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Kenol Kobil deal off!

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guru267		#41 Posted : Saturday, March 02, 2013 4:29:46 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		mwekez@ji wrote: c95% of KK shares are held in the hands of 'non-wanjikus'. ... the other c5% is very welcomed to capitulate That 5% of wanjikus can wipe billions off KKs market capitalization with sell orders! Mark 12:29 Deuteronomy 4:16
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sparkly		#42 Posted : Saturday, March 02, 2013 5:51:50 AM
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi		guru267 wrote: mwekez@ji wrote: c95% of KK shares are held in the hands of 'non-wanjikus'. ... the other c5% is very welcomed to capitulate That 5% of wanjikus can wipe billions off KKs market capitalization with sell orders! Its sad that the deal is off. We are just about to see our gains disappear just like that poof! Time to sell (will be lucky to get 12) and wait for 8 bob. On the other hand i expect the annoying cases to be settled. Life is short. Live passionately.
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gatoho		#43 Posted : Saturday, March 02, 2013 6:37:09 AM
Rank: Member Joined: 1/1/2010 Posts: 518 Location: kandara, Murang'a		the deal wrote: Interesting now no one on Wazua owns Kenol Kobil apart from me and @VVS and others...Overall the news came at the right time...its a Friday and by the time the market opens next week...it will be either in a foul or in a euphoric state because of the elections...I expect the FY results to be better than the interim report...I dont expect the stock to get a severe beating...downside from the current price is 15-20%. I got off at 14 cos of liquidity problems that ended up not being and it now feels like a very clever move :)) Foresight..
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mlennyma		#44 Posted : Saturday, March 02, 2013 8:31:04 AM
Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi		I dont own kk but selling at 10bob will be hard with the losses made,no dividend,million cases,puma pullout,staff mngmt bad blood,this thing is not good there are better stress free counters but money can still be made in kk,may be they give bonus shares. "Don't let the fear of losing be greater than the excitement of winning."
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the deal		#45 Posted : Saturday, March 02, 2013 10:05:30 AM
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery		The deal was terminated by mutual agreement...Puma was dragging its feet...Kenol had to move on probably new suitors around the corner.
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mwekez@ji		#46 Posted : Saturday, March 02, 2013 10:53:21 AM
Rank: Chief Joined: 5/31/2011 Posts: 5,121		guru267 wrote: mwekez@ji wrote: c95% of KK shares are held in the hands of 'non-wanjikus'. ... the other c5% is very welcomed to capitulate That 5% of wanjikus can wipe billions off KKs market capitalization with sell orders! Loss of market cap on fume volumes will always be regained as easily #MakingMoney2013
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VituVingiSana		#47 Posted : Saturday, March 02, 2013 1:27:34 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi		guru267 wrote: mwekez@ji wrote: c95% of KK shares are held in the hands of 'non-wanjikus'. ... the other c5% is very welcomed to capitulate That 5% of wanjikus can wipe billions off KKs market capitalization with sell orders! Obviously, you do not read Warren Buffett. Does the market cap matter? The market cap has nothing to do with the 'business' and when the 5% are bought out, the biz will hum along. Ironically, the 5% will return to buy back the shares later! Diageo patiently bought shares in EABL [the Rights price a decade or so ago was HIGHER than the shares on the market] including any Rights shares 'wanjiku' didn't buy. Now it has more than 50%. Stanbic SA just did the same with CFC Stanbic. They underwrote the Rights Issue. Sanlam is doing the same with Pan Africa to get to 60%. KK's market cap [important for shareholders who want to sell] is irrelevant to the business of selling fuel. Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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guru267		#48 Posted : Saturday, March 02, 2013 2:26:16 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		VituVingiSana wrote: guru267 wrote: mwekez@ji wrote: c95% of KK shares are held in the hands of 'non-wanjikus'. ... the other c5% is very welcomed to capitulate That 5% of wanjikus can wipe billions off KKs market capitalization with sell orders! Obviously, you do not read Warren Buffett. Does the market cap matter? The market cap has nothing to do with the 'business' and when the 5% are bought out, the biz will hum along. Ironically, the 5% will return to buy back the shares later! Diageo patiently bought shares in EABL [the Rights price a decade or so ago was HIGHER than the shares on the market] including any Rights shares 'wanjiku' didn't buy. Now it has more than 50%. Stanbic SA just did the same with CFC Stanbic. They underwrote the Rights Issue. Sanlam is doing the same with Pan Africa to get to 60%. KK's market cap [important for shareholders who want to sell] is irrelevant to the business of selling fuel. Again... we cannot compare pan Africa, stanbic or EABL to Kenol Kobil... Every stock has an entry point.. And for KK it is 7-8bob! Hope to see you there Mark 12:29 Deuteronomy 4:16
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guru267		#49 Posted : Saturday, March 02, 2013 2:34:52 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		VituVingiSana wrote: KK's market cap [important for shareholders who want to sell] is irrelevant to the business of selling fuel. Doesn't market capitalization affect the company's ability to raise capital for the business through a rights issue? Isn't capital central to a business operation! Mark 12:29 Deuteronomy 4:16
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VituVingiSana		#50 Posted : Saturday, March 02, 2013 2:42:04 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,361 Location: Nairobi		guru267 wrote: VituVingiSana wrote: KK's market cap [important for shareholders who want to sell] is [b[irrelevant to the business of selling fuel.[/b] Doesn't market capitalization affect the company's ability to raise capital for the business through a rights issue? Isn't capital central to a business operation! Rights Issues are but one way of raising funds. Smart 'owners' like James Mwangi (Equity), Bharat Thakrar (ScanGroup), Pradeep Paunrana (ARM), Gideon Muriuki (Coop) raised funds without diluting the shareholders like non-owner (pure salary based) Titus Naikuni (KQ) did. In any event, does KK need more capital? I doubt they need to raise cash via a Rights Issue but have other sources like long-term debt [at cheaper rates than what shareholders can borrow at] & selling excess assets. Firms can still raise cash via a Rights Issue even if the Market Cap is lower. It's a question of pricing. NIC Bank went for a Rights Issue at 21/- when the price of the shares were 30/-. What they did was not issue too many shares [see 1:13 for SCBK] at the low price. Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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