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Kenya Airways...why ignore..
Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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Museveni wrote:
Summary
~
Experts say the airline could pay up to Sh14 billion in VAT for the six
Boeing 787 Dreamliners and a Boeing 777-300 ER expected to arrive
before the end of the year.
~ VAT poses a new challenge to the airline’s operations at a time it is
struggling with high fuel costs, a dip in passenger numbers on some
routes due to Kenya’s security concerns and stiff competition in the
market.
~ Parliament last month introduced VAT on aeroplanes weighing more than
2,000 kilogrammes.
As usual. Cries of "serikal saidia" to bail out a crapy management.  ..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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Rank: Member Joined: 5/6/2014 Posts: 268 Location: Nairobi, Kenya
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To expect an excellent 2013 is a tall order. But trust @Obiero especially if your target is 2015, a very high revenue target is being set, Several staff being trained on sales, Jambojet success, Greenfield, expected new ceo, etc. The expectation of poor numbers could drive price down slightly, but could spark a huge demand based on discount opportunity or when the dust settles, just like EABL (is it because they share a board member?). @alykhansatchu doesn't refer to a stock as undervalued in vain. "Kenya Airways' commercial director steered FY earnings expectations higher and towards a FY profit and this is yet to be reflected in the price. - See more at: http://www.the-star.co.k...ash.5C1Mldfv.dpuf"
Disclaimer: I own a few KQ shares @ 12.30
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Rank: Chief Joined: 1/3/2007 Posts: 18,370 Location: Nairobi
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Akenyan2014 wrote:To expect an excellent 2013 is a tall order. But trust @Obiero especially if your target is 2015, a very high revenue target is being set, Several staff being trained on sales, Jambojet success, Greenfield, expected new ceo, etc. The expectation of poor numbers could drive price down slightly, but could spark a huge demand based on discount opportunity or when the dust settles, just like EABL (is it because they share a board member?). @alykhansatchu doesn't refer to a stock as undervalued in vain. "Kenya Airways' commercial director steered FY earnings expectations higher and towards a FY profit and this is yet to be reflected in the price. - See more at: http://www.the-star.co.k...ash.5C1Mldfv.dpuf"
Disclaimer: I own a few KQ shares @ 12.30 Ask yourself: Does AKS have shares in KQ? Does KQ provide him with a stream of income e.g. website ads? Does the Finance Director have substantial shares in KQ? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,370 Location: Nairobi
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Akenyan2014 wrote:Greetings, I have been a follower of wazua for a while, finally I have a membership ID. I agree with most arguments in the forum but on this one I think KQ is not paying the 14B in one lumpsum.They are getting 1 a/c every month and a new plane takes 2 to 3 months to go in service. That means by the time they acquire their 3rd aircraft they will already be generating revenues from the planes first bought(at lower fuel costs). Factoring this it is possible to fund VAT from those revenues without hurting the overall company financial position. Ndege zitajilipa, Kwani how do 'matatu' fleets come about? What I do not understand is how the share price will be in case the company comes out of loss making in June. Anybody? A plane [787 & 777] costs $100-300mn and whose 'lives' can be 20 years. 16% of 100mn = 16mn so it is highly unlikely that a plane delivered 3 months ago has generated enough cash/profit to pay the VAT of a new plane. Furthermore, these planes have been bought with borrowed funds so KQ has to pay the monthly instalments and other fixed and variable expenses before having 'cash' to be used to make VAT payments for new planes. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 8/16/2012 Posts: 661
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VituVingiSana wrote:Akenyan2014 wrote:To expect an excellent 2013 is a tall order. But trust @Obiero especially if your target is 2015, a very high revenue target is being set, Several staff being trained on sales, Jambojet success, Greenfield, expected new ceo, etc. The expectation of poor numbers could drive price down slightly, but could spark a huge demand based on discount opportunity or when the dust settles, just like EABL (is it because they share a board member?). @alykhansatchu doesn't refer to a stock as undervalued in vain. "Kenya Airways' commercial director steered FY earnings expectations higher and towards a FY profit and this is yet to be reflected in the price. - See more at: http://www.the-star.co.k...ash.5C1Mldfv.dpuf"
Disclaimer: I own a few KQ shares @ 12.30 Ask yourself: Does AKS have shares in KQ? Does KQ provide him with a stream of income e.g. website ads? Does the Finance Director have substantial shares in KQ? + trust no one + Not even @Obiero.. Set yourself targets. Soft ones. One step at a time. Do not lust after that carrot.. the distance to the mouth is almost always constant. Live and learn; and don’t forget, nothing ventured, nothing gained.
