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The KenolKobil 2015 pendulum
VituVingiSana
#1561 Posted : Tuesday, December 19, 2017 9:46:11 AM
Rank: Chief


Joined: 1/3/2007
Posts: 14,414
Location: Nairobi
Aguytrying wrote:
kawi254 wrote:
Next market share report for OMCs should be interesting.

On all major Highways i have noticed a lot of Shell & Total petrol stations owned by our Somali brothers opening up - leveraging on the big brands as opposed to opening Petrol Stations with unknown names.

Maybe KenolKobil need also to partner up with our Somali brothers to increase their petrol stations numbers.

I've noted too. Between Nairobi and machakos junction, so big big stations. KK should get one or 2 there. There are so many trucks + jam on the route which could translate to more sales

Ohana did mention that they are looking for more stations i.e. if you know someone who wants to lease to KK, they can get in touch with KK but what he said is they LEASE not buy the stations.

I saw a nice one near/in Kekopey that caters to trucks. That should be the future.

Question: With crazy rents/prices of land/buildings in Nairobi... can petrol stations make a decent ROI? [If you have a station that's been there for years at a low(er) rent, you are OK but buying one acre in Upper Hill is 500mn.

500mn at 12% (T-Bond) = 60mn/year tax-free (90mn pre-tax)
Add interest costs to build a station + lease equipment.
Maintenance costs.
Salaries.
Taxes (County, licenses, etc)

A station would have to generate at least KES 150mn gross profits to pay all costs and make 60mn PAT + a little extra for the hassle.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Aguytrying
#1562 Posted : Tuesday, December 19, 2017 12:50:32 PM
Rank: Elder


Joined: 7/11/2010
Posts: 5,013
VituVingiSana wrote:
Aguytrying wrote:
kawi254 wrote:
Next market share report for OMCs should be interesting.

On all major Highways i have noticed a lot of Shell & Total petrol stations owned by our Somali brothers opening up - leveraging on the big brands as opposed to opening Petrol Stations with unknown names.

Maybe KenolKobil need also to partner up with our Somali brothers to increase their petrol stations numbers.

I've noted too. Between Nairobi and machakos junction, so big big stations. KK should get one or 2 there. There are so many trucks + jam on the route which could translate to more sales

Ohana did mention that they are looking for more stations i.e. if you know someone who wants to lease to KK, they can get in touch with KK but what he said is they LEASE not buy the stations.

I saw a nice one near/in Kekopey that caters to trucks. That should be the future.

Question: With crazy rents/prices of land/buildings in Nairobi... can petrol stations make a decent ROI? [If you have a station that's been there for years at a low(er) rent, you are OK but buying one acre in Upper Hill is 500mn.

500mn at 12% (T-Bond) = 60mn/year tax-free (90mn pre-tax)
Add interest costs to build a station + lease equipment.
Maintenance costs.
Salaries.
Taxes (County, licenses, etc)

A station would have to generate at least KES 150mn gross profits to pay all costs and make 60mn PAT + a little extra for the hassle.


I find KK not aggressive enough in getting petrol stations in prime locations. But I have realised thika to embu they have a presence. Wish they could replicate it elsewhere. That said the volumes of sales are among the highest of the OMCs
The investor's chief problem - and even his worst enemy - is likely to be himself
VituVingiSana
#1563 Posted : Tuesday, December 19, 2017 2:20:09 PM
Rank: Chief


Joined: 1/3/2007
Posts: 14,414
Location: Nairobi
Aguytrying wrote:
VituVingiSana wrote:
Aguytrying wrote:
kawi254 wrote:
Next market share report for OMCs should be interesting.

On all major Highways i have noticed a lot of Shell & Total petrol stations owned by our Somali brothers opening up - leveraging on the big brands as opposed to opening Petrol Stations with unknown names.

Maybe KenolKobil need also to partner up with our Somali brothers to increase their petrol stations numbers.

I've noted too. Between Nairobi and machakos junction, so big big stations. KK should get one or 2 there. There are so many trucks + jam on the route which could translate to more sales

Ohana did mention that they are looking for more stations i.e. if you know someone who wants to lease to KK, they can get in touch with KK but what he said is they LEASE not buy the stations.

I saw a nice one near/in Kekopey that caters to trucks. That should be the future.

Question: With crazy rents/prices of land/buildings in Nairobi... can petrol stations make a decent ROI? [If you have a station that's been there for years at a low(er) rent, you are OK but buying one acre in Upper Hill is 500mn.

