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Is KQ Junk or Blue Chip?
the deal
#1 Posted : Friday, August 13, 2010 6:37:25 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Is KQ Junk?

1.Competition-Fly 540 is whipping them domestically.
2.JKIA-you never depart on time much to the disgust of customers
3.Operational costs-high salaries...cost of sales..oil..all eat into margins

Is KQ Blue Chip?

1.Aggresive expasion-think Africa...think KQ..
2.Worl Cup-flight hours increased during the World Cup
3.Tourists-no of tourists visting Kenya is up...no wonder the ash didnt affect Europe 1Q PAX no's
4.The oil hedges are good at 76$
5.Last year there was a strike during the peak season..this year hakuna...
6.KQ paid off the striking union staff during the last financial year...
youcan'tstopusnow
#2 Posted : Friday, August 13, 2010 7:00:46 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
deal, what comes between Junk and Blue Chip? There's your answer
GOD BLESS YOUR LIFE
ProverB
#3 Posted : Friday, August 13, 2010 7:02:34 PM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
the deal wrote:
Is KQ Junk?

2.JKIA-you never depart on time much to the disgust of customers

3.Operational costs-high salaries...cost of sales..oil..all eat into margins

5.Last year there was a strike during the peak season..this year hakuna...

6.KQ paid off the striking union staff during the last financial year...


.. Naikuni has stewed over this issues too many years to not have solutions that do NOT eat into the margins so terribly!!
..just how low operating margin is needed to be attained before there is a turn around??

the deal wrote:

Aggressive expansion-think Africa...think KQ.

..at what cost?
it is time they took cue from Michael Joseph and "owe it to share holders to charge profitably" for all services.. I would rather an expensive flight with totally off the hook premier service..than a flight charged below cost with lousy service!

the deal wrote:

4.The oil hedges are good at 76$


this is NOT there core business..and passing returns from here as a sign of very good year is just deceptive and hoodwinking loyal long-term investors..cheap stinking shot Mr TiTUS!!!


That said.. JUNK!!!..

..but sweet for day traders! Ignorance, i'm told..especially if the ignorance is of the masses..is just bliss!

Ama aje qw25041985??

That is just my opinion. mine.smile
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
Horton
#4 Posted : Friday, August 13, 2010 7:15:31 PM
Rank: Veteran

Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
the deal wrote:
Is KQ Junk?

1.Competition-Fly 540 is whipping them domestically.
2.JKIA-you never depart on time much to the disgust of customers
3.Operational costs-high salaries...cost of sales..oil..all eat into margins

Is KQ Blue Chip?

1.Aggresive expasion-think Africa...think KQ..
2.Worl Cup-flight hours increased during the World Cup
3.Tourists-no of tourists visting Kenya is up...no wonder the ash didnt affect Europe 1Q PAX no's
4.The oil hedges are good at 76$
5.Last year there was a strike during the peak season..this year hakuna...
6.KQ paid off the striking union staff during the last financial year...


1. KQ NEVER MADE MONEY "DOMESTICALLY" They only operate 2 routes, MBA n KISUMU city. This is just to maintain frequencies

2.Delays have been mainly due to too much work, to feew resources...by this i mean, Parking slots, only 20 bays in JKIA have refuelling capabilities and this hampers the "hub and spoke" concept KQ works on where they have most departures at 8am. Now KQ have about 25ndeges on their own. How about 540? jetlink? BA, VS etc?? So some airplanes have to be parked at remote and then towed for refuelling and this has a dominoe effect on subsequent/connecting flights.
Also, Shortage of Cabin crew n rubanis....a case of tooo much work, not enough manpower...they have tried hiring but alot of the guys/gals dont cut the mustard as they are very picky on their pilots...and hey I would agree 100% here.

3. KQ pilots and crew take home much less than counterparts in Emirates/qatar etc

Then again just have friends who tell me this, I personally ave never been an airline fan...as a shareholder...save from the time when kq was 7bob when i bought a chunk n got rid of the m at 80bob
LOL
s
the deal
#5 Posted : Friday, August 13, 2010 7:29:00 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Can KQ mantain their profitability? Yes they can...their core business is doing well...1Q passenger no's implied...i think that confirmation is coming in half year results...so the time to get in is now...this is a sleeping blue chip like DTBK...
ProverB
#6 Posted : Friday, August 13, 2010 7:36:31 PM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
the deal wrote:
Can KQ mantain their profitability? Yes they can...their core business is doing well...


Time will tell.. the only thing (for me) going for this counter is that it is trading so near its book value!!! smile smile
On this one..i'm totally a trader! smile
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
the deal
#7 Posted : Friday, August 13, 2010 7:53:47 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
HAHAHA @Proverb this one counter you should go overdrive into buying especially at this levels..this is a wonderful company fairly priced...
VituVingiSana
#8 Posted : Friday, August 13, 2010 8:04:38 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
JKIA is not KQ's fault who have been trying to get KAA to expand it since 2003...

Of course, unless muhoho & his buddies/family got a cut... they were NOT interested!

Similar 'quality' problems in Mombasa & Kisumu... Runway lights go off... Tarmac/runway gets washed away...

No wonder we are a 3rd World country...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
sheep
#9 Posted : Friday, August 13, 2010 8:06:01 PM
Rank: Veteran

Joined: 7/24/2008
Posts: 781
@deal...I can sense you are panickingLaughing out loudly when a stock worries you sell or reduce your stake for a goodnight sleep.
The utimate goal of investing is to buy low sell high;if we re-write this core equation in psychology terms it becomes buy fear sell greed.
Horton
#10 Posted : Friday, August 13, 2010 8:15:58 PM
Rank: Veteran

Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
VituVingiSana wrote:
JKIA is not KQ's fault who have been trying to get KAA to expand it since 2003...

Of course, unless muhoho & his buddies/family got a cut... they were NOT interested!

Similar 'quality' problems in Mombasa & Kisumu... Runway lights go off... Tarmac/runway gets washed away...

No wonder we are a 3rd World country...



dont forget, airports soo insecure that random kids cross the runway jes before u land...happened in kisumu a coupla months back....

Airport is so none representative of the country....
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