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Centum upcoming bonus
upendoeva
#1 Posted : Thursday, June 30, 2011 8:18:34 PM
Rank: Member

Joined: 8/16/2008
Posts: 5
Am more of a long term investor but I wonder when corporate announcement says centum bonus is subject to approval, when does the approval set in. I want to buy another stock soonest. Have 100,000ksh which I want to get into kapchorua tea strictly for the divindends but time is running out.
FUNKY
#2 Posted : Friday, July 01, 2011 10:55:13 AM
Rank: Veteran

Joined: 4/30/2010
Posts: 1,635
I would advise you to buy Centum as you can sell the bonus and you will get more than what you will get in dividends from Kapchorua tea.

At current prices you will get 700 shares of Kapchorua tea from which you will be entitled to 700*7.5=5,5250/- as dividends.
At current prices you will get 4,200 shares of centum out of which you will be entitled to a bonus of 420 shares. Assume after the bonus shares have been credited the price falls to 20/- still you can sell the 420*20 and earn 8,400/-.
upendoeva
#3 Posted : Friday, July 01, 2011 2:30:00 PM
Rank: Member

Joined: 8/16/2008
Posts: 5
Thanks alot. Am currently in college so don't really have much knowledge in stocks.. Bought my first stocks in stannic ug, coop ipo was a good one, satcom a nightmare but the journey continues. Want to deal heavy in stocks after Colle. To be on the safe side, also have another 100,000ksh in a money market earning me peanuts though at 6 percent per annum. But that's a safety net.
FUNKY
#4 Posted : Friday, July 01, 2011 2:55:49 PM
Rank: Veteran

Joined: 4/30/2010
Posts: 1,635
You made a wise decision by investing in Stanbic Uganda and CO-OP..Also safaricom was a good investment but only if you would have sold soon after the IPO but now you have no choice but either to sell it at a loss or just eat the peanut dividends. As for now get in Centum now it has lot of bright prospects ahead.
dunkang
#5 Posted : Friday, July 01, 2011 3:40:36 PM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
Did i hear someone say CENTUM? Excuse me! If you buy ICDC today at 23, you will require to sell it at atleast 21.70 so as you can even recoup your investment after the bonus!{This assumes that you bought shares worth 100K and above (1.9% or 2.1% commission during purchase and disposal)}. And trust you me, 3 days after the bonus, am not seeing this stock above 20.

But if you are in to long term, BUY BUY BUY BUY, short term AVOID AVOID AVOID.

I did the same blunder with E.A Cables, i bought it for quick cash, but i have ended changing my game plan to LONG TERM!

Anyone help me, when can CABLES clock 14.7? after the half year results? SOMEONE HELP ME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Receive with simplicity everything that happens to you.” ― Rashi

Mainat
#6 Posted : Friday, July 01, 2011 3:58:23 PM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
EA Cables- possibly has had its best (Kibz/Mugo era) days behind it. Unless the newly listed TransCentury ups its game.
Centum-one needs to have a 3yr view to buy. Its as close to a very good NSE stock as you'll get. Imho
Sehemu ndio nyumba
upendoeva
#7 Posted : Friday, July 01, 2011 4:40:17 PM
Rank: Member

Joined: 8/16/2008
Posts: 5
I would like to hold centum for one yr.. Is that a long term view? Anyway that is my long term.how long does it take for bonus shares to be credited to your CDs accnt? Anyone whose done bonuses before?
kawambui
#8 Posted : Friday, July 01, 2011 6:37:49 PM
Rank: New-farer

Joined: 6/24/2011
Posts: 49
centum is turning out to be tricky. am wondering what to do with the odd number of bonus shares like if you get 420 can you sell the 20 in the market
Proverbs 4:23
[23]Keep thy heart with all diligence; for out of it are the issues of life.
upendoeva
#9 Posted : Friday, July 01, 2011 6:44:42 PM
Rank: Member

Joined: 8/16/2008
Posts: 5
To the best of my knowledge you can't sell shares less than 100 I.e in multiples so one can't sell 20 shares
For Sport
#10 Posted : Friday, July 01, 2011 6:52:01 PM
Rank: Veteran

Joined: 12/23/2010
Posts: 1,229
upendoeva wrote:
To the best of my knowledge you can't sell shares less than 100 I.e in multiples so one can't sell 20 shares


You can. They're referred to as odd lots.
http://www.nse.co.ke/pub...on/faqs/faqs.html?id=40

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