500mn at 12% (T-Bond) = 60mn/year tax-free (90mn pre-tax)
Add interest costs to build a station + lease equipment.
Maintenance costs.
Salaries.
Taxes (County, licenses, etc)

A station would have to generate at least KES 150mn gross profits to pay all costs and make 60mn PAT + a little extra for the hassle.


I find KK not aggressive enough in getting petrol stations in prime locations. But I have realised thika to embu they have a presence. Wish they could replicate it elsewhere. That said the volumes of sales are among the highest of the OMCs

My view or understanding of Ohana's philosophy is KK will pursue PROFITABLE growth rather than Segman's policy [at the time] of growth in volumes at the expense of profits.
There are different schools of thought but after seeing what happened to ARM, KK and KQ in the not so distant past, I agree with "slow but sure" growth in the core business.

What I would like to see happen is greater growth in "other income" by pursuing better re-development of the prime stations that have extra land.

KK has put a lot of money into expanding the LPG business and that will pay off going forward.

The K-Card could be leveraged further. That has disappointed me i.e. I do not see a major push to get more K-Cards into more hands and tie it in with other retailers for increased loyalty.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
obiero
#1564 Posted : Tuesday, December 19, 2017 2:28:13 PM
Rank: Elder


Joined: 6/23/2009
Posts: 9,567
Location: nairobi
VituVingiSana wrote:
Aguytrying wrote:
VituVingiSana wrote:
Aguytrying wrote:
kawi254 wrote:
Next market share report for OMCs should be interesting.

On all major Highways i have noticed a lot of Shell & Total petrol stations owned by our Somali brothers opening up - leveraging on the big brands as opposed to opening Petrol Stations with unknown names.

Maybe KenolKobil need also to partner up with our Somali brothers to increase their petrol stations numbers.

I've noted too. Between Nairobi and machakos junction, so big big stations. KK should get one or 2 there. There are so many trucks + jam on the route which could translate to more sales

Ohana did mention that they are looking for more stations i.e. if you know someone who wants to lease to KK, they can get in touch with KK but what he said is they LEASE not buy the stations.

I saw a nice one near/in Kekopey that caters to trucks. That should be the future.

Question: With crazy rents/prices of land/buildings in Nairobi... can petrol stations make a decent ROI? [If you have a station that's been there for years at a low(er) rent, you are OK but buying one acre in Upper Hill is 500mn.

500mn at 12% (T-Bond) = 60mn/year tax-free (90mn pre-tax)
Add interest costs to build a station + lease equipment.
Maintenance costs.
Salaries.
Taxes (County, licenses, etc)

A station would have to generate at least KES 150mn gross profits to pay all costs and make 60mn PAT + a little extra for the hassle.


I find KK not aggressive enough in getting petrol stations in prime locations. But I have realised thika to embu they have a presence. Wish they could replicate it elsewhere. That said the volumes of sales are among the highest of the OMCs

My view or understanding of Ohana's philosophy is KK will pursue PROFITABLE growth rather than Segman's policy [at the time] of growth in volumes at the expense of profits.
There are different schools of thought but after seeing what happened to ARM, KK and KQ in the not so distant past, I agree with "slow but sure" growth in the core business.

What I would like to see happen is greater growth in "other income" by pursuing better re-development of the prime stations that have extra land.

KK has put a lot of money into expanding the LPG business and that will pay off going forward.

The K-Card could be leveraged further. That has disappointed me i.e. I do not see a major push to get more K-Cards into more hands and tie it in with other retailers for increased loyalty.

@vvs slow but sure is good but some businesses grow organically and without much debt.. COOP & KCB are good examples
PORTFOLIO: KQ 95,000
VituVingiSana
#1565 Posted : Tuesday, December 19, 2017 3:33:51 PM
Rank: Chief


Joined: 1/3/2007
Posts: 14,414
Location: Nairobi
obiero wrote:
VituVingiSana wrote:
Aguytrying wrote:
VituVingiSana wrote:
Aguytrying wrote:
kawi254 wrote:
Next market share report for OMCs should be interesting.

On all major Highways i have noticed a lot of Shell & Total petrol stations owned by our Somali brothers opening up - leveraging on the big brands as opposed to opening Petrol Stations with unknown names.

Maybe KenolKobil need also to partner up with our Somali brothers to increase their petrol stations numbers.

