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kengen announcement :rights issue resolution
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Ericsson
#21 Posted : Thursday, November 12, 2015 5:58:22 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
@Othelo;
After the rights issue the share price will now start its price discovery;watch out as the company reaches a mkt cap of about ksh.80bn up from the current sh.20bn
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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VituVingiSana
#22 Posted : Thursday, November 12, 2015 6:17:57 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
hisah wrote:
@sparkly, that price upthrust during the 'very nice' FY announcement is going to leave a very bad taste I warned. Remember our discussion. Let's compare notes next October. This super dilutive rights issues will crater this counter badly. Sell while you can then buy post rights, which will be far cheaper anyway. This is KQ 2012 again.
Amen. I am staying away. Plus the scams eg the 54bn contract to move rigs won by a firm whoe business credentials were suspect just a few weeks earlier.

Something is rotten in the Kingdom of KenGen.

I'd rather buy KPLC. There's also low PER KenRe. Or KK.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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guru267
#23 Posted : Friday, November 13, 2015 8:03:02 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
After the rights issue EPS will fall to about 1 bob.

If one buys at current prices and skips the rights they still won't be that badly off.
Mark 12:29
Deuteronomy 4:16
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mulla
#24 Posted : Friday, November 13, 2015 8:22:24 AM
Rank: Member

Joined: 6/15/2013
Posts: 301
guru267 wrote:
After the rights issue EPS will fall to about 1 bob.

If one buys at current prices and skips the rights they still won't be that badly off.


Forgive me if i am wrong but current EPS ~5.4 @8/= then it falls to EPS ~1.5 @2/= and you buy at current prices and don't defend your rights wont you have lost a lot of value in your shares post rights?
Anyway i hope they price their rights fairly at around 2/= because if they become greedy and price at ~4/= etc then they face a failing rights issue and count me out.
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sparkly
#25 Posted : Friday, November 13, 2015 10:18:43 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
hisah wrote:
@sparkly, that price upthrust during the 'very nice' FY announcement is going to leave a very bad taste I warned. Remember our discussion. Let's compare notes next October. This super dilutive rights issues will crater this counter badly. Sell while you can then buy post rights, which will be far cheaper anyway. This is KQ 2012 again.


@Hisah, I am not one to sell a perfectly healthy share at a loss.

I will defend/sell my rights.
Life is short. Live passionately.
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sparkly
#26 Posted : Friday, November 13, 2015 10:21:47 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
kawi254 wrote:
The 30% private shareholders will not all be able to take up all their rights, Goverment will end up with ~80% or KenGen can take advantage of new Companies Act and buy back the shares that will not be taken up. The real reason KenGen is doing a rights is to get more borrowing headroom to maintain Debt:Equity ration of 70:30


There will be an oversubscription for untaken rights.
Life is short. Live passionately.
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mlennyma
#27 Posted : Friday, November 13, 2015 10:46:43 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Going by many examples in the nse, buying after rights will give a lower entry point going forward
"Don't let the fear of losing be greater than the excitement of winning."
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Spikes
#28 Posted : Friday, November 13, 2015 11:05:28 AM
Rank: Elder

Joined: 9/20/2015
Posts: 2,811
Location: Mombasa
Heed my call Wazuans! Jump out of this counter. You will be shafted more terribly ex rights than screwed in the case of HFCK... After standard ex right price the share will dip more than 50%.....You wanna be left emaciated though it will take time to start the journey north.
John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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mthaka
#29 Posted : Friday, November 13, 2015 11:13:04 AM
Rank: Member

Joined: 9/30/2013
Posts: 254
@sparky this is getting murky,does one sell currently ,take up the rights or wait to buy post rights???
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Sam_Kibs
#30 Posted : Friday, November 13, 2015 11:19:03 AM
Rank: New-farer

Joined: 7/1/2015
Posts: 67
Spikes wrote:
Heed my call Wazuans! Jump out of this counter. You will be shafted more terribly ex rights than screwed in the case of HFCK... After standard ex right price the share will dip more than 50%.....You wanna be left emaciated though it will take time to start the journey north.

when is the likely date of the rights issue?
getting out now may cause me lose my dividends just earned!
“It’s no good, it’s no good!” says the buyer—
then goes off and boasts about the purchase-Proverbs 20:14
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