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Rank: Member Joined: 5/30/2016 Posts: 332 Location: Kayole
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VituVingiSana wrote:guru267 wrote:Debt is a beautiful thing when return on assets exceeds the interest paid on debt...
Debt is also cheaper than equity in the long run as equity cannot be redeemed...
With Kengen's asset base we should be seeing at least KES 20Bn PAT.. So waiting for that potential to be unlocked should be rewarding. I think the new Company's Act does [or will] allow for share buybacks. So yes, equity can be redeemed. Some firms issue/d Preference Equity/Shares. These too can be redeemed. well said chief. in my short time at wazua I realize anyone can throw around some fancy terminologies and expect all the people to be fooled KEGN, KPLC, KQ, SCOM
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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mkate_nusu wrote:VituVingiSana wrote:guru267 wrote:Debt is a beautiful thing when return on assets exceeds the interest paid on debt...
Debt is also cheaper than equity in the long run as equity cannot be redeemed...
With Kengen's asset base we should be seeing at least KES 20Bn PAT.. So waiting for that potential to be unlocked should be rewarding. I think the new Company's Act does [or will] allow for share buybacks. So yes, equity can be redeemed. Some firms issue/d Preference Equity/Shares. These too can be redeemed. well said chief. in my short time at wazua I realize anyone can throw around some fancy terminologies and expect all the people to be fooled This is just funny
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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VituVingiSana wrote:guru267 wrote:Debt is a beautiful thing when return on assets exceeds the interest paid on debt...
Debt is also cheaper than equity in the long run as equity cannot be redeemed...
With Kengen's asset base we should be seeing at least KES 20Bn PAT.. So waiting for that potential to be unlocked should be rewarding. I think the new Company's Act does [or will] allow for share buybacks. So yes, equity can be redeemed. Some firms issue/d Preference Equity/Shares. These too can be redeemed. Really? "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: Chief Joined: 1/3/2007 Posts: 18,344 Location: Nairobi
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murchr wrote:VituVingiSana wrote:guru267 wrote:Debt is a beautiful thing when return on assets exceeds the interest paid on debt...
Debt is also cheaper than equity in the long run as equity cannot be redeemed...
With Kengen's asset base we should be seeing at least KES 20Bn PAT.. So waiting for that potential to be unlocked should be rewarding. I think the new Company's Act does [or will] allow for share buybacks. So yes, equity can be redeemed. Some firms issue/d Preference Equity/Shares. These too can be redeemed. Really? No. Not really. http://www.businessdaily...60/-/le989b/-/index.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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Aguytrying wrote:guru267 wrote:Debt is a beautiful thing when return on assets exceeds the interest paid on debt...
Debt is also cheaper than equity in the long run as equity cannot be redeemed...
With Kengen's asset base we should be seeing at least KES 20Bn PAT.. So waiting for that potential to be unlocked should be rewarding. Massive debt with the promise of higher revenues and in turn profits. Thats always the plan, it's a risk, one thing goes wrong and the interest payments eat you alive. Debt is good, but too much will kill you, ask KQ I echo your thoughts @aguy. I find growth of wealth through equity more palatable, any day. the risks are way too low. dissolution/ liquidation or hostile take over hence loss of business but at premium on your capital. debt poses all above and at pricey interests that must be paid. ,Behold, a sower went forth to sow;....
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Rank: Chief Joined: 1/3/2007 Posts: 18,344 Location: Nairobi
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muandiwambeu wrote:Aguytrying wrote:guru267 wrote:Debt is a beautiful thing when return on assets exceeds the interest paid on debt...
Debt is also cheaper than equity in the long run as equity cannot be redeemed...
With Kengen's asset base we should be seeing at least KES 20Bn PAT.. So waiting for that potential to be unlocked should be rewarding. Massive debt with the promise of higher revenues and in turn profits. Thats always the plan, it's a risk, one thing goes wrong and the interest payments eat you alive. Debt is good, but too much will kill you, ask KQ I echo your thoughts @aguy. I find growth of wealth through equity more palatable, any day. the risks are way too low. dissolution/ liquidation or hostile take over hence loss of business but at premium on your capital. debt poses all above and at pricey interests that must be paid. Not if the firm is TransCentury. http://www.businessdaily...08/-/yoviea/-/index.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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VituVingiSana wrote:muandiwambeu wrote:Aguytrying wrote:[quote=guru267]Debt is a beautiful thing when return on assets exceeds the interest paid on debt...
Debt is also cheaper than equity in the long run as equity cannot be redeemed...
With Kengen's asset base we should be seeing at least KES 20Bn PAT.. So waiting for that potential to be unlocked should be rewarding. Massive debt with the promise of higher revenues and in turn profits. Thats always the plan, it's a risk, one thing goes wrong and the interest payments eat you alive. Debt is good, but too much will kill you, ask KQ I echo your thoughts @aguy. I find growth of wealth through equity more palatable, any day. the risks are way too low. dissolution/ liquidation or hostile take over hence loss of business but at premium on your capital. debt poses all above and at pricey interests that must be paid. Not if the firm is TransCentury. http://www.businessdaily...8/-/yoviea/-/index.html[/quote] Thank you. transcentury, KQ, KK and ARM are good examples of what Large large debt can do to a company. One thing goes wrong and the pack of cards comes crumbling down. even Kenol kobil was in the mix but has managed to claw itself out. Manageable debt is good. But when i hear a company is planning to take on 200bn to 1 trillion in debt to grow its assets. i RUN for the hills. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Chief Joined: 1/3/2007 Posts: 18,344 Location: Nairobi
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@Aguy - Though TCL screwed over their Bondholders. The announcement today, also captured by BD, seems to indicate they paid the Bondholders, after 5 years, just 5% of their investment... in shares not cash! http://www.businessdaily...8/-/yoviea/-/index.html[Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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VituVingiSana wrote:@Aguy - Though TCL screwed over their Bondholders. The announcement today, also captured by BD, seems to indicate they paid the Bondholders, after 5 years, just 5% of their investment... in shares not cash! http://www.businessdaily...8/-/yoviea/-/index.html[ This is a comedy, well know the cast hopefully The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Jameni hii ni thread ya KENGEN maneno ya TCL iko in another topic/thread Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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