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Kenya Airways...why ignore..
mkate_nusu
#7001 Posted : Friday, February 10, 2017 5:35:30 PM
Rank: Member


Joined: 5/30/2016
Posts: 332
Location: Kayole
stock has been on upward trajectory this week. anyone know if the plane has lifted off or still pacing on runway to add some more
KEGN, KPLC, KQ, SCOM
obiero
#7002 Posted : Friday, February 10, 2017 5:45:53 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,783
Location: nairobi
mkate_nusu wrote:
stock has been on upward trajectory this week. anyone know if the plane has lifted off or still pacing on runway to add some more

Price picking up with increased volume.. We haven't even started to taxii, plenty of room for more pax https://www.nse.co.ke/ma...tatistics&Itemid=190

COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
obiero
#7003 Posted : Friday, February 10, 2017 8:50:00 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,783
Location: nairobi
mkate_nusu wrote:
Spikes wrote:
obiero wrote:
Mungu shuka chini.. Huu ndio mwaka yetu wa kuchota pesa



Amen and amen

Expecting good things

Wait no more.. Look at what Michael Joseph has done http://www.businessdaily...808258-7c2fyv/index.html

COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
obiero
#7004 Posted : Friday, February 10, 2017 11:02:40 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,783
Location: nairobi
obiero wrote:
obiero wrote:
10+ reasons to believe in operation pride at KQ:
1. End of hedging policy
2. Cut off on HOTAC and other operational expenses
3. Rightsizing of the workforce
4. Fuel efficient planes
5. Route optimization especially in Africa
6. Category 1 status at main hub
7. GoK guaranteed debt at reduced pay out
8. Sale of non critical assets
9. Global reduction in fuel costs
10. Revival in KE tourism
11. Budget carrier for booming middle-class
12. Cleaned-up board and management
13. Debt tenor restructure by main bankers
14. Recent rate cap by GoK
15. Financial revamp by transaction advisers
16. Strong forex holding with primary pricing being USD



Profit trend (L/PBT) (KSh m) From 2003 to 2016 ascending:
547
2,075
5,520
6,960
5,975
6,526
−5,664
2,671
5,002
2,146
−10,826
−4,861
-29,710
-26,099
-3,311

Kenya Airways operating margin trend
2016 -3.5%
2015 -14.8%
2014 -2.2%
2013 -9.11%
..
2010 2.6%
2009 5.6%
2008 11.6%
2007 13.1%

Point #16 is particularly pregnant seeing the current exchange rate on the green buck.. A godsend for KQ

Wheelback.. Mtajiju

COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
ArrestedDev
#7005 Posted : Saturday, February 11, 2017 7:39:31 AM
Rank: Member


Joined: 5/29/2016
Posts: 898
Location: Nairobi
obiero wrote:
mkate_nusu wrote:
Spikes wrote:
[quote=obiero]Mungu shuka chini.. Huu ndio mwaka yetu wa kuchota pesa



Amen and amen

Expecting good things

Wait no more.. Look at what Michael Joseph has done http://www.businessdaily...08258-7c2fyv/index.html[/quote]

What we were saying here has come to pass. The boardroom is now with someone using common sense. One of the BIG blunders by Ngunze and Alex now out. There are more to come.

I still repeat once again that what McKinsey has been purporting to be doing in KQ can be done by competent managers and staff. It was only Alex who was not able to do these things. They should not have been contracted before a forensic audit was commissioned.

What @nzalela talks about here about ooooh Mckinsey's work is yielding fruits is the same language that Ngunze uses. Redundancies declared then suddenly followed by a 500+ recruitment exercise?
obiero
#7006 Posted : Saturday, February 11, 2017 8:23:21 AM
Rank: Elder


Joined: 6/23/2009
Posts: 13,783
Location: nairobi
ArrestedDev wrote:
obiero wrote:
mkate_nusu wrote:
Spikes wrote:
[quote=obiero]Mungu shuka chini.. Huu ndio mwaka yetu wa kuchota pesa



Amen and amen

Expecting good things

Wait no more.. Look at what Michael Joseph has done http://www.businessdaily...08258-7c2fyv/index.html[/quote]

What we were saying here has come to pass. The boardroom is now with someone using common sense. One of the BIG blunders by Ngunze and Alex now out. There are more to come.