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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Some of these planes are leased, which is a much better deal as they avoid vat issues and lease expenses are deductible. See last para http://t.co/4WEFzKlLuc
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Rank: Member Joined: 5/6/2014 Posts: 268 Location: Nairobi, Kenya
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Museveni wrote:VituVingiSana wrote:Akenyan2014 wrote:To expect an excellent 2013 is a tall order. But trust @Obiero especially if your target is 2015, a very high revenue target is being set, Several staff being trained on sales, Jambojet success, Greenfield, expected new ceo, etc. The expectation of poor numbers could drive price down slightly, but could spark a huge demand based on discount opportunity or when the dust settles, just like EABL (is it because they share a board member?). @alykhansatchu doesn't refer to a stock as undervalued in vain. "Kenya Airways' commercial director steered FY earnings expectations higher and towards a FY profit and this is yet to be reflected in the price. - See more at: http://www.the-star.co.k...ash.5C1Mldfv.dpuf"
Disclaimer: I own a few KQ shares @ 12.30 Ask yourself: Does AKS have shares in KQ? Does KQ provide him with a stream of income e.g. website ads? Does the Finance Director have substantial shares in KQ? + trust no one + Not even @Obiero.. Set yourself targets. Soft ones. One step at a time. Do not lust after that carrot.. the distance to the mouth is almost always constant. @VituVingiSana, @Museveni, I have no idea of AKS's and FD's stake. All I remember is cheering guys to buy EABL at abt 220 recently and telling guys SCOM had a future when everybody was running away. Look at the two titans now !!! My objective was to find out if there is any future in this stock to inform my exit or continued stay.
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Rank: Elder Joined: 6/23/2009 Posts: 14,307 Location: nairobi
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huyo mtu amesema KRA itashika KQ planes for any eventual default, must be living in Utopia.. those who saw KCB on its knees in 2004 as a loss making firm know what I am talking about COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 6/23/2009 Posts: 14,307 Location: nairobi
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Akenyan2014 wrote:Museveni wrote:VituVingiSana wrote:Akenyan2014 wrote:To expect an excellent 2013 is a tall order. But trust @Obiero especially if your target is 2015, a very high revenue target is being set, Several staff being trained on sales, Jambojet success, Greenfield, expected new ceo, etc. The expectation of poor numbers could drive price down slightly, but could spark a huge demand based on discount opportunity or when the dust settles, just like EABL (is it because they share a board member?). @alykhansatchu doesn't refer to a stock as undervalued in vain. "Kenya Airways' commercial director steered FY earnings expectations higher and towards a FY profit and this is yet to be reflected in the price. - See more at: http://www.the-star.co.k...ash.5C1Mldfv.dpuf"
Disclaimer: I own a few KQ shares @ 12.30 Ask yourself: Does AKS have shares in KQ? Does KQ provide him with a stream of income e.g. website ads? Does the Finance Director have substantial shares in KQ? + trust no one + Not even @Obiero.. Set yourself targets. Soft ones. One step at a time. Do not lust after that carrot.. the distance to the mouth is almost always constant. @VituVingiSana, @Museveni, I have no idea of AKS's and FD's stake. All I remember is cheering guys to buy EABL at abt 220 recently and telling guys SCOM had a future when everybody was running away. Look at the two titans now !!! My objective was to find out if there is any future in this stock to inform my exit or continued stay. bro/sis.. kama unauza uza. usichanganyike COOP, IMH, KEGN, KQ, MTNU
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Rank: Chief Joined: 1/3/2007 Posts: 18,370 Location: Nairobi
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Gordon Gekko wrote:Some of these planes are leased, which is a much better deal as they avoid vat issues and lease expenses are deductible. See last para http://t.co/4WEFzKlLuc I may be mistaken but I think Leases [long-term that are essentially like Hire-Purchase] attract VAT. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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