@Scooby do and Scubi da

Are you guys kinsmen or kinsladies. I love the names and variation.

@guru267

Which means the spicing up with dividends is to make the share hit 60 bob, then they off load. Did you notice NBK liquidated 4 billion worth of bonds (Read assets).

And they have no huge expansion plan or 5 yr strategy plan yet. Profits and retained earnings will hit 1.5b by year end. 3 billion will go to morgage, the rest to be advanced as loans.

This is when I make a retreat to the island at the middle of lake Baringo and do serious analysis.

If I see something like 5.5b - 3 b = 2.5

You don't give all the retained cash and profits, so let it be 1 billion to be distributed as dividends.

But Marambii is a very mean man, don't expect more than that.

EPS last time was 4.50

Issued shares are 200,000,000

1,000,000,000 / 2,000,000,000 = 5 bob.

This is too simple to be true!

Preference shares is another problem. Why were the loan defaulters who made NBK and KPLC come down necessitating the creation of Pref shares eventually never apprehended, made to pay for the pref shares and told to take a walk in the bundu.

These pref shares were paid for from citizens money. Something is not right here.

@surealligator. Should the govt have let KPLC fall in 2002...KPLC's recent success is solely becoz of the govt loans and incentives. The govt seems to have got the open market value of its debt, or else how do you explain why 76 million shares are being introduced. The govt had the option to redeem the prefer shares, so why should they offer them to ordinary shareholders? Ordinary shareholders didn't bail KPLC out. They're partly offering there holding at a discount through the rights issue.

@scooby. So the govt can't do what they want in KPLC already...there's an obvious advantage for govt raising their stake above the current one.

Then it is not a good stock to buy

Scubidu,

Sometime in 2009, the government admitted that it made a mistake in giving up a majority stake in KPLC. As such, they had to form KETRACO to deal with the electricity transmission network.

For all the planned transmission projects, the government is partially funding them and the rest is funded by loans. KPLC will however manage the entire network on behalf of KETRACO.

What happened? it hit 17.05 something going on....