British American Tobacco Uganda (BATU) shares has been spectacular, spurred by offshore interest in the company. The rally in BATU's shares started when City business mogul, Sudhir Ruparelia sold all his shares in 2013 after a profit warning for nearly twice their market value to British THS Kingsway fund. 

Sudhir made sh11.8b from the sale of 2,985,726 shares at sh4, 000 per share at a time when the shares were selling at sh2,600 per share. There has been no turning back as the shares are now worth sh26,996 per share, down from recent highs of sh30,000 per share. 

Uganda Clays Limited drop

Uganda Clays Limited has gone through a tumultuous six year period, but is showing signs of recovery. The company net losswas reduced to sh1.2b in 2015 from sh5.2b in 2014 on the back of incomes from land compensation and higher revenues. Its cost of sales fell by 8.5% year on year to sh16.4b compared to sh17.9b due to the change to a more affordable firing fuel at the large Kamonkoli factory. 

Nonetheless, its price per share of sh11 is 76% lower than the sh45 per share price at which Macrines Nyapendi purchased the shares in 2011. This has resulted in a loss of 333,330 but there seems to be light at the end of the tunnel.  

NIC drop and bonus issue

David Ssempijja and David Mugabe did not take part in the NIC rights issue but they benefitted from a bonus issue which lifted their shares to 5,893.25 and 7,856.75 respectively.  This should have resulted into more wealth for the two David's, however, negative sentiment worked against them as the NIC price per share has declined over the past six years. 

The shares are now trading at sh11 per share, down 84% from sh70 per share at the start of the fund. NIC is a much larger company than it was in March 2011. Total income rose to sh15b in 2015 from sh11.9b the year before. Comprehensive income is at sh2b from sh1.9b and a sh1 dividend per share has been announced which should see the share price increase.

Jubilee Insurance surge         

Jubilee Insurance shares are now selling for sh15,595 on average, a 480% jump from sh2,688.5 per share in March 2011 as the company continuously registered healthy return on investment. Ssempijja also benefited from two bonus issues in 2011 and in 2015. 

Stanbic Bank rise

In between May 2016 and March 2011, Stanbic Bank issued two bonus issues which increased the holdings of Mugabe from 4,362 to 34,896 shares. His wealth also increased from sh599,775 to sh837,729. 

Bank net profit advanced by 11.6% to sh150.8b from sh135.1b in 2014. This profit represents 28% of the Ugandan banking sector share up from 25% in 2011 according to statistics from Bank of Uganda. 

The Board of Directors recommended a final dividend of sh0.78 per share; the lower dividend cuts their dividend yield to 2.69% from 5.03% in 2014. The lower dividend yield shook investor confidence as the price per share fell from recent levels of sh30 per share to an average of sh24 per share. 

A report by Crested Capital warns that the banks share price could dip further due to a high interest environment and requirements for higher capital in the banking sector.