I still repeat once again that what McKinsey has been purporting to be doing in KQ can be done by competent managers and staff. It was only Alex who was not able to do these things. They should not have been contracted before a forensic audit was commissioned.

What @nzalela talks about here about ooooh Mckinsey's work is yielding fruits is the same language that Ngunze uses. Redundancies declared then suddenly followed by a 500+ recruitment exercise?

I guess the only other convert we await shall be the nasty @vvs.. Operation Pride bearing fruit, now at 55% implementation

COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
ArrestedDev
#7007 Posted : Saturday, February 11, 2017 8:54:28 AM
Rank: Member


Joined: 5/29/2016
Posts: 898
Location: Nairobi
@Nzalela, See my response in red. Let's not keep arguing for nothing. I hope KQ gets the right CEO very soon and some of these things will come to pass.

Okay these are the facts.

1. Despite reduction in capacity passenger numbers went up largely due to increased frequencies and aircraft utilization. It is not true. There is demand out there especially destinations in Africa which are underserved by international carriers and KQ should be able to uplift more passengers and cargo across Africa. If KQ strikes a balance - gets the pricing well and capacity then it should not be struggling at this day and age. There is something that went wrong with the management of KQ.

2. With the embraer KQ can break even with average 50 pax depending on yield management strategy for the season. That is why KQ makes money mostly within 3 hours of Nairobi.[color=red] – KQ’s yield management strategy is poorly executed. They got it wrong with pricing due to loan obligations and other fixed costs. Lack of a strong oversight especially in procurement has led to a higher cost base for the Airline leading to unavoidable high ticket prices. The more flying hours the Embraer frame accumulates, the higher the maintenance costs. KQ’s maintenance costs have been rising yet the entire fleet is relatively new. The E190 jet compromises the ability for KQ to uplift more passengers during the high season as well loss of lucrative cargo revenue due to a smaller cargo belly.


3. Fast jet got knocked out because of competition. They were priced out by KQ who could afford to undercut for an extended period and passengers preferred the convenience of 5 flights to choose from. Fastjet is now replacing their Airbus A319 with embraer 190's. Same ones Kq is operating.
– It is not true. Competition alone did not lead to the exit of Fastjet. Reasons are:
i). The uptake of the low cost air transport concept in Africa is still at its infancy stage.
ii). The no. of regional travellers are low and KQ normally supplement with connecting passengers and hence has a competitive advantage over Fastjet.
Fastjet’s replacement of A319 with E190 is again not just because KQ is operating it. The no. of passengers travelling intra-Africa are still very low and they cannot fill an A319. A start up airline in an environment with high aviation taxes coupled with low passenger numbers generally cannot compete with established carriers such as ET, KQ. DAR to NBO via ADD on ET in comparison to what Fastjet/ KQ were charging cannot deter a passenger from spending all the hours via ADD. Price is very key nowadays. This leads to my next counter argument on the choice of 5 flights that KQ offers. Sometimes, it is not only the convenience that the passenger looks at but the cost. Leisure travellers / Tourists can always plan their journey as per the cost effective flight. It is therefore not true at all to throw some words around without looking at the bigger picture/ reality.