I've noted too. Between Nairobi and machakos junction, so big big stations. KK should get one or 2 there. There are so many trucks + jam on the route which could translate to more sales

Ohana did mention that they are looking for more stations i.e. if you know someone who wants to lease to KK, they can get in touch with KK but what he said is they LEASE not buy the stations.

I saw a nice one near/in Kekopey that caters to trucks. That should be the future.

Question: With crazy rents/prices of land/buildings in Nairobi... can petrol stations make a decent ROI? [If you have a station that's been there for years at a low(er) rent, you are OK but buying one acre in Upper Hill is 500mn.

500mn at 12% (T-Bond) = 60mn/year tax-free (90mn pre-tax)
Add interest costs to build a station + lease equipment.
Maintenance costs.
Salaries.
Taxes (County, licenses, etc)

A station would have to generate at least KES 150mn gross profits to pay all costs and make 60mn PAT + a little extra for the hassle.


I find KK not aggressive enough in getting petrol stations in prime locations. But I have realised thika to embu they have a presence. Wish they could replicate it elsewhere. That said the volumes of sales are among the highest of the OMCs

My view or understanding of Ohana's philosophy is KK will pursue PROFITABLE growth rather than Segman's policy [at the time] of growth in volumes at the expense of profits.
There are different schools of thought but after seeing what happened to ARM, KK and KQ in the not so distant past, I agree with "slow but sure" growth in the core business.

What I would like to see happen is greater growth in "other income" by pursuing better re-development of the prime stations that have extra land.

KK has put a lot of money into expanding the LPG business and that will pay off going forward.

The K-Card could be leveraged further. That has disappointed me i.e. I do not see a major push to get more K-Cards into more hands and tie it in with other retailers for increased loyalty.

@vvs slow but sure is good but some businesses grow organically and without much debt.. COOP & KCB are good examples

Banks cannot be evaluated on "debt" since their entire business is predicated on debt!

Depositors "lend" to banks.
Banks "lend" that money to borrowers.
In Kenya, there is a mismatch i.e. loans maturities > deposit maturities hence the fear of a run on a bank. The bank may be fine and lent properly BUT a borrower can't cash out, at a "fair" price, as fast as a bank needs to if there's a run.

KK, ARM, etc business is not "money" but "product" ... Money is a means of exchange. For banks, "money" is the "commodity"
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#1566 Posted : Tuesday, December 19, 2017 4:57:25 PM
Rank: Elder


Joined: 12/4/2009
Posts: 5,090
Location: NAIROBI
VituVingiSana wrote:
Aguytrying wrote:
VituVingiSana wrote:
Aguytrying wrote:
kawi254 wrote:
Next market share report for OMCs should be interesting.

On all major Highways i have noticed a lot of Shell & Total petrol stations owned by our Somali brothers opening up - leveraging on the big brands as opposed to opening Petrol Stations with unknown names.

Maybe KenolKobil need also to partner up with our Somali brothers to increase their petrol stations numbers.

I've noted too. Between Nairobi and machakos junction, so big big stations. KK should get one or 2 there. There are so many trucks + jam on the route which could translate to more sales

Ohana did mention that they are looking for more stations i.e. if you know someone who wants to lease to KK, they can get in touch with KK but what he said is they LEASE not buy the stations.

I saw a nice one near/in Kekopey that caters to trucks. That should be the future.

Question: With crazy rents/prices of land/buildings in Nairobi... can petrol stations make a decent ROI? [If you have a station that's been there for years at a low(er) rent, you are OK but buying one acre in Upper Hill is 500mn.

500mn at 12% (T-Bond) = 60mn/year tax-free (90mn pre-tax)
Add interest costs to build a station + lease equipment.
Maintenance costs.
Salaries.
Taxes (County, licenses, etc)

A station would have to generate at least KES 150mn gross profits to pay all costs and make 60mn PAT + a little extra for the hassle.


I find KK not aggressive enough in getting petrol stations in prime locations. But I have realised thika to embu they have a presence. Wish they could replicate it elsewhere. That said the volumes of sales are among the highest of the OMCs

My view or understanding of Ohana's philosophy is KK will pursue PROFITABLE growth rather than Segman's policy [at the time] of growth in volumes at the expense of profits.
There are different schools of thought but after seeing what happened to ARM, KK and KQ in the not so distant past, I agree with "slow but sure" growth in the core business.

