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Kengen success
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VituVingiSana
#556 Posted : Tuesday, July 05, 2016 9:20:07 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,342
Location: Nairobi
muandiwambeu wrote:
Aguytrying wrote:
guru267 wrote:
Debt is a beautiful thing when return on assets exceeds the interest paid on debt...

Debt is also cheaper than equity in the long run as equity cannot be redeemed...

With Kengen's asset base we should be seeing at least KES 20Bn PAT.. So waiting for that potential to be unlocked should be rewarding.


Massive debt with the promise of higher revenues and in turn profits. Thats always the plan, it's a risk, one thing goes wrong and the interest payments eat you alive. Debt is good, but too much will kill you, ask KQ

I echo your thoughts @aguy. I find growth of wealth through equity more palatable, any day. the risks are way too low. dissolution/ liquidation or hostile take over hence loss of business but at premium on your capital. debt poses all above and at pricey interests that must be paid.
Not if the firm is TransCentury. http://www.businessdaily...08/-/yoviea/-/index.html
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Aguytrying
#557 Posted : Tuesday, July 05, 2016 10:26:56 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
VituVingiSana wrote:
muandiwambeu wrote:
Aguytrying wrote:
[quote=guru267]Debt is a beautiful thing when return on assets exceeds the interest paid on debt...

Debt is also cheaper than equity in the long run as equity cannot be redeemed...

With Kengen's asset base we should be seeing at least KES 20Bn PAT.. So waiting for that potential to be unlocked should be rewarding.


Massive debt with the promise of higher revenues and in turn profits. Thats always the plan, it's a risk, one thing goes wrong and the interest payments eat you alive. Debt is good, but too much will kill you, ask KQ

I echo your thoughts @aguy. I find growth of wealth through equity more palatable, any day. the risks are way too low. dissolution/ liquidation or hostile take over hence loss of business but at premium on your capital. debt poses all above and at pricey interests that must be paid.
Not if the firm is TransCentury. http://www.businessdaily...8/-/yoviea/-/index.html[/quote]

Thank you. transcentury, KQ, KK and ARM are good examples of what Large large debt can do to a company. One thing goes wrong and the pack of cards comes crumbling down. even Kenol kobil was in the mix but has managed to claw itself out. Manageable debt is good. But when i hear a company is planning to take on 200bn to 1 trillion in debt to grow its assets. i RUN for the hills.
The investor's chief problem - and even his worst enemy - is likely to be himself
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VituVingiSana
#558 Posted : Tuesday, July 05, 2016 10:40:46 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,342
Location: Nairobi
@Aguy - Though TCL screwed over their Bondholders. The announcement today, also captured by BD, seems to indicate they paid the Bondholders, after 5 years, just 5% of their investment... in shares not cash!

http://www.businessdaily...8/-/yoviea/-/index.html[
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Aguytrying
#559 Posted : Tuesday, July 05, 2016 11:15:05 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
VituVingiSana wrote:
@Aguy - Though TCL screwed over their Bondholders. The announcement today, also captured by BD, seems to indicate they paid the Bondholders, after 5 years, just 5% of their investment... in shares not cash!

http://www.businessdaily...8/-/yoviea/-/index.html[


This is a comedy, well know the cast hopefully
The investor's chief problem - and even his worst enemy - is likely to be himself
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Ericsson
#560 Posted : Tuesday, July 05, 2016 11:50:03 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Jameni hii ni thread ya KENGEN
maneno ya TCL iko in another topic/thread
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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VituVingiSana
#561 Posted : Tuesday, July 05, 2016 9:36:09 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,342
Location: Nairobi
Wait for KenGen price correction

http://www.nation.co.ke/...4/-/ioilsdz/-/index.html
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mlennyma
#562 Posted : Tuesday, July 05, 2016 10:34:35 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
[quote=VituVingiSana]Wait for KenGen price correction

