wazua Wed, Apr 1, 2026
Welcome Guest Search | Active Topics | Log In

17 Pages«<34567>»
KCB Rights
Options
Previous Topic · Next Topic
VituVingiSana
#41 Posted : Friday, July 02, 2010 12:21:54 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
@proverB - Who says they are looking at 'trading' these shares immediately?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
ProverB
#42 Posted : Friday, July 02, 2010 12:49:10 PM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
VituVingiSana wrote:
@proverB - Who says they are looking at 'trading' these shares immediately?

aaaaahhhmmm..
Assuming they are all investors..fundamentally valued KCB shares and now decided to buy..at which point, question is when to buy and at what price to buy.

why not wait out the probable correction as new shares come in, or just buy the ex-rights share...rather than

... attach some uncertainty by paying for a share now at kshs 1 premium of which share you will not have until the month is over?

I do, however, see the wisdom of paying Kshs 1 now and you have a month to hustle for the 17.00 ..or even even with the 17 now..you could do something else with it for a month..but i doubt most buying have that thinking..
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
Back to top
WWW
  | | Edit by user: Friday, July 02, 2010 12:50 PM | Reason: Not specified
VituVingiSana
#43 Posted : Friday, July 02, 2010 1:01:34 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
@proverB - 1/- is the payment for a CALL OPTION...

Basically, very simple... pay 1/- now but exercise later... I would do the same if I were interested in KCB...

There is the cost as well... 18.65 + commissions = 19/- which means you 'spend' 19/- today so there is an interest cost for the 'additional' 18/- for 2 months...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
ProverB
#44 Posted : Friday, July 02, 2010 1:20:25 PM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
VituVingiSana wrote:
@proverB - 1/- is the payment for a CALL OPTION...

Basically, very simple... pay 1/- now but exercise later... I would do the same if I were interested in KCB...

There is the cost as well... 18.65 + commissions = 19/- which means you 'spend' 19/- today so there is an interest cost for the 'additional' 18/- for 2 months...


Interesting.. now am thinking. Think
Thanx.
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
Back to top
WWW
  |
Chaka
#45 Posted : Friday, July 02, 2010 2:18:03 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
Who gets the 1/-,KCB or the shareholder offering their rights?
Back to top
  | | Edit by user: Friday, July 02, 2010 2:19 PM | Reason: Not specified
guru267
#46 Posted : Friday, July 02, 2010 2:41:23 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Chaka wrote:
Who gets the 1/-,KCB or the shareholder offering their rights?


the shareholder gets the 1bob and KCB gets the 17bob
Mark 12:29
Deuteronomy 4:16
Back to top
  |
ProverB
#47 Posted : Friday, July 02, 2010 2:49:54 PM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
..@VVS Check Mail..

..@Guru please blank mail.. homead.ke@gmail.com
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
Back to top
WWW
  |
guru267
#48 Posted : Friday, July 02, 2010 2:50:08 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
ProverB wrote:
why not wait out the probable correction as new shares come in, or just buy the ex-rights share...rather than

... attach some uncertainty by paying for a share now at kshs 1 premium of which share you will not have until the month is over?

I do, however, see the wisdom of paying Kshs 1 now and you have a month to hustle for the 17.00 ..or even even with the 17 now..you could do something else with it for a month..but i doubt most buying have that thinking..


@ProverB these shares are trading at a fair price and i would buy the rights at their current value... i'm assuming KCB will have a forward EPS of 1.5 ex rights which gives a forward P/E of 11.6
which is not expensive by all means especially for long term investors...

And KCB will pay out a dividend of 1bob which is a 5.55% yield so why not buy now????
Mark 12:29
Deuteronomy 4:16
Back to top
  |
the deal
#49 Posted : Friday, July 02, 2010 3:03:49 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
If @Proverb is bullish on Kcb and decides to buy 100 rights Kcb shares from @VVS...he pays him the 1 bob premium to have the rights to the shares,if the price rises above the current strike price(Ksh 17.00) i.e 19 bob then @Proverb can exercise his rights and bank in the Ksh 2 as profits and @ Vvs losses out...but if the price goes down...@Proverb losses out...
Back to top
  |
ProverB
#50 Posted : Friday, July 02, 2010 3:09:58 PM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
the deal wrote:
If @Proverb is bullish on Kcb and decides to buy 100 rights Kcb shares from @VVS...he pays him the 1 bob premium to have the rights to the shares,if the price rises above the current strike price(Ksh 17.00) i.e 19 bob then @Proverb can exercise his rights and bank in the Ksh 2 as profits and @ Vvs losses out...but if the price goes down...@Proverb losses out...


Thus my wondering..why are people bullish on the kcb? especially considering..new listings will affect trade volumes of the share..and demand of the share will not necessarily act in tandem with the new supply..rising probability the for anyone investing..even long term..the probability of price going lower than current level is more legitimate.. why not wait?
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
Back to top
WWW
  |
17 Pages«<34567>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.