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Elliott Wave Analysis Of The NSE 20
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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VituVingiSana wrote:
TPS failed to expand in Nairobi e.g. Westlands where Sankara/Kempinski dominate & Upper Hill with Crowne Plaza. Many people do not want to stay in or near 'town' nor hold events at Serena when more convenient options are available in Upper Hill and Westlands.
A Serena Westlands and Serena Upper Hill (or Hurlingham) would have helped consolidate their grip.
Another overlooked segment is a "Serena Lite" which would cater for those who want cheaper but quality accommodation. Look at Fairview with its full service main hotel and (limited service) City Lodge.
And despite the obvious demand it has no Airport Hotel like Panari, Eka, Ole Sereni, etc.
Such a strategy helps Serena spread its Back Office, Reservations & Fixed Cost expenses across more rooms. Plus these properties can act as training schools for the premium brands [or the other way round].
That said, I like that Serena has kept expenses/debt in check when times were tough. A judicious expansion strategy helps with the slow but sure approach when quality needs to be maintained.
KQ grew too fast. Took on too much debt. Disaster.
"Serena Lite" missed opportunities 1. Expanded presence = expanded BRAND recognition 2. Act as feeders to the full service Serena by recommending whenever they are fully booked 3. Act as training / resource centres = Quality Assurance 4. Risk spread (Geographically and market segment) 5. Loyalty programme (fake upgrades to loyal customers) 6. Equipment and furniture hand-me-down Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Pesa Nane wrote:VituVingiSana wrote:
TPS failed to expand in Nairobi e.g. Westlands where Sankara/Kempinski dominate & Upper Hill with Crowne Plaza. Many people do not want to stay in or near 'town' nor hold events at Serena when more convenient options are available in Upper Hill and Westlands.
A Serena Westlands and Serena Upper Hill (or Hurlingham) would have helped consolidate their grip.
Another overlooked segment is a "Serena Lite" which would cater for those who want cheaper but quality accommodation. Look at Fairview with its full service main hotel and (limited service) City Lodge.
And despite the obvious demand it has no Airport Hotel like Panari, Eka, Ole Sereni, etc.
Such a strategy helps Serena spread its Back Office, Reservations & Fixed Cost expenses across more rooms. Plus these properties can act as training schools for the premium brands [or the other way round].
That said, I like that Serena has kept expenses/debt in check when times were tough. A judicious expansion strategy helps with the slow but sure approach when quality needs to be maintained.
KQ grew too fast. Took on too much debt. Disaster.
"Serena Lite" missed opportunities 1. Expanded presence = expanded BRAND recognition 2. Act as feeders to the full service Serena by recommending whenever they are fully booked 3. Act as training / resource centres = Quality Assurance 4. Risk spread (Geographically and market segment) 5. Loyalty programme (fake upgrades to loyal customers) 6. Equipment and furniture hand-me-down The greatest tragedy for NSE investor, the real morale killer are sentiments. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Bill proposes to reduce interest rates to promote businessQuote:Kenyan banks will cut interest rates by almost half if a Bill before Parliament becomes law, a step that will promote entrepreneurship.
According to the Bill, banks will charge at most four per cent of the base rate set by the Central Bank of Kenya. Some banks currently charge as much as 25 per cent interest.
The Banking (amendment) Bill seeks to set a limit to what banks charge borrowers although the Central Bank has warned against such a move.
The lawmaker said the proposed law had been well received by colleagues and he expected it to be passed and signed into law.
The CBK is opposed to the capping of lending rates, saying they should be left to market dynamics. CBK Governor Patrick Njoroge recently told NTV any attempt to cap interest rates was against global practice.
KE is playing Russian roulette here... Clueless people making laws that will definitely mess with the flow of capital. This banking storm will be a wild ride. It'll break the market badly! $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Hello Joined: 10/19/2012 Posts: 8
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hisah wrote:Bill proposes to reduce interest rates to promote businessQuote:Kenyan banks will cut interest rates by almost half if a Bill before Parliament becomes law, a step that will promote entrepreneurship.
According to the Bill, banks will charge at most four per cent of the base rate set by the Central Bank of Kenya. Some banks currently charge as much as 25 per cent interest.
