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Kenya Airways...why ignore..
Rank: Elder Joined: 6/23/2009 Posts: 14,226 Location: nairobi
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The government is likely to have its way despite the Chairman stating that KQ cannot be valued. The presidency is interested in whittling down KLM influence.. Interesting times
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Rank: Elder Joined: 6/23/2009 Posts: 14,226 Location: nairobi
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obiero wrote:ArrestedDev wrote:obiero wrote:10+ reasons to believe in operation pride atKQ:
1. End of hedging policy - Until end of 2016, some up to 2017
But welcome move with some of its stock priced at KES 88 against current price of KES 35
2. Cut off on HOTAC and other operational expenses - Operational issues still there leading to cancellations
OTP currently at 85 with cancellation being managed
3. Rightsizing of the workforce - New hires required in the long run. Only a short term measure
Lower staff costs even in the interim is welcome. We will hire more once we are well
4. Fuel efficient planes- Fuel expense still a major cost for an airline
More reason as to why the fuel costs must be tight via newer craft. KQ now has the 5th youngest fleet in aviation, globally
5. Route optimization - Few options within African continent/ Fierce competition
Shedding off on non viable or low revenue routes was mandatory
6. Category 1 status at main hub - KQ not ready to take advantage of it. Huge working capital outlay required to get the fleet back.
Increased safety for travel cannot be overstated. Even without direct US flights
7. GoK guaranteed debt at reduced pay out - Repayment need to be done in the long run
Agreed but isn't it better to pay GoK 4% than banks at 16%
8. Sale of non critical assets - Leads to reduced capacity/ Increase in operational costs e.g. lease of landing slot
The land at Embakasi, obsolete craft that depreciated by the hour. These had to go. The landing slot was not a key asset
9. Global reduction in fuel costs - Inefficiencies in fuel procurement will hinder full benefits KQ has set up a transformational office that manages procurement by way of committe
10. Revival in KE tourism - A plus but KQ flies to a few source markets KQ shall not fly to each and every country. We shall focus on sweating the assets on revenue generating targets
11. Budget carrier for booming middle-class - Expansion required going forward/ Entry of Fasjet Jambojet marketshare in Kenya is currently 90% for the 3 major routes. We can ceed market share to Fastjet, Easyjet and the others but still survive
12. Cleaned-up board and management - More needs to be done e.g. CEO need to be axed, substantive Finance head need to be appointed Only the CEO remains. Ngunze is a cerified CPA K with Harvard training.. He can double up as the CFO for now
13. Debt tenor restructure by main bankers - Longer tenure leads to higher interest cost Higher interest in the long run but we aim to retire the debt by way of principal repayments once profitability resumes by H1 2016-2017
14. Financial revamp by transaction advisers- Leads to dilution of sharesPJT aim to look at a mix of finance initiatives including but not limited to KLM pumping in additional funds to steady the turbulence. Will KLM lend at high interest rates to itself. That is unlikely The underlying problem is revenue growth. The airline has a huge cost base and without revenue growth, it will take a considerable period of time to turnaround. Glass half empty or half full.. Perception and conjecture theories.. Time will tell Gross profit up 42% +KES10.549B YoY and operating loss position up 76% +KES 12.240B YoY . KQ despite turbulent times remains a bold and treasured brand, voted as African Airline of The Year, Leading Business Class in Africa 2015, delivering 160 landing/takeoffs with uplift of over 10,000 passengers daily covering 54 global destinations. Operation Pride now at 25% of implementation, has achieved 113 improvement activities effected out of a total of 447 specific initiatives. Overall impact being 32% increase on recurrent annual income
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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obiero wrote:obiero wrote:ArrestedDev wrote:obiero wrote:10+ reasons to believe in operation pride atKQ:
1. End of hedging policy - Until end of 2016, some up to 2017
But welcome move with some of its stock priced at KES 88 against current price of KES 35
2. Cut off on HOTAC and other operational expenses - Operational issues still there leading to cancellations
OTP currently at 85 with cancellation being managed
3. Rightsizing of the workforce - New hires required in the long run. Only a short term measure
Lower staff costs even in the interim is welcome. We will hire more once we are well
4. Fuel efficient planes- Fuel expense still a major cost for an airline
More reason as to why the fuel costs must be tight via newer craft. KQ now has the 5th youngest fleet in aviation, globally
5. Route optimization - Few options within African continent/ Fierce competition
Shedding off on non viable or low revenue routes was mandatory
6. Category 1 status at main hub - KQ not ready to take advantage of it. Huge working capital outlay required to get the fleet back.
