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Kenya Airways...why ignore..
Rank: Member Joined: 5/21/2014 Posts: 184
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muandiwambeu wrote:Ericsson wrote:@muandiwambeu
KQ will still go back to the same hole since they have said they intend to take more debt The moot here is eps and mp at the best case scenario. deleveraging has got nothing to do with efficient use of the assets and neither does it reduces cost of capital since the banks will definitely demand dividend to their investment. Further, taxation burden will increase overall. Concessions are inconsequential being a can of worms kicked down the road five yrs atop just expiring one's. Do not underestimate the power of concessions on tenure to reduce pressure on an entity's cashflow. KQ has been trying to bring in experts in various departments to help actually improve operations. The concessions help to reduce pressure as the changes take effect. Whether the changes will be successful, that is another matter. I would stay out for now as there are quite a number of unknowns e.g conversion price, the fine details of the concessions. KQ just like mumias is subject to so many external factors. There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Chief Joined: 1/3/2007 Posts: 18,225 Location: Nairobi
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obiero wrote:Ericsson wrote:Kq is still in negative equity. Government loans amounting to $243mn is what will be converted to equity.
$525mn owed to US Exim Bank and $225mn owed to local lenders will have to be repaid with GOK acting as guarantor.
Local lenders/banks will not own any stake in KQ. You could be right and that would imply less dilution.. Meanwhile, airlines and negative equity go hand in hand.. It's a normal thingy which we have already discussed here. The cash flow is what will be increased via the tenor concessions.. And that is a very good thing... As for bank debt to equity position, soma hii link along with the cautionary statement http://mobile.reuters.com/article/idUSKBN1962OA Which other (profitable) airlines run on Negative Equity? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 8/11/2010 Posts: 1,011 Location: nairobi
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Rank: Member Joined: 5/30/2016 Posts: 217 Location: Talai
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bartum wrote:Watch reversal of kq noq ... THIS DUST NEED TO BE SETTLED... Watch and Listen and Live
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Rank: Member Joined: 5/21/2014 Posts: 184
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obiero wrote:[quote=Ericsson]Kq is still in negative equity. Government loans amounting to $243mn is what will be converted to equity.
$525mn owed to US Exim Bank and $225mn owed to local lenders will have to be repaid with GOK acting as guarantor.
Local lenders/banks will not own any stake in KQ. You could be right and that would imply less dilution.. Meanwhile, airlines and negative equity go hand in hand.. It's a normal thingy which we have already discussed here. The cash flow is what will be increased via the tenor concessions.. And that is a very good thing... As for bank debt to equity position, soma hii link along with the cautionary statement http://mobile.reuters.com/article/idUSKBN1962OA[/quote] The $225m for local banks will be converted to equity and then the deal appears for them to exit through open market. In the event that they are unable to exit and recover their money within the set timelines because of share price not recovering sufficiently then the government has to step in and compensate. And in the unlikely event that KQ folds then the Government wires capital + interest. There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Elder Joined: 6/23/2009 Posts: 13,798 Location: nairobi
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actuarywahisa wrote:obiero wrote:[quote=Ericsson]Kq is still in negative equity. Government loans amounting to $243mn is what will be converted to equity.
$525mn owed to US Exim Bank and $225mn owed to local lenders will have to be repaid with GOK acting as guarantor.
Local lenders/banks will not own any stake in KQ. You could be right and that would imply less dilution.. Meanwhile, airlines and negative equity go hand in hand.. It's a normal thingy which we have already discussed here. The cash flow is what will be increased via the tenor concessions.. And that is a very good thing... As for bank debt to equity position, soma hii link along with the cautionary statement http://mobile.reuters.com/article/idUSKBN1962OA[/quote] The $225m for local banks will be converted to equity and then the deal appears for them to exit through open market. In the event that they are unable to exit and recover their money within the set timelines because of share price not recovering sufficiently then the government has to step in and compensate. And in the unlikely event that KQ folds then the Government wires capital + interest. @actuary seems @Ericsson did not go to school.. Could we team up and send the guy for gumbaru
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 6/23/2009 Posts: 13,798 Location: nairobi
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ARAP CHARLES wrote:bartum wrote:Watch reversal of kq noq ... THIS DUST NEED TO BE SETTLED... @arapcharles anyone trading with the share in the past five days is either insane or genius
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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obiero wrote:muandiwambeu wrote:Ericsson wrote:@muandiwambeu
KQ will still go back to the same hole since they have said they intend to take more debt The moot here is eps and mp at the best case scenario. deleveraging has got nothing to do with efficient use of the assets and neither does it reduces cost of capital since the banks will definitely demand dividend to their investment. Further, taxation burden will increase overall. Concessions are inconsequential being a can of worms kicked down the road five yrs atop just expiring one's. The problem with Africans is mixing up issues.. I will sell this stock at some point. The capital gains are my only focus and so far I am up 28% on the shareholding as at this minute.. Your wish sir. Let ur wish be granted. Out for my gravy wkd now. ,Behold, a sower went forth to sow;....
