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Kenya Power - what's the latest?
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iris
#211 Posted : Wednesday, January 07, 2015 2:31:03 PM
Rank: Member

Joined: 9/11/2014
Posts: 228
Location: Nairobi
mkonomtupu wrote:
MaichBlack wrote:
mkonomtupu wrote:
MaichBlack wrote:
As we are busy discussing the disadvantages of Government controlled companies we forget the advantages like ability to borrow at lower rates. 2% is more than free money. If you factor in inflation, it's like Kenya Power are actually being paid to take the money.

Traditionally, government owned companies are mismanaged leading to reduced profits or in most cases, losses. This is not the case with Kenya Power and Kenya Re. These two companies turn in a handsome profit.


Aiii..wee mboss Kenya power was insolvent in 2002(with kshs 5 billion loss) surviving at the mercy of creditors and the goodwill of government. The restructuring worked but it is still a work in progress but it's good to see this giant awakening but it still has a lot of old-school mindset in its ranks. Retiring expensive loans is big kudos to management.

keny Re has junk status credit rating(BBB) oops sorry below investment grade

Do we buy shares based on current performance and projected performance or performance for 13 years ago???

Where were Equity, KCB et. al in 2002??


All i'm saying is that the market does not give guarantees. Kenya power could very easily be stuck with a lot of idle power from the 5000MW project and still end up in the insolvency trap again.


Kenya stuck with too much power. You are joking, right?
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faa
#212 Posted : Thursday, January 08, 2015 11:34:33 AM
Rank: Member

Joined: 5/8/2007
Posts: 709
after buying kp at 12.90 last year i exited the whole lot at 15.65 last year.now i can see it just rising. guess it's time to start buying more,coz at 16 it's still cheaper
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streetwise
#213 Posted : Thursday, January 08, 2015 11:59:30 AM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
The last time I checked the population supplied with power was about 15-20%.

How then will 5000MW become excess ?
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iris
#214 Posted : Thursday, January 08, 2015 12:36:05 PM
Rank: Member

Joined: 9/11/2014
Posts: 228
Location: Nairobi
Not to mention our high power costs which are forcing some multinationals to relocate and our very poor public transport system which would greatly benefit from infrastructure like subway systems that require lots of electricity. I assume that is the reason for existence of Nuclear Energy Board in a country without enough discipline to keep buildings from collapsing every so often..
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jwatesh
#215 Posted : Thursday, January 08, 2015 1:04:13 PM
Rank: Member

Joined: 8/19/2014
Posts: 125
I will stock this stock till it goes past 20. Cheap loans equals more money to improve the grid
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heri
#216 Posted : Monday, May 04, 2015 3:42:32 PM
Rank: Member

Joined: 9/14/2011
Posts: 869
Location: nairobi
S.Mutaga III wrote:
Good company, but too much government control. The government will never let go of this company due to its monopoly status and the fact that it is a utility company. There is always a flip side of being a long term business partner with the government. It does not really care about profits and operates at the expense of minority shareholders. Good valuation, bad long term business partner...so a bad counter in my humble opinion.


@Mutaga, just curious why you have changed your opinion on KPLC
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S.Mutaga III
#217 Posted : Monday, May 04, 2015 4:24:00 PM
Rank: Member

Joined: 3/26/2012
Posts: 830
heri wrote:
S.Mutaga III wrote:
Good company, but too much government control. The government will never let go of this company due to its monopoly status and the fact that it is a utility company. There is always a flip side of being a long term business partner with the government. It does not really care about profits and operates at the expense of minority shareholders. Good valuation, bad long term business partner...so a bad counter in my humble opinion.


@Mutaga, just curious why you have changed your opinion on KPLC

2013 – (-5.5%)
2014 – 87%
HY 2015- 38%
As you can see above, the company in on the right path to growth. P/E is around 4 which makes it extremely attractive despite the large government shareholding. Sometimes one has to make a decision and compromises, because ideal counters dont exist...so I changed my mind after realizing the heavy discount on this counter. It has only one major disadvantage, which is large government shareholding. If the company is hungry for cash, and does not want to have a rights issue, it may give bonus shares instead and invest the unlocked funds. So I personally think the low dividend problem can be solved through bonus shares or astronomical capital gains. People have made money in counters that are majority held by Uncle Sam. The trick is to know when the leak appears and act accordingly.
A successful man is not he who gets the best, it is he who makes the best from what he gets.
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watesh
#218 Posted : Monday, May 04, 2015 9:19:10 PM
Rank: Veteran

Joined: 8/10/2014
Posts: 992
Location: Kenya
S.Mutaga III wrote:
heri wrote:
S.Mutaga III wrote:
Good company, but too much government control. The government will never let go of this company due to its monopoly status and the fact that it is a utility company. There is always a flip side of being a long term business partner with the government. It does not really care about profits and operates at the expense of minority shareholders. Good valuation, bad long term business partner...so a bad counter in my humble opinion.


@Mutaga, just curious why you have changed your opinion on KPLC

2013 – (-5.5%)
2014 – 87%
HY 2015- 38%
As you can see above, the company in on the right path to growth. P/E is around 4 which makes it extremely attractive despite the large government shareholding. Sometimes one has to make a decision and compromises, because ideal counters dont exist...so I changed my mind after realizing the heavy discount on this counter. It has only one major disadvantage, which is large government shareholding. If the company is hungry for cash, and does not want to have a rights issue, it may give bonus shares instead and invest the unlocked funds. So I personally think the low dividend problem can be solved through bonus shares or astronomical capital gains. People have made money in counters that are majority held by Uncle Sam. The trick is to know when the leak appears and act accordingly.

This stock price will explode when the dividend is doubled...currently there are alot of cashflow problems. Last year there were negative cashflows, most projects mainly financed by loans
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guru267
#219 Posted : Tuesday, May 05, 2015 10:19:03 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
The one thing that will finish this company is the liberalization of power distribution Pray
Mark 12:29
Deuteronomy 4:16
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  | | Edit by user: Tuesday, May 05, 2015 10:21 AM | Reason: Not specified
slykat
#220 Posted : Tuesday, May 05, 2015 1:58:56 PM
Rank: Member

Joined: 2/20/2007
Posts: 359
guru267 wrote:
The one thing that will finish this company is the liberalization of power distribution Pray


Nothing useful to add;just recall ... ...telkom kenya n even Kq to some extent to name but a coupla notables.
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