Rank: Elder Joined: 7/22/2009 Posts: 7,838
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VituVingiSana wrote:Dear Wazuans, I posted the post below on 4th March 2018. It is now almost 1 year to the day! The funds are "NDANI" as we say. Thanks to this fortunate provenance, a lot of mis-investments have been fixed. Thank you to Rubis, Ohana, KenolKobil, brokers, advisors/research analysts, etc. Thank you to those who kept the faith and encouraged me to keep the faith. If I have hurt anyone's feelings with my ardent defense of KK, I hope you find it in your heart to forgive me. I shall now "retire" from this thread given I no longer have an interest/shareholding in KenolKobil. Unless Rubis cross-lists in Kenya or KK re-lists on the NSE, I shall remain, at most, a customer and well-wisher of KK. I hope I can find another KK amongst what is left at the NSE. If yes, then let us meet at that forum. Adios Amigos. VVS *Image of VVS riding into the sunset VituVingiSana wrote:The "2015" subject header has been overtaken by events hence the new thread.
KK's financial strength has changed substantially since 2015:
- Disposal of loss-making assets in Tanzania and DRC
- Substantial reduction in the level of debt. [Effectively the KES debt is zero]
- Consolidation of the business followed by expansion [new stations]
- KK is back in the OTS market with USD financiers willing to lend
- Cheaper financing from Dutch banks (vs French banks)
- KK is back into jet fuel in a big way [except supplying KQ which is still cash-strapped]
- Provision/settlement for KPRL/KPC debt and lawsuits
- Biwott is no more
KK is entering a new era of profitable growth [though there's a limit unless KK can expand regionally] and there's potential for a takeover given Ohana has cleaned the books and Biwott's kids may have little interest in "owning" KK.
There are some challenges e.g.
- The VAT coming in Sep will increase financing costs
- The VAT would increase the price which will lower demand
- The VAT will make smuggling/dumping of fuel more attractive. The KRA cannot stamp out smuggling when its officers (& police) are part of the problem
- Competition esp Vivo and Total
My Bottomline: KK will do well with or without a takeover. Thank you @vvs. You have been a great driver of this bus and made most of us hold on and even add substantially more shares even when the going was rough and some fellows here were making fun of us!!! My money is now in the bank and I will be re-investing it pap because I know the power of compounding!! The much I have made I multiply it even more. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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