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Rank: Member Joined: 5/21/2014 Posts: 184
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obiero wrote:ARAP CHARLES wrote:bartum wrote:Watch reversal of kq noq ... THIS DUST NEED TO BE SETTLED... @arapcharles anyone trading with the share in the past five days is either insane or genius I am neither. Not even with a 5km pole. There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Elder Joined: 6/23/2009 Posts: 13,798 Location: nairobi
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actuarywahisa wrote:obiero wrote:ARAP CHARLES wrote:bartum wrote:Watch reversal of kq noq ... THIS DUST NEED TO BE SETTLED... @arapcharles anyone trading with the share in the past five days is either insane or genius I am neither. Not even with a 5km pole. Closes the day with full reversal only one session away from cautionary announcement date.. But then over 4m cumulative shares have been traded at KES 5.15 to KES 5.75.. Think about it someone who bought shares worth KES 5,150,000 two days ago, is now worth KES 5,750,000.. Only cocaine offers a better return in such a short span
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 6/23/2009 Posts: 13,798 Location: nairobi
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obiero wrote:maka wrote:obiero wrote:maka wrote:obiero wrote:Spikes wrote:obiero wrote:mlennyma wrote:obiero wrote:Flo-ology wrote:Hello Bro Obiero. I have been off Wazua due to assignment but I had to post this because of you: your prophecy helped me make about KES 300k in less than 2 months(bought at 4.3, dumped at 7.1);the best gain ever on my nse counters. I am really sorry that your own prophecy couldn't help you see the looming disaster ahead of KQ...
May God watch over you... @flo-ology most welcome.. Yet another testimony from a beneficiary of correct bus selection. Asante for the prayers.. But this is very temporary. In stocks you only book a gain or loss upon trades KQ will be paying debts for the rest of our lives Even KCB has debt How long it took to settle the debt? Nearly all the listed firms bear debt.. Tusikonde That's ok...but the capacity to pay...and KQ has been really lucky the last couple of months no major issues with the planes or staff...was looking at some revenue figures for the last month from some stations they have surpassed targets given by faaaaar. There's no luck there.. Mbuvi Ngunze turned around KQ You wish... @maka women lie, men lie.. numbers don't lie. KQ has turned the final corner towards profitability. Today's volume is an indication of the greater fool theory in action. Caution must be exercised Ngunze left Parliament late night after rushing to save KQ from imminent collapse on Wednesday.. Even after KALPA did what they did to him.. This man has a good heart
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 6/23/2009 Posts: 13,798 Location: nairobi
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obiero wrote:5 key questions to ponder prior to dismissal of PJT Partner's KQ restructuring deal and its subsequent ripple effect on the share:
1. Exactly/approximately how many new shares are being created?
2. What price was agreed for the purchase of each new share
. Or maybe this wasn't discussed?
3. Will the new issuance imply that minority shareholders get diluted with no recourse
pro rata
?
4. When will KQ turn a profit
at the earliest?
5. Why are there no bulk sellers since the cautionary statement filtered out. Could it be that investors are eagerly waiting to sell at KES 2 to @spikes & Co none of the questions above are answered apart from number 4 & 5.. By October we will have a profit and bulk buyers have appeared at KES 5.75 which is the new floor pending issuance of the new shares pro rata, since there is no way on earth that the minority shareholders will be diluted without any due regard. That analysis from Genghis Capital claiming KES 1.2 as the diluted price per share, is weaker than Mugabe's knees.. My forecast, KQ shareholders will have the right to subscribe to 20 new ordinary shares for every 5 ordinary shares held on the register closing date at a price not higher than KES 5.50 per share, with the new allocation ranking pari passu
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Member Joined: 5/30/2016 Posts: 217 Location: Talai
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obiero wrote:ARAP CHARLES wrote:bartum wrote:Watch reversal of kq noq ... THIS DUST NEED TO BE SETTLED... @arapcharles anyone trading with the share in the past five days is either insane or genius NI KAMA DRAMA NI KAMA VIDEO....i hold my horses right!! i witnessed a demand of 800,000 shares at 5.75cts being wiped today as a demand started building towards the end of Business today Watch and Listen and Live
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Rank: Elder Joined: 6/23/2009 Posts: 13,798 Location: nairobi
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ARAP CHARLES wrote:obiero wrote:ARAP CHARLES wrote:bartum wrote:Watch reversal of kq noq ... THIS DUST NEED TO BE SETTLED... @arapcharles anyone trading with the share in the past five days is either insane or genius NI KAMA DRAMA NI KAMA VIDEO....i hold my horses right!! i witnessed a demand of 800,000 shares at 5.75cts being wiped today as a demand started building towards the end of Business today At the exchange bar right now.. On Monday, the upward trend gains new life. I will explain later
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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obiero wrote:ARAP CHARLES wrote:obiero wrote:ARAP CHARLES wrote:bartum wrote:Watch reversal of kq noq ... THIS DUST NEED TO BE SETTLED... @arapcharles anyone trading with the share in the past five days is either insane or genius NI KAMA DRAMA NI KAMA VIDEO....i hold my horses right!! i witnessed a demand of 800,000 shares at 5.75cts being wiped today as a demand started building towards the end of Business today At the exchange bar right now.. On Monday, the upward trend gains new life. I will explain later Ask whether Kengen will hit 10/- this week. Life is short. Live passionately.
