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Kenya Airways FY 2012/13 after tax loss of 7.8bn
Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Aguytrying wrote:Impunity wrote:Aguytrying wrote:this is why its tricky to trust gava with ur hard earned invested cash. its like they have nothing to lose.
why can't this airline be privatised, to become the saf com of the skies Isn't it a private company?  well yes, more private...he he. gava has too much control now. I thought it was privatised in 1996!!! What's the % of GoK holdings? The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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hisah wrote:murchr wrote:VituVingiSana wrote:murchr wrote:VituVingiSana wrote:murchr wrote:VituVingiSana wrote: And combine the losses from hedges? 2 for 1 deal for the folks who sell them hedges! KQ has made gains from hedging in the last 2 financial years. But these guys need to concentrate on travel first before they think of anything else I would like to see the detail as presented in GAAP Accounting that includes the premium/s paid. When you hedge [depending on the hedge] you may pay a premium [upfrot fee] so the break-even comes when the gain equals the premium paid. Not to mention the premium has to be financed. KQ enters into hedge contracts with financial institutions, to fix the price at which fuel will be bought in the future. Fuel prices are volatile, and the hedging gives a limit of exposure. If the market prices go below the hedge price, KQ pays the difference to the contracted financial institution. If the price shoots above the hedge price, KQ is paid the difference. As to predicting if the price will be higher or lower, that needs an expert who is not only an accountant but a strategist who can read the geopolitics of the day. I dont know of an upfront fee...what i understand is you negotiate a price let say to buy jetfuel at 90 if it shoots to 100 the fin company gets to blow, if it melts to 80 Kq suffers the blow...simply put, its a gamble When you have a strike price, you may need to pay a premium to enter into the contract. There are negotiating fees, advisory fees, etc. Also we use the term 'hedges' but are they forwards, futures, swaps, etc? Ofcourse those fees are there by standard, but if one plays smartly, they are good. What i described ni futures Thus why I say they should rebrand from Kenya Airways to Kenya Airways hedge fund or something in that line. What is their core biz, profits from fuel hedges (bets) or air transport?  Sincerely I hope they compensate that jamaa well because if it weren't from him/her I don't know. Can u imagine the losses? "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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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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Apparently Jimna mbaru is of the opinion the stock should be suspended due to volatility '......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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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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selah wrote:Apparently Jimna mbaru is of the opinion the stock should be suspended due to volatility
He knows something we don't. Lets buy before the suspension but I wonder what the real (legal) justification of such a move would be. The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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No sir,its willing buyer willing seller,instead convince your sellers to stay put. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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But its still on the same spot, what volatility is he talking about? "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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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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He must be sunk in massive loss. When did he buy, >120, 60, 40, 20, 14? 
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mwekez@ji wrote:He must be sunk in massive loss. When did he buy, >120, 60, 40, 20, 14? Still posting lows below the GFC lows
Now imagine what would happen if another GFC were triggered...$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi
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jerry wrote:selah wrote:Apparently Jimna mbaru is of the opinion the stock should be suspended due to volatility
He knows something we don't. Lets buy before the suspension but I wonder what the real (legal) justification of such a move would be. Isn't what Jimnah wants akin to speculation? The market is volatile for a reason. Let it be. If you want to sell, a suspension will create more problems! If Otieno wanted to buy 1 acre in Kitisuru & signed a contract which obligated him to deposit 20% & pay the rest on 1 July 2013 but the KQ shares he planned to sell were suspended coz of 'volatility' then he could lose his deposit! What's worse? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi
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hisah wrote:mwekez@ji wrote:He must be sunk in massive loss. When did he buy, >120, 60, 40, 20, 14? Still posting lows below the GFC lows
Now imagine what would happen if another GFC were triggered... The Board & Management get huge salaries & perks. They are not stressed about financial performance. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Kenya Airways FY 2012/13 after tax loss of 7.8bn
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