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guru267
#131 Posted : Wednesday, December 23, 2015 10:18:05 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Kausha wrote:
That KShs 111B loan is serious cause for worry. Besides banks I would only trust Safcom with such debt. Don't think other companies are as efficient, insulated from shocks and have the cash flow generation might of safcom to cope with such debt. Something will have have to give on Kengen and KPLC. Already it is happening on Kengen with conversion of debt to equity.


What shocks can't KPLC/Kengen just pass to the consumer?

Aren't their cashflows really good?

Kengen is converting date to equity to enable the balance sheet to take on more debt..
Mark 12:29
Deuteronomy 4:16
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VituVingiSana
#132 Posted : Wednesday, December 23, 2015 10:44:46 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
enyands wrote:
enyands wrote:
enyands wrote:
ForSport2 wrote:
@Aguytrying & VVS
I stand advised.
KPLC is my siren stock. You see reason, you understand the arguments but you decide to emotionally invest :). How can a monopoly offering an essential service goof? I'm in love with electricity. For life.


the day you hear the monopoly is broken then that's the time to quit and run. But for now stay put




Remember when I said hold for now .they are entering another market taking advantage of the available infrastructure .
Kenya Power joining Internet business

I applaud KPLC's entry into the ISP business for it can provide competition to Zuku & Safaricom. Nevertheless, unlike the (almost) monopoly they have in electricity distribution, look at the competition:

Safaricom
Zuku
Orange/Helios/Telkom
Airtel
And many other smaller players

Bottomline: It's a positive move for KPLC but it will not translate into huge revenues immediately and the profits will take some time to show up.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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  | | Edit by user: Wednesday, December 23, 2015 10:46 AM | Reason: Not specified
DBLyon
#133 Posted : Wednesday, December 23, 2015 11:02:33 AM
Rank: Member

Joined: 5/28/2014
Posts: 149
Location: Nairobi
Kausha wrote:
Monopoly is an illusion. Technological innovation has began to come through in energy. Look at Elongated Musk's solar kits and you can see KPlC May end up with shot loads of debt to support obsolete distribution systems. Imagine a future where you will have your own independent renewable power source for your house.


Elongated Musk. Not talking
When you live for others' opinions, you are dead.

- Carlos Slim Helu
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Aguytrying
#134 Posted : Wednesday, December 23, 2015 11:52:24 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Kausha wrote:
That KShs 111B loan is serious cause for worry. Besides banks I would only trust Safcom with such debt. Don't think other companies are as efficient, insulated from shocks and have the cash flow generation might of safcom to cope with such debt. Something will have have to give on Kengen and KPLC. Already it is happening on Kengen with conversion of debt to equity.


Sometimes I read your posts and have to check the author, coz its exactly what I would have written. KPLC and kengen are too heavily indebted, some can argue with equity to debt ratio, but such large debt on those 2 is a recipe for disaster, we saw what happened with KQ and large debt....it could also happen here. And that's what scared me off these 2 companies 2-3 years ago, because of that debt appetite and unnecessarily speedy expansion plans. Top this cocktail of with who the major shareholder is and I'm running to hills
The investor's chief problem - and even his worst enemy - is likely to be himself
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Aguytrying
#135 Posted : Wednesday, December 23, 2015 11:55:14 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
VituVingiSana wrote:
enyands wrote:
enyands wrote:
enyands wrote:
ForSport2 wrote:
@Aguytrying & VVS
I stand advised.
KPLC is my siren stock. You see reason, you understand the arguments but you decide to emotionally invest :). How can a monopoly offering an essential service goof? I'm in love with electricity. For life.


the day you hear the monopoly is broken then that's the time to quit and run. But for now stay put




Remember when I said hold for now .they are entering another market taking advantage of the available infrastructure .
Kenya Power joining Internet business

I applaud KPLC's entry into the ISP business for it can provide competition to Zuku & Safaricom. Nevertheless, unlike the (almost) monopoly they have in electricity distribution, look at the competition:

Safaricom
Zuku
Orange/Helios/Telkom
Airtel
And many other smaller players

Bottomline: It's a positive move for KPLC but it will not translate into huge revenues immediately and the profits will take some time to show up.