What I would like to see happen is greater growth in "other income" by pursuing better re-development of the prime stations that have extra land.

KK has put a lot of money into expanding the LPG business and that will pay off going forward.

The K-Card could be leveraged further. That has disappointed me i.e. I do not see a major push to get more K-Cards into more hands and tie it in with other retailers for increased loyalty.

Cash is king
obiero
#1567 Posted : Thursday, December 21, 2017 12:49:59 PM
Rank: Elder


Joined: 6/23/2009
Posts: 9,567
Location: nairobi
muandiwambeu wrote:
mlennyma wrote:
muandiwambeu wrote:
obiero wrote:
Angelica _ann wrote:
Currently this is the 2nd best managed company listed at NSE after BAT!!!!! smile

EABL? SCOM? DTB? TPSEA?.. Toa hio voodoo rating hapa, tafadhali!

I fully concur with you. This is median attempt by Hohana. The risk still larks and its too early to crown your david @vvs. Where is the track record. I do not invest with starters and especially on hope and at a premium .Laughing out loudly Laughing out loudly Laughing out loudly smile
Let the heiffer prove to be a cash cow after second or third lactation.

even the way you spell ohana tells me you know nothing about kk

Thanks for your timely correction. But unfortunately its not a bother to my banker. Only a meaningful sum of chums tickles the teller to afford me a smile.

Boom. KES 13.8 prints. Glad I made it out in good time and condition
PORTFOLIO: KQ 95,000
VituVingiSana
#1568 Posted : Thursday, December 21, 2017 1:06:44 PM
Rank: Chief


Joined: 1/3/2007
Posts: 14,414
Location: Nairobi
obiero wrote:
muandiwambeu wrote:
mlennyma wrote:
muandiwambeu wrote:
obiero wrote:
Angelica _ann wrote:
Currently this is the 2nd best managed company listed at NSE after BAT!!!!! smile

EABL? SCOM? DTB? TPSEA?.. Toa hio voodoo rating hapa, tafadhali!

I fully concur with you. This is median attempt by Hohana. The risk still larks and its too early to crown your david @vvs. Where is the track record. I do not invest with starters and especially on hope and at a premium .Laughing out loudly Laughing out loudly Laughing out loudly smile
Let the heiffer prove to be a cash cow after second or third lactation.

even the way you spell ohana tells me you know nothing about kk

Thanks for your timely correction. But unfortunately its not a bother to my banker. Only a meaningful sum of chums tickles the teller to afford me a smile.

Boom. KES 13.8 prints. Glad I made it out in good time and condition

What did you but using the cash? KQ? 😂😂😂
I love the bargains in the NSE at the moment!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
obiero
#1569 Posted : Thursday, December 21, 2017 1:19:34 PM
Rank: Elder


Joined: 6/23/2009
Posts: 9,567
Location: nairobi
VituVingiSana wrote:
obiero wrote:
muandiwambeu wrote:
mlennyma wrote:
muandiwambeu wrote:
obiero wrote:
Angelica _ann wrote:
Currently this is the 2nd best managed company listed at NSE after BAT!!!!! smile

EABL? SCOM? DTB? TPSEA?.. Toa hio voodoo rating hapa, tafadhali!

I fully concur with you. This is median attempt by Hohana. The risk still larks and its too early to crown your david @vvs. Where is the track record. I do not invest with starters and especially on hope and at a premium .Laughing out loudly Laughing out loudly Laughing out loudly smile
Let the heiffer prove to be a cash cow after second or third lactation.

even the way you spell ohana tells me you know nothing about kk

Thanks for your timely correction. But unfortunately its not a bother to my banker. Only a meaningful sum of chums tickles the teller to afford me a smile.

Boom. KES 13.8 prints. Glad I made it out in good time and condition

What did you but using the cash? KQ? 😂😂😂
I love the bargains in the NSE at the moment!

No. It was only 1,000 shares. Bought shoes!
PORTFOLIO: KQ 95,000
mlennyma
#1570 Posted : Wednesday, February 07, 2018 2:21:59 PM
Rank: Elder


Joined: 7/21/2010
Posts: 5,760
Location: nairobi
The backlog of sell orders around 14.80 -15 seems to be over
"Don't let the fear of losing be greater than the excitement of winning."
VituVingiSana
#1571 Posted : Wednesday, February 07, 2018 2:30:50 PM
Rank: Chief


Joined: 1/3/2007
Posts: 14,414
Location: Nairobi
obiero wrote:
muandiwambeu wrote:
mlennyma wrote:
muandiwambeu wrote:
obiero wrote:
Angelica _ann wrote:
Currently this is the 2nd best managed company listed at NSE after BAT!!!!! smile

EABL? SCOM? DTB? TPSEA?.. Toa hio voodoo rating hapa, tafadhali!