Increased safety for travel cannot be overstated. Even without direct US flights
7. GoK guaranteed debt at reduced pay out - Repayment need to be done in the long run
Agreed but isn't it better to pay GoK 4% than banks at 16%
8. Sale of non critical assets - Leads to reduced capacity/ Increase in operational costs e.g. lease of landing slot
The land at Embakasi, obsolete craft that depreciated by the hour. These had to go. The landing slot was not a key asset
9. Global reduction in fuel costs - Inefficiencies in fuel procurement will hinder full benefits KQ has set up a transformational office that manages procurement by way of committe
10. Revival in KE tourism - A plus but KQ flies to a few source markets KQ shall not fly to each and every country. We shall focus on sweating the assets on revenue generating targets
11. Budget carrier for booming middle-class - Expansion required going forward/ Entry of Fasjet Jambojet marketshare in Kenya is currently 90% for the 3 major routes. We can ceed market share to Fastjet, Easyjet and the others but still survive
12. Cleaned-up board and management - More needs to be done e.g. CEO need to be axed, substantive Finance head need to be appointed Only the CEO remains. Ngunze is a cerified CPA K with Harvard training.. He can double up as the CFO for now
13. Debt tenor restructure by main bankers - Longer tenure leads to higher interest cost Higher interest in the long run but we aim to retire the debt by way of principal repayments once profitability resumes by H1 2016-2017
14. Financial revamp by transaction advisers- Leads to dilution of sharesPJT aim to look at a mix of finance initiatives including but not limited to KLM pumping in additional funds to steady the turbulence. Will KLM lend at high interest rates to itself. That is unlikely The underlying problem is revenue growth. The airline has a huge cost base and without revenue growth, it will take a considerable period of time to turnaround. Glass half empty or half full.. Perception and conjecture theories.. Time will tell Gross profit up 42% +KES10.549B YoY and operating loss position up 76% +KES 12.240B YoY . KQ despite turbulent times remains a bold and treasured brand, voted as African Airline of The Year, Leading Business Class in Africa 2015, delivering 160 landing/takeoffs with uplift of over 10,000 passengers daily covering 54 global destinations. Operation Pride now at 25% of implementation, has achieved 113 improvement activities effected out of a total of 447 specific initiatives. Overall impact being 32% increase on recurrent annual income I can confirm to every Wazuan that @obiero is arithmetically impaired hindering him from crucial analytical skills. He is trying to force algebra to agree to his myopic pride. You can't insist imposing a zombie balance sheet into yourself and your neighbours. You jeopardise your capital being choked by the nasty outcome . I recommend that @obiero should hire a competent expert to interpret KQ results for him to understand what soaring negative equity means to him and his great grand children. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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Spikes wrote:obiero wrote:obiero wrote:ArrestedDev wrote:obiero wrote:10+ reasons to believe in operation pride atKQ:
1. End of hedging policy - Until end of 2016, some up to 2017
But welcome move with some of its stock priced at KES 88 against current price of KES 35
2. Cut off on HOTAC and other operational expenses - Operational issues still there leading to cancellations
OTP currently at 85 with cancellation being managed
3. Rightsizing of the workforce - New hires required in the long run. Only a short term measure
Lower staff costs even in the interim is welcome. We will hire more once we are well
4. Fuel efficient planes- Fuel expense still a major cost for an airline
More reason as to why the fuel costs must be tight via newer craft. KQ now has the 5th youngest fleet in aviation, globally
5. Route optimization - Few options within African continent/ Fierce competition
Shedding off on non viable or low revenue routes was mandatory
6. Category 1 status at main hub - KQ not ready to take advantage of it. Huge working capital outlay required to get the fleet back.
