Wazua
»
Investor
»
Stocks
»
Kenya Airways...why ignore..
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
Head of Passenger services calls it a day...Got tired of this headless chicken... possunt quia posse videntur
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,487 Location: nairobi
|
mlennyma wrote:Euge wrote:derick wrote:Ericsson wrote:And it is now emerging the company is technically insolvent.
Using deductions from employees salary to meet payables That is pathetic. Mr Titus should be held accountable. And Wainaina long term investing can be fatal. With revenues still in excess of $1.5B, the firm can be said to be in a bad state of health, but not its death bed
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,487 Location: nairobi
|
With revenues still in excess of $1.5B, the firm can be said to be in a bad state of health, but not its death bed
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,078 Location: Nairobi
|
obiero wrote:With revenues still in excess of $1.5B, the firm can be said to be in a bad state of health, but not its death bed Enron had huge revenues. US airlines (before they went bankrupt & wiped out Ordinary Shareholders) had huge revenues. Revenues are not profits. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 8/4/2008 Posts: 2,849 Location: Rupi
|
Maybe GOK will bail it out. Lord, thank you!
|
|
|
Rank: Veteran Joined: 9/18/2014 Posts: 1,127
|
VituVingiSana wrote:obiero wrote:With revenues still in excess of $1.5B, the firm can be said to be in a bad state of health, but not its death bed Enron had huge revenues. US airlines (before they went bankrupt & wiped out Ordinary Shareholders) had huge revenues. Revenues are not profits. Using revenues or EV/sales as a basis of assessing airlines or OMC's is not as straight forward as one would want to believe. The main purpose of the stock market is to make fools of as many people as possible.
|
|
|
Rank: Elder Joined: 7/22/2009 Posts: 7,452
|
@vvs - I know you cut your losses on KQ and you are probably never looking back but what would you consider as the right price to get a piece of KQ. I don't see KQ collapsing. At the very least the government will never let that happen. Before the latest round of gymnastics, I was targeting 7/=. But with the new information now available, even that is too high!! Will we see 5/= after the results? What is the NAV for the company. Other wazuans (other than @Obiero; He he he) can also contribute. @Obiero, nothing personal. I know you will tell me it will be 25/= by August.... Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,078 Location: Nairobi
|
@MaichBlack - The more I read, the less I like it. Please read Warren Buffett's gems on businesses like airlines, firms like KQ with managements that are in it just for their paychecks. A bailout will wipe out the Ordinary Shareholders. GoK and the Lenders will 'own' KQ. Read about Delta, United, etc [US airlines]. NAV is dropping like a rock as interest exceeds income, losses on planes write-downs and cash burn. If you want to speculate ala Mumias then I am not one to seek out for advice. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 7/22/2009 Posts: 7,452
|
Thanks a lot @vvs. Other wazuans who don't go by the name @Obiero, your take? Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
|
|
|
Rank: Veteran Joined: 9/18/2014 Posts: 1,127
|
MaichBlack wrote:@vvs - I know you cut your losses on KQ and you are probably never looking back but what would you consider as the right price to get a piece of KQ. I don't see KQ collapsing. At the very least the government will never let that happen.
Before the latest round of gymnastics, I was targeting 7/=. But with the new information now available, even that is too high!! Will we see 5/= after the results?
What is the NAV for the company.
Other wazuans (other than @Obiero; He he he) can also contribute.
@Obiero, nothing personal. I know you will tell me it will be 25/= by August.... Book value is currently at 10bob when you've accounted for the H1 2014 loss... likely to dip to 7ish on fy2014. Am also looking to get in here at 7 or lower but speculatively since am not too sure ngunze and his team have what it takes to turn this plane around and the return to profitability would likely take 2 years. P. S this share almost always trades at book value with a small discount/premium on it. The main purpose of the stock market is to make fools of as many people as possible.
|
|
|
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
|
@obiero there is a certain @kiash you will love to kill at the Kenya Diaspora Investment Conference who is pleading with the president and his government to force KQ to have lower flight fares for Kenyan citizens. UMK: KQ operates in a purely commercial environment......  Pesa Nane plans to be shilingi when he grows up.
|
|
|
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
|
MaichBlack wrote:@vvs - I know you cut your losses on KQ and you are probably never looking back but what would you consider as the right price to get a piece of KQ. I don't see KQ collapsing. At the very least the government will never let that happen. Before the latest round of gymnastics, I was targeting 7/=. But with the new information now available, even that is too high!! Will we see 5/= after the results? What is the NAV for the company. Other wazuans (other than @Obiero; He he he) can also contribute. @Obiero, nothing personal. I know you will tell me it will be 25/= by August....  KQ Fundamentals: Data: D&B01. Market Price: Ksh. 8.20 02. Real EPS: -2.2603. Trailing EPS: -5.8904. P/E: -3.605. Trailing P/E: -1.406. NAV per share: Ksh. 10.01 07. P/B: 0.8 08. Shares issued: 1,496,469,035 09. Dividend Yield (%): 0 10. Dividend Per Share: Ksh. 0.00 11. % Retention Rate: 100 12. % Growth: -22.5813. PEG (actual): 0.16 14. Market Capitalisation: Ksh. 12,271,046,087.00 15. Shareholders Equity: Ksh. 14,976,000,000.00 16. ROE: (22.58)@MaichBlack I hope this helps. Pesa Nane plans to be shilingi when he grows up.
