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Kenya Airways...why ignore..
Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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Mart_Consult wrote:Akin to when one arrives for a party too early (before it's scheduled start, has to help with the setup by default despite not being part of the hosts)...others arrive right on time (everything's ready)...and some more after the start of the party (the good times have already begun)...my analogy? KQ's share price = the party... Enjoy the party, before the repo man comes over to repossess the chairs, tables, TV and boom-box. The parents [GoK & KLM] may step in to bail you out but the kids will be left penniless. As @kausha says, all one had to do was read the signs. End of year in Sep. With the losses occasioned by suspension of flights to parts of West Africa [if ebola continues raging then all of W.Africa] the flights to China/India/Dubai will go half-full. No pax, no cargo = No profits =  Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2010 Posts: 2,220 Location: Sundowner,Amboseli
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Investing in KQ is what @Hisah would call ulcers central. You have to track the oil prices,tourism numbers,ebola updates,terrorism,politics,macro economic indicators eg. KES strength,inflation numbers,interest rates,fears of a plane being brought down,glaciers in Europe,upcoming rights issues,employee strike notices etc etc. Good luck to the diehards!! @SufficientlyP
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Kausha wrote:GoK bail out on the near horizon. @Obiero run for dear life or borrow cold Tusker's case notes to launch another anti dilution suit against the BOD. Bail out before end of December 2015, a crystal ball showed me this during the last rights issue 2-3 yearsnago.
Wrong approach @Kausha. This is the time to sit tight. If @Obiero believes in KQ this is his time to buy. The investors who should be worried are those buying shares with PE of 20 and above. KQ is not exactly a basket case. With the expansion and acceptance of air travel in Africa, GOK positioning JKIA as regional hub, KQ positioning itself as a leading operator in Africa, the future is bright. This is not to say I have total confidence in KQ (due to the generally unprofitable nature of the airline industry) but I will have a small amount of my portfolio, not more than 10% in KQ. Life is short. Live passionately.
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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VituVingiSana wrote:kollabo wrote:VituVingiSana wrote:obiero wrote: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 "Huyo Mtu" ... Kwani? Anyway, there is little benefit in GoK saving KQ with a 'loan' after KRA [with GoK's blessings] brings KQ down. As an EXISTING shareholder you do not benefit from GoK (vs Opportunity Cost) in your business as a savior. To counter your KCB, "Huyo Mtu" refers you to KPLC. GoK hobbled KPLC by imposing managers [Samuel Gichuru], GoK departments not making payments, Rural Electrification and not allowing KPLC to recover its costs so leading it into bankruptcy. GoK then lent KPLC money and converted some loans into Preference Shares which were then converted into Ordinary Shares with 51% ownership by GoK. Immediately after the Rights Issue, GoK refused a triennial rate increase which KPLC was due. And ma-shida for KPLC started. KCB - GoK led it into bankruptcy but CBK 'saved' it to prevent a financial meltdown in Kenya. This was NOT a cash injection but CBK overlooked applying strict financial ratios. After Kibaki came in, GoK repaid many of the loans even if these were misappropriated. Low savings rates in the early Kibaki years allowed KCB to make huge margins [Interest Spreads] to reduce their losses. Furthermore, KCB had to have 2 Rights Issues to right their capital inadequacies. And GoK has reduced its shareholding in KCB over the years. Anyway... @obiero ... have fun  I am staying out of KQ until Naikuni AND Mbugua leave. I will review my position in early 2015. And I am a pragmatist so if I see good things before 2015 then I might dip my toe in. Why wait for him to leave? I got in after he announced his departure. Things are looking up. Am seeing Jambojet as a huge gamechanger. Just in case the Board decides to give him another year. And then there is the CFO. I will wait. I told u guys.. Exchange Bar information should never be doubted. Please read on.. Government rescues Kenya Airways via tax exemption :)
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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obiero wrote:VituVingiSana wrote:kollabo wrote:VituVingiSana wrote:obiero wrote: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 "Huyo Mtu" ... Kwani? Anyway, there is little benefit in GoK saving KQ with a 'loan' after KRA [with GoK's blessings] brings KQ down. As an EXISTING shareholder you do not benefit from GoK (vs Opportunity Cost) in your business as a savior. To counter your KCB, "Huyo Mtu" refers you to KPLC. GoK hobbled KPLC by imposing managers [Samuel Gichuru], GoK departments not making payments, Rural Electrification and not allowing KPLC to recover its costs so leading it into bankruptcy. GoK then lent KPLC money and converted some loans into Preference Shares which were then converted into Ordinary Shares with 51% ownership by GoK. Immediately after the Rights Issue, GoK refused a triennial rate increase which KPLC was due. And ma-shida for KPLC started. KCB - GoK led it into bankruptcy but CBK 'saved' it to prevent a financial