Increased safety for travel cannot be overstated. Even without direct US flights
7. GoK guaranteed debt at reduced pay out - Repayment need to be done in the long run
Agreed but isn't it better to pay GoK 4% than banks at 16%
8. Sale of non critical assets - Leads to reduced capacity/ Increase in operational costs e.g. lease of landing slot
The land at Embakasi, obsolete craft that depreciated by the hour. These had to go. The landing slot was not a key asset
9. Global reduction in fuel costs - Inefficiencies in fuel procurement will hinder full benefits KQ has set up a transformational office that manages procurement by way of committe
10. Revival in KE tourism - A plus but KQ flies to a few source markets KQ shall not fly to each and every country. We shall focus on sweating the assets on revenue generating targets
11. Budget carrier for booming middle-class - Expansion required going forward/ Entry of Fasjet Jambojet marketshare in Kenya is currently 90% for the 3 major routes. We can ceed market share to Fastjet, Easyjet and the others but still survive
12. Cleaned-up board and management - More needs to be done e.g. CEO need to be axed, substantive Finance head need to be appointed Only the CEO remains. Ngunze is a cerified CPA K with Harvard training.. He can double up as the CFO for now
13. Debt tenor restructure by main bankers - Longer tenure leads to higher interest cost Higher interest in the long run but we aim to retire the debt by way of principal repayments once profitability resumes by H1 2016-2017
14. Financial revamp by transaction advisers- Leads to dilution of sharesPJT aim to look at a mix of finance initiatives including but not limited to KLM pumping in additional funds to steady the turbulence. Will KLM lend at high interest rates to itself. That is unlikely The underlying problem is revenue growth. The airline has a huge cost base and without revenue growth, it will take a considerable period of time to turnaround. Glass half empty or half full.. Perception and conjecture theories.. Time will tell Gross profit up 42% +KES10.549B YoY and operating loss position up 76% +KES 12.240B YoY . KQ despite turbulent times remains a bold and treasured brand, voted as African Airline of The Year, Leading Business Class in Africa 2015, delivering 160 landing/takeoffs with uplift of over 10,000 passengers daily covering 54 global destinations. Operation Pride now at 25% of implementation, has achieved 113 improvement activities effected out of a total of 447 specific initiatives. Overall impact being 32% increase on recurrent annual income I can confirm to every Wazuan that @obiero is arithmetically impaired hindering him from crucial analytical skills. He is trying to force algebra to agree to his myopic pride. You can't insist imposing a zombie balance sheet into yourself and your neighbours. You jeopardise your capital being choked by the nasty outcome . I recommend that @obiero should hire a competent expert to interpret KQ results for him to understand what soaring negative equity means to him and his great grand children. 35B KES is not a pocket change! Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 6/23/2009 Posts: 14,226 Location: nairobi
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Impunity wrote:Spikes wrote:obiero wrote:obiero wrote:ArrestedDev wrote:obiero wrote:10+ reasons to believe in operation pride atKQ:
1. End of hedging policy - Until end of 2016, some up to 2017
But welcome move with some of its stock priced at KES 88 against current price of KES 35
2. Cut off on HOTAC and other operational expenses - Operational issues still there leading to cancellations
OTP currently at 85 with cancellation being managed
3. Rightsizing of the workforce - New hires required in the long run. Only a short term measure
Lower staff costs even in the interim is welcome. We will hire more once we are well
4. Fuel efficient planes- Fuel expense still a major cost for an airline
More reason as to why the fuel costs must be tight via newer craft. KQ now has the 5th youngest fleet in aviation, globally
5. Route optimization - Few options within African continent/ Fierce competition
Shedding off on non viable or low revenue routes was mandatory
6. Category 1 status at main hub - KQ not ready to take advantage of it. Huge working capital outlay required to get the fleet back.
