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Kengen success
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wukan
#201 Posted : Wednesday, May 11, 2016 4:11:51 PM
Rank: Veteran

Joined: 11/13/2015
Posts: 1,652
sparkly wrote:
wukan wrote:
Ericsson wrote:
Share price bouncing back.
It was going to be hard for the counter to go below the rights issue price.


PPT actionPray The only thing to buy in kengen is the cashflow. I want to see the IM to determine the cash flow per share. I think the cash flow per share will be less than the offer price of 6.55/=. 70:30 debt:equity is crazy considering the strengthening yen


This has been discussed and settled. Kengen recovers Forex losses from KPLC


True but that does not eliminate liquidity risk and the single buyer model risk. Their liquidity is not impressive. You are better off lending to kengen than being an equity holder.
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sparkly
#202 Posted : Wednesday, May 11, 2016 8:10:38 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
wukan wrote:
sparkly wrote:
wukan wrote:
Ericsson wrote:
Share price bouncing back.
It was going to be hard for the counter to go below the rights issue price.


PPT actionPray The only thing to buy in kengen is the cashflow. I want to see the IM to determine the cash flow per share. I think the cash flow per share will be less than the offer price of 6.55/=. 70:30 debt:equity is crazy considering the strengthening yen


This has been discussed and settled. Kengen recovers Forex losses from KPLC


True but that does not eliminate liquidity risk and the single buyer model risk. Their liquidity is not impressive. You are better off lending to kengen than being an equity holder.


You are using very big words my bro/sis. Please explain what you mean by liquidity risk. Do you mean that Kengen will not be able to meet financial obligations when due? Is this assertion supported by an adverse cash flow statement?

Single buyer model risk - I assume you mean that Kengen sells to KP only. Would you rather Kengen start distributing its own power?
Life is short. Live passionately.
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  | | Edit by user: Wednesday, May 11, 2016 8:12 PM | Reason: Not specified
murchr
#203 Posted : Wednesday, May 11, 2016 8:51:31 PM
Rank: Elder

Joined: 2/26/2012
Posts: 15,980
sparkly wrote:
wukan wrote:
sparkly wrote:
wukan wrote:
Ericsson wrote:
Share price bouncing back.
It was going to be hard for the counter to go below the rights issue price.


PPT actionPray The only thing to buy in kengen is the cashflow. I want to see the IM to determine the cash flow per share. I think the cash flow per share will be less than the offer price of 6.55/=. 70:30 debt:equity is crazy considering the strengthening yen


This has been discussed and settled. Kengen recovers Forex losses from KPLC


True but that does not eliminate liquidity risk and the single buyer model risk. Their liquidity is not impressive. You are better off lending to kengen than being an equity holder.


You are using very big words my bro/sis. Please explain what you mean by liquidity risk. Do you mean that Kengen will not be able to meet financial obligations when due? Is this assertion supported by an adverse cash flow statement?

Single buyer model risk - I assume you mean that Kengen sells to KP only. Would you rather Kengen start distributing its own power?


So many ppl dont understand the partnership btn KEGN and KPLC. KPLC will buy KEGNs power at all times. Its work is to generate. How it will get to KPLC is the responsibility of a govt institution called KETRACCO. Any losses incurred in transmission is not KEGNs problem. Any losses incurred while distributing power is KPLCs loss, any forex losses are incurred by KPLC who in the end passes the loss to Wanjiku. So KEGNs income is almost certain. Am I not getting something on this liquidity issue? If you have a guaranteed customer, whats the risk?
"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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nashx
#204 Posted : Wednesday, May 11, 2016 8:58:44 PM
Rank: Member

Joined: 2/28/2014
Posts: 188
Location: Nairobi
I agree with @murchr and @sparkly above and yes most people don't seem to understand how this firm works. See the below link on how Kengen operates, how it makes it money, it's future plans, MDs commentary on the share price, rights etc and other queries discussed in this thread under the links below
Offering my personal finance knowledge for free
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nashx
#205 Posted : Wednesday, May 11, 2016 9:01:28 PM
Rank: Member