[/color]
4. Mackenzie and operation pride has yielded so much savings for the airline it is actually very impressive. The amount of wastage, inefficiency, corruption and inflated costs was mind boggling. You will be shocked to learn that London is now at break even point and doing much better after the expensive slot time costs were done with. Operation costs upwards of 25B will be cut by full year and the company is now cashflow self sustaining. The huge debts however are a grave concern. – You are still wrong. I have said here and I will say again that what McKinsey have been doing at KQ could have been done by Ngunze and his directors. The forensic audit unearthed the theft and corruption and not McKinsey. Some issues had already been highlighted in the internal audit and it was only the inaction/incompetency on the part of management and to a large extent the board. Lack of strong internal controls led to the mismanagement. The same people who were entrusted to look after the Company looted it instead. The termination of McKinsey contract is a testament that the savings made from the initiatives alone cannot guarantee the full recovery of the Airline. I have already illustrated with the staff retrenchment that McKinsey is synonymous with, new staff recruitment is underway. What does the later mean for the bottom line? It is again back to the drawing board and hefty consultancy bills have been paid to them. It is always hard for some insiders to see the bigger picture in dire times.
Post here the LHR operating statement to substantiate your claims. How much does KLM charge KQ for the landing slot and what does that mean for the bottom line? BA could not have increased capacity on this route if KQ did not leave a gap. Emirates could not be fighting for a third frequency if KQ did not leave a gap on this gateway to Europe. Lufthansa could not have resumed NBO flights if KQ did not leave a big hole here. The moment KQ announced the phasing out of the B777 fleet then Lufthansa announced the resumption of NBO route.
The short turnaround which is now needed to operate this route will only continue when the B787 fleet is still new. The moment these jets start breaking down then the savings from parking/ crew layover will go down the trail in a single day. Mind you, I am very sure the savings from crew layover/ parking cannot even pay the cost of renting the landing slot from KLM.

5. Cargo in Kenya is a lemon if not well managed. The government has made JKIA a free cargo access market for all and sundry. That is why emirates can even do hops between Eldoret and Nairobi with a 777 cargo plane daily. Ethiopian market on the other hand is highly regulated and Ethiopian airlines enjoys cargo monopoly in the country. So it is not apples to apples. – Cargo is a very lucrative business for an Airline. If JKIA is a free for all then what about the other destinations in Africa where KQ’s ops are concentrated in? Why is ET uploading more Cargo in EBB yet KQ dominates that destination? It boils down to a wrong pricing strategy and lack of capacity.


I wouldn't buy the stock but the company is now finally on a positive path to recovery.
[/quote]




obiero
#7008 Posted : Saturday, February 11, 2017 9:37:16 AM
Rank: Elder


Joined: 6/23/2009
Posts: 13,783
Location: nairobi
@arresteddev is the classic party pooper.. those who show up at a function just to take photos of the drunk party goer.. let's enjoy the KQ party in peace. As we head closer to March, expect renewed price discovery with target being KES 9

COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
muandiwambeu
#7009 Posted : Saturday, February 11, 2017 1:36:38 PM
Rank: Veteran


Joined: 8/28/2015
Posts: 1,247
obiero wrote:
@arresteddev is the classic party pooper.. those who show up at a function just to take photos of the drunk party goer.. let's enjoy the KQ party in peace. As we head closer to March, expect renewed price discovery with target being KES 9

I like being basic, simple and petty. How many times did mj have to visit state house (except in this case probably to pledge allegiance to njupilee and promise to fund the road show trains) when he was riding the green monster that rose him to Echelon's. None. So hapa wacha watu wapakwe mafuta na tako bali na sako la chupa. Kila mtu huwa kwa meza kwa minajili fulani. Kukula mnofu, kukula kwa macho ama kuliwa ukiwa mnofu. Hapa naona mnofu tu ikikaangwa. Wenye kula wanangoja tu kaive ndugu na dada.smile smile smile tahadhari usiwe kitoweo.
@obiero mbona wahesabu kura kabla ya kupigwa.Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly
,Behold, a sower went forth to sow;....
obiero
#7010 Posted : Saturday, February 11, 2017 8:13:08 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,783
Location: nairobi
muandiwambeu wrote:
obiero wrote:
@arresteddev is the classic party pooper.. those who show up at a function just to take photos of the drunk party goer.. let's enjoy the KQ party in peace. As we head closer to March, expect renewed price discovery with target being KES 9