I fully concur with you. This is median attempt by Hohana. The risk still larks and its too early to crown your david @vvs. Where is the track record. I do not invest with starters and especially on hope and at a premium .Laughing out loudly Laughing out loudly Laughing out loudly smile
Let the heiffer prove to be a cash cow after second or third lactation.

even the way you spell ohana tells me you know nothing about kk

Thanks for your timely correction. But unfortunately its not a bother to my banker. Only a meaningful sum of chums tickles the teller to afford me a smile.

Boom. KES 13.8 prints. Glad I made it out in good time and condition

Good for you as we get to 15 and beyond.
I may have bought some of your shares.

As of 7 Feb 2018
KQ trades at 16/- with a negative EPS.
KK trades at 15/- with a positive EPS (2017) even after huge write-offs [KPRL, lawsuit and Segman]

I expect a very good 2018. Kestrel [it is related to KK] is also bullish. I await a FY 2017 dividend of 30-50 cents. And an interim FY 2018 dividend.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Horton
#1572 Posted : Wednesday, February 07, 2018 8:28:05 PM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,189
Location: Nairobi
VituVingiSana wrote:
obiero wrote:
muandiwambeu wrote:
mlennyma wrote:
muandiwambeu wrote:
obiero wrote:
Angelica _ann wrote:
Currently this is the 2nd best managed company listed at NSE after BAT!!!!! smile

EABL? SCOM? DTB? TPSEA?.. Toa hio voodoo rating hapa, tafadhali!

I fully concur with you. This is median attempt by Hohana. The risk still larks and its too early to crown your david @vvs. Where is the track record. I do not invest with starters and especially on hope and at a premium .Laughing out loudly Laughing out loudly Laughing out loudly smile
Let the heiffer prove to be a cash cow after second or third lactation.

even the way you spell ohana tells me you know nothing about kk

Thanks for your timely correction. But unfortunately its not a bother to my banker. Only a meaningful sum of chums tickles the teller to afford me a smile.

Boom. KES 13.8 prints. Glad I made it out in good time and condition

Good for you as we get to 15 and beyond.
I may have bought some of your shares.

As of 7 Feb 2018
KQ trades at 16/- with a negative EPS.
KK trades at 15/- with a positive EPS (2017) even after huge write-offs [KPRL, lawsuit and Segman]

I expect a very good 2018. Kestrel [it is related to KK] is also bullish. I await a FY 2017 dividend of 30-50 cents. And an interim FY 2018 dividend.



Kestrel are always bullish with anything Kenol.
It maybe very well run as you assert but the net margins suck. Whats your end game? A buyout?
I own shares in EQUITY,KCB,CYTONN, BRK.B and a few other unlisted companies
VituVingiSana
#1573 Posted : Thursday, February 08, 2018 12:01:40 AM
Rank: Chief


Joined: 1/3/2007
Posts: 14,414
Location: Nairobi
Horton wrote:
VituVingiSana wrote:
obiero wrote:
muandiwambeu wrote:
mlennyma wrote:
muandiwambeu wrote:
obiero wrote:
Angelica _ann wrote:
Currently this is the 2nd best managed company listed at NSE after BAT!!!!! smile

EABL? SCOM? DTB? TPSEA?.. Toa hio voodoo rating hapa, tafadhali!

I fully concur with you. This is median attempt by Hohana. The risk still larks and its too early to crown your david @vvs. Where is the track record. I do not invest with starters and especially on hope and at a premium .Laughing out loudly Laughing out loudly Laughing out loudly smile
Let the heiffer prove to be a cash cow after second or third lactation.

even the way you spell ohana tells me you know nothing about kk

Thanks for your timely correction. But unfortunately its not a bother to my banker. Only a meaningful sum of chums tickles the teller to afford me a smile.

Boom. KES 13.8 prints. Glad I made it out in good time and condition

Good for you as we get to 15 and beyond.
I may have bought some of your shares.

