Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Monk wrote:VituVingiSana wrote:Monk wrote:VituVingiSana wrote:Monk wrote:Monk wrote:tandich wrote:SCBK board proposes to:
* halve final dividend and,
* offer 1 bonus share for every 10 held on 27 Apr 2020.

It's going to be a tough year for Income Investors.
On second thoughts, the bonus shares are quite heavily discounted at Ksh 75, against the current market price of Ksh 165.
Discounted how now?
It's like the cake we used to wait to devour at home. Then some "visitor" shows up and that cake was sliced up into more pieces. Same cake. Smaller piece.
In other words, a dilution. Any suggestion on how to mitigate it? Average down after the market has found a new level?
There is no dilution for EXISTING shareholders.
If you owned 1% of SCBK before the bonus, you will still own 1% of SCBK after the bonus. Your ownership % doesn't change.
Sorry I picked the wrong name.....
Same value divided by more shares...the correct term to describe this eludes me.
Reclassification of reserves from distributable to non-distributable.
It's like taking a mzinga. You drink with a tot glass or a mug, the mzinga is the same.
Life is short. Live passionately.
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