You should buy when no body is noticing certain stocks,for eg - Kengen .

Its a star stock since its a blue chip stock & also since it has a market share of 80% .

Kengen bond success is one of the many success stories ,there are plenty in line up in days to come . just imagine the new capital expansion which will add to revenues,the carbon credits,crosslisting of shares etc etc etc etc .

Kengen has always been a great company & it will be . There is no need to speculate on this stock . Just buy & go to sleep,the rest is a story of its own .

Good Investing


Vinny

Gordon. That refers to guys like you and me!
@ Viny. Ua post is insightful. Im mopping up the kengen stocks on a big individual level..

Are you guys serious!!?

Have any of you taken a look at their projected cash flows??

The stock is not paying dividends for the next 6 years.

The only reason it received so much attention was the tax free coupon,and the 70% government ownership


Make the money

my exact question to all those saying dividend payout will be good....think again! u have all seen the cashflows.....the bulk of kengens profits will go to repaying the bonds and other financiers together with interest. so what dividend will remain for them to pay out to their shareholders. in the short run i can see prices will dip because of this. so tread warily on this share. for those who invested in the bond in large amounts,you will get a better return then the small shareholders.

kengen is going to have to generate Kshs.35billion + in free cashflows to pay back this bond . Any shareholder expecting meaningful dividends over the next decade is dreaming. The only good thing is that kengen as a quasi parastatal is too big to fail so it won't default on its debt. I think this company should be broken up into hydro,geothermal and thermal units so as to reduce the risk of the whole company failing.
Currently with a book value of around 30 it is cheap but how someone would buy this stock is beyond me. Imagine what KCB,Equity,Mumias or even Access Kenya would do with 25 billion shillings!

Invest with alpha not leveraged beta

another high capital intensive business.will be long before you can get any reasonable returns.the bonds are a good investment because of the return but are also have a high risk of default.i would be contrarian and invest in companies that will benefit from increased uninterrupted power supply like KPLC (read more profits because they deliver directly to consumer),manufucters like EABL and cement companies if Comesa doesnt zero rate import duty on the commodity.

@TruthOpiner; You make very serious accusations without giving any facts to back them.

'The only winners from this bond will be the brokers who have already collected their fee's and transcentury,which will eat most of the public's money.'

I can see how brokers will make money from commissions,but hows does Transcentury enter into the equation? And how will it 'eat most of the public's money'?

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On the plus side; there is a shortage of elec in Kenya and KenGen has raised more than enough to meet that shortage in the next two years...this will mean more income for the company.

On the minus side; this bond is quite expensive for Kengen. But it has two advantages: (1) It is shilling denominated thus shielded from FX swings; (2) It has an option for early redemption....a good plan,just in case interest rates go down in future...



Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

BTW,Kengen financial year ends June. Where are the reports?

Pretax profit up 48%

Profit jumps to 48pc

The thicker the thigh the sweeter the pie.

GDC will inject 100MW annually to the national grid

The thicker the thigh the sweeter the pie.