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KenolKobil posts Sh3.89b half year loss
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Josey
#1 Posted : Friday, September 07, 2012 7:22:17 PM
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alikujia
#2 Posted : Friday, September 07, 2012 7:35:04 PM
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eeiish!!! puma defenders get ready!! kazi iko hapa.
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Lolest!
#3 Posted : Friday, September 07, 2012 7:56:04 PM
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Joined: 3/18/2011
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It would be a cause of concern if they had reduced revenues due to poor strategy. Hedging? Thats excusable
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
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murchr
#4 Posted : Friday, September 07, 2012 8:03:01 PM
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Lolest! wrote:
It would be a cause of concern if they had reduced revenues due to poor strategy. Hedging? Thats excusable


Hedging is also a financial strategy
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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VituVingiSana
#5 Posted : Friday, September 07, 2012 9:55:53 PM
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Joined: 1/3/2007
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Gulp! The good news... Puma is still in the game!
I had expected breakeven (zero profit) to a modest loss. This has thrown me off.

As Warren Buffett says, derivatives are weapons of mass destruction. The only beneficiaries are the banks. I wonder who KK hedged with?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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guru267
#6 Posted : Saturday, September 08, 2012 4:11:42 AM
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Location: Nairobi
Lolest! wrote:
It would be a cause of concern if they had reduced revenues due to poor strategy. Hedging? Thats excusable


Most companies would be better off without trying to hedge and just embrace the currency risk!

Whichever way you look at it a huge amount of shareholder wealth has been scraped off the books of KK due to hedging experiments!

Puma can even offer below 15bob now!!
Mark 12:29
Deuteronomy 4:16
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gatoho
#7 Posted : Saturday, September 08, 2012 4:26:37 AM
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Location: kandara, Murang'a
There goes my retirement...
Foresight..
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xxxxx
#8 Posted : Saturday, September 08, 2012 8:15:00 AM
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Joined: 3/20/2008
Posts: 503
guru267 wrote:
Lolest! wrote:
It would be a cause of concern if they had reduced revenues due to poor strategy. Hedging? Thats excusable


Most companies would be better off without trying to hedge and just embrace the currency risk!

Whichever way you look at it a huge amount of shareholder wealth has been scraped off the books of KK due to hedging experiments!

Puma can even offer below 15bob now!!


Well, isn't that the fair value anyway???
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mlennyma
#9 Posted : Saturday, September 08, 2012 8:56:21 AM
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I now have a rough idea of how companies collapse.
"Don't let the fear of losing be greater than the excitement of winning."
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mlennyma
#10 Posted : Saturday, September 08, 2012 9:03:15 AM
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It can be very bad if afew guys team up to create some figures so as to throw out panic and buy cheap.
"Don't let the fear of losing be greater than the excitement of winning."
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murchr
#11 Posted : Saturday, September 08, 2012 9:10:12 AM
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mlennyma wrote:
It can be very bad if afew guys team up to create some figures so as to throw out panic and buy cheap.


If that is true, then one if not many of the disgruntled workers will talk.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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Jamani
#12 Posted : Saturday, September 08, 2012 9:31:44 AM
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Joined: 9/12/2006
Posts: 1,554
murchr wrote:
mlennyma wrote:
It can be very bad if afew guys team up to create some figures so as to throw out panic and buy cheap.


If that is true, then one if not many of the disgruntled workers will talk.

Things are done in a way that if they talk they will only talk to cement the current position. Remember the sell thing didnt start yesterday and things are planned in advance to achieve the result desired
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VituVingiSana
#13 Posted : Saturday, September 08, 2012 9:40:45 AM
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Joined: 1/3/2007
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Location: Nairobi
Kenyan firms do not have the expertise in hedging/derivatives. Look at KQ & now KK. Their advisers are the banks who are the counter-parties i.e. take the other side of the trade.

Why would a bank sell you a trade they would lose money on? Managements need to think about that.

