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Safaricom share consolidation vs Tariff wars
mjuaji wa stocks
#1 Posted : Saturday, August 28, 2010 11:45:22 AM
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Joined: 1/16/2010
Posts: 672
Location: nairobi
Now that the price wars seems to be longterm between the mobile service providers; what effect will safaricom share consolidation have on shareholders' value? I mean; should safaricom decides to consolidate the mumber of shares frm 10billion (listed) to say 3 billion; what should we expect as shareholders? Dilution or increase in value?
God gave me the power to make wealth ... Blessed the work of my hands & enabled be A SELF MADE BILLIONAIRE ...... TO GOD THE FATHER OF MY LORD JESUS CHRIST; BE THE GLORY NOW & FOREVER MORE!

My 2 cents
#2 Posted : Saturday, August 28, 2010 12:21:49 PM
Rank: Veteran

Joined: 6/2/2010
Posts: 1,090
I think share consolidation may partly make the share price less volatile. A 10 :1 ratio would make each share about 50 bob.
My 2 cents
#3 Posted : Saturday, August 28, 2010 12:25:13 PM
Rank: Veteran

Joined: 6/2/2010
Posts: 1,090
by the way consolidation alone has zero effect on the company's value.
sparkly
#4 Posted : Saturday, August 28, 2010 12:26:46 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Too many retail shareholders with 200 shares. Those are the ones that make the stock very volatile. Safcom should get rid of them... Maybe redeem their shares with bonga points.
Life is short. Live passionately.
sparkly
#5 Posted : Saturday, August 28, 2010 12:29:16 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
My 2 cents wrote:
I think share consolidation may partly make the share price less volatile. A 10 :1 ratio would make each share about 50 bob.

then you will have half of the share register with odd lots of 20, that will increase volatity.
Life is short. Live passionately.
speculator
#6 Posted : Saturday, August 28, 2010 12:40:25 PM
Rank: New-farer

Joined: 12/1/2009
Posts: 75
Location: nairobi
sparkly wrote:
Too many retail shareholders with 200 shares. Those are the ones that make the stock very volatile. Safcom should get rid of them... Maybe redeem their shares with bonga points.

ha ha ha.
mjuaji wa stocks
#7 Posted : Saturday, August 28, 2010 12:44:37 PM
Rank: Member

Joined: 1/16/2010
Posts: 672
Location: nairobi
@Sparkly .....ate bong phoints??...wewe acha....BTW...accounts with odd number of shares are quite common even now...mimi iko na 42 ya NIC...iko mutu nataka??

I too think consolidating their shares will make the safcom account less volatile and thus few shares available. How will this translate / be reflected in divided payout and yield?

Any ideas kama safcom wants to go regional?

God gave me the power to make wealth ... Blessed the work of my hands & enabled be A SELF MADE BILLIONAIRE ...... TO GOD THE FATHER OF MY LORD JESUS CHRIST; BE THE GLORY NOW & FOREVER MORE!

speculator
#8 Posted : Saturday, August 28, 2010 12:59:20 PM
Rank: New-farer

Joined: 12/1/2009
Posts: 75
Location: nairobi
If share consolidation happen and safcom win this tarrif war. It will be in the same level as BAT in terms of dividend.
Njung'e
#9 Posted : Saturday, August 28, 2010 2:25:46 PM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
Our laws do not allow share consolidation....Let's stop dreaming.
Nothing great was ever achieved without enthusiasm.
guru267
#10 Posted : Saturday, August 28, 2010 3:21:29 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
First of all safcom shares can't be consolidated according to CMA rules and regulations.... Secondly due to recent events safcom shares are currently expensive and even more so after books closure....

I want to see How long investors will want to stay married to this counter
Mark 12:29
Deuteronomy 4:16
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