It was obvious this was going to happen since the Govt. is not taking up it's rights the wise thing to do is to push down the current mkt price so the rights can be at a price of btwn 0.20/- to 0.50/-. If the mkt price over 25/- the rights would trade btwn 1/- and 2/-.

If the mkt rate will be @22/- and below then the right should not go for more than 50cts.

This KPLC thing is simply crazy... the share is at 24 with a low of 22.5 traded.. (Are you aware that is 180bob pre split)

This helps me a whole lot because I can now get the rights at a very low premium off the market...

But I hope guys know the bounce back from these levels after the restructuring will be equally extraordinary so you're best bet is to start buying now like crazy...

Forecast EPS for FY 2010-11 is 2.54 thus PER = 8. If the hydrology is good during 2011-12 then EPS for 2011-12 should be much better.
Comment: Moving away from hydropower [reduction of reliance on hydro + thermal] to geothermal is a long-term project.

There are some 'immediate' projects that will add to KPLC's profits within 12 months [FY 2011-12]. IRRs of 20%+
Comment: What were they waiting for? Banks would have lent for this!

200,000 customers to be recruited in 2010-11 though these are mostly low-middle income consumers. Many users on diesel-generators so potential customers like lodges, mining, etc.
Comment: Note there is SUPPRESSED demand i.e. KPLC can't supply the current needs thus brownouts + blackouts.

Construction remains 'booming' thus urban connections are doing OK as new shops, flats, malls, etc are connected. Connected to economic growth.
Comment: Sigh, true... I can't escape cranes & construction traffic in Nairobi!

Theft is a HUGE problem but KPLC is:
- installing 320,000 pre-paid meters. Mostly residential. Apparently, these are harder to tamper with.
- Less interaction of staff with consumers [staff 'misreading' meters] or making illegal connections.
- Huge improvements in cash flow as pre-paid model works better. Cash receipts easier to monitor.
- Step up mulika mwizi. New dry transformers. Security team.
- Ramp up fibre. Connect all major towns with fibre to monitor sub-stations. National Control Centre.
- GoK support vital. Cops cracking down on mungiki & friends.
- GoK banned copper exports thanks to KPLC lobbying. Fewer outlets for stolen copper.

Comment: Kenyans need to 'squeal' on these crooks. Education is important but I believe shooting a few crooks [public execution] is even better.

I dont get the fascination guys get with corporate action like rights issue....a sort of its my duty to participate etc....I say sell in the excitement ie(at 240 pre-split) and buy when the excitement levels off...there is a very long historical evidence that this is the right way to act.