I like being basic, simple and petty. How many times did mj have to visit state house (except in this case probably to pledge allegiance to njupilee and promise to fund the road show trains) when he was riding the green monster that rose him to Echelon's. None. So hapa wacha watu wapakwe mafuta na tako bali na sako la chupa. Kila mtu huwa kwa meza kwa minajili fulani. Kukula mnofu, kukula kwa macho ama kuliwa ukiwa mnofu. Hapa naona mnofu tu ikikaangwa. Wenye kula wanangoja tu kaive ndugu na dada.smile smile smile tahadhari usiwe kitoweo.
@obiero mbona wahesabu kura kabla ya kupigwa.Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly

Weka pesa hapa si mashairi.. Hehe

COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
muandiwambeu
#7011 Posted : Sunday, February 12, 2017 1:04:47 PM
Rank: Veteran


Joined: 8/28/2015
Posts: 1,247
obiero wrote:
muandiwambeu wrote:
obiero wrote:
@arresteddev is the classic party pooper.. those who show up at a function just to take photos of the drunk party goer.. let's enjoy the KQ party in peace. As we head closer to March, expect renewed price discovery with target being KES 9

I like being basic, simple and petty. How many times did mj have to visit state house (except in this case probably to pledge allegiance to njupilee and promise to fund the road show trains) when he was riding the green monster that rose him to Echelon's. None. So hapa wacha watu wapakwe mafuta na tako bali na sako la chupa. Kila mtu huwa kwa meza kwa minajili fulani. Kukula mnofu, kukula kwa macho ama kuliwa ukiwa mnofu. Hapa naona mnofu tu ikikaangwa. Wenye kula wanangoja tu kaive ndugu na dada.smile smile smile tahadhari usiwe kitoweo.
@obiero mbona wahesabu kura kabla ya kupigwa.Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly

Weka pesa hapa si mashairi.. Hehe

Throwing money into fire, your only get ash.
,Behold, a sower went forth to sow;....
obiero
#7012 Posted : Sunday, February 12, 2017 8:50:10 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,783
Location: nairobi
muandiwambeu wrote:
obiero wrote:
muandiwambeu wrote:
obiero wrote:
@arresteddev is the classic party pooper.. those who show up at a function just to take photos of the drunk party goer.. let's enjoy the KQ party in peace. As we head closer to March, expect renewed price discovery with target being KES 9

I like being basic, simple and petty. How many times did mj have to visit state house (except in this case probably to pledge allegiance to njupilee and promise to fund the road show trains) when he was riding the green monster that rose him to Echelon's. None. So hapa wacha watu wapakwe mafuta na tako bali na sako la chupa. Kila mtu huwa kwa meza kwa minajili fulani. Kukula mnofu, kukula kwa macho ama kuliwa ukiwa mnofu. Hapa naona mnofu tu ikikaangwa. Wenye kula wanangoja tu kaive ndugu na dada.smile smile smile tahadhari usiwe kitoweo.
@obiero mbona wahesabu kura kabla ya kupigwa.Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly

Weka pesa hapa si mashairi.. Hehe

Throwing money into fire, your only get ash.

Hot money

COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
obiero
#7013 Posted : Monday, February 13, 2017 7:35:02 AM
Rank: Elder


Joined: 6/23/2009
Posts: 13,783
Location: nairobi
obiero wrote:
obiero wrote:
obiero wrote:
10+ reasons to believe in operation pride at KQ:
1. End of hedging policy
2. Cut off on HOTAC and other operational expenses
3. Rightsizing of the workforce
4. Fuel efficient planes
5. Route optimization especially in Africa
6. Category 1 status at main hub
7. GoK guaranteed debt at reduced pay out
8. Sale of non critical assets
9. Global reduction in fuel costs
10. Revival in KE tourism
11. Budget carrier for booming middle-class
12. Cleaned-up board and management
13. Debt tenor restructure by main bankers
14. Recent rate cap by GoK
15. Financial revamp by transaction advisers
16. Strong forex holding with primary pricing being USD



Profit trend (L/PBT) (KSh m) From 2003 to 2016 ascending:
547
2,075
5,520
6,960
5,975
6,526
−5,664
2,671
5,002
2,146
−10,826
−4,861
-29,710
-26,099
-3,311