Increased safety for travel cannot be overstated. Even without direct US flights
7. GoK guaranteed debt at reduced pay out - Repayment need to be done in the long run
Agreed but isn't it better to pay GoK 4% than banks at 16%
8. Sale of non critical assets - Leads to reduced capacity/ Increase in operational costs e.g. lease of landing slot
The land at Embakasi, obsolete craft that depreciated by the hour. These had to go. The landing slot was not a key asset
9. Global reduction in fuel costs - Inefficiencies in fuel procurement will hinder full benefits KQ has set up a transformational office that manages procurement by way of committe
10. Revival in KE tourism - A plus but KQ flies to a few source markets KQ shall not fly to each and every country. We shall focus on sweating the assets on revenue generating targets
11. Budget carrier for booming middle-class - Expansion required going forward/ Entry of Fasjet Jambojet marketshare in Kenya is currently 90% for the 3 major routes. We can ceed market share to Fastjet, Easyjet and the others but still survive
12. Cleaned-up board and management - More needs to be done e.g. CEO need to be axed, substantive Finance head need to be appointed Only the CEO remains. Ngunze is a cerified CPA K with Harvard training.. He can double up as the CFO for now
13. Debt tenor restructure by main bankers - Longer tenure leads to higher interest cost Higher interest in the long run but we aim to retire the debt by way of principal repayments once profitability resumes by H1 2016-2017
14. Financial revamp by transaction advisers- Leads to dilution of sharesPJT aim to look at a mix of finance initiatives including but not limited to KLM pumping in additional funds to steady the turbulence. Will KLM lend at high interest rates to itself. That is unlikely The underlying problem is revenue growth. The airline has a huge cost base and without revenue growth, it will take a considerable period of time to turnaround. Glass half empty or half full.. Perception and conjecture theories.. Time will tell Gross profit up 42% +KES10.549B YoY and operating loss position up 76% +KES 12.240B YoY . KQ despite turbulent times remains a bold and treasured brand, voted as African Airline of The Year, Leading Business Class in Africa 2015, delivering 160 landing/takeoffs with uplift of over 10,000 passengers daily covering 54 global destinations. Operation Pride now at 25% of implementation, has achieved 113 improvement activities effected out of a total of 447 specific initiatives. Overall impact being 32% increase on recurrent annual income I can confirm to every Wazuan that @obiero is arithmetically impaired hindering him from crucial analytical skills. He is trying to force algebra to agree to his myopic pride. You can't insist imposing a zombie balance sheet into yourself and your neighbours. You jeopardise your capital being choked by the nasty outcome . I recommend that @obiero should hire a competent expert to interpret KQ results for him to understand what soaring negative equity means to him and his great grand children. 35B KES is not a pocket change! It's also not a death sentence.. Let me go learn some arithmetic as suggested by the clown @spikes http://smallbusiness.chr...gative-equity-66732.html
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Rank: Member Joined: 5/30/2016 Posts: 217 Location: Talai
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muandiwambeu wrote:obiero wrote:I have officially stopped the purchase of further KQ shares and now await the ride of a lifetime. The stars are lined up, perfectly.. Thank me later well done. that's paves way for @spikes target of 2bob to materialise. hoping u won't play ppt on this one. @maka, gives us more tidings of the forthcoming bombshell. will it be tears of joy or tears of blood. I can smell blood a mile away and blood it is. THIS KSH. 2.00 IS NOT LIKELY MY FRIENDS.. my thoughts the losses have been absorbed or what??? kwangu Ni 3.50cts nibuy Kama mwenda.. Watch and Listen and Live
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Rank: Elder Joined: 6/23/2009 Posts: 14,226 Location: nairobi
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ProverB wrote: For the year ended 31st March 2010, Kenya Airways Ltd recorded Total revenue of Kshs 70,743,000,000.00, and the company’s Operating Profit amounted to Kshs 1,839,000,000.00 Operating margin = (Operating Profit /Revenues) x 100. = (1,839,000,000.00 / 70,743,000,000.00) x 100 = 2.6% Out of every Kshs1.00 Kenya Airways collected as revenue in the year, it retained only Kshs 0.03, as operating profit after paying for the operational expenses incurred in getting that Kshs 1.00 It is out of that 3Cents that Kenya Airways is to pay out financial costs as well as taxes and the balance retained as profits for share holders. Should we choose to focus only on the company’s core business operations, Kenya Airways operational performance for the just ended period is rather dismal compared to the previous periods  For 2010, Kenya Airways had an operating margin of 2.6% For 2009, the operating margin was 5.6% For 2008, the operating margin was 11.6% For 2007, the operating margin was 13.1% Declining operating margins over time should be a warning sign to any investor.  