The Banking (amendment) Bill seeks to set a limit to what banks charge borrowers although the Central Bank has warned against such a move.
The lawmaker said the proposed law had been well received by colleagues and he expected it to be passed and signed into law.
The CBK is opposed to the capping of lending rates, saying they should be left to market dynamics. CBK Governor Patrick Njoroge recently told NTV any attempt to cap interest rates was against global practice.
KE is playing Russian roulette here... Clueless people making laws that will definitely mess with the flow of capital. This banking storm will be a wild ride. It'll break the market badly! I support the bill! Finally capital will flow to those who need it most, thus spur rapid economic growth!
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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hisah wrote:Bill proposes to reduce interest rates to promote businessQuote:Kenyan banks will cut interest rates by almost half if a Bill before Parliament becomes law, a step that will promote entrepreneurship.
According to the Bill, banks will charge at most four per cent of the base rate set by the Central Bank of Kenya. Some banks currently charge as much as 25 per cent interest.
The Banking (amendment) Bill seeks to set a limit to what banks charge borrowers although the Central Bank has warned against such a move.
The lawmaker said the proposed law had been well received by colleagues and he expected it to be passed and signed into law.
The CBK is opposed to the capping of lending rates, saying they should be left to market dynamics. CBK Governor Patrick Njoroge recently told NTV any attempt to cap interest rates was against global practice.
KE is playing Russian roulette here... Clueless people making laws that will definitely mess with the flow of capital. This banking storm will be a wild ride. It'll break the market badly! Very dangerous why not let the market determine that? "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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murchr wrote:hisah wrote:Bill proposes to reduce interest rates to promote businessQuote:Kenyan banks will cut interest rates by almost half if a Bill before Parliament becomes law, a step that will promote entrepreneurship.
According to the Bill, banks will charge at most four per cent of the base rate set by the Central Bank of Kenya. Some banks currently charge as much as 25 per cent interest.
The Banking (amendment) Bill seeks to set a limit to what banks charge borrowers although the Central Bank has warned against such a move.
The lawmaker said the proposed law had been well received by colleagues and he expected it to be passed and signed into law.
The CBK is opposed to the capping of lending rates, saying they should be left to market dynamics. CBK Governor Patrick Njoroge recently told NTV any attempt to cap interest rates was against global practice.
KE is playing Russian roulette here... Clueless people making laws that will definitely mess with the flow of capital. This banking storm will be a wild ride. It'll break the market badly! Very dangerous why not let the market determine that? Not good. As distasteful as high interest rates are, this is the wrong way to rectify the situation. No one can strong arm the market...lawmakers are about to find out. KE economic environment is definitely not on the mend with such shenanigans flying around. 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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investorinpple wrote:hisah wrote:Bill proposes to reduce interest rates to promote businessQuote:Kenyan banks will cut interest rates by almost half if a Bill before Parliament becomes law, a step that will promote entrepreneurship.
According to the Bill, banks will charge at most four per cent of the base rate set by the Central Bank of Kenya. Some banks currently charge as much as 25 per cent interest.
The Banking (amendment) Bill seeks to set a limit to what banks charge borrowers although the Central Bank has warned against such a move.
The lawmaker said the proposed law had been well received by colleagues and he expected it to be passed and signed into law.
The CBK is opposed to the capping of lending rates, saying they should be left to market dynamics. CBK Governor Patrick Njoroge recently told NTV any attempt to cap interest rates was against global practice.
KE is playing Russian roulette here... Clueless people making laws that will definitely mess with the flow of capital. This banking storm will be a wild ride. It'll break the market badly! I support the bill! Finally capital will flow to those who need it most, thus spur rapid economic growth! Ever heard of the law of unintended consequences?
Does KE have cheap long term funding sources that permits lenders to set cheaper lending rates? Why hasn't KE govt floated a 20 or 30 year bond? Can the market buy them if floated? Why does the NSE have few companies listed?