As of 7 Feb 2018
KQ trades at 16/- with a negative EPS.
KK trades at 15/- with a positive EPS (2017) even after huge write-offs [KPRL, lawsuit and Segman]

I expect a very good 2018. Kestrel [it is related to KK] is also bullish. I await a FY 2017 dividend of 30-50 cents. And an interim FY 2018 dividend.



Kestrel are always bullish with anything Kenol.
It maybe very well run as you assert but the net margins suck. Whats your end game? A buyout?

It's good to acknowledge that KK and Kestrel have "ties".
If KK can sustainably make an EPS of 2.50 that's a great ROI of 16.66% = (2.50/15.00)... I do not need a buy-out.

Net Margins: Yes, they are low but that's common in the industry. This is a volume driven business not a "high value" business. It is certainly not Apple.

With KK's re-entry into the OTS, the net margin may even drop further but volumes/revenues will increase. OTS cargoes have slim margins with a low chance of default due to the penalties imposed by MoE/ERC on the defaulters.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mlennyma
#1574 Posted : Thursday, February 08, 2018 9:53:42 AM
Rank: Elder


Joined: 7/21/2010
Posts: 5,760
Location: nairobi
VituVingiSana wrote:
Horton wrote:
VituVingiSana wrote:
obiero wrote:
muandiwambeu wrote:
mlennyma wrote:
muandiwambeu wrote:
obiero wrote:
Angelica _ann wrote:
Currently this is the 2nd best managed company listed at NSE after BAT!!!!! smile

EABL? SCOM? DTB? TPSEA?.. Toa hio voodoo rating hapa, tafadhali!

I fully concur with you. This is median attempt by Hohana. The risk still larks and its too early to crown your david @vvs. Where is the track record. I do not invest with starters and especially on hope and at a premium .Laughing out loudly Laughing out loudly Laughing out loudly smile
Let the heiffer prove to be a cash cow after second or third lactation.

even the way you spell ohana tells me you know nothing about kk

Thanks for your timely correction. But unfortunately its not a bother to my banker. Only a meaningful sum of chums tickles the teller to afford me a smile.

Boom. KES 13.8 prints. Glad I made it out in good time and condition

Good for you as we get to 15 and beyond.
I may have bought some of your shares.

As of 7 Feb 2018
KQ trades at 16/- with a negative EPS.
KK trades at 15/- with a positive EPS (2017) even after huge write-offs [KPRL, lawsuit and Segman]

I expect a very good 2018. Kestrel [it is related to KK] is also bullish. I await a FY 2017 dividend of 30-50 cents. And an interim FY 2018 dividend.



Kestrel are always bullish with anything Kenol.
It maybe very well run as you assert but the net margins suck. Whats your end game? A buyout?

It's good to acknowledge that KK and Kestrel have "ties".
If KK can sustainably make an EPS of 2.50 that's a great ROI of 16.66% = (2.50/15.00)... I do not need a buy-out.

Net Margins: Yes, they are low but that's common in the industry. This is a volume driven business not a "high value" business. It is certainly not Apple.

With KK's re-entry into the OTS, the net margin may even drop further but volumes/revenues will increase. OTS cargoes have slim margins with a low chance of default due to the penalties imposed by MoE/ERC on the defaulters.

that energy CS who hinted the end of price controls was retained, how soon can that happen and why did some players like kk want controls to stay.?
"Don't let the fear of losing be greater than the excitement of winning."
VituVingiSana
#1575 Posted : Thursday, February 08, 2018 10:22:06 AM
Rank: Chief


Joined: 1/3/2007
Posts: 14,414
Location: Nairobi
@miennyma - KK knows how to successfully navigate the price controls... It gives them an advantage and so they prefer it that way.

I do not like price controls coz they distort the markets...

Why does GoK want to remove price controls? Simple. So they can shift the blame of higher fuel/retail prices to the OMCs in the wake of rising oil prices.
With price controls, the higher oil prices are translated to higher pump prices, and ERC sets the prices, and OMCs prefer that to being accused of price gouging by ignorant consumers.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mlennyma
#1576 Posted : Thursday, February 08, 2018 10:44:22 AM
Rank: Elder


Joined: 7/21/2010
Posts: 5,760
Location: nairobi
VituVingiSana wrote:
@miennyma - KK knows how to successfully navigate the price controls... It gives them an advantage and so they prefer it that way.

I do not like price controls coz they distort the markets...