On average, out of every kshs1 in revenues that Kenya Airways collects annually, it has overtime paid more and more in operational costs. It could imply that the c ompany is having difficulty in bringing in revenues considering that it registered slightly declined revenues compared to the previous year, or that the management is facing increasing challenges in improving the company’s Operational Efficiency. The 54.5% decline in Operating Profits might explain why despite reporting 148% improvement in earnings, the share registered a 8% decline in trading price as soon as results were published. A lot is learnt by observing Operating profits trend over time, but it should not be the only factor one considers when planning whether or not the Kenya Airways shares are a viable investment.  Ceteris paribus.  Operationally KQ now healthy.. Operating margin shouldn't be calculated on an operation loss figure but it helps to determine trajectory: 2015 = -3.5% 2014 = -14.8% 2010 = 2.6% 2009 = 5.6% 2008 = 11.6% 2007 = 13.1%
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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ARAP CHARLES wrote:muandiwambeu wrote:obiero wrote:I have officially stopped the purchase of further KQ shares and now await the ride of a lifetime. The stars are lined up, perfectly.. Thank me later well done. that's paves way for @spikes target of 2bob to materialise. hoping u won't play ppt on this one. @maka, gives us more tidings of the forthcoming bombshell. will it be tears of joy or tears of blood. I can smell blood a mile away and blood it is. THIS KSH. 2.00 IS NOT LIKELY MY FRIENDS.. my thoughts the losses have been absorbed or what??? kwangu Ni 3.50cts nibuy Kama mwenda.. You are forgetting the fact that even kes 3.50/-was thought impossible by @obiero group! It has now come to pass. I reviewed my entry strategy to 50cents and still patient. KES 2bob as things stand is too expensive!!! You are lied to by men in black suits and red ties, while releasing results, whose credentials are questionable. MIBs plus red ties disguised as executives representing shareholders shouting from the rooftops about POSITIVE OPERATING PROFIT to entice their employer who happens to be the government of Kenya from sacking them. They kept mute on NEGATIVE EQUITY and ballooning NET LOSS. Hii ni ya kula na macho for now till a heavy plunge to 50CENTS. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 6/23/2009 Posts: 14,226 Location: nairobi
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Spikes wrote:ARAP CHARLES wrote:muandiwambeu wrote:obiero wrote:I have officially stopped the purchase of further KQ shares and now await the ride of a lifetime. The stars are lined up, perfectly.. Thank me later well done. that's paves way for @spikes target of 2bob to materialise. hoping u won't play ppt on this one. @maka, gives us more tidings of the forthcoming bombshell. will it be tears of joy or tears of blood. I can smell blood a mile away and blood it is. THIS KSH. 2.00 IS NOT LIKELY MY FRIENDS.. my thoughts the losses have been absorbed or what??? kwangu Ni 3.50cts nibuy Kama mwenda.. You are forgetting the fact that even kes 3.50/-was thought impossible by @obiero group! It has now come to pass. I reviewed my entry strategy to 50cents and still patient. KES 2bob as things stand is too expensive!!! You are lied to by men in black suits and red ties, while releasing results, whose credentials are questionable. MIBs plus red ties disguised as executives representing shareholders shouting from the rooftops about POSITIVE OPERATING PROFIT to entice their employer who happens to be the government of Kenya from sacking them. They kept mute on NEGATIVE EQUITY and ballooning PAT. Hii ni ya kula na macho for now till a heavy plunge to 50CENTS. Shock on you
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Spikes wrote:ARAP CHARLES wrote:muandiwambeu wrote:obiero wrote:I have officially stopped the purchase of further KQ shares and now await the ride of a lifetime. The stars are lined up, perfectly.. Thank me later well done. that's paves way for @spikes target of 2bob to materialise. hoping u won't play ppt on this one. @maka, gives us more tidings of the forthcoming bombshell. will it be tears of joy or tears of blood. I can smell blood a mile away and blood it is. THIS KSH. 2.00 IS NOT LIKELY MY FRIENDS.. my thoughts the losses have been absorbed or what??? kwangu Ni 3.50cts nibuy Kama mwenda.. You are forgetting the fact that even kes 3.50/-was thought impossible by @obiero group! It has now come to pass. I reviewed my entry strategy to 50cents and still patient. KES 2bob as things stand is too expensive!!! You are lied to by men in black suits and red ties, while releasing results, whose credentials are questionable. MIBs plus red ties disguised as executives representing shareholders shouting from the rooftops about POSITIVE OPERATING PROFIT to entice their employer who happens to be the government of Kenya from sacking them. They kept mute on NEGATIVE EQUITY and ballooning NET LOSS. Hii ni ya kula na macho for now till a heavy plunge to 50CENTS. @Obiero which is your new strategy? Tell us your objective of low entry. Or you want to jump in now at kes 4/- John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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