Capital has never been shackled by laws. It always floats towards the least restricted zones. This law needs to first address why capital is expensive. Solve that puzzle and you don't need restrictive laws, which just add more problems. Trying to manipulate business cycles through populist laws always leads to capital panic events that cause unitended economic recessions.
Fuel prices controls are a good example. Credit will definitely become more expensive than what the law intends.
Good luck!
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/3/2007 Posts: 18,354 Location: Nairobi
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hisah wrote:investorinpple wrote:hisah wrote:Bill proposes to reduce interest rates to promote businessQuote:Kenyan banks will cut interest rates by almost half if a Bill before Parliament becomes law, a step that will promote entrepreneurship.
According to the Bill, banks will charge at most four per cent of the base rate set by the Central Bank of Kenya. Some banks currently charge as much as 25 per cent interest.
The Banking (amendment) Bill seeks to set a limit to what banks charge borrowers although the Central Bank has warned against such a move.
The lawmaker said the proposed law had been well received by colleagues and he expected it to be passed and signed into law.
The CBK is opposed to the capping of lending rates, saying they should be left to market dynamics. CBK Governor Patrick Njoroge recently told NTV any attempt to cap interest rates was against global practice.
KE is playing Russian roulette here... Clueless people making laws that will definitely mess with the flow of capital. This banking storm will be a wild ride. It'll break the market badly! I support the bill! Finally capital will flow to those who need it most, thus spur rapid economic growth! Ever heard of the law of unintended consequences?
Does KE have cheap long term funding sources that permits lenders to set cheaper lending rates? Why hasn't KE govt floated a 20 or 30 year bond? Can the market buy them if floated? Why does the NSE have few companies listed?
Capital has never been shackled by laws. It always floats towards the least restricted zones. This law needs to first address why capital is expensive. Solve that puzzle and you don't need restrictive laws, which just add more problems. Trying to manipulate business cycles through populist laws always leads to capital panic events that cause unitended economic recessions.
Fuel prices controls are a good example. Credit will definitely become more expensive than what the law intends.
Good luck!
Credit will become cheaper for a few. The rest will have to see loan sharks. If 10-year T-Bonds (guaranteed by GoK) yield 14.5% then why would a bank lend to @VVS [who can die, has no taxing power, can't legally print money, can be sued] at 15% with all the risk it entails? GoK needs to: 1. Cut spending. Especially on frivolous items and projects. PPPs work better for economic projects. 2. Borrow less. Don't crowd out the private sector. Why are farmers competing with GoK? [A farmer who borrows to grow tea is competing with GoK funding Galana] 3. Get out of the business of business. 4. Facilitate business by easing registration, licensing and access to resources. 5. Reduce and standardize taxes. Make Tax Law clear and not subject to arbitrary rules/enforcement by KRA. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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VituVingiSana wrote:hisah wrote:investorinpple wrote:hisah wrote:Bill proposes to reduce interest rates to promote businessQuote:Kenyan banks will cut interest rates by almost half if a Bill before Parliament becomes law, a step that will promote entrepreneurship.
According to the Bill, banks will charge at most four per cent of the base rate set by the Central Bank of Kenya. Some banks currently charge as much as 25 per cent interest.
The Banking (amendment) Bill seeks to set a limit to what banks charge borrowers although the Central Bank has warned against such a move.
The lawmaker said the proposed law had been well received by colleagues and he expected it to be passed and signed into law.
The CBK is opposed to the capping of lending rates, saying they should be left to market dynamics. CBK Governor Patrick Njoroge recently told NTV any attempt to cap interest rates was against global practice.
KE is playing Russian roulette here... Clueless people making laws that will definitely mess with the flow of capital. This banking storm will be a wild ride. It'll break the market badly! I support the bill! Finally capital will flow to those who need it most, thus spur rapid economic growth! Ever heard of the law of unintended consequences?
Does KE have cheap long term funding sources that permits lenders to set cheaper lending rates? Why hasn't KE govt floated a 20 or 30 year bond? Can the market buy them if floated? Why does the NSE have few companies listed?
Capital has never been shackled by laws. It always floats towards the least restricted zones. This law needs to first address why capital is expensive. Solve that puzzle and you don't need restrictive laws, which just add more problems. Trying to manipulate business cycles through populist laws always leads to capital panic events that cause unitended economic recessions.
