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Kenya Airways...why ignore..
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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obiero wrote:sparkly wrote:obiero wrote:VituVingiSana wrote:obiero wrote:VituVingiSana wrote:Making "short-term" profits, by some, on trading the shares isn't a sign of strength for a firm... A firm that delivers VALUE for all shareholders i.e. will you be happy holding the shares for 10 years if they are suspended from trading?
I like buying (good) BUSINESSES [at fair/cheap prices]...
I like MJ and Mikosz [straight shooters] but I need to see a solid turnaround then pay a FAIR price. Based on the NAV/share and (potential) EPS, it seems that price is sub-5 for me.
I shall look at KQ but it has to provide LONG-TERM profitable growth vs the likes of (some) banks, KK, Unga, KenRe, etc.
This is not about emotions but money.
I just bought more KenRe. Why? It's a laggard on the stock market [19-22] but the EARNINGS add value to the intrinsic value. KenRe makes KES 3-5 (EPS) and pays KES 0.75 and eventually the payoff will show up.
I am a poor trader but I am happy with firms that throw off cash. I want to be a mini-mini-Warren Buffett.
Once KQ is truly profitable, then like WB, I will look at it at a FAIR price. I can't fathom paying 8x NAV for KQ. Even Equity trades at no more than 2x NAV.
BTW, I don't invest in Bandia firms. No more ADSS, HAFR, Deacons, Express, Olympia, etc. I may follow them coz I want to learn but not invest in them. NBK, NBV, Kurwitu must also appear in the bandia stock listing. Meanwhile NAV is fair to use in firms that obtain organic growth and not debt funded.. KQ falls into the latter category so forward PE may be a better measure to use in your stock analysis and waiting for the fair price after profitability is achieved will only mean that you will pay a premium Let's not discuss forward PEs until there is a positive EPS for 4 straight quarters. Q1 2018 shall be the first return to profit. Expect all historical skeletons to be dumped onto FY 2017 with the airline having adjusted it's reporting FY end-cycle to Dec from Mar Management and Advisors hide alot of skeletons when restructuring. It's called cleaning out the books upon change of reporting cycles, pretty normal and legal It's called fraud in civilized societies. CMC, Uchumi, KQ, NBK, HAL, Mumias executives would be all be in prison if GOK was serious. Life is short. Live passionately.
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Rank: Elder Joined: 6/23/2009 Posts: 14,216 Location: nairobi
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The Open Offer circular is to be released before end of week
KQ ABP 4.26
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:The Open Offer circular is to be released before end of week A new dawn is coming! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 6/23/2009 Posts: 14,216 Location: nairobi
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Spikes wrote:obiero wrote:The Open Offer circular is to be released before end of week A new dawn is coming! A late believer? A converted doubting Thomas?
KQ ABP 4.26
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:Spikes wrote:obiero wrote:The Open Offer circular is to be released before end of week A new dawn is coming! A late believer? A converted doubting Thomas? http://www.businessdaily...23092-1pprtmz/index.htmlJohn 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Member Joined: 6/27/2011 Posts: 301 Location: Nairobi
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Spikes wrote:obiero wrote:Spikes wrote:[quote=obiero]The Open Offer circular is to be released before end of week A new dawn is coming! A late believer? A converted doubting Thomas? http://www.businessdaily...3092-1pprtmz/index.html[/quote] Is it me or that B.Daily article is misleading? Yes there was dilution but did people expect the number of shares to remain and the price to increase? “I knew there was dilution but I did not expect the number of shares I held to drop,” said David Kamau, an investor whose share ownership declined from 10,000 units to 2,500 when Kenya Airways shares resumed trading on the NSE on November 29...
Assuming their shares had not been slashed, the minority investors would have seen the value of their stake in Kenya Airways rise from an aggregate of Sh3.4 billion to Sh11.3 billion using Friday’s share price.
That would have left them with a paper gain of Sh7.9 billion.
The consolidation, however, saw their combined ownership drop to Sh2.8 billion, a loss of Sh609.8 million.Are people mixing up number of shares and the value? if the person had 10K shares prior to restructuring where each share unit was KES 5.00, the new unit of share after a 1-4 consolidation was KES 20.00. Effectively his portfolio remained valued at KES 50,000 albeit at a lower ownership fraction. At the current prices, the person would make the desired money by offloading a smaller number of shares than he would have sold prior to restructuring. Ama namna gani?
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Rank: Elder Joined: 6/23/2009 Posts: 14,216 Location: nairobi
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eboomerang wrote:Is it me or that B.Daily article is misleading? Yes there was dilution but did people expect the number of shares to remain and the price to increase? “I knew there was dilution but I did not expect the number of shares I held to drop,” said David Kamau, an investor whose share ownership declined from 10,000 units to 2,500 when Kenya Airways shares resumed trading on the NSE on November 29...
Assuming their shares had not been slashed, the minority investors would have seen the value of their stake in Kenya Airways rise from an aggregate of Sh3.4 billion to Sh11.3 billion using Friday’s share price.
That would have left them with a paper gain of Sh7.9 billion.
