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Kenya airways Right Issue
Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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I was looking at some tweets for MindSpeak where Titus Naikuni was the guest speaker and there was all this 'feel good' stuff about KQ's growth but then a firm will grow if you throw money [capital/equity and debt] at it. What counts is profits or future profitability. When one takes KQ since 1996, you realize there has been little growth in NAV after 17 years. An investor who bought KQ at 11.25 will get only 13 [+ sporadic dividends] after 17 years. This is little better than putting the cash under the mattress. Which also brings me to my next point and my post http://www.wazua.co.ke/f...px?g=posts&m=420926 Expensive Mistakes or an Education? I will avoid shares in firms whose Board Members & Management have no significant ownership stake. And KQ was one of them where the 'buy in' from the staff, board and management was close to NIL. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Hello Joined: 5/21/2012 Posts: 4
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Good point @VituVingiSana the management has to be part of the significant ownership stake to have an incentive to make shareholders happy. Otherwise they will just want to increase salaries and debt.
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Rank: Elder Joined: 6/23/2009 Posts: 13,519 Location: nairobi
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@vvs have you been sent?
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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the bird will fly higher if not that high it'll lay golden eggs if not it'll lay Quail eggs; it's a quail. @obiero we're rearing the birds we'll sell @vvs the eggs, waiting patiently. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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nice post mortem. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 6/21/2010 Posts: 514 Location: Nairobi
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@VVS, true. One only understands value addition and wealth creation when they have a sense of ownership and this can only come through real ownership. The other company that i have an issue with on this particular issue due to the magnitude of its balance sheet is KCB. 'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Rank: Elder Joined: 2/26/2008 Posts: 4,449
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Guys, at current prices and ahead of earnings season, who would you rather gamble on? KQ, Mumias or HomeAfrika? :)
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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ecstacy wrote:Guys, at current prices and ahead of earnings season, who would you rather gamble on? KQ, Mumias or HomeAfrika? :) I've already placed my bets on Mumias! I'm also going to buy KQ - sub ten. I never took up my rights because I knew the price would head south. The last time it went to sub 10 level I didn't pull the trigger because it looked like it could fall further. This time round I'll start buying at 9.99. I need to finally get my rights [at a further discount]. Of course I can always walk away and take my money elsewhere but I choose not to. If I buy sub 10, I'll still make money off this thing! But it will need patience! I'm one hell of a patient man - probably picked up from watching too much "Big Cat Diaries" and the like - just watch a big cat [lion etc.] hunting! You'll learn alot - patience, strategy, be willing to take the longer route - may be because of the wind direction that might make the prey get your scent, choose your target carefully, stick with it - run after it while overtaking the ones that appear closer/easier. 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: Elder Joined: 7/22/2009 Posts: 7,455
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Having said that, I have gems in my portfolio that are making me smile from ear to ear. Mumias, Kenya Power, KQ [at the right price], Kengen [Waiting for it to come back to 11/= levels] are long term plays - which might put my money in parking for a while. But I'm okay with that - time value of money notwithstanding. Hellos and guests beware. Have some 'sure' stocks before you start playing Russian Roulette with me! I'm one patient fellow - with balls of steel! 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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MaichBlack wrote:ecstacy wrote:Guys, at current prices and ahead of earnings season, who would you rather gamble on? KQ, Mumias or HomeAfrika? :) I've already placed my bets on Mumias! I'm also going to buy KQ - sub ten. I never took up my rights because I knew the price would head south. The last time it went to sub 10 level I didn't pull the trigger because it looked like it could fall further. This time round I'll start buying at 9.99. I need to finally get my rights [at a further discount]. Of course I can always walk away and take my money elsewhere but I choose not to. If I buy sub 10, I'll still make money off this thing! But it will need patience! I'm one hell of a patient man - probably picked up from watching to much big cat diaries and the like - just watch a big cat [lion etc.] hunting! You'll learn alot - patience, strategy, be willing to take the longer route - may be because of the wind direction that might make the prey get your scent, choose your target carefully, stick with it - run after it while overtaking the ones that appear closer/easier. I second Mumias. Buy from current price all the way to new all time lows ... KQ will be interesting if it can break down 8 ... Home Afrika if it can breakdown to 4 ... IMHO
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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ecstacy wrote:Guys, at current prices and ahead of earnings season, who would you rather gamble on? KQ, Mumias or HomeAfrika? :) Avoid HomeAfrika at all cost, in my own reasoning. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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"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: Veteran Joined: 2/3/2012 Posts: 1,317
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Guys, I was wondering how the ban on psv night travel is bound to affect earnings. Anyone with the low down?
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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The ban on night travel has come as a blessing to the airlines operating local flights. Their local traffic has increased and they have also increased their prices for local flights.
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Kenya Airways (KQ) and Tanzania’s Precision Air are in talks over a deal that could see the Nairobi-based carrier raise its stake in the latter, by injecting up to $30 million into it.
