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VituVingiSana
#21 Posted : Thursday, February 04, 2010 8:05:17 AM
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Joined: 1/3/2007
Posts: 18,118
Location: Nairobi
gathinga wrote:
Anyone with details on the impact on KPLC income statements from the deals signed for lease of their terestial fibre cables. Perhaps these could have significant impact on their results in the second half of 2010. Good prospects on this counter


LOL... the fibre deals are mchuzi tu... Installing 24 pairs costs little more than 6 pairs (which KPLC uses/needs) so they installed 24 pairs & want to lease the other 18...

The income from fibre is welcome but insignificant to KPLC...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mufasa
#22 Posted : Thursday, February 04, 2010 8:24:17 AM
Rank: Member


Joined: 4/15/2008
Posts: 204
mukiha wrote:
Lest we lose sight of the forest for the trees:

Highest gainers in the year so far are:

Mumias Sugar Co. +47.45%

Kenya Airways +44.06%

KenolKobil Co +32.00%

Eveready East Africa +22.41%

Sameer Africa +21.00%

Jubilee Insurance Co. +20.00%

Safaricom Limited +17.58%

E.A.Cables +16.05%

NIC Bank +12.00%

Express +11.80%


How many of them are in your portfolio?


Got two in my profile but I think I also have the "STAR LOOSERS". smile In your Analysis, who are the star looser (That might also help Alot)
Do it today! Tomorrow is promise to no-one.
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mukiha
#23 Posted : Thursday, February 04, 2010 9:06:04 AM
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Joined: 6/27/2008
Posts: 4,114
Here are the laggards......




CFC Stanbic Holdings 0.00%

Unilever Tea Kenya 0.00%

Marshalls (E.A.) 0.00%

Nation Media Group 0.00%

National Bank of Kenya 0.00%

Total Kenya 0.00%

E.A.Portland Cement 0.00%

Kenya Orchards 0.00%

Limuru Tea Co. 0.00%

Standard Group 0.00%

British American Tobacco Kenya -0.56%

B.O.C Kenya -0.67%

Car & General (K) -2.86%

Carbacid Investments -2.91%

City Trust -9.52%

Williamson Tea Kenya -12.75%
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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VituVingiSana
#24 Posted : Thursday, February 04, 2010 9:26:31 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,118
Location: Nairobi
@mukiha - I think the lack of liquidity has hurt the bottom 4.

BTW, unfair on Carbacid considering the real price jump was huge in 2009 (2:1 bonus as well...)

Williamson Tea is one of my picks for 2010. The results will be out in 6 months (or sooner). I expect hefty profits.

City Trust is a laggard on paper but based on I&M Bank's performance & recent rash of announcements:
- KShs 1.3bn investment by DEG & Proparco
- Purchase of a Tanzanian bank
- New products including the e-commerce plunge
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mukiha
#25 Posted : Thursday, February 04, 2010 9:52:53 AM
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Posts: 4,114
@VVS;

About City Trust: apart from their "small" holding in I&M [10% or thereabouts], what else do they own? Or is this their biggest investment?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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VituVingiSana
#26 Posted : Thursday, February 04, 2010 10:00:41 AM
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I&M would be the major investment. The rest is insignificant. To the best of my knowledge.

Used to be 8.93% but probably diluted with the DEG & Proparco investments.

I&M Bank was rumored to be going public but with the 1.3bn from DEG/Proparco... perhaps they do not need our money! I am sure there is more cash where that came from!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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guru267
#27 Posted : Thursday, February 04, 2010 11:11:58 AM
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[quote=VituVingiSana]Preference Shares are equity not liabilities. The bulk of these on KPLC Balance Sheet are accounted for as Equity. Ignore the 4% & 7% for now!

I beg to differ on this.. isnt it ordinary shares that appear as equity on the bs.. i'm saying this because KPLC had to pay 1.2billion last year to GOK because of these pref shares...

after the conversion total ordinary shares will be 180-195million shares which will then have a P/E of about 8 or 9 basing on current price and earnings and that would still be cheap
Mark 12:29
Deuteronomy 4:16
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VituVingiSana
#28 Posted : Thursday, February 04, 2010 11:21:39 AM
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@guru - Accounting 101:

Preferred/Preference Shares are in the Equity section of the Balance Sheet. They are superior to Ordinary Shares in the event of a liquidation.

The dividend of 1.2bn is paid since that was the agreed rate...
Ordinary Shares also receive dividends but we don't consider them debt...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mukiha
#29 Posted : Thursday, February 04, 2010 12:19:22 PM
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...to add to that....Preference shares are almost like Bonds in that they have a pre-agreed dividend rate [calculated on a par value]. In the case of KPLC one was 4% and the other was 7%. This is why it is treated as debt - because it must be paid.

