mkonomtupu wrote:
it's cheaper and easier to obtain debt financing than equity financing. Do you expect Kenya power shareholders to give 32 billion each year to finance expansion? Can't happen, won't happen. A company must look for the optimal capital structure mixing debt and equity. Kenya power and kengen are retirement stocks just pick them up in small bits no hurry
RUN! The debt is just too much, unless its how one wants to help in building the economy by being a shareholder.
Unlike ARM where they have high debt/debt instrument but the equity side doesnt suffer like in KPLC, Kengen. Its just throwing money away unless serious shareholder focussed management of these firms starts.
The investor's chief problem - and even his worst enemy - is likely to be himself