Kenya Airways operating margin trend
2016 -3.5%
2015 -14.8%
2014 -2.2%
2013 -9.11%
..
2010 2.6%
2009 5.6%
2008 11.6%
2007 13.1%

Point #16 is particularly pregnant seeing the current exchange rate on the green buck.. A godsend for KQ

Wheelback.. Mtajiju

Re-posted for emphasis.. Watch how money is made at the NSE

COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
murchr
#7014 Posted : Wednesday, February 15, 2017 7:31:25 AM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
VituVingiSana wrote:
obiero wrote:
sparkly wrote:
Afroblk wrote:
One of the many counters worth dumping loads of cash...returns will be insane...how low do you think this will go? Probably not much lower than current rates. I only have one hope with KQ...direct flights to US. As long as those pigs in parliament can pass that bill and open the terminal, Kenya will be accorded the much awaited category 1 once the FAA conducts the inspection. Honestly I can't wait to get some returns and exit without looking back...I've been patient for a while and haven't sold even a single share...I'm even tired on buying...how much can one accumulate l0l I know CFC guys be like, here he goes again..l0l


15 years ago KQ used to trade at 5.50-7.00 range. Stock is now below that price not because of splits or bonuses, having done a rights issue!

Learn from history. History says that airlines in general and KQ in particular are bad investments. Be smart.

@sparkly.. U forgot to tell us that it also traded at KES 126.. To each his own, if airlines were bad investments, then planes wldnt be built, we wldnt have airports.. Seems simplistic, but it is altruist. It depends on the strategy of the airline, otherwise, people like Branson and Buffet wldnt own Virgin & Jetways

Shame on you Shame on you Shame on you Kusoma ni bure.

http://www.wsj.com/artic...a-rare-pinch-1420485740
NetJets Unrest Puts Warren Buffett in a Rare Pinch
Pilots Protest Against Pay, Benefits at Berkshire Hathaway’s NetJets

"In the case of NetJets, the pressure to complete the turnaround of a business Mr. Buffett once called his “number one worry” is now spilling into public view."

"In the 16 years that Berkshire has owned NetJets, the jet operator has never paid its owner a dividend, and its net worth is considerably less than the $725 million Berkshire paid for it in 1998" This was from a 2015 article. WB would have been better off putting the money in the bank!

"worsened amid extended contract negotiations with multiple unions representing pilots, flight attendants, mechanics and others. NetJets, based in Columbus, Ohio, has about 6,200 employees, a majority of whom belong to unions."

"NetJets took a major hit during the financial crisis as wealthy clients cut back on private flying, surviving only because Berkshire guaranteed its $1.9 billion debt load."

1) NetJets isn't an 'airline' as much as Uber [which owns planes].
2)NetJets is a pain for WB. Not one of his best performers. Too much drama.
3) No dividends. It has had negative cashflow in many years.
4) Despite all this is has a POSITIVE equity/capital whereas KQ has NEGATIVE capital.

"Everyone but shareholders made money off KQ." True or False?




I wish I could pull up the discussion where VVS swore that Buffet would never touch an airline stock.

Well only fools dont change their minds

American Airlines, Southwest, Delta, United

Quote:
Berkshire also reported a $9.3 billion airline stake, with investments topping $2.1 billion in each of American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N), Southwest Airlines Co (LUV.N) and United Continental Holdings Inc (UAL.N).


He also gets into technology APPLe- 57.4 million shares of Apple as of Dec. 31. At one time he wouldnt touch any of them apart from IBM ofcourse

Again, only fools and dead men don't change their minds.

Good morning!
"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
.
maka
#7015 Posted : Wednesday, February 15, 2017 9:56:27 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
Final restructuring almost complete...but it will be top heavy in terms of management...extra costs.
possunt quia posse videntur
obiero
#7016 Posted : Wednesday, February 15, 2017 1:04:05 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,783
Location: nairobi
maka wrote:
Final restructuring almost complete...but it will be top heavy in terms of management...extra costs.

