Could the recent fall in the NSE be because of KPLC rights issue?? - Stocks - Wazua

Welcome Guest

Wazua » Investor » Stocks » Could the recent fall in the NSE be because of KPLC rights issue??

4 Pages123>»

Could the recent fall in the NSE be because of KPLC rights issue??

Options

Previous Topic · Next Topic

guru267		#1 Posted : Wednesday, November 17, 2010 5:02:00 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		I'm just interested in this one... Whenever there is a huge bond issue with a great coupon rate investors tend blame a fall in stocks on the removal of cash for the issue... Could this be the case with the KPLC rights issue? with the company offering 8.795 billion worth of shares with at least a 50% return packed in them I'm pretty sure investors would dump their non performing shares to get a piece of the pie and hence causing the index to fall... I personally sold a few KCB to pay for these rights since I failed to mobilise a quick loan... I pray the rights are issued at 148(18.5) and not 168(20.4)... Mark 12:29 Deuteronomy 4:16
Back to top		\|
User Profile

2012		#2 Posted : Wednesday, November 17, 2010 6:07:32 PM
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi		20.4 would be terrible! I've also sold all other counters including my beloved Kenya Re with the exception of KK and KPLC. Managed to increased on KK today @10.50 and KPLC @205 (Don't you just love that sms alert from CDSC?) I'll still get back to Kenya Re as I saw an ad in last Friday's paper for a new MD. BBI will solve it :)
Back to top		\|
User Profile

mwanahisa		#3 Posted : Wednesday, November 17, 2010 6:17:27 PM
Rank: Elder Joined: 6/2/2008 Posts: 1,438		I doubt whether KPLC rights are the main cause, although they could be contributing. The market has not really sold off that much. The index is less than 5% off our previous highs. 50% gain on the rights at 148 - maybe, but not that soon. Dilution will be quite a bit especially if the rights are at 148!
Back to top		\|
User Profile

guru267		#4 Posted : Wednesday, November 17, 2010 6:30:43 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		mwanahisa wrote: 50% gain on the rights at 148 - maybe, but not that soon. Dilution will be quite a bit especially if the rights are at 148! @mwanahisa how will the price affect the level of dilution??? the number of new shares being issued is constant the only thing that will affect the price is the amount to be raised. 10 BILLION= 168 8.795 BILLION= 149 so it is more advantageous to shareholders if it is 149 rather than 168... And trust me the share will act much the same as TPS, STANCHART and KCB.. TPS rights= 48 today's closing price 68 STANCHART rights= 165 today's closing price 270 KCB rights= 17 today's closing price 21.75 Get in while you can Mark 12:29 Deuteronomy 4:16
Back to top		\|
User Profile

Aguytrying		#5 Posted : Wednesday, November 17, 2010 6:35:28 PM
Rank: Elder Joined: 7/11/2010 Posts: 5,040		2012 wrote: 20.4 would be terrible! I've also sold all other counters including my beloved Kenya Re with the exception of KK and KPLC. Managed to increased on KK today @10.50 and KPLC @205 (Don't you just love that sms alert from CDSC?) I'll still get back to Kenya Re as I saw an ad in last Friday's paper for a new MD. what sms? I only get a monthly statement from CDSC. The investor's chief problem - and even his worst enemy - is likely to be himself
Back to top		\|
User Profile

mwanahisa		#6 Posted : Wednesday, November 17, 2010 6:43:43 PM
Rank: Elder Joined: 6/2/2008 Posts: 1,438		g267. Yes, you are right on the amount of dilution not being different whether the amount being raised is 7, 8.795 or 10 billion. But there will be dilution no doubt about it. TPS and Stanchart rights are not the right comparators (is there any such word?) because the degree of dilution was much lower. So, I would think KCB is more apt for comparison. I got 30% NET upside on the rights, so I will obviously be getting into KPLC but I am still looking at the best approach to get in. I shed off 70% of my holding when the counter started going south (between 235-230) and I will be looking at reclaiming it. I just trust that my strategy will work.
Back to top		\| \| Edit by user: Wednesday, November 17, 2010 6:47 PM \| Reason: Not specified
User Profile

mwanahisa		#7 Posted : Wednesday, November 17, 2010 6:44:53 PM
Rank: Elder Joined: 6/2/2008 Posts: 1,438		g267. Yes, you are right on the amount of dilution not being different whether the amount being raised is 7, 8.795 or 10 billion. But there will be dilution no doubt about it. TPS and Stanchart rights are not the right comparators (is there any such word?) because the degree of dilution was much lower. So, I would think KCB is more apt for comparison. I got 30% NET upside on the rights, so I will obviously be getting into KPLC but I am still looking at the best approach to get in. I shed off 70% of my holding when the counter started going south (between 235-230) and I will be looking at reclaiming it. I just trust that my strategy will work.
Back to top		\|
User Profile

the deal		#8 Posted : Wednesday, November 17, 2010 6:46:00 PM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		Wazua herd mentality has started again...
Back to top		\|
User Profile

2012		#9 Posted : Wednesday, November 17, 2010 6:47:25 PM
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi		Aguytrying wrote: what sms? I only get a monthly statement from CDSC. What? I always get on sale or purchase, same day! You need to reapply. BBI will solve it :)
Back to top		\|
User Profile

guru267		#10 Posted : Wednesday, November 17, 2010 8:06:15 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		the deal wrote: Wazua herd mentality has started again... @the deal please understand that there is no herd mentality here because most of us are already KPLC shareholders wanting a larger piece of the pie or rather maintain our piece of the pie... Mark 12:29 Deuteronomy 4:16
Back to top		\|
User Profile

4 Pages123>»

Wazua » Investor » Stocks » Could the recent fall in the NSE be because of KPLC rights issue??

Forum Jump

You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Watch this topic
Print this topic

Normal
Threaded