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kengen announcement :rights issue resolution
Rank: Elder Joined: 12/4/2009 Posts: 10,808 Location: NAIROBI
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Quarter 1 next year ndio rights issue Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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mthaka wrote:@sparky this is getting murky,does one sell currently ,take up the rights or wait to buy post rights??? For those who are already in, defend your rights or sell the rights (not shares). For those who are out, wanting to get in, buy after rights issue is concluded. Life is short. Live passionately.
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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sparkly wrote:mthaka wrote:@sparky this is getting murky,does one sell currently ,take up the rights or wait to buy post rights??? For those who are already in, defend your rights or sell the rights (not shares). For those who are out, wanting to get in, buy after rights issue is concluded. @Sparkly forgive my ignorance, has the rights price been officially determined? And, these rights, how do you sell them before buying them? I have not been involved in one of these, so baby steps will be appreciated here... For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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sparkly wrote: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. Touche... For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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winmak wrote:sparkly wrote:mthaka wrote:@sparky this is getting murky,does one sell currently ,take up the rights or wait to buy post rights??? For those who are already in, defend your rights or sell the rights (not shares). For those who are out, wanting to get in, buy after rights issue is concluded. @Sparkly forgive my ignorance, has the rights price been officially determined? And, these rights, how do you sell them before buying them? I have not been involved in one of these, so baby steps will be appreciated here... If you have KenGen shares, you will be given "rights" depending on the ratio agreed. If you have say, 100 shares and they announce rights of 2:1 it means you can buy 200 shares at the right price (say 5bob) requiring you to invest 1K. If you don't want to buy the 200 shares (or you don't have cash) you can sell the 200 rights at prevailing market price say, 1 Bob (so you pocket 200). The person you sell the rights to will pay 1000 to KenGen for him to get the shares. Bottomline; you must have the shares to get the rights. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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Gatheuzi wrote:winmak wrote:sparkly wrote:mthaka wrote:@sparky this is getting murky,does one sell currently ,take up the rights or wait to buy post rights??? For those who are already in, defend your rights or sell the rights (not shares). For those who are out, wanting to get in, buy after rights issue is concluded. @Sparkly forgive my ignorance, has the rights price been officially determined? And, these rights, how do you sell them before buying them? I have not been involved in one of these, so baby steps will be appreciated here... If you have KenGen shares, you will be given "rights" depending on the ratio agreed. If you have say, 100 shares and they announce rights of 2:1 it means you can buy 200 shares at the right price (say 5bob) requiring you to invest 1K. If you don't want to buy the 200 shares (or you don't have cash) you can sell the 200 rights at prevailing market price say, 1 Bob (so you pocket 200). The person you sell the rights to will pay 1000 to KenGen for him to get the shares. Bottomline; you must have the shares to get the rights. How can spectators like me rip from this
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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enyands wrote:Gatheuzi wrote:winmak wrote:sparkly wrote:mthaka wrote:@sparky this is getting murky,does one sell currently ,take up the rights or wait to buy post rights??? For those who are already in, defend your rights or sell the rights (not shares). For those who are out, wanting to get in, buy after rights issue is concluded. @Sparkly forgive my ignorance, has the rights price been officially determined? And, these rights, how do you sell them before buying them? I have not been involved in one of these, so baby steps will be appreciated here... If you have KenGen shares, you will be given "rights" depending on the ratio agreed. If you have say, 100 shares and they announce rights of 2:1 it means you can buy 200 shares at the right price (say 5bob) requiring you to invest 1K. If you don't want to buy the 200 shares (or you don't have cash) you can sell the 200 rights at prevailing market price say, 1 Bob (so you pocket 200). The person you sell the rights to will pay 1000 to KenGen for him to get the shares. Bottomline; you must have the shares to get the rights. How can spectators like me rip from this In Kenya, Rights depress the share price. However for solid profitable companies, prices tend to recover and shoot up within one year. This is from my experience in KCB, TPS, NIC. If you want to make money, buy ex-rights and wait for the ride IMO Life is short. Live passionately.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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sparkly wrote:enyands wrote:Gatheuzi wrote:winmak wrote:sparkly wrote:mthaka wrote:@sparky this is getting murky,does one sell currently ,take up the rights or wait to buy post rights??? For those who are already in, defend your rights or sell the rights (not shares). For those who are out, wanting to get in, buy after rights issue is concluded. @Sparkly forgive my ignorance, has the rights price been officially determined? And, these rights, how do you sell them before buying them? I have not been involved in one of these, so baby steps will be appreciated here... If you have KenGen shares, you will be given "rights" depending on the ratio agreed. If you have say, 100 shares and they announce rights of 2:1 it means you can buy 200 shares at the right price (say 5bob) requiring you to invest 1K. If you don't want to buy the 200 shares (or you don't have cash) you can sell the 200 rights at prevailing market price say, 1 Bob (so you pocket 200). The person you sell the rights to will pay 1000 to KenGen for him to get the shares. Bottomline; you must have the shares to get the rights. How can spectators like me rip from this In Kenya, Rights depress the share price. However for solid profitable companies, prices tend to recover and shoot up within one year. This is from my experience in KCB, TPS, NIC. If you want to make money, buy ex-rights and wait for the ride IMO @Sparkly. I do not understand your optimism with this 70% owned gava stock. What I wonder is, why has the share been depressed since the IPO its around 30% down, 7 years later? What makes you think the next 7 years or more will be any different? The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Ex-rights for a short term ride you will make money. Longterm however, kengen is a sad tale of a company with respectable performance which happens to be in a capital intensive industry. Large capex with government involvement tends to be a vicious cycle of debt conversions and rights issues. This means dilution is always around the corner which begets a low share price. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Aguytrying wrote:sparkly wrote:enyands wrote:Gatheuzi wrote:winmak wrote:sparkly wrote:mthaka wrote:@sparky this is getting murky,does one sell currently ,take up the rights or wait to buy post rights??? For those who are already in, defend your rights or sell the rights (not shares). For those who are out, wanting to get in, buy after rights issue is concluded. @Sparkly forgive my ignorance, has the rights price been officially determined? And, these rights, how do you sell them before buying them? I have not been involved in one of these, so baby steps will be appreciated here... If you have KenGen shares, you will be given "rights" depending on the ratio agreed. If you have say, 100 shares and they announce rights of 2:1 it means you can buy 200 shares at the right price (say 5bob) requiring you to invest 1K. If you don't want to buy the 200 shares (or you don't have cash) you can sell the 200 rights at prevailing market price say, 1 Bob (so you pocket 200). The person you sell the rights to will pay 1000 to KenGen for him to get the shares. Bottomline; you must have the shares to get the rights. How can spectators like me rip from this In Kenya, Rights depress the share price. However for solid profitable companies, prices tend to recover and shoot up within one year. This is from my experience in KCB, TPS, NIC. If you want to make money, buy ex-rights and wait for the ride IMO @Sparkly. I do not understand your optimism with this 70% owned gava stock. What I wonder is, why has the share been depressed since the IPO its around 30% down, 7 years later? What makes you think the next 7 years or more will be any different? @Aguy its just another stock in my portfolio where I expect >100% return from capital gains + Dividend in the next 2-3yrs. My average buy is around 9.85. If I wasn't already in it, I would have waited for the rights issue to be completed before jumping in but since I am in already, I must defend/sell my rights or be irredeemably diluted. That's the extent of my relationship with this share. Life is short. Live passionately.
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kengen announcement :rights issue resolution
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