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KQ hy19 loss doubles 8.6bn; negative equity 16.2bn
obiero
#71 Posted : Friday, August 30, 2019 10:57:44 AM
Rank: Elder

Joined: 6/23/2009
Posts: 14,213
Location: nairobi
muandiwambeu wrote:
sparkly wrote:
chiaroscuro wrote:
There are two ways to value a company:

1] what it owns versus what it owes - net assets
2] What it earns and what it CAN earn in future - current AND future profits

Why would anyone in their right mind buy a company that owes more than it owns, isn't making profit and has no promise of ever becoming profitable?

Now I know why they say that common sense is not very common!


3] trading price of companies with comparable performance. In case of KQ, listed companies in losses, negative equity and cashflows are trading circa 50 cents.

Sure, and the only perplexing thing is that @obiero is waiting for the bird to land properly to average down vigorously and courageously 😂. At times a captain do jettsion his ship if it is a definite situation of everyman for himself and God for us all, a golden window to eject but running out quite fast.
4) knowledge of the lead choirmaster of the company and his near past track record.

Hii pesa ni yangu bwana @muandiwambeu.. Musikonde!

KQ ABP 4.26
guru267
#72 Posted : Friday, August 30, 2019 11:03:28 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
obiero wrote:
chiaroscuro wrote:
There are two ways to value a company:

1] what it owns versus what it owes - net assets
2] What it earns and what it CAN earn in future - current AND future profits

Why would anyone in their right mind buy a company that owes more than it owns, isn't making profit and has no promise of ever becoming profitable?

Now I know why they say that common sense is not very common!

True. Its odd for anyone in right senses to claim that a firm that once obtained annual profit in excess of KES 6B; has no promise of ever becoming profitable


KQ occasionally used to make profits from trading fuel contracts which is something they don't do any more. Their core business has been loss making for as long as I remember.
Mark 12:29
Deuteronomy 4:16
MugundaMan
#73 Posted : Friday, August 30, 2019 11:08:22 AM
Rank: Elder

Joined: 1/8/2018
Posts: 2,212
Location: DC (Dustbowl County)
Mumias style losses yet -astoundingly- more lemmings are STILL investing in the casino. This world is crazy! Reminds me of the dot com bust of 2001. Stocks like JDSU were shooting up at unholy rates DAILY. The wise ones cashed out of it and many more when there were zero fundamentals to justify the irrational superboom in the market. When the crash came, amazingly, the pundits were advising the lemmings to "hold" kina JDSU, WCOM and others because "it was just a market correction and -the funniest lie of all - over the long term stocks always rebound and provide the highest returns of any investment." Wapi? 18 years on those who held those stocks are still "waiting" for them to rebound Laughing out loudly
the deal
#74 Posted : Friday, August 30, 2019 11:11:41 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Oops I have alot of shares...if I start selling now...1 bob will come...I will just wait for GoK's offer...I also have a feeling this could be KQ's last bad results...revenues are growing at double digits...once new routes mature e.g NBO-NY ...losses will start shrinking...
nairobby
#75 Posted : Friday, August 30, 2019 11:23:30 AM
Rank: Member

Joined: 1/18/2019
Posts: 185
Location: kenya
the deal wrote:
Oops I have alot of shares...if I start selling now...1 bob will come...I will just wait for GoK's offer...I also have a feeling this could be KQ's last bad results...revenues are growing at double digits...once new routes mature e.g NBO-NY ...losses will start shrinking...


Your feeling is wrong because the perennially high cost structure at KQ will never allow it to make a profit. The only way KQ can be profitable is through subsidies/nationalisation.

Look at how hard Sebastian has worked on the revenue side but the cost side has defeated him.

The only reason ET is profitable is because of their cost structure and I suspect a huge part of that is due to subsidies in fleet financing and maintenance plus their cheap labour costs.
Ericsson
#76 Posted : Friday, August 30, 2019 5:36:31 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
https://kenyanwallstreet...rts-search-for-new-ceo/

Kenya Airways is seeking to replace Mikosz who leaves the firm in December. Sebastian Mikosz issued a resignation letter in May citing personal reasons for his resignation.

According to the board chairman, it is high time the firm starts the replacement process before the December deadline when the CEO seat will be vacant. The board will come up with a decision soon and announce the recruitment criteria.

Sebastian Mikosz’s tenure was to end in June 2020. Under his tenure, KQ launched direct flights to New York, Mauritius, Libreville, and Mogadishu leading to revenue growth of 12 percent to KSh58 billion. In addition, he oversaw a plan where banks converted their debt into equity.

KQ is cash strained and made losses amounting to KSh8.5 billion in the first half of 2019. Part of the reason is flight cancellations and delays that have seen KQ spend KSh118 million from January to July to cater for accommodation.

Furthermore, KQ’s crew mismanagement has led to crew shortage and crew no show leading to the cancellation of 182 flights.

In addition, Competition from Ethiopian Airlines and Qatar Airways poses a threat to Kenya Airways.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
xxxxx
#77 Posted : Friday, August 30, 2019 6:51:44 PM
Rank: Member

Joined: 3/20/2008
Posts: 503
Ericsson wrote:
https://kenyanwallstreet.com/kq-kickstarts-search-for-new-ceo/

Kenya Airways is seeking to replace Mikosz who leaves the firm in December. Sebastian Mikosz issued a resignation letter in May citing personal reasons for his resignation.

According to the board chairman, it is high time the firm starts the replacement process before the December deadline when the CEO seat will be vacant. The board will come up with a decision soon and announce the recruitment criteria.

Sebastian Mikosz’s tenure was to end in June 2020. Under his tenure, KQ launched direct flights to New York, Mauritius, Libreville, and Mogadishu leading to revenue growth of 12 percent to KSh58 billion. In addition, he oversaw a plan where banks converted their debt into equity.

KQ is cash strained and made losses amounting to KSh8.5 billion in the first half of 2019. Part of the reason is flight cancellations and delays that have seen KQ spend KSh118 million from January to July to cater for accommodation.

Furthermore, KQ’s crew mismanagement has led to crew shortage and crew no show leading to the cancellation of 182 flights.

In addition, Competition from Ethiopian Airlines and Qatar Airways poses a threat to Kenya Airways.


This is an opportunity for real believers in this monkey @obiero...to take the reins and execute in line with the business case they rely on to justify investing in KQ
VituVingiSana
#78 Posted : Friday, August 30, 2019 11:11:15 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
According to The Star... DCI is investigating KQ's downfall which entails investigating Naikuni and Friends.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
maka
#79 Posted : Saturday, August 31, 2019 12:24:31 AM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
VituVingiSana wrote:
According to The Star... DCI is investigating KQ's downfall which entails investigating Naikuni and Friends.


I am 110% they will get something... Supply chain and Finance guys hao kwisha...
possunt quia posse videntur
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