BTW, Emirates does not hedge for fuel. Why? The CEO feels they will normally be on the wrong side of a hedge. They just play the expansion, competitive & customer service game!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mwekez@ji
#14 Posted : Saturday, September 08, 2012 9:52:52 AM
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Joined: 5/31/2011
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VituVingiSana wrote:
Kenyan firms do not have the expertise in hedging/derivatives. Look at KQ & now KK. Their advisers are the banks who are the counter-parties i.e. take the other side of the trade.

Why would a bank sell you a trade they would lose money on? Managements need to think about that.

BTW, Emirates does not hedge for fuel. Why? The CEO feels they will normally be on the wrong side of a hedge. They just play the expansion, competitive & customer service game!


KK major bankers include:
BNP Paribas – Paris
Kenya Commercial Bank Limited
CfC-Stanbic Bank Kenya Limited
NIC Bank
Standard Bank London PLC
Commercial Bank of Africa
Bank of Africa Limited
Ecobank Limited
PTA Bank Limited

These must be smiling all the way as KK languishes. Hedging is a very unfair games to the novice who get screwed big time. KK is now a victim. The exchange loss of KES 4.2B has eaten 60% of the KES 7.1B hard earned retained earnings. Very sad.
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selah
#15 Posted : Saturday, September 08, 2012 9:53:42 AM
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Joined: 10/13/2009
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Location: in kenya
This results took air out of my lungs...expect some panic selling on Monday...how do yo make a loss of 4B in half yr after making a profit of 3b in the previous yr.....what does this mean ..does it mean by the end of the yr the loss might double...Jeez...this is definitely bad.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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mwekez@ji
#16 Posted : Saturday, September 08, 2012 10:28:34 AM
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Joined: 5/31/2011
Posts: 5,121
*Sales up by 24.7% but cost of sales up by 32.3% resulting to a whopping 70.1% drop in gross profit. Government Price controls are killing this industry.
*All cost metrics are up with exchange losses and finance cost hitting KK hard.

This is bad. Very bad.

However, going forward, KK management is OPTIMISTIC. #Watch_H2_2012
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mkonomtupu
#17 Posted : Saturday, September 08, 2012 10:44:41 AM
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Joined: 2/10/2010
Posts: 1,001
Location: River Road
This is surely the biggest loss in kenya's corporate history and you ain't seen nothing yet...i'm glad i sold off all my KK and total shares when the government controls kicked in. That's what you get when you bring in socialist ideas in an industry.
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youcan'tstopusnow
#18 Posted : Saturday, September 08, 2012 11:26:00 AM
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Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
mkonomtupu, while price controls are undesirable, it should not be lost that KK made a profit last year under the same regime. It is the hedges which struck the biggest blow to the company...

GOD BLESS YOUR LIFE
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kyt
#19 Posted : Saturday, September 08, 2012 11:56:04 AM
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Joined: 11/7/2007
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mkonotupu, if the controlls were not there, u could be paying 300 a litre, those hedge loses would have been lumped, to you. do you want a scenario like KPLC, where a company raises tariffs with no justification? socialist kitu gani???
LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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VituVingiSana
#20 Posted : Saturday, September 08, 2012 1:11:05 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,129
Location: Nairobi
mwekez@ji wrote:
VituVingiSana wrote:
Kenyan firms do not have the expertise in hedging/derivatives. Look at KQ & now KK. Their advisers are the banks who are the counter-parties i.e. take the other side of the trade.

Why would a bank sell you a trade they would lose money on? Managements need to think about that.

BTW, Emirates does not hedge for fuel. Why? The CEO feels they will normally be on the wrong side of a hedge. They just play the expansion, competitive & customer service game!


KK major bankers include:
BNP Paribas – Paris
Kenya Commercial Bank Limited
CfC-Stanbic Bank Kenya Limited
NIC Bank
Standard Bank London PLC
Commercial Bank of Africa
Bank of Africa Limited
Ecobank Limited
PTA Bank Limited

These must be smiling all the way as KK languishes. Hedging is a very unfair games to the novice who get screwed big time. KK is now a victim. The exchange loss of KES 4.2B has eaten 60% of the KES 7.1B hard earned retained earnings. Very sad.
For the highlighted listed banks. Now you know where the super jump in profits for 1H 2012 came from!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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