Fuel prices controls are a good example. Credit will definitely become more expensive than what the law intends.
Good luck!
Credit will become cheaper for a few. The rest will have to see loan sharks. If 10-year T-Bonds (guaranteed by GoK) yield 14.5% then why would a bank lend to @VVS [who can die, has no taxing power, can't legally print money, can be sued] at 15% with all the risk it entails? GoK needs to: 1. Cut spending. Especially on frivolous items and projects. PPPs work better for economic projects. 2. Borrow less. Don't crowd out the private sector. Why are farmers competing with GoK? [A farmer who borrows to grow tea is competing with GoK funding Galana] 3. Get out of the business of business. 4. Facilitate business by easing registration, licensing and access to resources. 5. Reduce and standardize taxes. Make Tax Law clear and not subject to arbitrary rules/enforcement by KRA. should it happen the collapse of small banks is where the effects will start, i know rao can sign this kind of law but uhuru can't "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 1/3/2007 Posts: 18,354 Location: Nairobi
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mlennyma wrote:VituVingiSana wrote:hisah wrote:investorinpple wrote:hisah wrote:Bill proposes to reduce interest rates to promote businessQuote:Kenyan banks will cut interest rates by almost half if a Bill before Parliament becomes law, a step that will promote entrepreneurship.
According to the Bill, banks will charge at most four per cent of the base rate set by the Central Bank of Kenya. Some banks currently charge as much as 25 per cent interest.
The Banking (amendment) Bill seeks to set a limit to what banks charge borrowers although the Central Bank has warned against such a move.
The lawmaker said the proposed law had been well received by colleagues and he expected it to be passed and signed into law.
The CBK is opposed to the capping of lending rates, saying they should be left to market dynamics. CBK Governor Patrick Njoroge recently told NTV any attempt to cap interest rates was against global practice.
KE is playing Russian roulette here... Clueless people making laws that will definitely mess with the flow of capital. This banking storm will be a wild ride. It'll break the market badly! I support the bill! Finally capital will flow to those who need it most, thus spur rapid economic growth! Ever heard of the law of unintended consequences?
Does KE have cheap long term funding sources that permits lenders to set cheaper lending rates? Why hasn't KE govt floated a 20 or 30 year bond? Can the market buy them if floated? Why does the NSE have few companies listed?
Capital has never been shackled by laws. It always floats towards the least restricted zones. This law needs to first address why capital is expensive. Solve that puzzle and you don't need restrictive laws, which just add more problems. Trying to manipulate business cycles through populist laws always leads to capital panic events that cause unitended economic recessions.
Fuel prices controls are a good example. Credit will definitely become more expensive than what the law intends.
Good luck!
Credit will become cheaper for a few. The rest will have to see loan sharks. If 10-year T-Bonds (guaranteed by GoK) yield 14.5% then why would a bank lend to @VVS [who can die, has no taxing power, can't legally print money, can be sued] at 15% with all the risk it entails? GoK needs to: 1. Cut spending. Especially on frivolous items and projects. PPPs work better for economic projects. 2. Borrow less. Don't crowd out the private sector. Why are farmers competing with GoK? [A farmer who borrows to grow tea is competing with GoK funding Galana] 3. Get out of the business of business. 4. Facilitate business by easing registration, licensing and access to resources. 5. Reduce and standardize taxes. Make Tax Law clear and not subject to arbitrary rules/enforcement by KRA. should it happen the collapse of small banks is where the effects will start, i know rao can sign this kind of law but uhuru can't No, the small banks will not collapse but the incentive to lend will be diminished. Or banks will jack up fees instead of higher interest rates. So in addition to the KBRR + 5% they will charge heavy commitment fees, transaction charges, correspondence charges, etc. YES, the banks need to reduce their margins. Kabisa. They also need mechanisms and processes that are equitable to them & customers to deal with defaulters. A defaulter can stymie a bank in court for 5 years or more. Then there are fake Title Deeds and corruption in the courts. Most of us end up paying (I think) 2-3 % more to cover for defaulters. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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