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Kengen success
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citymayor
#211 Posted : Sunday, May 15, 2016 11:08:41 PM
Rank: New-farer

Joined: 2/15/2012
Posts: 29
Location: unimportant
PKoli wrote:
Ebenyo wrote:
The dividend yield is attractive.Very volatile due to high debt to equity ratio.Low return on equity because of the same.Very good for long term investors.But I hope these guys did not cook books like nbk and chasebank.From a Net profit of 2billion in 2014 to 11 billion in 2015? or was it whipping investors into the rights issue? fattening the cow before slaughter?


Forward P/E doesn't look attractive. The massive dilution due to number of shares. I like the governance of KenGen and feel it's a good stock for long term investment

Come Monday 16th May 3:00pm any investor holding Kengen is better off defending their rights to the fullest to avoid the massive dilution
The Emotional Dog and Its Rational Tail
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Ebenyo
#212 Posted : Monday, May 16, 2016 6:25:07 AM
Rank: Veteran

Joined: 4/4/2016
Posts: 2,016
Location: Kitale
@city mayor,i want to enter at a very low price due to its volatile nature.To hold it for long term.Is there chance that it will trade below the rights issue price?
Towards the goal of financial freedom
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Spikes
#213 Posted : Monday, May 16, 2016 7:58:53 AM
Rank: Elder

Joined: 9/20/2015
Posts: 2,811
Location: Mombasa
Ebenyo wrote:
@city mayor,i want to enter at a very low price due to its volatile nature.To hold it for long term.Is there chance that it will trade below the rights issue price?


It will be completely drowned by over dilution to below rights price. Once the cow is fat and slaughtered, who cares?
John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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enyands
#214 Posted : Monday, May 16, 2016 8:07:45 AM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
Spikes wrote:
Ebenyo wrote:
@city mayor,i want to enter at a very low price due to its volatile nature.To hold it for long term.Is there chance that it will trade below the rights issue price?


It will be completely drowned by over dilution to below rights price. Once the cow is fat and slaughtered, who cares?


@spikes let's be positive please. Shame on you
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sparkly
#215 Posted : Monday, May 16, 2016 8:08:09 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Ebenyo wrote:
@city mayor,i want to enter at a very low price due to its volatile nature.To hold it for long term.Is there chance that it will trade below the rights issue price?


Kengen trades at 1/10th of the shareholders equity. What lower price cam you surely expect? Good opportunities are lost when investors try to bottom pick stocks.
Life is short. Live passionately.
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Ericsson
#216 Posted : Monday, May 16, 2016 9:27:09 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
After the rights issue KENGEN will now start its real price discovery after trading below it for about 5 years when plans of the current rights issue were announced.









Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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mthaka
#217 Posted : Monday, May 16, 2016 10:09:17 AM
Rank: Member

Joined: 9/30/2013
Posts: 254
Ericsson wrote:
After the rights issue KENGEN will now start its real price discovery after trading below it for about 5 years when plans of the current rights issue were announced.

@Erikson you are very right the price will raise to about ksh 11,you are indeed very right
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moneydust
#218 Posted : Monday, May 16, 2016 11:56:53 AM
Rank: Member

Joined: 1/31/2007
Posts: 304
Spikes wrote:
Ebenyo wrote:
@city mayor,i want to enter at a very low price due to its volatile nature.To hold it for long term.Is there chance that it will trade below the rights issue price?


It will be completely drowned by over dilution to below rights price. Once the cow is fat and slaughtered, who cares?


Fear mongering...we will wait and see
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Ericsson
#219 Posted : Monday, May 16, 2016 4:02:46 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Let's see how the counter behaves tomorrow ex-rights
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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citymayor
#220 Posted : Monday, May 16, 2016 8:24:10 PM
Rank: New-farer

Joined: 2/15/2012
Posts: 29
Location: unimportant
Ebenyo wrote:
@city mayor,i want to enter at a very low price due to its volatile nature.To hold it for long term.Is there chance that it will trade below the rights issue price?


@Ebenyo based on the tripling of share capital through the rights issue, you can basically divide FY 2016 expected earning by 3 to see what worth you will be having for a single share depending on what price you decide to get in. The golden rule is to trigger fundamentally and enter or exit technically. My math is abit rusty and I welcome any criticism from the community. Assuming a generous expected FY2016 EPS of 7.20 based on the HY 2015 EPS of 2.58, this would translate to an EPS of 2.40 after factoring in the rights shares, or a 54% drop in EPS yoy. The question you should ask yourself is how much you are will to pay for that amount of earning which many investors would differ broadly based on what we call the PE ratio. It is currently trading at a trailing PE of 1.35
The Emotional Dog and Its Rational Tail
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