Saturday, 25 January 2014
FRONTIER MARKETS: KQ FORTUNES TURNING AROUND?
Current prevailing conditions for the company shares are pretty similar to what was there before the company shares rose by 400% in 6 weeks. The company has been successfully replacing its airplanes and are set to buy 6 more Boeing 787 airplanes in addition to their most recent purchase. The airplane cuts their fuel consumption by up to 20%. Their fuel derivatives are maturing in March, if the global fuel prices stay suppressed below the forward contracts level, they are likely to report a significant fuel derivatives gain. According to their published financial reports, they stand to make 200Million for every 1% drop in fuel prices. The Kenyan airport is also expanding to accommodate 9 million passenger by 2017. They are increasing the number of local flights. Given that its a government corporation, they are likely to be major beneficiaries once oil mining commences in Kenya. Personally I am very optimistic given the low market capitalization that the share value will double in about 6 months from current 13.50 price driven by speculative demand.
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This KQ thing is biting me,an year ago it was at 9/= back when i was saying it has bottomed
ReplyDeleteI also thought so too. At 9 bob I remember there was all sorts of bad news and it didn't move lower. KQ has reached a point where the markets reacts more to good news than bad news, signs of a bottom. I think in the short-term all factors held constant it should get to 20
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