http://www.nation.co.ke/.../-/ioilsdz/-/index.html[/quote]
wazua is a school he might have looked at what we analysed earlier
"Don't let the fear of losing be greater than the excitement of winning."
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VituVingiSana
#563 Posted : Wednesday, July 06, 2016 6:30:29 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,342
Location: Nairobi
KenGen eyes debt to plug rights issue short-fall

http://www.businessdaily...32/-/1ku44u/-/index.html
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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h2s
#564 Posted : Wednesday, July 06, 2016 6:33:34 PM
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Joined: 7/20/2012
Posts: 141
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Ericsson
#565 Posted : Wednesday, July 06, 2016 6:40:43 PM
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Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Good idea to hear they will scale down some of the projects.That will give them time to recoup the current investments and to avoid surplus power that will make tariffs expensive.
Shareholders will also get a breather
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#566 Posted : Thursday, July 07, 2016 12:57:26 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
http://www.businessdaily.../-/vn7g14z/-/index.html
Aggreko finally switched off in favour of clean energy
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ebenyo
#567 Posted : Thursday, July 07, 2016 8:04:19 AM
Rank: Veteran

Joined: 4/4/2016
Posts: 2,016
Location: Kitale
Ericsson wrote:
http://www.businessdailyafrica.com/KenGen-switches-off-Aggreko-power-deal-this-month/-/539552/3282834/-/vn7g14z/-/index.html
Aggreko finally switched off in favour of clean energy


In ten years,Aggreko earned 10.9 billion while kengen earned 889 million only.That means Aggreko was earning a monthly average of 1 billion.
Kengen should make sure that they earn the same amount aggreko was earning for the change of ownership to bring value.Of course that depends if the gas turbine kengen is setting up their in place of Aggreko will generate the same energy.Anyway this is a step in the right direction as its an opportunity to grow revenue.
Towards the goal of financial freedom
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geofreygachie
#568 Posted : Thursday, July 07, 2016 8:40:58 AM
Rank: Member

Joined: 2/27/2014
Posts: 454
Location: Republic of Enchantment.
Ebenyo wrote:
Ericsson wrote:
http://www.businessdailyafrica.com/KenGen-switches-off-Aggreko-power-deal-this-month/-/539552/3282834/-/vn7g14z/-/index.html
Aggreko finally switched off in favour of clean energy


In ten years,Aggreko earned 10.9 billion while kengen earned 889 million only.That means Aggreko was earning an annual average of 1 billion.
Kengen should make sure that they earn the same amount aggreko was earning for the change of ownership to bring value.Of course that depends if the gas turbine kengen is setting up their in place of Aggreko will generate the same energy.Anyway this is a step in the right direction as its an opportunity to grow revenue.


Fixed,
smile
Divers - can you laugh in scuba gear, or will you drown? I was wondering. - James May.
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sparkly
#569 Posted : Thursday, July 07, 2016 8:51:15 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Ebenyo wrote:
Ericsson wrote:
http://www.businessdailyafrica.com/KenGen-switches-off-Aggreko-power-deal-this-month/-/539552/3282834/-/vn7g14z/-/index.html
Aggreko finally switched off in favour of clean energy


In ten years,Aggreko earned 10.9 billion while kengen earned 889 million only.That means Aggreko was earning a monthly average of 1 billion.
Kengen should make sure that they earn the same amount aggreko was earning for the change of ownership to bring value.Of course that depends if the gas turbine kengen is setting up their in place of Aggreko will generate the same energy.Anyway this is a step in the right direction as its an opportunity to grow revenue.


889m is a good commission to earn without investing in plant and fuel.
Life is short. Live passionately.
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Realcement
#570 Posted : Wednesday, July 27, 2016 12:54:41 PM
Rank: Member

Joined: 7/21/2014
Posts: 100
Location: Ghana
KENGEN......

Watch out AUG/SEPT/OCT
You will get it far cheaper than 6.55 bob rights price.
It will surely cave in to the rampaging bears.
For those that can wait till Q1/Q2 2017 it will even be cheaper (Election year)
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