Virji.... If u had 1000 post split...after split u hav 10000. However...u hav to wait till mid may to get the 9000more shares. Between now and then...at 14bob...the share is very scarce...thus likely to do well..until the new shares.. A whole freakin 3.33BILLION shares will be credited into cds accounts ready for sale! No matter what u think even at 10bob we collectively need 30billion shillings to wipe out excess supply! That's like a whole new ipo! It will be murder!...to those buyin now and likely to forget the whole too important date..jus like wednesday's book closure came as a surprise. Compared to Cooperative's scenario.....

Cooperative is just fortunate they issued certificates thus scuttle probable one time market flood! Stop smiling.

The race is not always to the swift..nor the battle always to the strong..nor food always to the wise..nor riches always to the intelligent..favor is not always to the skilled..or learned..but time and chance happens to all. Ecl9:5..

So Jammo does it mean that you cannot trade your shares until mid May? You cannot sell the total 10000?

Everything happens for a reason.

So then can someone educate me on this one. What shares are beig sold today for 15 bob under the Equity counter? Are these the old shares (before split) or the new shares (after split)? They should be the afyter split. If so,how are people able to sell these shares before they are credited in the CDS accounts?You can only sell what you have. and if you are selling the splits shares it means they are in the CDS already. Or are they working on the principla of T + 3 ? Then if that is the case,then all what this is is a smoke sceeen. meaning that if you already have shares presplit in your CDS,then you can go ahead and sell them as post split. Thus the crediting of the split shares in the CDS will simply be an academic exercise.


'You can fool all the people some of the time,and some of the people all the time,but you cannot fool all the people all the time.'
Abraham Lincoln.

@jammo; you have missed one small point. The 'new' shares are not exactly new! It is the same old shares that have been split into smaller units...they do not represent any new capital in the company.

For that reason,if one had 1,000 shares and had not seen any reason to sell,say 900 of them at sh120,he will still see no reason to sell 9,000 (post split) at 12bob. Thus we might not get the 'flood'.

Right now,the price is being driven by the fact that purchase orders are pegged on a shilling amount....e.g.,if I had placed an order for 500 @ sh120,I should have given my broker sh60k

Post split book closure,my order is still valid,but this time,the cash amount can take up 5,000 shares....and I'm not the only one with a buy order.

On the other hand,If you had placed an order to sell 500 @ sh120,suddenly the 500 effectively became 50 at sh120....or 500 at 12....because the par value of the share was divided by a factor of 10.

As jammo had mentioned in another thread,this is not the time to buy EQTY simply because the market is distorted. Wait until the split shares are loaded into CDSC accounts...the price will stabilise and then you can decide to make your move.

My guess is that the price will cool off at arround 12 to 14 bob...slight higher than the pre-split level. My reasoning is that now many people will find them affordable...sh10k will get you a decent 700shares....

@BAAK...I thought we are sharing views in this forum. I think it is not time to buy EQTY and I give my reasoning......you think it is time to buy and you give your reasons. I weigh your point of view against mine and make a decision...you weigh yours against mine and make your decision....

Those decisions will be better informed,won't they?

BAAK:

We agree on prevailing condition - it is distorted. High demand,short supply due to the fact that post-split shares are not in the CDSC yet. Read my post again and you see that I wrote 'Thus we might not get the 'flood'.'

We also agree on what will happen after the shares are credited to CDSC. I wrote that '...now many people will find them affordable...sh10k will get you a decent 700shares....'

Where will the price settle at? I guess 12 to 14...but the accuracy of my guess is as good as yours!

Dividends will be paid on the shares you had BEFORE the split

@BAAK

You are such a paranoyd freak! Why on earth do you take an advise as an order on SK? As you correctly said,we have people from all corners of life an of the world in here,why not just be calm,listen and comment! If you can't then I advise you to take Prozac,( I have not ordered it!)

@Mukiha

We always appreciate your comments,don't stop it because of some freak. I had asked you on another thread ( KENYA AIRWAYS ) for some valuable advise from you and I noticed you didn't comment on the thread of Ecstacy ( accesskenya....). Please do so,I don't know why but we respect your views.

It's not an order though!!


Mors Tua,Vita Mea. (latin)

All!

It seems virji's question has been hijacked and no one answered it as he/ she expected..Whether people will dispose EB to purchase other counters...

In my humble opinion...this may not happen..but instead it may happen the other way round...small investors in other counters disposing to BUY EB now that it is affordable...

Also consider this..with the discounted price...Demand for EB has risen 10 fold ...or even say 3 fold by conservative estimates...but the number of people willing to sell?....well this will not rise 3 fold...may even decrease....as the expansion gains momentum...

So if u are a speculator... ask yrself..would you rather buy now @ 15/- and sell @ 25-30/- in May,or would uh sit on the fence and buy @ 25-30/- in May...If a long term investor...why would you even wait?...But that's just me...NEXT THREAD!