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Rank: Elder Joined: 6/23/2009 Posts: 13,798 Location: nairobi
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sparkly wrote:obiero wrote:ARAP CHARLES wrote:obiero wrote:ARAP CHARLES wrote:bartum wrote:Watch reversal of kq noq ... THIS DUST NEED TO BE SETTLED... @arapcharles anyone trading with the share in the past five days is either insane or genius NI KAMA DRAMA NI KAMA VIDEO....i hold my horses right!! i witnessed a demand of 800,000 shares at 5.75cts being wiped today as a demand started building towards the end of Business today At the exchange bar right now.. On Monday, the upward trend gains new life. I will explain later Ask whether Kengen will hit 10/- this week. I sought a response to the query and it was availed but I can't recall the content.. Meanwhile, the shareholder approval for KQ rights issue will be classified as primary business at the AGM slated for 28.09.2017
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 6/23/2009 Posts: 13,798 Location: nairobi
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Spikes wrote:obiero wrote:Spikes wrote:obiero wrote:Spikes wrote:obiero wrote:Spikes wrote:It's not news for you to discover that you're the most crazy lunatic at nse! Good morning to you too clown.. Kindly let me know when KES 2 prints @stocksmaster Gatheuzi, I see you Good morning to you too crazy lunatic!  By the way are you aware clowns mint millions of money by entertaining crazy lunatics and company? Disclaimer :at nse I'm not a clown. The energy you bring to this thread as a non-shareholder beats all logic.. Kindly spare time to comment on Kurwitu and your other stocks Stock market has two movements: North or South .Either way depends on the available information and other exterior factors. Nobody is a hero at nse especially traders except long-term investors in blue chip companies. Tell that to the birds.. Do you recall what happened at Orchards, City Trust, Olympia?? Are those blue chips??
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 6/23/2009 Posts: 13,798 Location: nairobi
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5 key questions to ponder prior to dismissal of PJT Partner's KQ restructuring deal and its subsequent ripple effect on the share: 1. Exactly/approximately how many new shares are being created? A. Not less than 3.5B new shares 2. What price was agreed for the purchase of each new share . Or maybe this wasn't discussed? A. This will only be known upon shareholders approval to the arrangement in late September.. Speculation to a positive skew will therefore be at play until then, due to the capital restructuring success 3. Will the new issuance imply that minority shareholders get diluted with no recourse pro rata ? A. No. Every existing shareholder will be offered a chance to defend their rights so as to retain proportionate holding.. However it is likely to be a large cash call 4. When will KQ turn a profit at the earliest? A.Half year 2017/2018 5. Why are there no bulk sellers since the cautionary statement filtered out. Could it be that investors are eagerly waiting to sell at KES 2 to @spikes & Co A. Recent volume and price activity suggests upwards trend with upper limit of KES 10 per share a live possibility
COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 3/2/2009 Posts: 26,330 Location: Masada
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sparkly wrote:obiero wrote:ARAP CHARLES wrote:obiero wrote:ARAP CHARLES wrote:bartum wrote:Watch reversal of kq noq ... THIS DUST NEED TO BE SETTLED... @arapcharles anyone trading with the share in the past five days is either insane or genius NI KAMA DRAMA NI KAMA VIDEO....i hold my horses right!! i witnessed a demand of 800,000 shares at 5.75cts being wiped today as a demand started building towards the end of Business today At the exchange bar right now.. On Monday, the upward trend gains new life. I will explain later Ask whether Kengen will hit 10/- this week. Kwani hii pub iko waphi? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 5/29/2016 Posts: 898 Location: Nairobi
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actuarywahisa wrote:muandiwambeu wrote:Ericsson wrote:@muandiwambeu
KQ will still go back to the same hole since they have said they intend to take more debt The moot here is eps and mp at the best case scenario. deleveraging has got nothing to do with efficient use of the assets and neither does it reduces cost of capital since the banks will definitely demand dividend to their investment. Further, taxation burden will increase overall. Concessions are inconsequential being a can of worms kicked down the road five yrs atop just expiring one's. Do not underestimate the power of concessions on tenure to reduce pressure on an entity's cashflow. KQ has been trying to bring in experts in various departments to help actually improve operations. The concessions help to reduce pressure as the changes take effect. Whether the changes will be successful, that is another matter. I would stay out for now as there are quite a number of unknowns e.g conversion price, the fine details of the concessions. KQ just like mumias is subject to so many external factors. Which experts have been brought in again?
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