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The Bull has Arrived
youcan'tstopusnow
#361 Posted : Tuesday, January 18, 2011 10:16:26 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Hii ukame naona ni kama itaturudisha kwa kaka dubu www.businessdailyafrica....2/-/11ktpq4/-/index.html The govt. won't seek foreign aid ''until we have exhausted what we have''
GOD BLESS YOUR LIFE
VituVingiSana
#362 Posted : Tuesday, January 18, 2011 10:27:35 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
erifloss wrote:
the probability of a bonus issue to finance expansion
Bonuses do not finance expansion since they do not bring in more cash/financing into the business as capital... [At best bonuses are 'paid' in lieu of cash dividends...]
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Gordon Gekko
#363 Posted : Tuesday, January 18, 2011 10:41:13 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
Bonuses finance a company to the extent that they keep cash that would otherwise have been distributed as dividends. But on they other hand they can put a strain on the company in that shareholders would expect the same absolute amount of dividend per share, regardless of any bonus shares issued.
erifloss
#364 Posted : Tuesday, January 18, 2011 11:50:02 PM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
VituVingiSana wrote:
erifloss wrote:
the probability of a bonus issue to finance expansion
Bonuses do not finance expansion since they do not bring in more cash/financing into the business as capital... [At best bonuses are 'paid' in lieu of cash dividends...]

@vvs, though retained earnings act as part of shareholders funds, you'll never get the true picture of a firm in terms of share valuation in the market when its got a large asset base that assists in income generation 'financed' by?
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
VituVingiSana
#365 Posted : Wednesday, January 19, 2011 12:39:14 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
Gordon Gekko wrote:
Bonuses finance a company to the extent that they keep cash that would otherwise have been distributed as dividends
wacha ku-con watu Shame on you
Firms are under NO obligation to distribute dividends. Many firms [esp growth oriented] retain most of the earnings...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#366 Posted : Wednesday, January 19, 2011 12:41:25 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,346
Location: Nairobi
erifloss wrote:
VituVingiSana wrote:
erifloss wrote:
the probability of a bonus issue to finance expansion
Bonuses do not finance expansion since they do not bring in more cash/financing into the business as capital... [At best bonuses are 'paid' in lieu of cash dividends...]

@vvs, though retained earnings act as part of shareholders funds, you'll never get the true picture of a firm in terms of share valuation in the market when its got a large asset base that assists in income generation 'financed' by?
So what? That's like saying 100 notes x 50/- is worth more than 5 notes x 1000/-... [Even @qw knows better. d'oh! d'oh! . Maybe. Pray Pray ]
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
ProverB
#367 Posted : Wednesday, January 19, 2011 7:56:53 AM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
VituVingiSana wrote:
Gordon Gekko wrote:
Bonuses finance a company to the extent that they keep cash that would otherwise have been distributed as dividends
wacha ku-con watu Shame on you
Firms are under NO obligation to distribute dividends. Many firms [esp growth oriented] retain most of the earnings...

VVS..true.. However..to finance expansion..what alternatives does DTK have?..debt/rights issue or bonus..with the latter being most convenient..

Rights /issue of new shares is tedious and expensive let alone time required for it and so far no indication of it yet..

Debt financing..whatever form works against equity value..so..not necessarily good..though understandable if DTK can show value for money on this one..

capitalizing the revenue reserves..through bonus issue..and at no additional cost to DTK gives them a much simpler less tedious access to much needed funds.(sic) smile

@QW.. my sentiments on DTK are well known..and documented on this thread and others...
even if i chose ..ignorantly..to get off DTK now.. with an average price of 106.00..on 5400 shares..at 149.00 today..my return is enough..for me..
feels good being castigated for being cautious..
which is far better than what i could have cumulatively returned had i followed your BUY!!BUY!!BUY!!BUY!! counters over the same period..Access..haijafika 16 yet,eveready,Centum..which bado haijafika the 25 you projected 4 months ago.. smile smile
if i'm ignorant..what does it make you? just saying..

@ALL..apologies for degrading myself so low to argue with qw on such a fine thread!! smile
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
erifloss
#368 Posted : Wednesday, January 19, 2011 8:08:20 AM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
VituVingiSana wrote:
Gordon Gekko wrote:
Bonuses finance a company to the extent that they keep cash that would otherwise have been distributed as dividends
wacha ku-con watu Shame on you
Firms are under NO obligation to distribute dividends. Many firms [esp growth oriented] retain most of the earnings...

@vvs, Why do companies issue a bonus share instead of paying dividends if & when it can be comfortably shown as part of the shareholders funds? Actually it's the cheapest source of funds!
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
Fomoney
#369 Posted : Wednesday, January 19, 2011 8:27:40 AM
Rank: Member

Joined: 7/9/2006
Posts: 79
@qw, we appreciate your commentary but you need to tone down your language. Its kinda irritating coz your sound like a spoilt teenager. I'll d be surprised if you've never been in a bar fight.Verbally aggressive! Why so serious?
qw25041985
#370 Posted : Wednesday, January 19, 2011 8:34:20 AM
Rank: User

Joined: 5/9/2010
Posts: 1,418
Location: Nai
@ Fomoney...i bet u dnt say that to @proverb wen he's a busing me from left right and center.u are talking about tonnin it down !!!! u better read @proverbs ,@ guru @VVs posts. they you'll know who shld really tone it down.definately not me.but thats what it is ...i speak what is real..
by the way @ proberB.. u might as well be a spectator on the rise of dtbk since in this investment GAME we need spectators...
Your future depends on your dreams so go to sleep !
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