@stockmaster,i know the feeling.On thursday i will put my remaining half up for sale at 300.It could go higher but the 50% for me is enough.I had thought of waiting out for the rights but no no the profits are too sweet too risk.

Gatheuzi, well said. But do you see a downturn in the fortunes of the market any time soon (barring a Bloody Wednesday) since the rally is supported by fundamentals?

Hats off to you @Stocks Makmende....i can only say Respect....

ACTIVITY 9:SALE OF 3000 STANCHART SHARES AT AVERAGE PRICE OF KSH 305

DATE:05TH AUGUST 2010

VALUE OF TRANSACTION:KSH 305 X 3000 = KSH 915,000

LESS 2% TRANSACTIONS COST = KSH 18,300

CASH RECEIVED FROM ACTIVITY 9 = KSH 896,700

CASH IN HAND AFTER ACTIVITY 8 = KSH 89,390

TOTAL CASH IN HAND AFTER ACTIVITY 9:KSH 986,090

SHARES UNSOLD: 100 STANCHART SHARES WORTH KSH 300 = KSH 30,000
LESS 2% = KSH 600
AMOUNT RECOVERABLE FROM SALE OF THE 100 STANCHART SHARES = KSH 29,400

GRAND VALUE OF CASH AND SHARES: KSH 1,015,490

INITIAL CAPITAL (1ST JANUARY 2010)= KSH 527,850

NET PROFIT TO DATE = KSH 487,640

PERCENTAGE PROFIT (YEAR TO DATE)=92.4%

RATIONALE OF ACTIVITY 9
The SCBK share has performed above expectations. Although I still value the share at the Ksh 320 range (upon release of the results), business sense calls for locking in of profits after an almost 30% rise in value within less than one month of purchase.

The referendum 'yes' vote seems to have been factored into the NSE market before the voting exercise and todays fall in share price of Safaricom, KCB, Kenya Airways etc which are indicator stocks of general market direction provides proof to this observation.

Profit taking is to be expected in most counters soon.

Why retain 100 shares of SCBK in my stock portfolio?

As I was heading to my broker today to make the sale order, an interesting thought occured to me.
(On this i need the input of Muhika,Vituvingisana etc who are veterans in the NSE).

If at the time of rights issue, a SCBK shareholder has 100 shares; assuming a 1:10 offer, will the shareholder be given 10 rights or the CMA/NSE minimum of 100 shares?

If my assumption is right, such a shareholder will be given 100 additional shares rather than the odd lot of 10 shares (effectively making my allocation a 1:1 rights issue)

Hence my 100 SCBK shares will qualify for an additional 100 rights shares (worth Ksh 30,000 at current market rates). If that is the case, the high unit price of 100 SCBK shares makes economic sense to pull such a move. Even after paying for the 100 rights (assume a rights price of Ksh 100 per share), a net profit of Ksh 20,000 can be achieved.It also makes for an interesting experiment.

Way forward:

With 7 months past, I am up 92.4%. I still intend to aggressively trade for the remaining 5 months targeting small margin trading.

As the funds from Activity 9 clear (T+4),I will closely analyze the market for the next opportunity to play the market.

Happy hunting.

stocksmaster, BRAVO!!! I suggest you quit your dayjob. You could do this for a living, you know. You haven't just beaten the market, you've more than doubled its percentage gain. You are making the 'experts' look average