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KenGen FY15 PAT grows 307%
Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Who's buying? "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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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Sufficiently Philanga....thropic wrote:NAV(After revaluation of PPE & before expected dilution) = 64.4 PER at todays closing price of KES.8.3(pre dilution)= 1.58  Using PER for a debt heavy firm such as kengen or ARM gives you a very lopsided analysis. Since assets are mostly funded by debt and so are the subsequent profits, EV/EBITDA is a more balanced ratio. Even better is that the ratio factors in preference shares, minority interests obfuscations and rewards cash heavy companies. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Pesa Nane wrote:VituVingiSana wrote:Angelica _ann wrote:What is the composition of other Comprehensive Income & is the growth sustainable. I don't have info on the former until the Annual Report comes out. Not sustainable/repeated. Quote:Other comprehensive income increased from Shs 1,244 million to 54,247 million due to revaluation surplus from property, plant and equipment net of deffered tax.
Our asset base increased by 37% from Shs 250,206 million in June 2014 to 342,520 million in June 2015. This was due to completion of new plants and revaluation of existing property, plant and equipment which resulted in a surplus of Shs 77,203 million after revaluation by independent professional valuers in line with international best practice. Unlike that listed Real Estate monkey, valuation is done when the projects come online. @hisah, @Aguy explains the disconnect of div vis-a-vis EPS Revaluation. I usually run away from books that fatten using that term. Too good news in a bear market is also another red flag. The price action today also says a lot. Upthrust! Staying away from this counter. Let's compare notes next October for lessons learnt.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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hisah wrote:Pesa Nane wrote:VituVingiSana wrote:Angelica _ann wrote:What is the composition of other Comprehensive Income & is the growth sustainable. I don't have info on the former until the Annual Report comes out. Not sustainable/repeated. Quote:Other comprehensive income increased from Shs 1,244 million to 54,247 million due to revaluation surplus from property, plant and equipment net of deffered tax.
Our asset base increased by 37% from Shs 250,206 million in June 2014 to 342,520 million in June 2015. This was due to completion of new plants and revaluation of existing property, plant and equipment which resulted in a surplus of Shs 77,203 million after revaluation by independent professional valuers in line with international best practice. Unlike that listed Real Estate monkey, valuation is done when the projects come online. @hisah, @Aguy explains the disconnect of div vis-a-vis EPS Revaluation. I usually run away from books that fatten using that term. Too good news in a bear market is also another red flag. The price action today also says a lot. Upthrust! Staying away from this counter. Let's compare notes next October for lessons learnt. Is this revaluation, or valuing an investment after the project is completed? And with other projects coming to completion in the coming months, does that mean? "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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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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hisah wrote:Pesa Nane wrote:VituVingiSana wrote:Angelica _ann wrote:What is the composition of other Comprehensive Income & is the growth sustainable. I don't have info on the former until the Annual Report comes out. Not sustainable/repeated. Quote:Other comprehensive income increased from Shs 1,244 million to 54,247 million due to revaluation surplus from property, plant and equipment net of deffered tax.
Our asset base increased by 37% from Shs 250,206 million in June 2014 to 342,520 million in June 2015. This was due to completion of new plants and revaluation of existing property, plant and equipment which resulted in a surplus of Shs 77,203 million after revaluation by independent professional valuers in line with international best practice. Unlike that listed Real Estate monkey, valuation is done when the projects come online. @hisah, @Aguy explains the disconnect of div vis-a-vis EPS Revaluation. I usually run away from books that fatten using that term. Too good news in a bear market is also another red flag. The price action today also says a lot. Upthrust! Staying away from this counter. Let's compare notes next October for lessons learnt. @Hisah I belief a revaluation is more deserved than undeserved. If Kengen has 100 acres at Olkaria carried at KShs 100k per acre in the books and they successfully drill and develop a well that yields 1B in profits every year, surely they got to revalue that land, no? Of course the revaluation goes to equity and does not impact cashflow hence an investor has to be keen Life is short. Live passionately.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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And the story continues here's the new version Business Daily wrote:Power producer KenGen is targeting a Sh1.8 billion cut in annual debt repayments to the Treasury through a balance sheet restructuring planned for the first three months of next year. (<-----Familiar)
The firm has applied to the regulator for approval of a Sh28 billion rights issue in which the government is expected to participate by converting part of its Sh41.2 billion loan to the company into equity.
YAWN!!! "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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Rank: Member Joined: 1/3/2014 Posts: 257
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murchr wrote:And the story continues here's the new version Business Daily wrote:Power producer KenGen is targeting a Sh1.8 billion cut in annual debt repayments to the Treasury through a balance sheet restructuring planned for the first three months of next year. (<-----Familiar)
The firm has applied to the regulator for approval of a Sh28 billion rights issue in which the government is expected to participate by converting part of its Sh41.2 billion loan to the company into equity.
YAWN!!! This rights issue makes this counter unattractive. Plus they have other procurement issues too http://www.businessdaily...88/-/6qkjrj/-/index.html
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Rank: Chief Joined: 1/3/2007 Posts: 18,350 Location: Nairobi
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All those 'profits' will be nullified by such huge scams. http://www.businessdaily...1/-/im767r/-/index.html
I am staying away from KenGen. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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I thought I'm the only bear in this counter.
@sparkly, a cashflow (cash crunch) event will strike sooner than later. Their low dividend payout says so. As @murchr had stated, they shouldn't be paying dividends in the first place. Why do they need a massive dilutive rights issue? KQ did a massive rights issue in a bear market. The rest is history. Next October we compare notes. Bookmark it.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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hisah wrote:I thought I'm the only bear in this counter.
@sparkly, a cashflow (cash crunch) event will strike sooner than later. Their low dividend payout says so. As @murchr had stated, they shouldn't be paying dividends in the first place. Why do they need a massive dilutive rights issue? KQ did a massive rights issue in a bear market. The rest is history. Next October we compare notes. Bookmark it. Since they indicated on their expansion plans and high debt and equity requirements that's when I washed my hands of this firm The investor's chief problem - and even his worst enemy - is likely to be himself
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KenGen FY15 PAT grows 307%
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