Why does GoK want to remove price controls? Simple. So they can shift the blame of higher fuel/retail prices to the OMCs in the wake of rising oil prices.
With price controls, the higher oil prices are translated to higher pump prices, and ERC sets the prices, and OMCs prefer that to being accused of price gouging by ignorant consumers.

Spot on,they want to shift blame since wanjiku knows very little about world oil prices ,,,,let it stay for them to carry the blame, it gives the marketers a predictable profit margin .....meanwhile the buyers can't believe the sellers want a price not less than 16
"Don't let the fear of losing be greater than the excitement of winning."
Flo-ology
#1577 Posted : Thursday, February 08, 2018 12:18:21 PM
Rank: Member


Joined: 12/17/2016
Posts: 217
mlennyma wrote:
VituVingiSana wrote:
Horton wrote:
VituVingiSana wrote:
obiero wrote:
muandiwambeu wrote:
mlennyma wrote:
muandiwambeu wrote:
obiero wrote:
Angelica _ann wrote:
Currently this is the 2nd best managed company listed at NSE after BAT!!!!! smile

EABL? SCOM? DTB? TPSEA?.. Toa hio voodoo rating hapa, tafadhali!

I fully concur with you. This is median attempt by Hohana. The risk still larks and its too early to crown your david @vvs. Where is the track record. I do not invest with starters and especially on hope and at a premium .Laughing out loudly Laughing out loudly Laughing out loudly smile
Let the heiffer prove to be a cash cow after second or third lactation.

even the way you spell ohana tells me you know nothing about kk

Thanks for your timely correction. But unfortunately its not a bother to my banker. Only a meaningful sum of chums tickles the teller to afford me a smile.

Boom. KES 13.8 prints. Glad I made it out in good time and condition

Good for you as we get to 15 and beyond.
I may have bought some of your shares.

As of 7 Feb 2018
KQ trades at 16/- with a negative EPS.
KK trades at 15/- with a positive EPS (2017) even after huge write-offs [KPRL, lawsuit and Segman]

I expect a very good 2018. Kestrel [it is related to KK] is also bullish. I await a FY 2017 dividend of 30-50 cents. And an interim FY 2018 dividend.



Kestrel are always bullish with anything Kenol.
It maybe very well run as you assert but the net margins suck. Whats your end game? A buyout?

It's good to acknowledge that KK and Kestrel have "ties".
If KK can sustainably make an EPS of 2.50 that's a great ROI of 16.66% = (2.50/15.00)... I do not need a buy-out.

Net Margins: Yes, they are low but that's common in the industry. This is a volume driven business not a "high value" business. It is certainly not Apple.

With KK's re-entry into the OTS, the net margin may even drop further but volumes/revenues will increase. OTS cargoes have slim margins with a low chance of default due to the penalties imposed by MoE/ERC on the defaulters.

that energy CS who hinted the end of price controls was retained, how soon can that happen and why did some players like kk want controls to stay.?


Will oil and distribution remain under energy or mining and petroleum? That will shape the course of price control
Reflection Eternal
mlennyma
#1578 Posted : Friday, February 09, 2018 4:55:47 PM
Rank: Elder


Joined: 7/21/2010
Posts: 5,760
Location: nairobi
Of late volume is speaking something
"Don't let the fear of losing be greater than the excitement of winning."
Realtreaty
#1579 Posted : Friday, February 09, 2018 6:59:49 PM
Rank: Veteran


Joined: 8/16/2011
Posts: 1,990
mlennyma wrote:
Of late volume is speaking something


Positive FY17 figures. Now the issue is to determine bonus or dividends for investors
I can see Total touched 30 Kes as well.
VituVingiSana
#1580 Posted : Wednesday, February 14, 2018 11:56:59 PM
Rank: Chief


Joined: 1/3/2007
Posts: 14,414
Location: Nairobi
VituVingiSana wrote:
@miennyma - KK knows how to successfully navigate the price controls... It gives them an advantage and so they prefer it that way.

I do not like price controls coz they distort the markets...

Why does GoK want to remove price controls? Simple. So they can shift the blame of higher fuel/retail prices to the OMCs in the wake of rising oil prices.
With price controls, the higher oil prices are translated to higher pump prices, and ERC sets the prices, and OMCs prefer that to being accused of price gouging by ignorant consumers.

Another price increase https://www.businessdail...4808-137h9y7/index.html The advantage OMCs have is that they need not be in the direct line of fire when prices rise. As long as ERC follows the formula the OMCs don't have to worry about a consumer/political backlash.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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