We are ready @maka

COOP 255,000 ABP 15.85; IMH 5,000 ABP 35.55; KQ 604,200 ABP 6.96; MTN 23,800 ABP 5.20
VituVingiSana
#7017 Posted : Thursday, February 16, 2017 12:48:08 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,224
Location: Nairobi
murchr wrote:
VituVingiSana wrote:
obiero wrote:
sparkly wrote:
Afroblk wrote:
One of the many counters worth dumping loads of cash...returns will be insane...how low do you think this will go? Probably not much lower than current rates. I only have one hope with KQ...direct flights to US. As long as those pigs in parliament can pass that bill and open the terminal, Kenya will be accorded the much awaited category 1 once the FAA conducts the inspection. Honestly I can't wait to get some returns and exit without looking back...I've been patient for a while and haven't sold even a single share...I'm even tired on buying...how much can one accumulate l0l I know CFC guys be like, here he goes again..l0l


15 years ago KQ used to trade at 5.50-7.00 range. Stock is now below that price not because of splits or bonuses, having done a rights issue!

Learn from history. History says that airlines in general and KQ in particular are bad investments. Be smart.

@sparkly.. U forgot to tell us that it also traded at KES 126.. To each his own, if airlines were bad investments, then planes wldnt be built, we wldnt have airports.. Seems simplistic, but it is altruist. It depends on the strategy of the airline, otherwise, people like Branson and Buffet wldnt own Virgin & Jetways

Shame on you Shame on you Shame on you Kusoma ni bure.

http://www.wsj.com/artic...a-rare-pinch-1420485740
NetJets Unrest Puts Warren Buffett in a Rare Pinch
Pilots Protest Against Pay, Benefits at Berkshire Hathaway’s NetJets

"In the case of NetJets, the pressure to complete the turnaround of a business Mr. Buffett once called his “number one worry” is now spilling into public view."

"In the 16 years that Berkshire has owned NetJets, the jet operator has never paid its owner a dividend, and its net worth is considerably less than the $725 million Berkshire paid for it in 1998" This was from a 2015 article. WB would have been better off putting the money in the bank!

"worsened amid extended contract negotiations with multiple unions representing pilots, flight attendants, mechanics and others. NetJets, based in Columbus, Ohio, has about 6,200 employees, a majority of whom belong to unions."

"NetJets took a major hit during the financial crisis as wealthy clients cut back on private flying, surviving only because Berkshire guaranteed its $1.9 billion debt load."

1) NetJets isn't an 'airline' as much as Uber [which owns planes].
2)NetJets is a pain for WB. Not one of his best performers. Too much drama.
3) No dividends. It has had negative cashflow in many years.
4) Despite all this is has a POSITIVE equity/capital whereas KQ has NEGATIVE capital.

"Everyone but shareholders made money off KQ." True or False?




I wish I could pull up the discussion where VVS swore that Buffet would never touch an airline stock.

Well only fools dont change their minds

American Airlines, Southwest, Delta, United

Quote:
Berkshire also reported a $9.3 billion airline stake, with investments topping $2.1 billion in each of American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N), Southwest Airlines Co (LUV.N) and United Continental Holdings Inc (UAL.N).


He also gets into technology APPLe- 57.4 million shares of Apple as of Dec. 31. At one time he wouldnt touch any of them apart from IBM ofcourse

Again, only fools and dead men don't change their minds.

Good morning!


Warren Buffett and Charlie Munger are brilliant chaps. I understand why they would buy Delta, SWA, AA or even United. So I looked at KQ again.
No, KQ is no Delta. Shame on you Shame on you Shame on you

KQ could have been Delta but the "real owners" blew it.

8 March 2017. I speak in code.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
murchr
#7018 Posted : Thursday, February 16, 2017 12:57:06 AM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
VituVingiSana wrote:
murchr wrote:
VituVingiSana wrote:
obiero wrote:
sparkly wrote:
Afroblk wrote:
One of the many counters worth dumping loads of cash...returns will be insane...how low do you think this will go? Probably not much lower than current rates. I only have one hope with KQ...direct flights to US. As long as those pigs in parliament can pass that bill and open the terminal, Kenya will be accorded the much awaited category 1 once the FAA conducts the inspection. Honestly I can't wait to get some returns and exit without looking back...I've been patient for a while and haven't sold even a single share...I'm even tired on buying...how much can one accumulate l0l I know CFC guys be like, here he goes again..l0l


15 years ago KQ used to trade at 5.50-7.00 range. Stock is now below that price not because of splits or bonuses, having done a rights issue!