Joined: 2/28/2014
Posts: 188
Location: Nairobi
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Cornelius Vanderbilt
#206 Posted : Friday, May 13, 2016 6:22:58 AM
Rank: Member

Joined: 8/15/2015
Posts: 817
ati how many birrions do they want !ehhhh! ambitions nazo
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kawi254
#207 Posted : Friday, May 13, 2016 11:28:28 AM
Rank: Member

Joined: 2/20/2015
Posts: 468
Location: Nairobi
Cornelius Vanderbilt wrote:
ati how many birrions do they want !ehhhh! ambitions nazo


Kengen is only raising (0.3*28.8) 8.64 Billion from the market.
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Ebenyo
#208 Posted : Friday, May 13, 2016 3:33:53 PM
Rank: Veteran

Joined: 4/4/2016
Posts: 2,016
Location: Kitale
Kengen Debt to equity ratio is currently at.79% which is high.Thats why the stock has been very volatile since listing in 2006.Return to equity is low at 8.1%But the dividend yield is ipressive at 8%.The beneficiaries pf this stock are speculators and short term investors
sparkly wrote:
wukan wrote:
Ericsson wrote:
Share price bouncing back.
It was going to be hard for the counter to go below the rights issue price.


PPT actionPray The only thing to buy in kengen is the cashflow. I want to see the IM to determine the cash flow per share. I think the cash flow per share will be less than the offer price of 6.55/=. 70:30 debt:equity is crazy considering the strengthening yen


This has been discussed and settled. Kengen recovers Forex losses from KPLC


True but that does not eliminate liquidity risk and the single buyer model risk. Their liquidity is not impressive. You are better off lending to kengen than being an equity holder.[/quote]

You are using very big words my bro/sis. Please explain what you mean by liquidity risk. Do you mean that Kengen will not be able to meet financial obligations when due? Is this assertion supported by an adverse cash flow statement?

Single buyer model risk - I assume you mean that Kengen sells to KP only. Would you rather Kengen start distributing its own power?
[/quote]

So many ppl dont understand the partnership btn KEGN and KPLC. KPLC will buy KEGNs power at all times. Its work is to generate. How it will get to KPLC is the responsibility of a govt institution called KETRACCO. Any losses incurred in transmission is not KEGNs problem. Any losses incurred while distributing power is KPLCs loss, any forex losses are incurred by KPLC who in the end passes the loss to Wanjiku. So KEGNs income is almost certain. Am I not getting something on this liquidity issue? If you have a guaranteed customer, whats the risk?
[/quote]
Towards the goal of financial freedom
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Ebenyo
#209 Posted : Sunday, May 15, 2016 8:55:41 PM
Rank: Veteran

Joined: 4/4/2016
Posts: 2,016
Location: Kitale
The dividend yield is attractive.Very volatile due to high debt to equity ratio.Low return on equity because of the same.Very good for long term investors.But I hope these guys did not cook books like nbk and chasebank.From a Net profit of 2billion in 2014 to 11 billion in 2015? or was it whipping investors into the rights issue? fattening the cow before slaughter?
Towards the goal of financial freedom
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PKoli
#210 Posted : Sunday, May 15, 2016 9:25:12 PM
Rank: Elder

Joined: 2/10/2007
Posts: 1,587
Ebenyo wrote:
The dividend yield is attractive.Very volatile due to high debt to equity ratio.Low return on equity because of the same.Very good for long term investors.But I hope these guys did not cook books like nbk and chasebank.From a Net profit of 2billion in 2014 to 11 billion in 2015? or was it whipping investors into the rights issue? fattening the cow before slaughter?


Forward P/E doesn't look attractive. The massive dilution due to number of shares. I like the governance of KenGen and feel it's a good stock for long term investment
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