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
lochaz-index wrote:MaichBlack wrote:@vvs - I know you cut your losses on KQ and you are probably never looking back but what would you consider as the right price to get a piece of KQ. I don't see KQ collapsing. At the very least the government will never let that happen.
Before the latest round of gymnastics, I was targeting 7/=. But with the new information now available, even that is too high!! Will we see 5/= after the results?
What is the NAV for the company.
Other wazuans (other than @Obiero; He he he) can also contribute.
@Obiero, nothing personal. I know you will tell me it will be 25/= by August.... Book value is currently at 10bob when you've accounted for the H1 2014 loss... likely to dip to 7ish on fy2014. Am also looking to get in here at 7 or lower but speculatively since am not too sure ngunze and his team have what it takes to turn this plane around and the return to profitability would likely take 2 years. P. S this share almost always trades at book value with a small discount/premium on it. The question is not now low it can go but how long it will take before you as an investor return a profit! Why wait for 10 years to double your money in KQ(without certainty) when you can buy Kenya Re today and double your money in one year, with certainty? Life is short. Live passionately.
|
|
|
Rank: Member Joined: 3/20/2008 Posts: 8
|
...Jambojet is one year today and already expanding thro additional leased capacity and new destiantions to Diani, Malindi, and lamu.
Given that Uk advisories are against Moi international airport, i see more capacity being taken up by Jambo jet. For tourists who may wish to avoid Mombasa island
|
|
|
Rank: Veteran Joined: 9/18/2014 Posts: 1,127
|
sparkly wrote:lochaz-index wrote:MaichBlack wrote:@vvs - I know you cut your losses on KQ and you are probably never looking back but what would you consider as the right price to get a piece of KQ. I don't see KQ collapsing. At the very least the government will never let that happen.
Before the latest round of gymnastics, I was targeting 7/=. But with the new information now available, even that is too high!! Will we see 5/= after the results?
What is the NAV for the company.
Other wazuans (other than @Obiero; He he he) can also contribute.
@Obiero, nothing personal. I know you will tell me it will be 25/= by August.... Book value is currently at 10bob when you've accounted for the H1 2014 loss... likely to dip to 7ish on fy2014. Am also looking to get in here at 7 or lower but speculatively since am not too sure ngunze and his team have what it takes to turn this plane around and the return to profitability would likely take 2 years. P. S this share almost always trades at book value with a small discount/premium on it. The question is not now low it can go but how long it will take before you as an investor return a profit! Why wait for 10 years to double your money in KQ(without certainty) when you can buy Kenya Re today and double your money in one year, with certainty? @sparkly I believe @maich is looking for an entry point(correct me if am wrong) and I offered the probable swing margins. Imho opinion the market may have already factored in the bad news and we may not be seeing a sub 7price even after release of the fy results. As regards doubling/return on capital invested the new oscillation range may be 7-11/= (TA guys can help here) giving a potential 50% return in the course of the year. Kenya re vs kq the former is a better long term bet but the latter can still make you the equivalent return speculatively... nothing is a certainty with Mr market. The main purpose of the stock market is to make fools of as many people as possible.
|
|
|
Rank: Elder Joined: 6/23/2009 Posts: 13,487 Location: nairobi
|
VituVingiSana wrote:obiero wrote:With revenues still in excess of $1.5B, the firm can be said to be in a bad state of health, but not its death bed Enron had huge revenues. US airlines (before they went bankrupt & wiped out Ordinary Shareholders) had huge revenues. Revenues are not profits. Hehe. Emotions wacha.. Ofcourse revenues can never be profits
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
|
|
|
Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
|
The major issues that teh investor needs rview is teh high cost of runimng an airline and how the managemnt is proposing to deal with it.
For now borrowing to pay salaries and not telling us thier projections for the future sounds like they want us to ask them to go home and blame us for it.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,078 Location: Nairobi
|
obiero wrote:VituVingiSana wrote:obiero wrote:With revenues still in excess of $1.5B, the firm can be said to be in a bad state of health, but not its death bed Enron had huge revenues. US airlines (before they went bankrupt & wiped out Ordinary Shareholders) had huge revenues. Revenues are not profits. Hehe. Emotions wacha.. Ofcourse revenues can never be profits KK will give me 20 cents in dividends. I'll use it on Jambojet Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
Warren Buffett’s Investing Blind Spot: Airlines - WSJ - http://www.wsj.com/articles/BL-MBB-31434
Southwest Airlines’ profitability: How the company uses operations theory to fuel its success. - http://www.slate.com/art..._fuel_its_success_.html
MAS to turn profitable end 2014 under new plan, says commercial chief - The Malaysian Insider - http://www.themalaysiani...an-says-commercial-chiefpossunt quia posse videntur
|
|
|
Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
|
[quote=maka]Warren Buffett’s Investing Blind Spot: Airlines - WSJ - http://www.wsj.com/articles/BL-MBB-31434
Southwest Airlines’ profitability: How the company uses operations theory to fuel its success. - http://www.slate.com/art..._fuel_its_success_.html
MAS to turn profitable end 2014 under new plan, says commercial chief - The Malaysian Insider - http://www.themalaysiani...n-says-commercial-chief[/quote] Turning around a struggling airline: An interview with the CEO of Malaysia Airlines | McKinsey & Company - http://www.mckinsey.com/...ceo_of_malaysia_airlinespossunt quia posse videntur
|
|
|
Wazua
»
Investor
»
Stocks
»
Kenya Airways...why ignore..
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|