home | rich profile | rich freebies | rich tools | rich data | online shop | my account | register |
  rich wrap-ups | **richLIVE** | richPodcasts | richRadio | richTV  | richInterviews  | richCNBC  | 
Satchu's Rich Wrap-Up
 
 
Monday 18th of March 2019
 
Morning
Africa

Register and its all Free.

If you are tracking the NSE Do it via RICHLIVE and use Mozilla Firefox
as your Browser.
0930-1500 KENYA TIME
Normal Board - The Whole shebang
Prompt Board Next day settlement
Expert Board All you need re an Individual stock.

The Latest Daily PodCast can be found here on the Front Page of the site
http://www.rich.co.ke

Macro Thoughts

read more


Did Mars declare war? @zerohedge
Africa


US on pause, blames 'external forces'
ECB launches TLTRO, blames 'external forces'
BoJ downgrades outlook, blames 'external forces'
China launches fiscal easing, blames 'external forces'

Did Mars declare war?

read more


18-MAR-2019 :: @Boeing 737 MAX-8, @FlyEthiopian 302, the FAA and 'teachable moments''
Africa


The Boeing Company is an American multinational corporation that
designs, manufactures, and sells airplanes, rotorcraft, rockets,
satellites, and missiles worldwide. The Boeing 737 Max is the newest
version of the 737, the best-selling airliner ever. Since debuting in
2017, Boeing has delivered more than 350 of them in several versions
and the 737 MAX-8, is the newest version of the most widely used
single-aisle jet in the world. Last Sunday, Ethiopian Airlines Flight
302 crashed shortly after taking off from Addis Ababa. The 737 Max jet
initially dipped below the safe flight path, and then, after climbing,
flew at erratic height and speed. Controllers noticed the plane was
moving up and down by hundreds of feet. The captain of Ethiopian
flight 302, Yared Getachew, reported a “flight control” problem in a
calm voice, before then asking to return in panicked tones three
minutes after takeoff, according to the New York Times. The newspaper,
citing a source who had reviewed the communications from flight 302,
said the pilot told controllers: “Break break, request back to home.”
Gebeyehu Fikadu, an eyewitness to Sunday's fatal crash told CNN that
the plane was "swerving and dipping" and belching smoke as it came
down. The ET 302 Crash occurred little more than four months after the
crash of Lion Air Flight 610 in Indonesia. Reuters confirmed an
extraordinary similarity between the two Max 8 crashes: Lion Air and
Ethiopian Airlines both lost altitude within 3 minutes of takeoff,
recovered, and then crashed. No new model of jet has recorded two
fatal accidents in its first year, until the Boeing 737 MAX-8.

What subsequently unfolded was described thus by FT's Edward G. Luce

'' Mr Trump’s stance offers a unique example of the world spurning
America’s lead on airline safety. His reversal is a “teachable moment”
— to quote his predecessor, Barack Obama — on the realities of a
fast-changing world''

At the heart of the concerns about the MAX-8 is a change in the
automatic flight controls. Boeing is facing a lawsuit on behalf of the
family of a victim of the Lion Air crash that focuses on changes made
to the flight controls in a few lines of new software. The change,
called Maneuvering Characteristics Augmentation System, MCAS,
initiates the nose-down command without input from the pilots. The
introduction of this system was not included in the flight manuals
issued to pilots nor was it included in the training given to pilots
who transferred to the MAX-8 series from earlier model 737s.

The FAA  lacks a chief. Mr Trump nominated his own pilot, John Dunkin
— the man who flew Trump planes, not Air Force One — to head it. When
the Senate laughed him off as unqualified to lead an $18bn agency, Mr
Trump failed to come up with a new name. The FAA has been flying
without a pilot, so to speak, for more than a year [Edward Luce] The
FAA and Boeing sought to push back, citing possible Pilot inexperience
amongst other ''whataboutisms'' Meanwhile, China, the European Union
and practically every other Airspace jurisdiction even Zimbabwe closed
its Airspace. A consumer group, FlyersRights.org, urged the FAA to
ground the Max 8.

“The FAA’s wait-and-see attitude risks lives,” said the group’s
president, Paul Hudson.

The lack of touch and finesse displayed by Boeing over the last seven
days is mind-boggling. They have stayed resolutely behind the curve
from the GET-Go. The Message Boeing sent was the Safety came second, a
simply untenable position.  Eventually the FAA capitulated and
grounded the 737 Max.

