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Stock Behavior Ex-Bonus?
Gordon Gekko
#11 Posted : Monday, April 11, 2011 4:37:33 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
Billionaire wrote:
NIC seem to be holding off at 41 region. is it time to buy?


You had 10 NIC shares. They were trading at ksh 49 cum bonus. The value of your investment was 49 x 10 = 490. When they go ex bonus you now have 11 shares, but the value of your investment is still ksh 490, therefore the price per share ex bonus is ksh 490 / 11 = ksh 44.5. Ignore the dividend for this case as it is insignificant. This means that any trade below 44.5 is OK, ksh 41 is a darn good bargain.
mlennyma
#12 Posted : Monday, April 11, 2011 6:10:24 PM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Correct,i bought some today at 42 and will vigorously buy at this level and any other new lows.
"Don't let the fear of losing be greater than the excitement of winning."
Cde Monomotapa
#13 Posted : Tuesday, April 12, 2011 8:45:44 AM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
With KCB I expect to collect the dividend & more capital gains.
mlennyma
#14 Posted : Tuesday, April 12, 2011 8:54:17 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
I consider it un wise to buy kcb above 25 in the short term.
"Don't let the fear of losing be greater than the excitement of winning."
jerry
#15 Posted : Tuesday, April 12, 2011 9:48:30 AM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
mlennyma wrote:
I consider it un wise to buy kcb above 25 in the short term.

>>>I sold at 25/50 and later almost thought I made a mistake. However, may see at least 28/= by books closer on 9th May.
The opposite of courage is not cowardice, it's conformity.
the deal
#16 Posted : Tuesday, April 12, 2011 11:53:08 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
i think its a crime to sell KCB at 25 bob...this stock is on its way to 32 bob once it breaks the 26 bob resistance but it also depends where u bought...lol.
youcan'tstopusnow
#17 Posted : Thursday, April 14, 2011 9:19:29 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Aguy, cum-bonus DTB seems to be waking up
GOD BLESS YOUR LIFE
guru267
#18 Posted : Saturday, April 23, 2011 10:17:26 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
youcan'tstopusnow wrote:
Aguy, cum-bonus DTB seems to be waking up

@youcant there is alot of risk in DTB at current levels especially when it goes ex bonus because of the following reasons..

1. There is uncertainty of whether they will beat 2010 earnings.
2. The share is trading at all time highs so profit taking might see it trade flat for some time.
3. The company will not increase the 1.6 dividend and is unlikely to pay a bonus in 2011.
4. For small holders the current bonus issue will result into odd lots which one cant sell..

Disclaimer: the company and share price are likely to outperform in the 3-5 year outlook..
Mark 12:29
Deuteronomy 4:16
youcan'tstopusnow
#19 Posted : Saturday, April 23, 2011 11:01:40 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
guru, that is why I will be looking for something a little more modest than your 190smile
GOD BLESS YOUR LIFE
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