qw25041985 wrote:@proverb. Ar u still ignorin KQ . Even with the massive expansion in fleets and air routes ? Never shun expansion its what makes co.s to grow. I am expecting very good 1 half numbers .
KQ is likely to report profitable quarter 1..only on account of hedging fuel and not operating costs...increase in turnover vs increasing cost to get every additional shilling of that turnover does not seem so bright a concept to me...
Anyway KQ is speculative for me..based not on the company but investor behaviour...
momentum investing..higher volumes quoted for sell at subsequently higher prices implies price increase to continue..quit the counter when volumes traded at higher prices begin to thin out..(totally on T.A on this counter)
Fact is.. KQ always has great plans..but somehow they have a way to mess it up.. Increase in passenger and cargo traffic sounds good..but with every increase in unit for transit the cost KQ is incurring for that unit goes up!! Thus why with increase in turnover...operating margin is decreasing!!
I have no issue with their expansion plans.. it is the cost at which they expand that concerns me..
they seem to work like Yu and Zain...selling below cost. that is
NOT prudent.
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