The stock Market crashed Boeing's share -10.31% from $422.56 to
$378.99 and that's another point : "There is no way in which one can
buck the market."

The big teachable moments for me were these. Ethiopian and its
Government acted with a lot of decorum. Concerns about brand damage
are overblown. In contrast, Boeing have taken a big hit but more
worryingly the Corporate's reactions to a fast moving situation were a
D-. It is also an incredible statement by Ethiopian to send the
Aircraft's Black Box not to the FAA but to France. Thats a
geopolitical moment, as it were.

Home Thoughts

read more














29-APR-2013 :: The Brothers Tsarnaev and the Long Tail Put in a different way, there are surely many Brothers Tsarnaev in this new c21st of ours
Law & Politics


There are more than seven billion of us now in this c21st world of
ours. The long tail in a population of seven billion is not an
insignificant absolute number.
‘’In statistics, a long tail of some distributions of numbers is the
portion of the distribution having a large number of occurrences far
from the “head” or central part of the distribution.’’
Put in a different way, there are surely many Brothers Tsarnaev in
this new c21st of ours.
 In truth, that disaffection might have any number of reasons and I am
reminded of my French O level where I studied Albert Camus’ L’Etranger
and Camus said;
“The byronic hero, incapable of love, or capable only of an impossible
love, suffers endlessly. He is solitary, languid, his condition
exhausts him. If he wants to feel alive, it must be in the terrible
exaltation of a brief and destructive action*.”

read more






Hyperinflation running above 2 million percent per year in Venezuela has made the Venezuelan bolivar practically worthless.
Law & Politics


For those without electronic payment cards, foreign currency has
become the only practical means of trade within the South American
country.
Moises Hernandez, who works as a cleaner in San Antonio, is paid in
Colombia pesos, which allows him to cross the border to the city of
Cucuta to buy basic necessities.
“Unless we buy over there, we cannot eat,” the 40-year-old told
Reuters. “In Venezuela everything is more expensive.”

read more



4 FEB 19 :: "The edge... There is no honest way to explain it because the only people who really know where it is are the ones who have gone over," Hunter S Thompson.
Law & Politics


The Chavez Revolution was always a rebellion in the Superpower’s back
yard and the machine was eventually going to bring it to heel by hook
or by crook.

read more



Currency Markets at a Glance WSJ
World Currencies


Euro 1.1337
Dollar Index 96.49
Japan Yen 111,57
Swiss Franc 1.0019
Pound 1.3283
Aussie 0.7114
India Rupee 68.8865
South Korea Won 1131.14
Brazil Real 3.8157
Egypt Pound 17.3890
South Africa Rand 14.4106

read more









"To subdue and crush the masses of a nation by military force, when all are unanimous in the determination to be free, is to attempt the imprisonment of a whole people must be temporary and transient - William Dalrymple
Africa


“To subdue and crush the masses of a nation by military force, when
all are unanimous in the determination to be free, is to attempt the
imprisonment of a whole people; all such projects must be temporary
and transient, and terminate in a catastrophe...”  ― William Dalrymple

read more


South Africa All Share Bloomberg +6.26% 2019
Africa


Dollar versus Rand Chart INO 14.4090

https://quotes.ino.com/charting/index.html?s=FOREX_USDZAR&t=f&a=&w=&v=d12

Egypt Pound versus The Dollar 3 Month Chart INO 17.3888

http://quotes.ino.com/charting/index.html?s=FOREX_USDEGP&v=d3&t=c&a=50&w=1

Egypt EGX30 Bloomberg

http://www.bloomberg.com/quote/CASE:IND

Nigeria All Share Bloomberg -0.92% 2019

http://www.bloomberg.com/quote/NGSEINDX:IND

Ghana currency plunge recalls Argentina fears Ready CEDI Go

http://bit.ly/2W31Npu

read more



04-MAR-2019 :: the worst performing currency in the world in 2019 is the Ghana Cedi which has retreated about -12.6% year to date.
Law & Politics


“The performance of the cedi doesn’t correlate with the fundamentals,”
Opata said in a phone interview from the nation’s capital, Accra.

read more










In 2008, the demand stood at 1,044MW, rising to 1,802MW in 2018. @KenGenKenya @rebecca_miano @StandardKenya
Kenyan Economy


Looking at our prospects in geothermal energy, the potential along
Rift Valley is estimated at 10,000MW and is currently being harnessed
in Olkaria, Menegai and Eburru fields. In the medium and long term,
plans are underway to develop new geothermal reservoirs such as Suswa,
Longonot, Akiira and Baringo Silali. So far Kenya has geothermal
installed capacity of 683MW.

