Fair value, book value, or market value? I would be comfortable with KQ if it trades at 9 shillings to become a dividend share if it keeps up with the 1/= DPS at least for the next 3 yrs so that we can have a clear picture of the implementation of the strategy they are putting in place.


Those billions they are talking about might be too much for Naikuni to handle.

Naikuni has been a director at EAPCC and we know what has been going on there. I have very little faith in him currently.

@mwekez@ji did you know the 20 billion KQ rights issue will not contribute to earnings in anyway.. It is merely a DOWN PAYMENT/DEPOSIT for the planes it wants to buy.. They need almost 300billion to get the planes they want..

What are the future expected earnings from companies like kenol, kengen, KCB and the rest??

These companies will do better than KQ will ever do in terms of growth and yet they all trade at a P/E of 5-6..
Going by this basis it literally means KQ may even have a P/E of 4 after the rights...

I will resume believing in this stock come Jan 2014.

If I had the cash... I would buy up all of KQ [assume at 14/-]... stop the crazy expansion, fire most of the management, cut costs, sell assets [leaseback], sweat the equity and prepare to sell off the business to the highest bidder!

I am glad I switched (a huge chunk of my portfolio) to KK which expands judiciously, uses debt & has never asked me for Rights cash, sweats the equity, management has shares/options...

So @obiero has been making sensible predictions in 2012 too