meltdown in Kenya. This was NOT a cash injection but CBK overlooked applying strict financial ratios. After Kibaki came in, GoK repaid many of the loans even if these were misappropriated. Low savings rates in the early Kibaki years allowed KCB to make huge margins [Interest Spreads] to reduce their losses. Furthermore, KCB had to have 2 Rights Issues to right their capital inadequacies. And GoK has reduced its shareholding in KCB over the years. Anyway... @obiero ... have fun I am staying out of KQ until Naikuni AND Mbugua leave. I will review my position in early 2015. And I am a pragmatist so if I see good things before 2015 then I might dip my toe in. Why wait for him to leave? I got in after he announced his departure. Things are looking up. Am seeing Jambojet as a huge gamechanger. Just in case the Board decides to give him another year. And then there is the CFO. I will wait. I told u guys.. Exchange Bar information should never be doubted. Please read on.. Government rescues Kenya Airways via tax exemption :) It's not a Tax Exemption per se but it will help KQ. VAT is recoverable but getting it back from KRA is tough. Who removed the VAT exempt status from KQ in the first place? [Look up Stockholm Syndrome] And does this mean more pax will fly KQ? Good luck to you if you rely on GoK's largesse. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Kenya Airways now seen as an indispensible company to the Kenyan economy..
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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When the GoK bails a firm out, the Ordinary Shareholders can lose a large portion of their net worth due to dilution. See KPLC and NBK. Good luck. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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VituVingiSana wrote: When the GoK bails a firm out, the Ordinary Shareholders can lose a large portion of their net worth due to dilution. See KPLC and NBK. Good luck. thanks mate.. Im in this one for the long haul.. Vision 2020
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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5th dreamliner arrives on Thursday.. Total fleet size now at 50.. Several pendin approvals on bilateral agreements includin the major direct flights to USA.. Meanwhile, load factor to China stands at 71% on the 787
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Hehe. I see what u did there on Monrovia et al.. :) Here is my response. 22 new routes for Jambojet now approved..
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,497 Location: nairobi
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Hehe. I see what u did there on Monrovia et al.. :) Here is my response. 22 new routes for Jambojet previously approved... Now being implemented
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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obiero wrote:Hehe. I see what u did there on Monrovia et al.. :) Here is my response. 22 new routes for Jambojet previously approved... Now being implemented I am rooting for you @obiero ...  Keep the faith if you want to. It's your money. 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: 18,095 Location: Nairobi
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Al Jazeera on the 787 https://www.youtube.com/watch?v=rvkEpstd9osGreedy 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: 18,095 Location: Nairobi
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Sigh, it just gets tougher for KQ http://www.businessdaily.../-/jjo7pwz/-/index.html
Now Emirates eats slowly into the TZ market that KQ once controlled. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Yves Guibert...next COO? possunt quia posse videntur
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Rank: Member Joined: 8/4/2012 Posts: 155 Location: Kenya
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Naikuni to exit a month earlier than planned after he resigned effective 31 October. http://www.businessdaily...8/-/m3a1k0z/-/index.html If you don't want to go to plan B have a good plan A.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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[quote=Mucene]Naikuni to exit a month earlier than planned after he resigned effective 31 October. http://www.businessdaily.../-/m3a1k0z/-/index.html[/quote] Trying to avoid another Sabena... possunt quia posse videntur
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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The (shareholder capital) destructive policies in place will continue to decimate KQ's bottom-line for another year. The expansionist policies which were used to build a fiefdom will plague those who bought into KQ during the Rights Issue. The CFO is still in place and KQ needs all the directors and management who approved and pushed the expansionist agenda to 'step aside' to allow a new team to re-assess Project Mawingu. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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VituVingiSana wrote:The (shareholder capital) destructive policies in place will continue to decimate KQ's bottom-line for another year. The expansionist policies which were used to build a fiefdom will plague those who bought into KQ during the Rights Issue. The CFO is still in place and KQ needs all the directors and management who approved and pushed the expansionist agenda to 'step aside' to allow a new team to re-assess Project Mawingu. Are you saying KLM stood by and watched Titus and Alex run down the company?
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