Kenya also has immense potential in hydropower, estimated between
3,000MW and 6,000MW. More than 819MW has been exploited in large
installations owned by Kenya Electricity Generation Company PLC
(KenGen). Presently, the existing hydropower plants contribute about
30 percent of the country’s annual electricity generation. Hydropower
potential is found in five geographical regions namely Lake Victoria
basin (329MW), Rift Valley basin (305MW), Athi River Basin (60MW) and
Tana River basin (790MW).

Kenya’s interest in wind power has been growing progressively.
Already, KenGen has a 25MW power plant in Ngong comprising 30 850Kw
turbines. Some of the country’s best wind sites are found in Marsabit,
Samburu, Laikipia, Meru, Nyeri, Nyandarua and Kajiado counties. Other
areas include Lamu, offshore Malindi, Loitokitok and Narok plateau.
According to the Least Cost Power Development Plan (LCPDP)-2017-2037,
Kenya has close to 90,000 square kilometres with exceptional wind
speeds of 6m/s and above.

So far, Kenya’s largest wind power farm, which contributes 300MW of
clean energy, is located in Loiyangalani in Marsabit County.

Kenya is also endowed with huge solar resources, placing it among the
highest in Sub-saharan Africa. Currently, in Garissa County, Rural
Electrification Authority (REA) has built a 54.6MW solar power plant.
KenGen, the country’s leading energy producer is keen on growing power
supply from these and other energy sources to support demand, achieve
lower cost of electricity and increase green energy sources.

read more




.@KenGenKenya share price data
Kenyan Economy


Par Value:                  2.50/-
Closing Price:           5.96
Total Shares Issued:          6243873667.00
Market Capitalization:        37,213,487,055
EPS:             1.2
PE:                 4.967

KenGen PLC HY 2019 results through 31st December 2018 vs. 31st December 2017
HY Revenue 22.185b vs. 22.323b -0.618%
HY Revenue less reimbursable expenses 18.040b vs. 17.981b +0.328%
HY Other income 211m vs. 125m +68.800%
HY Depreciation and amortization [5.133b] vs. [5.194b] -1.174%
HY Operating expenses [4.980b] vs. [4.648b] +7.143%
HY Steam costs [1.667b] vs. [1.793b] -7.027%
HY Operating profit 7.120b vs. 7.458b -4.532%
HY Finance income 242m vs. 251m -3.586%
HY Profit before tax 6.022b vs. 6.081b -0.970%
HY PAT 4.124b vs. 4.095b +0.708%
HY EPS 0.63 vs. 0.62 +1.613%
Cash and cash equivalents balance at 31st December 8.763b vs. 701m +1,150.071%

read more



@StandardKenya reports FY 2018 Earnings
Kenyan Economy


Par Value:                  5/-
Closing Price:           25.00
Total Shares Issued:          81731808.00
Market Capitalization:        2,043,295,200
EPS:            2.41
PE:             10.373

The Standard Group PLC FY 2018 results through 31st December 2018 vs.
31st December 2017
FY Revenue 4.836030b vs. 4.657488b +3.833%
FY Total operating cost [4.391050b] vs0 [4.942733b] -11.161%
FY Other income 120.077m vs. 184.110m -34.780
FY Finance costs (net) [167.832m] vs. [181.051m] -7.301%
FY Profit/ [Loss] before taxation 397.225m vs. [282.186m] +240.767%
FY Profit/ [Loss] after taxation 261.285m vs. [210.838m] +223.927%
Basic and diluted EPS 2.41 vs. [3.32] +172.590%
Total assets 4.676133b vs. 4.459637b +4.855%
Total shareholders’ equity 1.954316b vs. 1.865256b +4.775%
Dividend per share 0.60 vs. –
Cash and cash equivalents at the end of the year [151.677m] vs.
[369.851m] -58.990%

