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KCB Rights
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stock.enigma
#11 Posted : Monday, June 28, 2010 3:50:45 PM
Rank: Member

Joined: 8/14/2009
Posts: 244
@mukiha@wa_ithaka
I have 5000 shares, meaning i have rights to 2000 shares. sometiomes people have no money to pay for their rights and some may not be aware that they can be traded. For me who wants to accumulate, I will apply for 4000 which i may be allocated if full or in part. my assured rights are 2000. many rights issues get ovesubcsribed by such bidder behavior. for kcb, i have my doubts, particularly if gok does not pick its rights.
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astute
#12 Posted : Monday, June 28, 2010 4:52:46 PM
Rank: Member

Joined: 3/24/2010
Posts: 101
Location: Nairobi
stock.enigma wrote:
@mukiha@wa_ithaka
many rights issues get ovesubcsribed by such bidder behavior. for kcb, i have my doubts, particularly if gok does not pick its rights.


I think the challenge with the KCB is that the share price, now at around 18 show that there price might fall below 17 post rights...so someone like me, i will take my rights, maybe cautiously apply for addition, depending on how the share performs or wait post right...so this might end up making investors not applying 4 addition shares in numbers!!
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the deal
#13 Posted : Monday, June 28, 2010 8:58:52 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Wake me up when its 12 bob...i will be so so so eager to buy from u...
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VituVingiSana
#14 Posted : Monday, June 28, 2010 9:06:41 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
@the deal - 12/- is unlikely but I do see 15/- as a possibility...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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astute
#15 Posted : Monday, June 28, 2010 9:39:45 PM
Rank: Member

Joined: 3/24/2010
Posts: 101
Location: Nairobi
the deal wrote:
Wake me up when its 12 bob...i will be so so so eager to buy from u...


@the deal HaHaaaaha buying from me at 12 bob is a pipe dream...cos i will be buying more. Benjamin Graham advises me that I should not buy any share that I will sell when the price goes down...instead i should buy more when the price goes down...that's the gospel man..
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the deal
#16 Posted : Monday, June 28, 2010 9:56:18 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
astute wrote:
the deal wrote:
Wake me up when its 12 bob...i will be so so so eager to buy from u...


@the deal HaHaaaaha buying from me at 12 bob is a pipe dream...cos i will be buying more. Benjamin Graham advises me that I should not buy any share that I will sell when the price goes down...instead i should buy more when the price goes down...that's the gospel man..

Yeaaah thats the gospel but how many people know that...GoK has given KCB a Red Card...so GoK will be selling rights to raise more money to support the 1 trillion budget...unless guys with big pockets come in to support the ship...people will panic...@ 18.45 bob how much of a discount are u getting? Unless KCB managmnt come up with 20 something % growth in half year PAT...my 12 bob will a good deal...
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mkonomtupu
#17 Posted : Tuesday, June 29, 2010 8:48:42 AM
Rank: Veteran

Joined: 2/10/2010
Posts: 1,001
Location: River Road
After much consideration and having sold half of my portfolio in KCB I have decided to buy into the rights issue for the simple reason I have no other investment option. T-bills at 2.78% and a bank offering 4.5% on fixed deposit,I would rather enjoy the KCB dividends. Plus looking at the KCB balance sheet there is just too much liquid cash so there's room for good growth in lending. The last rights issue was used to open branches and buy the software but this rights issue looks like the one in 2004 where i bought at 50/- averaged down at 35/- and watched as the price moved to 200/- before the split. Am willing to wait 3 years to recover the capital so I will buy
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stock.enigma
#18 Posted : Tuesday, June 29, 2010 12:37:43 PM
Rank: Member

Joined: 8/14/2009
Posts: 244
VituVingiSana wrote:
@the deal - 12/- is unlikely but I do see 15/- as a possibility...



The stock will possibly hit a low of 15/= for a day but this will raise the demand. I see the close price on the same day it hits the low, improving to the rights issue price. Eventually, the price will settle on the 18-19/= range for a while. My advise: take your rights.
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stock.enigma
#19 Posted : Tuesday, June 29, 2010 1:06:39 PM
Rank: Member

Joined: 8/14/2009
Posts: 244
I have just received the info memo. It concludes:'so we are running a very vibrant business that can only grow further if it has adequate capital and the operating environment remains favorable'.

The stats over the last five years, that is btw 2005 and 2009 are as follows: PBT up 323% from 1.95b to 6.5b. Net loans and advances was up 333% from 36b to 120b. Deposits were up 253% from 64b to 162b.

The additional funds are to support the bank's growth plans over the coming years and strngthen the capital base. The increased capital will enable the bank to book long term assets, such as loans for housing, and property development.

Watu wajisomee na wajichagulie

I wasn't a fun of the counter until i went to rwanda, in the western part bordering DRC, a village called Kisenyi. There, the lion is roaring.
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MaichBlack
#20 Posted : Tuesday, June 29, 2010 1:27:09 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,869
stock.enigma wrote:
.......The stock will possibly hit a low of 15/= for a day....... My advise: take your rights.


Then why take up the rights? By simply avoiding them and picking up the shares at 15/= you are guaranteed 13% gain by the time the share is back at the rights price! What I'm I missing here?
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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