@stockmaster With 100 shares you will get 10 rights not 100. However, buying 100 shares of a rights stocks is a strategy I use when I want to participate in a lowly priced rights issue but don't like the stock in general. Basically, buy 100 shares, get the rights allocated to you, pay for the shares, apply for a boatload of additional shares (as much I can afford), wait for the allocation (possible refund if oversubscribed), sell the additional shares quickly. I have done this a couple of times with DTB in 2007 getting shares at 70/- and selling at 87/-, HFCK in 2008 at 20/- and selling at 24/- among many others. Have to be careful to do it only when the dilution is not massive like in KCB 2010 or in a massive bear market like H2 2008, 2009.

Plus, when you buy the shares, you pay no commission. Only when you sell :)

@youcant............Yes i will, but will do it early next week as per his advice.

Happy Hunting.

Well the question is why did SM panic sell like that?

STANCHART RIGHTS ISSUE

According to the media advert placed by the company, the details are as follows:
1. Rights issue shares to be offered: 15,109,323
2. Target Amount: Ksh 2,499,837,490

From the above, the following can be concluded:
1. The offer price will be about Ksh 166
2. The shares will be offered at a ratio of 1 share for every 18 held (may be set at one for every 20 shares to avoid too many odd lots)
3. After rights, the total issued and paid up shares for Stanchart will be 287,077,133.
4. The shareholders approved 27M additional shares during the AGM. With only 15M on offer, what is the plan for the other 12M shares (so that the paid up share capital amounts to 300M as stipulated in the AGM?

I intend to pick up my rights as they are well priced. The half year results have delayed maybe because of the rights issue, but they will be very interesting especially if an interim dividend accompanies them.

Happy hunting

According to the NSE The current market sell off is being sparked by foreigners because of the poor outlook of the US economy... I completely ignored the role of foreigners in our market but now i want to thank them for the opportunity to get bargains