The move comes after similar discussions between the Tanzanian government and Precision Air, in which the former was expected to inject $30 million into the struggling company, flopped.
Precision chairman Michael Shirima told The EastAfrican that his airline had approached KQ, which owns 41.23 per cent of the airline, for financing, as the Dar es Salaam-based airline seeks ways to shore up its eroded cash position.
“KQ was waiting for the government’s decision…. when the government gave us its final decision on the matter, KQ came up with the idea to increase its stake, over which we are still in discussion. Our aim is it get between $20 million and $30 million through equity,” said Mr Shirima.
Late last year, Ernst and Young, Precision’s auditors, raised concerns over the viability of the airline in the light of surging debts, saying it must move fast to secure financing if it is to remain afloat. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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So will KQ have to write-down, if not write-off, the investment in Precision Air? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,519 Location: nairobi
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QW25091985 wrote:mwekez@ji wrote:QW25091985 wrote:the index jumped to 3400 . wow !
and quarterly report of the nse shows foreigners were busy buying . aiiigh .
yenyewe.... if you bought your shares during the 3072 lows just keep them And it has jumped with good turnover, over 500M. What the next point if such turnover is maintained? 3500 is gonna be sliced through . if such bullishness is maintained even after book closure for most of this stocks i think they will rally .. but i'd rather wait for book closure to see what next . Lol. i think wanjiku will be caught napping again and will be forced to buy the stocks at a high price Post 212.. QW thought KQ was worth more than KES 14 per share
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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obiero wrote:QW25091985 wrote:mwekez@ji wrote:QW25091985 wrote:the index jumped to 3400 . wow !
and quarterly report of the nse shows foreigners were busy buying . aiiigh .
yenyewe.... if you bought your shares during the 3072 lows just keep them And it has jumped with good turnover, over 500M. What the next point if such turnover is maintained? 3500 is gonna be sliced through . if such bullishness is maintained even after book closure for most of this stocks i think they will rally .. but i'd rather wait for book closure to see what next . Lol. i think wanjiku will be caught napping again and will be forced to buy the stocks at a high price Post 212.. QW thought KQ was worth more than KES 14 per share 1) I didn't see anywhere he mentioned KQ. 2) Do you know how much @QW's opinion is/was worth in Wazua? 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: Elder Joined: 6/23/2009 Posts: 13,519 Location: nairobi
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VituVingiSana wrote:http://www.standardmedia.co.ke/education/InsidePage.php?id=2000056183&cid=4&
Efforts by a businessman to stop the ongoing Kenya Airways rights issue has flopped.
The High Court on Friday declined to suspend the rights issue of 1,477,169 shares after certifying the case urgent and ordered Mr Rakesh Gadani to serve KQ with the suit papers.
Justice Fred Ochieng said he should serve the airline and the case heard inter partes on April 17. Rakesh wanted the airline directors temporarily stopped from offering the shares at Sh14 or listing them at the Nairobi Stock Exchange, pending hearing and determination of his case.
The case was filed on grounds that existing shareholders who cannot exercise their rights offer in full could lose 66 percent of the value of the shares.
"In essence, one is being forced to give up Sh28 per share (two third of the value)," he stated. KQ intends to raise Sh20.68 billion by way of the rights issue of new ordinary shares.
He stated the Rights Issue offer price represents a discount of 32.2 percent to the volume weighed average price of KQ ordinary shares on the NSE for the past 90 trading days up to February 29, being the date the board approved the rights issue terms.
"Current shareholders have not had the chance to question the board of directors to explain the logic behind selling shares at Sh14 when the net asset value is Sh42, which is 66 percent," he added.
On Friday, his lawyer, Mr Stephen Gitonga told the court the issuance of shares is oppressive to his client and minority shareholders, adding that KQ issued the Information Memorandum which is the basis of the trading of the rights share issue after the rights started trading. Mr Rakesh had a point.. We chose not to listen, but he was sayin something genuine
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,519 Location: nairobi
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MaichBlack wrote:obiero wrote:QW25091985 wrote:mwekez@ji wrote:QW25091985 wrote:the index jumped to 3400 . wow !
and quarterly report of the nse shows foreigners were busy buying . aiiigh .
yenyewe.... if you bought your shares during the 3072 lows just keep them And it has jumped with good turnover, over 500M. What the next point if such turnover is maintained? 3500 is gonna be sliced through . if such bullishness is maintained even after book closure for most of this stocks i think they will rally .. but i'd rather wait for book closure to see what next . Lol. i think wanjiku will be caught napping again and will be forced to buy the stocks at a high price Post 212.. QW thought KQ was worth more than KES 14 per share 1) I didn't see anywhere he mentioned KQ. 2) Do you know how much @QW's opinion is/was worth in Wazua? Dear Elder I joined stockskenya prior to you.. Check the dates. Which actually was my second entry having forgotten my initial password in early 2008
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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