obiero wrote:VituVingiSana wrote:obiero wrote:Ericsson wrote:Banks have been given an opportunity to recover their money plus interest they would have earned during the tenure of the loan
KQ Lenders Co Ltd has doubled their principal plus interest.. They can book it as long term securities on their respective financials. JBB screwed up
Cash is king. Since 2 of my Investee Banks are caught up in the KQ mess, I hope a White Knight would buy them out. I would rather have the cash invested in T-Bonds.
JBB took the smart approach.
Equity helped all the other banks get a better deal by holding out.
There’s no real difference in tbonds and KQ shares over the long run at this moment, both are guaranteed by GoK with the shares having upto 125% return in a week with limitless growth prospects.. As for cash, try investing in strong banks, remember simba lost 7B to Triton but it still roars
There's a world of difference between T-Bonds and KQ shares in terms of safety, cashflow and predictability. KQ's shares for minority shareholders have no guarantee.
As for the 125% return, that's a fake return when one considers banks bought KQ shares at a horrendous KES 8.52 for a firm that had negative equity before the restructuring. Even the profits, if any, for 2018-19 will be minuscule compared to the Equity injected into KQ.
The proof in the pudding is as I said earlier... Will someone buy out KQ Lenders Co shares in KQ so the banks can do something far more worthwhile with the money?
JBB was smart to hold out for cash vs shares which cost 8.52 but whose NAV is less than 2/-.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett