mjuaji wa stocks wrote:@all....waaa...what suprises me is the reaction / comments by some investors in this forum!!
I from this comments conclude that most people here are either speculators or otherwise...
When it comes to kk .... i agree 100% with vitu vingi sana....kk will be fine.
The reason as to why this is happening is just because nyoike and other corrupt goons at ERC and MoE are bend to break the law and offer themselves .....you know what.
who was there when triton took away 8billion worth oil....nyoike; kiraitu et al....have the monkeys changed?...no.
kk as i said in another thread should stick to its guns and if possible shoot this guys in their feet...
The good thing this time round is that kk has the law in their favour....if the law is to be follwed kk will get the damages paid!!
If not....i see not fear...kk will pay the money being demanded and we go on....this cant bankrupt us as shareholders....lakini hii possibility ( for kk to pay them) is impossible!!!
I keep buying more of kk....because i believe in the management ...i understand their business and .... their fundamentals are ok.
LOOK AT WHAT WARREN BUFFET DID WITH GOLDMAN SACHS...later on Goldman had issues....lakini sasa goldman iko aje.....then if you are an investor....speak like one!!!
Boss, with all due respect, perhaps u don't understand the word "margin of safety" I remember once when it was jes myself and Gordon gekko who were shouting ourselves hoarse about kk being a good buy at 46, most of you guys came in after the waves were getting to their peak. I think it's either correctly valued at the moment or a tad bit overvalued(again, the jury is still out on the word "valuation"). I bailed out simply because:(again according to me)
A. It's correctly/slightly overvalued at 10ish
B. Too much drama, I do know that they are right in this matter, but they should be concentrating on business. If I were kk management, I would first secure operations then fight it in court....this maintains continuity of business. Right now, I'm sure they have lost more that the 472m or whatever in lost business, demurrage, legal fees, lost man hours Etc.
C. I prefer businesses like Carbacid, high margins, monopolistic, non-utility types and that is not because of any govt favors, their position is coz of their moat, resources, contracts etc Linde group BOC, has found this a tough nut to crack, again, if u went to BOCs agm, u would realize that they were avoiding the CO2 question.Which continues on my next point,
D. Due their poor margins again due to high competition. They barely manage 2% on averege, at 46bob, margin of safety to cover(counter for me, the investor) these low margins. Again compare to Carbacid which has net margins of over 40%, that means shareholders get to "keep" over 40% of the turnover. Btw KK has the highest turnover in Kenya at close to $2B. But sadly, most of it is not retained coz of the industry. Again to quote Buffet(since I figure u like him)
"when a management known for it's brilliance tackles a business with a reputation for bad economics, it's usually the reputation of the business that remains intact.
Disclaimer: these are only my views, I ain't saying ur wrong, I'm jes saying....