The consolidation, however, saw their combined ownership drop to Sh2.8 billion, a loss of Sh609.8 million.Are people mixing up number of shares and the value? if the person had 10K shares prior to restructuring where each share unit was KES 5.00, the new unit of share after a 1-4 consolidation was KES 20.00. Effectively his portfolio remained valued at KES 50,000 albeit at a lower ownership fraction. At the current prices, the person would make the desired money by offloading a smaller number of shares than he would have sold prior to restructuring. Ama namna gani? @eboomerang a useless article by business daily. Though granted, some of the elderly shareholders may not have known exactly how to interpret the dilution. But it doesn't deserve the front page!
KQ ABP 4.26
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:eboomerang wrote:Is it me or that B.Daily article is misleading? Yes there was dilution but did people expect the number of shares to remain and the price to increase? “I knew there was dilution but I did not expect the number of shares I held to drop,” said David Kamau, an investor whose share ownership declined from 10,000 units to 2,500 when Kenya Airways shares resumed trading on the NSE on November 29...
Assuming their shares had not been slashed, the minority investors would have seen the value of their stake in Kenya Airways rise from an aggregate of Sh3.4 billion to Sh11.3 billion using Friday’s share price.
That would have left them with a paper gain of Sh7.9 billion.
The consolidation, however, saw their combined ownership drop to Sh2.8 billion, a loss of Sh609.8 million.Are people mixing up number of shares and the value? if the person had 10K shares prior to restructuring where each share unit was KES 5.00, the new unit of share after a 1-4 consolidation was KES 20.00. Effectively his portfolio remained valued at KES 50,000 albeit at a lower ownership fraction. At the current prices, the person would make the desired money by offloading a smaller number of shares than he would have sold prior to restructuring. Ama namna gani? @eboomerang a useless article by business daily. Though granted, some of the elderly shareholders may not have known exactly how to interpret the dilution. But it doesn't deserve the front page!  John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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eboomerang wrote:Spikes wrote:obiero wrote:Spikes wrote:[quote=obiero]The Open Offer circular is to be released before end of week A new dawn is coming! A late believer? A converted doubting Thomas? http://www.businessdaily...3092-1pprtmz/index.html[/quote] Is it me or that B.Daily article is misleading? Yes there was dilution but did people expect the number of shares to remain and the price to increase? “I knew there was dilution but I did not expect the number of shares I held to drop,” said David Kamau, an investor whose share ownership declined from 10,000 units to 2,500 when Kenya Airways shares resumed trading on the NSE on November 29...
Assuming their shares had not been slashed, the minority investors would have seen the value of their stake in Kenya Airways rise from an aggregate of Sh3.4 billion to Sh11.3 billion using Friday’s share price.
That would have left them with a paper gain of Sh7.9 billion.
The consolidation, however, saw their combined ownership drop to Sh2.8 billion, a loss of Sh609.8 million.Are people mixing up number of shares and the value? if the person had 10K shares prior to restructuring where each share unit was KES 5.00, the new unit of share after a 1-4 consolidation was KES 20.00. Effectively his portfolio remained valued at KES 50,000 albeit at a lower ownership fraction. At the current prices, the person would make the desired money by offloading a smaller number of shares than he would have sold prior to restructuring. Ama namna gani? True, albeit kuoshwa on the way. It was rather Demeaning to some investors to trade in penny stock, and had literally written of their holdings at kqueer. Now at a high(not higher) price there is room to fall. One more disastrous result and the cann continuous the momentous tumble down hill. Anyway everyone is here for a cause. ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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muandiwambeu wrote:eboomerang wrote:Spikes wrote:obiero wrote:Spikes wrote:[quote=obiero]The Open Offer circular is to be released before end of week A new dawn is coming! A late believer? A converted doubting Thomas? http://www.businessdaily...3092-1pprtmz/index.html[/quote] Is it me or that B.Daily article is misleading? Yes there was dilution but did people expect the number of shares to remain and the price to increase? “I knew there was dilution but I did not expect the number of shares I held to drop,” said David Kamau, an investor whose share ownership declined from 10,000 units to 2,500 when Kenya Airways shares resumed trading on the NSE on November 29...
Assuming their shares had not been slashed, the minority investors would have seen the value of their stake in Kenya Airways rise from an aggregate of Sh3.4 billion to Sh11.3 billion using Friday’s share price.
That would have left them with a paper gain of Sh7.9 billion.
The consolidation, however, saw their combined ownership drop to Sh2.8 billion, a loss of Sh609.8 million.Are people mixing up number of shares and the value? if the person had 10K shares prior to restructuring where each share unit was KES 5.00, the new unit of share after a 1-4 consolidation was KES 20.00. Effectively his portfolio remained valued at KES 50,000 albeit at a lower ownership fraction. At the current prices, the person would make the desired money by offloading a smaller number of shares than he would have sold prior to restructuring. Ama namna gani? True, albeit kuoshwa on the way. It was rather Demeaning to some investors to trade in penny stock, and had literally written of their holdings at kqueer. Now at a high(not higher) price there is room to fall. One more disastrous result and the cann continuous the momentous tumble down hill. Anyway everyone is here for a cause. Having portfolio where every counter is on the positive side relative to buying price sio rahisi Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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