dreams are made of this.

The main risk to KQ is if oil prices manage to reclaim the $100/barrel by end of Dec 2010. If such a scenario plays out as the $ continues its weakness trend, that means more fuel costs for the 2H. Also a weak $ means losses against the Ksh, thus reducing ticket income for foreign routes.

Management have a lot to gain when a company's capitalisation is enhanced. (i.e. when the shares price in their company rises)

Ask me if it not immediately evident to you why...

I am afraid that will NOT happen (I am tempted to say NEVER but that would be too much). At the Investor Briefing TN indicated that KQ requires to raise $250 million as deposits for the 787s it has on order from Boeing. Currently, they only have about $100 million in cash.

Considering that they will even have to take loans to finance part of the deposit, you can be sure you are most likely going to receive Kshs 1 or at best Kshs 1.50 dividend. So if you are buying KQ for the dividends, better keep off.

Its on monday,+66% profit increase was announced n unfortunately enough,no one is smilin at the sh44. Is it the hedge,the management or is it just u n me.or maybe its xmas. Whats not happening?

@ deal- ofcours i understand demand n supply but what beats my mathematics here is that we had good numbers in the results jus released. Ofcous good numbers call for demand which we r lackin at the moment despite that supply. The views thereof then raise my questions.

I'm now praying for KQ to stay depressed like this up to December so that i buy more.

@YOU.C-Albeit he/she was wrong on the hedging matter. A drop from 1.4b to 400m was definately out of order n if not then we should appeal for him/her to be hired with immediate effect. All said,lets hope for the best.

the hedge experts are winning this, for the time being. Can the experts come out clean on this and educate us more. To the ordinary layman, the forecast endyear eps of over 6 would have already seen the counter going up immediately. But something is holding. I dont believe it is a single suppler wanting out - would have been twangwaad right away.

I attended the Investor Briefing and interestingly the cash flow hedges did not feature in the presentation. The fuel derivatives were a small loss and the Chairman was really happy with the fact that they had gotten a handle on these.

I am trying to establish what is the nature of the cash flow hedges to determine what is the likely position at the end of the year.

As I had predicted, operating profits were really good, so that was a positive outcome at least.