The launch of a no frills airline by KQ is a step in the right direction, thats what Kenya needs.. .Mombasa standing at 5K return I can't wait but they need sought out this labour/strike issue once and for all

KQ employees threaten to go on strike over Jambo Jet outfit. KQ is headed the anti employee approach way.

Ouuch!! thats below the belt ..... usiwe hivyo kihangeri..... kuwa mpole

What are the option for current shareholders, who bought at 40-50 bob?

Here are my ideas.

1. Do not participate in rights issue, this will mean your dividends will be severely diluted and you the hope of ever selling at a profit will die. You will also receive a miserable dividend forever. And if u ever decide to sell, it will go with part of your soul.

2. Participate in the rights issue. Your dividend yield will not only be maintained but will increase significantly as you will get the shares at a lower price ie if it was 1.5/50= 3%. say rights at 20 it will be 1.5/20= 7.5%. This will end up will a total of roughly 5%. EPS for FY 2011/2012 will be diluted from 8.0 to 2.1 in case of a 3:1 rights issue and 2.8 in case of a 2:1 rights issue. Chance of selling at a profit will still be a mirage for many many years.

at 19.50 the share is trading at PE of 2.55!!!!

My conclusion is that while neither option is rosy, considering all factors constant and the 5-10 yr plan of kenya airways, taking up the rights makes more financial sense

more ideas please.

no need of saying samahani !!!!! business is actually low !!!! the way this brokers have maintained through out the year is just a miracle !!!!!!!!!!!