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Kenya Airways FY 2012/13 after tax loss of 7.8bn
Rank: Chief Joined: 5/31/2011 Posts: 5,121
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selah wrote:How is this company going to pay for the 22B current liabilities.This company is going to be sold or liquidated at this rate. Its actually 50B. ... They borrowed 30B (short term borrowing)to finance the aircrafts (long term assets). who does that
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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The huge loss is not the problem to me, i expected worse, the share price is what is unbelivable. I was expecting by this time it be competing with Mumias in the sub 6s. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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Would this not point to the possibility of another cash call further down the line. Failing that the company will have to try and get the loans to be rescheduled. Given the current less than stellar financial position of the company, I wonder how receptive banks/lenders are going to be about this. A cash call (read rights issue) is not exactly an option that will be taken kindly by the markets given the hit that the NAV of the company has suffered over the last 2 years. In my view, they should borrow a leaf from ARM/Centum and issue a convertible bond, given that long term investors may see some value from a recovery play. mwekez@ji wrote:selah wrote:How is this company going to pay for the 22B current liabilities.This company is going to be sold or liquidated at this rate. Its actually 50B. ... They borrowed 30B (short term borrowing)to finance the aircrafts (long term assets). who does that
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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dunkang wrote:The huge loss is not the problem to me, i expected worse, the share price is what is unbelivable. I was expecting by this time it be competing with Mumias in the sub 6s. Give it time. Remember KK after the shock news. Same script. A test of supply will come to shakeout the stubborn wanjikus.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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Rank: Elder Joined: 7/22/2009 Posts: 7,460
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Of course there is on need to state the reason/reasoning. @Impunity said it is so. It must be so! Where are the manners of Wazuans??? How can they ignore such an important "fundamental"? Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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@mwanahisa, You present a logical case. .... Then their debt/equity ratio will become nasty and the finance cost will bite hard and before long, doom... mwanahisa wrote:Would this not point to the possibility of another cash call further down the line. Failing that the company will have to try and get the loans to be rescheduled. Given the current less than stellar financial position of the company, I wonder how receptive banks/lenders are going to be about this. A cash call (read rights issue) is not exactly an option that will be taken kindly by the markets given the hit that the NAV of the company has suffered over the last 2 years. In my view, they should borrow a leaf from ARM/Centum and issue a convertible bond, given that long term investors may see some value from a recovery play. mwekez@ji wrote:selah wrote:How is this company going to pay for the 22B current liabilities.This company is going to be sold or liquidated at this rate. Its actually 50B. ... They borrowed 30B (short term borrowing)to finance the aircrafts (long term assets). who does that
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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ulcers centre …. @obiero must be at the ICU
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Rank: Veteran Joined: 11/15/2012 Posts: 1,110
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Clearly,something is so wrong with the strategy KQ is adopting. Was thinking of sinking a few coins in this direction, but will have to wait.
ION, KQ is a good buy for those thinking past 2016. At Kshs. 10, the share price is a good bargain! Live Full Die Empty - Les Brown.
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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Do airlines make money? KQ is just following the trail left by the mega US flops, JAL, Qantas,BA,SAA,Alitalia etc. Don't be fooled by Emirates and the other middle East carriers that get subsidised fuel and interest free loans to purchase aircrafts. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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mwekez@ji wrote:results written in dip red ink but the shareholders seem to be colour blind .... ama ni PPT ananunua at this levels ... I remember arguing with ppl here when they said that it will hit 5/- by March, I reiterate, Wanjiku left this plane a while ago. I think its bottomed up now "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: 2/26/2012 Posts: 15,980
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Obi 1 Kanobi wrote:Do airlines make money?
KQ is just following the trail left by the mega US flops, JAL, Qantas,BA,SAA,Alitalia etc.
Don't be fooled by Emirates and the other middle East carriers that get subsidised fuel and interest free loans to purchase aircrafts. Some do, it all depends on strategy Southwest Airlines US, delta airlines (operates a refinery too), virgin atlantic, US Airways (expected to merge with the bankrupt American Airways), TAM Airlines Brazil, etc, The second half of KQ was an improvement clearly we were all expecting worse than this "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: 4/22/2010 Posts: 11,522 Location: Nairobi
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murchr wrote:mwekez@ji wrote:results written in dip red ink but the shareholders seem to be colour blind .... ama ni PPT ananunua at this levels ... I remember arguing with ppl here when they said that it will hit 5/- by March, I reiterate, Wanjiku left this plane a while ago. I think its bottomed up now You believe the results have been factored in the share price?This thing will slip to 8-7.50 thereabout... possunt quia posse videntur
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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murchr wrote:Obi 1 Kanobi wrote:Do airlines make money?
KQ is just following the trail left by the mega US flops, JAL, Qantas,BA,SAA,Alitalia etc.
Don't be fooled by Emirates and the other middle East carriers that get subsidised fuel and interest free loans to purchase aircrafts. Some do, it all depends on strategy Southwest Airlines US, delta airlines (operates a refinery too), virgin atlantic, US Airways (expected to merge with the bankrupt American Airways), TAM Airlines Brazil, etc, The second half of KQ was an improvement clearly we were all expecting worse than this I would analyse KQ from a cashflow position as opposed to profitability. If they can generate positive cashflows from operations going forward, then they should be around for the future, however if they can't, then they are in trouble. Profitability alone may not give us a clear picture as they will be taking in huge depreciation costs as they acquire more planes and finance costs will also hit their bottomline. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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maka wrote:murchr wrote:mwekez@ji wrote:results written in dip red ink but the shareholders seem to be colour blind .... ama ni PPT ananunua at this levels ... I remember arguing with ppl here when they said that it will hit 5/- by March, I reiterate, Wanjiku left this plane a while ago. I think its bottomed up now You believe the results have been factored in the share price?This thing will slip to 8-7.50 thereabout... The worst trading day was today for the moment. I think we'll see a 9 but not below that. Same pattern exhibited by KK "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: 9/29/2006 Posts: 2,570
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I think their only asset left now is pride of Africa! The opposite of courage is not cowardice, it's conformity.
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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murchr wrote:maka wrote:murchr wrote:mwekez@ji wrote:results written in dip red ink but the shareholders seem to be colour blind .... ama ni PPT ananunua at this levels ... I remember arguing with ppl here when they said that it will hit 5/- by March, I reiterate, Wanjiku left this plane a while ago. I think its bottomed up now You believe the results have been factored in the share price?This thing will slip to 8-7.50 thereabout... The worst trading day was today for the moment. I think we'll see a 9 but not below that. Same pattern exhibited by KK NAV for KQ = 20 [Revaluation done] NAV for KK = 4.50 [Using Cost Basis] Yet, I would buy KK over KQ... The Long-Term Debt:Equity ratio [& it is increasing] at KQ scares me! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 1/25/2012 Posts: 1,624 Location: Langley
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I thought they would do better than Air Mauritius  If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them.
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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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mwekez@ji wrote:ulcers centre …. @obiero must be at the ICU having a bad fever my brother. i dint see this one coming. nonetheless, I wont sell at a loss. im a longtermer
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Kenya Airways FY 2012/13 after tax loss of 7.8bn
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