Learn from history. History says that airlines in general and KQ in particular are bad investments. Be smart.

@sparkly.. U forgot to tell us that it also traded at KES 126.. To each his own, if airlines were bad investments, then planes wldnt be built, we wldnt have airports.. Seems simplistic, but it is altruist. It depends on the strategy of the airline, otherwise, people like Branson and Buffet wldnt own Virgin & Jetways

Shame on you Shame on you Shame on you Kusoma ni bure.

http://www.wsj.com/artic...a-rare-pinch-1420485740
NetJets Unrest Puts Warren Buffett in a Rare Pinch
Pilots Protest Against Pay, Benefits at Berkshire Hathaway’s NetJets

"In the case of NetJets, the pressure to complete the turnaround of a business Mr. Buffett once called his “number one worry” is now spilling into public view."

"In the 16 years that Berkshire has owned NetJets, the jet operator has never paid its owner a dividend, and its net worth is considerably less than the $725 million Berkshire paid for it in 1998" This was from a 2015 article. WB would have been better off putting the money in the bank!

"worsened amid extended contract negotiations with multiple unions representing pilots, flight attendants, mechanics and others. NetJets, based in Columbus, Ohio, has about 6,200 employees, a majority of whom belong to unions."

"NetJets took a major hit during the financial crisis as wealthy clients cut back on private flying, surviving only because Berkshire guaranteed its $1.9 billion debt load."

1) NetJets isn't an 'airline' as much as Uber [which owns planes].
2)NetJets is a pain for WB. Not one of his best performers. Too much drama.
3) No dividends. It has had negative cashflow in many years.
4) Despite all this is has a POSITIVE equity/capital whereas KQ has NEGATIVE capital.

"Everyone but shareholders made money off KQ." True or False?




I wish I could pull up the discussion where VVS swore that Buffet would never touch an airline stock.

Well only fools dont change their minds

American Airlines, Southwest, Delta, United

Quote:
Berkshire also reported a $9.3 billion airline stake, with investments topping $2.1 billion in each of American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N), Southwest Airlines Co (LUV.N) and United Continental Holdings Inc (UAL.N).


He also gets into technology APPLe- 57.4 million shares of Apple as of Dec. 31. At one time he wouldnt touch any of them apart from IBM ofcourse

Again, only fools and dead men don't change their minds.

Good morning!


Warren Buffett and Charlie Munger are brilliant chaps. I understand why they would buy Delta, SWA, AA or even United. So I looked at KQ again.
No, KQ is no Delta. Shame on you Shame on you Shame on you

KQ could have been Delta but the "real owners" blew it.

8 March 2017. I speak in code.


KQ is where AA was 3 years ago, they will pull through but the myth that Buffett would never touch airline stock is busted. I guess he threw away the 800 number. Only fools and dead men don't change their minds.

To all holding KQ. All the best.
"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
.
sparkly
#7019 Posted : Thursday, February 16, 2017 6:15:42 AM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
The share is down 1,250% since @Proverb posted first on this thread 6years ago.
Life is short. Live passionately.
karasinga
#7020 Posted : Thursday, February 16, 2017 6:47:06 AM
Rank: Veteran


Joined: 2/26/2015
Posts: 1,147
sparkly wrote:
The share is down 1,250% since @Proverb posted first on this thread 6years ago.

Hello sparkly. If I may comment. Technically, on the ran way and just raised it's nose yesterday (15th feb). Only rear wheels on the ground... I hope what I saw yesterday was not a technical hitch. smile. he he he. Not soliciting anyone to buy. just for educational purposes.
best wishes.
It's not over until I win
skype id: karasinga. email: kkarasinga@gmail.com
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