This dividend may or may not be Cumulative. If it is, then it will be carried over in the event that there is no money to pay in a particular year.
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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guru267
#30 Posted : Thursday, February 04, 2010 12:46:15 PM
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@mukiha and @VVS thanx for the educ. looks like i need to get back to my books..
so basically these pref shares are a liability without actually being included in liabilities on the bs... but still... wont it still be better for the company when these shares are off the balance sheet???
Mark 12:29
Deuteronomy 4:16
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VituVingiSana
#31 Posted : Thursday, February 04, 2010 10:24:33 PM
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@guru - Preference Shares are a hybrid... they have characteristics of both Equity & Debt (not necessarily all liabilities).

Off the balance sheet? Unless, you pay them off... they will remain on the BS in one form or another!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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sparkly
#32 Posted : Saturday, February 06, 2010 9:12:28 AM
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@guru pref shares are at times a necessary evil. For a company that cannot easily raise debt from the market, they offer a lifeline. The pref dividend is paid out of PAT, and from revenue reserves (like ordinary shares). Cost of debt is Paid before tax. Pref shares can only be redeemed from company profits or from share premium of a shares offer for that specific purpose. That is the law in Kenya. In short KPLC will be raising money from the other shareholders in the rights issue to pay off the GoK pref shareholding.
Life is short. Live passionately.
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VituVingiSana
#33 Posted : Saturday, February 06, 2010 12:12:40 PM
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@sparkly - Unlikely that KPLC will raise (Rights Issue) funds to pay off Pref Shares... most likely Pref will be converted To Ordinary...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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sparkly
#34 Posted : Saturday, February 06, 2010 7:24:49 PM
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@VVS per kenyan law, the only way you covert the pref shares to ordinary shares is by redeeming the pref shares first, then issuing ordinary shares at a premium, discount or nominal amount. You only redeem pref shares from profit reserves or from proceeds of a fresh share issue. Of course i stand to be corrected if i am wrong.
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VituVingiSana
#35 Posted : Sunday, February 07, 2010 7:32:15 PM
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sparkly wrote:
@VVS per kenyan law, the only way you covert the pref shares to ordinary shares is by redeeming the pref shares first, then issuing ordinary shares at a premium, discount or nominal amount. You only redeem pref shares from profit reserves or from proceeds of a fresh share issue. Of course i stand to be corrected if i am wrong.


You are sorta right... but the 2 can happen simultaneously...

Authorize all the necessary steps at an AGM/EGM & then submit to CMA

1) Create (authorize) Ordinary Shares
2) Get the 'ok' from shareholders to 'issue' Ord Shares
3) Get the 'ok' to exchange Pref for Ord at a determined ratio e.g. 7:1 (140/-). I think it should be 10:1 (200/-)
4) The Pref Shares may remain on the books as AUTHORIZED but NOT Issued (like Treasury Shares)

Next:

5) After AGM/EGM, submit application to CMA.
6) Once CMA agrees, then Board picks a date for the exchange. Generally beginning of a period.
7) Exchange takes place.

No law (to my knowledge) prevents 'conversion' from one share class to another.

Uchumi is going to convert debt to equity. Sorta similar since Pref have debt qualities as well.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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guru267
#36 Posted : Monday, February 08, 2010 5:43:42 AM
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@sparkly you stand to be corrected.. @VVS is right.. pref shares can be converted to ord. only with approval of the shareholders and the CMA...
after the conversion GOK will hold 70% of KPLC... so the only reason for the rights issue is to reduce this holding to 50.5% and not to raise capital.. so i expect a real discount for the issue
Mark 12:29
Deuteronomy 4:16
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Hi-Lo
#37 Posted : Monday, February 08, 2010 5:53:15 AM
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...pref shares have an adjective b4 them...redeemable, convertible, cumulative, participatory(tive?)...so conversion need not be associated with rights I think...
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VituVingiSana
#38 Posted : Monday, February 08, 2010 5:58:05 AM
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@guru - I think KPLC has plans (apart from GoK going to 51%) for the Rights Proceeds as well... otherwise GoK would just convert enough to get to 51% (& ask KPLC to repay the rest over the next few years)...

KPLC is expanding its 'network' to get 120,000 customers/year which means new infrastructure.

Also KPLC is installing 400,000 pre-paid meters & these will be rolled out up-country in a few years. All this needs 'new' cash as well.

Overall, the returns from the Rights cash will benefit KPLC as it becomes more efficient in cash collections.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#39 Posted : Monday, February 08, 2010 7:24:26 AM
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Joined: 1/3/2007
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Location: Nairobi
Kenya Airways reports the following traffic highlights for Oct-Dec 2009:

Passenger numbers: 773,079, +4.2% year-on-year;
Within Africa (excluding Kenya): 421,949, +9%;
Within Kenya: 133,301, -5%; (Kisumu suspension, Malindi suspension)
Europe: 97,252, stable;
Middle east, Far east and Asia: 120,577, +3%;
Passenger load factor:
Within Africa (excluding Kenya): 61.6%;
Within Kenya: 75.9%;
Europe: 71.8%;
Middle east, Far east and Asia: 71.2%;
Cargo volume: 14,006 tonnes, +9%
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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