Kplc as an isp is funny, it's a very customer care sensitive business and with their current work ethic I don't think they can hack. Unless their connection is near flawless like orange and top notch customer care.
The investor's chief problem - and even his worst enemy - is likely to be himself
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Ericsson
#136 Posted : Wednesday, December 23, 2015 12:15:35 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
@sparkly
Rural electrification is a loss making entity.It is being done as a government policy.
People in the rural areas use the power for lighting and charging phones which is very low.
They don't have sophisticated equipment that utilise huge amounts of power.
What we need are industries like cement factories,smelting plants like Kaluworks and Mabati Rolling Mills to consume the extra power from KENGEN and enable KPLC to repay the debts and be profitable.
Electricity consumption per capita needs to be grown
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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VituVingiSana
#137 Posted : Wednesday, December 23, 2015 1:39:19 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
DBLyon wrote:
Kausha wrote:
Monopoly is an illusion. Technological innovation has began to come through in energy. Look at Elongated Musk's solar kits and you can see KPlC May end up with shot loads of debt to support obsolete distribution systems. Imagine a future where you will have your own independent renewable power source for your house.


Elongated Musk. Not talking


@Kausha - What happened to your spell-checker? Laughing out loudly Laughing out loudly Laughing out loudly
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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kryptonite
#138 Posted : Wednesday, December 23, 2015 3:44:26 PM
Rank: Member

Joined: 2/1/2010
Posts: 272
Location: Nairobi
VituVingiSana wrote:
DBLyon wrote:
Kausha wrote:
Monopoly is an illusion. Technological innovation has began to come through in energy. Look at Elongated Musk's solar kits and you can see KPlC May end up with shot loads of debt to support obsolete distribution systems. Imagine a future where you will have your own independent renewable power source for your house.


Elongated Musk. Not talking


@Kausha - What happened to your spell-checker? Laughing out loudly Laughing out loudly Laughing out loudly



Laughing out loudly Laughing out loudly Freudian slips...innuendo laden spell-check
The harder you work, the luckier you get
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sparkly
#139 Posted : Wednesday, December 23, 2015 4:05:09 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Ericsson wrote:
@sparkly
Rural electrification is a loss making entity.It is being done as a government policy.
People in the rural areas use the power for lighting and charging phones which is very low.
They don't have sophisticated equipment that utilise huge amounts of power.
What we need are industries like cement factories,smelting plants like Kaluworks and Mabati Rolling Mills to consume the extra power from KENGEN and enable KPLC to repay the debts and be profitable.
Electricity consumption per capita needs to be grown


Hence why solar power packs will not replace the grid any time soon, don't you think?
Life is short. Live passionately.
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MaichBlack
#140 Posted : Wednesday, December 23, 2015 5:14:56 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,838
enyands wrote:
sparkly wrote:
Othelo wrote:
sparkly wrote:
Ericsson wrote:
Add on top of that WTO in Nairobi have hit a deadlock on a number of issues favouring developing countries like us.
China gave us the sh.10.5bn loan so that we don't raise any issue about unfair practices to nations like us.


What do you expect when wolves are negotiating with lambs.

Africans have to take by force what belongs to Africans. Stop extending begging bowls to our first/second world cousins

I have always wondered why Africa cannot organise themselves and create some serious trading block and development fund!!!


Exactly!

Trade between Africa and the west is heavily tilted in favour of the west. The west buys raw materials (never finished goods) then sells back finished goods.

African products are faced with Tariff and Non tariff barriers in the west.

Intra African trade on mutually beneficial terms can fast track development. e.g. South Sudan to sell oil to Kenya, Kenyan banks to provide development capital in SS.



This is practical written wise ,but on the ground just to let you know the west Will never allow this to happen.kwani where do you think they will sell their finished product if you depend on each other.should someone try that sinister move they will slap you with bans and trade embargos. Ask Gaddafi.he tried to make sure that Africa depends on herself ...they got rid of him very fast. We need people like Tom Sankara and the pan African leaders .

Finally!!! Someone who understands why the west got rid of Gaddafi!!!

The dream and model Gaddafi had for Africa would have totally upset the status quo. Look at the way foreign companies including oil companies were made to operate in Libya! No Parasitic agreements allowed. First question, how does this deal benefit Libya.

People should read about the Gaddafi Libya! Ridiculously low taxes, free education to University level, Government pays for you University fees abroad if you want to do something not offered in Libya, working welfare system, Cheques (Yes, you actually get a cheque!!!) from oil proceeds etc. Libyans will never get that life back! Not the next two generations at least!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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  | | Edit by user: Wednesday, December 23, 2015 11:30 PM | Reason: Not specified
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