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kenolkobil returns to profit in Q1 2013
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guru267
#51 Posted : Saturday, June 01, 2013 11:38:03 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
VituVingiSana wrote:
On the chairmanship, it was going to happen. He had to choose between CEO or Chairman. The CMA was on their case. And I too prefer the separation of the roles.


@VVS we all know Segman held onto those positions with no intention of letting go even after multiple requests from the CMA and some shareholders..

There is definitely a reason that the board suddenly stopped supporting his unilateral decision making! Failed corporate strategy...

Some top class managers still have the support from shareholders and the board to hold the dual role!
www.huffingtonpost.com/2...lder-vote_n_3313187.html
Mark 12:29
Deuteronomy 4:16
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VituVingiSana
#52 Posted : Saturday, June 01, 2013 12:07:05 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
guru267 wrote:
VituVingiSana wrote:
On the chairmanship, it was going to happen. He had to choose between CEO or Chairman. The CMA was on their case. And I too prefer the separation of the roles.


@VVS we all know Segman held onto those positions with no intention of letting go even after multiple requests from the CMA and some shareholders.. I did not know what you knew coz I am not privy to his inner thoughts just what I read & hear.

There is definitely a reason that the board suddenly stopped supporting his unilateral decision making! Failed corporate strategy... Though without the family's support he could not have held onto both roles.

Some top class managers still have the support from shareholders and the board to hold the dual role!
www.huffingtonpost.com/2...lder-vote_n_3313187.html Actually, there was a huge number of shareholders against JD as both Chairman & CEO but overall he 'won' so he stayed on. Perhaps, for the past 2-3 years Segman had the support of the majority of shareholding like Dimon. Don't forget Dimon made some major blunders notably the London Whale derivatives debacle. I think it was $6bn (and counting) down the tubes.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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guru267
#53 Posted : Saturday, June 01, 2013 2:32:42 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
VituVingiSana wrote:
Some top class managers still have the support from shareholders and the board to hold the dual role!
www.huffingtonpost.com/2...lder-vote_n_3313187.html Actually, there was a huge number of shareholders against JD as both Chairman & CEO but overall he 'won' so he stayed on. Perhaps, for the past 2-3 years Segman had the support of the majority of shareholding like Dimon. Don't forget Dimon made some major blunders notably the London Whale derivatives debacle. I think it was $6bn (and counting) down the tubes.
[/quote]

@VVS look at JP Morgan's share price during each scandal/crisis and how quick JD solved each of them..

You will understand why he is one of the few bankers still standing let alone holding the dual role!! Segman should borrow a leaf...


Mark 12:29
Deuteronomy 4:16
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murchr
#54 Posted : Saturday, June 01, 2013 4:05:15 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
VituVingiSana wrote:
murchr wrote:
To add to the 2 points above
3. Hedging is a gamble, a strategy that has to be mastered, one can hedge to their advantage or disadvantage. Most "financial strategists" in Kenya are accountants(as many wazuan's) and lack dearly in strategy. I agree in part with @selah...but again, Segman is not a bad CEO, I believe he is under pressure.
The strategy to go long on forex forwards was a bad idea in hindsight but when the KShs was depreciating DAILY vs the USD during the volatile 82-107 period it can throw off the smartest of folks. The appreciation to 84 was unexpected by many including many importers stuck with expensive dollars.

Hedging uncovered is gambling/speculation.


I thought hedging should protect a company from such uncertainties?
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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Aguytrying
#55 Posted : Saturday, June 01, 2013 4:32:01 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
murchr wrote:
VituVingiSana wrote:
murchr wrote:
To add to the 2 points above
3. Hedging is a gamble, a strategy that has to be mastered, one can hedge to their advantage or disadvantage. Most "financial strategists" in Kenya are accountants(as many wazuan's) and lack dearly in strategy. I agree in part with @selah...but again, Segman is not a bad CEO, I believe he is under pressure.
The strategy to go long on forex forwards was a bad idea in hindsight but when the KShs was depreciating DAILY vs the USD during the volatile 82-107 period it can throw off the smartest of folks. The appreciation to 84 was unexpected by many including many importers stuck with expensive dollars.

Hedging uncovered is gambling/speculation.


I thought hedging should protect a company from such uncertainties?


guess who wins most of the time:the hedging company, its a double edged sword, when it goes against you... massive loss. u can be sure a hedging company somewhere had a VERY good year,last year.
The investor's chief problem - and even his worst enemy - is likely to be himself
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murchr
#56 Posted : Saturday, June 01, 2013 4:41:19 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
Aguytrying wrote:
murchr wrote:
VituVingiSana wrote:
murchr wrote:
To add to the 2 points above
3. Hedging is a gamble, a strategy that has to be mastered, one can hedge to their advantage or disadvantage. Most "financial strategists" in Kenya are accountants(as many wazuan's) and lack dearly in strategy. I agree in part with @selah...but again, Segman is not a bad CEO, I believe he is under pressure.
The strategy to go long on forex forwards was a bad idea in hindsight but when the KShs was depreciating DAILY vs the USD during the volatile 82-107 period it can throw off the smartest of folks. The appreciation to 84 was unexpected by many including many importers stuck with expensive dollars.

Hedging uncovered is gambling/speculation.


I thought hedging should protect a company from such uncertainties?


guess who wins most of the time:the hedging company, its a double edged sword, when it goes against you... massive loss. u can be sure a hedging company somewhere had a VERY good year,last year.


Just like the casino
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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Kausha
#57 Posted : Monday, June 03, 2013 1:27:21 PM
Rank: Member

Joined: 2/8/2007
Posts: 808
@Mweke, Were you at the AGM or are you referring to the statement sent out.
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mwekez@ji
#58 Posted : Monday, June 03, 2013 1:56:22 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
Kausha wrote:
@Mweke, Were you at the AGM or are you referring to the statement sent out.


You clearly havent read my posts above
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mwekez@ji
#59 Posted : Monday, June 03, 2013 1:58:20 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
VituVingiSana wrote:
mwekez@ji wrote:
@VVS, and others who attended the AGM or are in the know

(i) What are the non-recurring restructuring expenses that will be incurred this year? Is KK laying off? Not mass layoffs. Retirement buy-outs, attrition via retirement/resignations, non-renewal of contracts

(ii) How much is expected to be spent on the restructuring? Not defined (or significant) but most of it provided for via pension contributions over the years.

(iii) What was said regarding NOCK buying out KK? Internal doc of NOCK. On the card for years. No offer made.

(iv) What other striking matters were discussed at the AGM? 2013 is a turnaround year. Lower volumes at higher margins. Kenya is the worst performer.



Tx @VVS. Awaiting H1 results to tell the amount/impact of the restructuring costs
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selah
#60 Posted : Monday, June 03, 2013 2:10:17 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
@Kausha & @ VVs when a Company start selling non performing assets just after making humongous Losses from a deal that went sour due to Poor risk management ...I say thats poor management.

The selling of the Non-performing assets shld be a continuous process not a strategy to shore up Dwindling profits after poor performance.

I agree with you the company is capital intensive but inventory management is key to KK success how you manage the distribution and wastage is what counts in this business.

KK needs to be ahead of ERC,they need to exploit these controls to their advantage.Playing victim will not help.

The Hedging position exposed this company to loses which I think the finance guys could have foreseen using uncomplicated models.

You might heap praise on segman but his brilliance here is a no show.


'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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