Conclusions


Rebounded meaningfully

read more


Mumias Sugar Co reports FY 2018 Loss [15.141b]
Kenyan Economy


Par Value:                  2/-
Closing Price:           0.57
Total Shares Issued:          1530000000.00
Market Capitalization:        872,100,000
EPS:             -9.90
PE:

Mumias Sugar Company Limted FY 2018 results through 30th June 2018 vs.
30th June 2017
FY Revenue 1.379223b vs. 2.091751b -34.064%
FY Cost of sales [3.893965b] vs. [5.279897b] -26.249%
FY Gross loss [2.514742b] vs. [3.188146b] -21.122%
FY Fair value gain on biological assets 17.967m vs. 97.137m -81.503%z
FY Administrative expenses [1.923628b] vs. [2.329932b] -17.438%
FY Impairment of assets [4.923776b] vs. [2.572703b] +91.385%
FY Finance costs [679.541m] vs. [1.500153b] -54.702%
FY Loss before tax expense [10.111962b] vs. [9.531178b] -6.094%
FY Tax [Expense]/ income [5.029291b] vs. 2.757244b -282.403%
FY Loss for the year attributable to the owners of the company
[15.141253b] vs. [6.773934b] -123.522%
Loss per share [9.90] vs. [4.43] -123.476%
Total Equity [14.385103b] vs. 756.580m -2,001.333%
Cash and cash equivalents at end of year [2.762408b] vs. [2.700735b] -2.284%

RESULTS OVERVIEW


During the year, the Company suffered a net loss after tax of Kshs
15.1 billion against the previous year's loss of Kshs 6.8 billion. The
steep rise in loss was mainly driven by a 101% increase in impairment
charges to our plant and machinery of Kshs 4.9 billion from Kshs 2.6
billion charged last year, the de-recognition of deferred tax assets,
leading to a tax expense of Kshs 5 billion from a tax income position
of Kshs. 2.7 billion realized last year and low production following
plant shut downs in the 1st and 4th quarters of the financial year.
The acute cane shortage significantly hindered the plant throughputs
with cane delivered dropping by 32% to 283,435 tons compared to
417,347 tons last financial year.
Sugar produced was 14,622 tons, a drop of 8% against 15,891 tons
achieved last year. The distillery yielded 3.2 million litres of ENA
compared to 6.9 million last year, while the Cogen plant exported
3,581 MW to the national grid.
Turnover for the year reduced to Kshs. 1.37 billion as compared to
previous year Kshs. 2.09 billion mainly because of the reduced sales
volumes across the company’s products following the long closure of
the factory.
Focus oil prudent cost management saw the administrative costs reduce
by 17% from Kshs 2.3 billion to Kshs 1.9 billion in the year

FUTURE OUTLOOK

Our key stakeholders have continued supporting the company's
turnaround initiatives. The Government of Kenya has settled over Kshs
0.7 billion owed to Mumias Sugar farmers. This is expected to have a
positive impact on future cane availability. In addition, the ongoing
Government of Kenya's concerted efforts to crackdown on illegally
imported sugar and ethanol and the push to resume cane zoning are all
very encouraging initiatives that will greatly support, MSC's
turnaround strategy and help revive the ailing sugar sector0
Discussions with the lenders to restructure the debts and extend the
stand still arrangements are ongoing to obtain much needed financial
relief. The Board is seeking to enlist the support of the lenders to
identity a suitable and competent strategic partner to enhance the
financial capabilities to enable full business recovery.
The Board approved the implementation of a five-year strategic plan
2018/2022 focussed on increasing plant productivity, staff
rightsizing, leasing of non-core assets and enhancing cane supply.
These coupled with improved power export returns and the independent
operation of the distillery should see the company's fortunes improve
in the coming years.
The Board of Directors view the Company's outlook as positive and that
the on-going initiatives will stabilize and revitalize the Company.

DIVIDEND

The directors do not recommend payment of a dividend.

BY ORDER OF THE BOARD
DR. KENNEDY NGUMBAU, HSC
CHAIRMAN

Conclusions


Please make your own.

read more



 
 
by Aly Khan Satchu (www.rich.co.ke)
 
 
Login / Register
 

 
 
Forgot your password? Register Now
 
 
March 2019
 
 
 
 
 
COMMENTS

 
In order to post a comment we require you to be logged in after registering with us and create an online profile.