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Mkimwa		#81 Posted : Monday, July 12, 2010 4:27:28 PM
Rank: Member Joined: 10/26/2008 Posts: 380		I keep wondering what will happen when the rights reach -0.05, and the share price < 17. Today, the rights are 0.20. What is the fallback plan for KCB because at this rate, i highly doubt the success of the rights issue.
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VituVingiSana		#82 Posted : Monday, July 12, 2010 4:39:55 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,353 Location: Nairobi		I think today was the last day to sell Rights... Any news on whether KCB has asked for an extension...? Did GoK sell all their Rights? Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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StatMeister		#83 Posted : Monday, July 12, 2010 4:53:22 PM
Rank: Veteran Joined: 5/23/2010 Posts: 868 Location: La Islas Galápagos		Mkimwa wrote: I keep wondering what will happen when the rights reach -0.05, and the share price < 17. Today, the rights are 0.20. What is the fallback plan for KCB because at this rate, i highly doubt the success of the rights issue. @mkimwa ??? The right is just a traded option, and by analogy cannot possibly be -vely valued. It can however be 0 if it can be confirmed the underlying share will never ever ever achieve the strike price of 17 (how this can happen would is a separate topic). In practice, if the share goes below 17, why buy the right when you can simply buy the existing shares? A bad day fishing is better than a good day at work
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VituVingiSana		#84 Posted : Monday, July 12, 2010 5:05:25 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,353 Location: Nairobi		@Statmeister is correct as regards the Call Option aspect... BUT if you add in (very high) costs in Kenya there is logic in buying Rights @ 5cents even if the Share Price is 16.80 (if strike is 17/-)... Commissions are paid on the VALUE of the Rights so 100,000 Rights @ 0.05 = 5,000/- + 2% comm = 5,100/- or 5.1 cents/share Add 17/- (no commission on Rights Exercise) = 17.051 A commission of 1.5% on 100,000 KCB shares @16.80 = approx 25.5 cents So 16.80 + 0.255 = 17.05 There are other considerations as well... but another day! Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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mkonomtupu		#85 Posted : Monday, July 12, 2010 6:36:55 PM
Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road		VituVingiSana wrote: I think today was the last day to sell Rights... Any news on whether KCB has asked for an extension...? Did GoK sell all their Rights? Only 25million rights traded today. It seems KCB will only achieve slightly above 50% subscription. If the rights fail then current market price of 17.75 is a bargain. Time to start looking at Plan B
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2012		#86 Posted : Monday, July 12, 2010 6:46:51 PM
Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi		VituVingiSana wrote: I think today was the last day to sell Rights... Any news on whether KCB has asked for an extension...? Did GoK sell all their Rights? Yap on Friday last week, you'll see 120m moved. BBI will solve it :)
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wote		#87 Posted : Monday, July 12, 2010 7:27:16 PM
Rank: Member Joined: 10/18/2007 Posts: 217		IF KCB HADN'T THROWN BILLIONS OF SHAREHOLDERS MONEY INTO DEVANI'S PIT LATRINE, THEY WOULD NOT BE FORCING US TO COME UP WITH EXTRA BILLIONS.OTHERWISE A GOOD BANK BUT WITH MANAGEMENT THAT HAS STOPPED THINKING.
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muganda		#88 Posted : Monday, July 12, 2010 7:29:20 PM
Rank: Elder Joined: 9/15/2006 Posts: 3,907		2012 wrote: Yap on Friday last week, you'll see 120m moved. -@2012 is right but there are many who were selling -so reliably heard Gov sold just over half of their rights But I see KCB is still around 17.70, makes me wonder why people would buy if abundant rights were still available. But if it was me, and all the chips were down, for the good of the market and all, with a pool of pension funds and like minded thinkers, and if it was too big to fail, I would support the price - but that's just me.
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guru267		#89 Posted : Monday, July 12, 2010 9:29:02 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		This rights issue better be a success... Because with all the marketing then there should be no reason for undersubscription Mark 12:29 Deuteronomy 4:16
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obiero		#90 Posted : Monday, July 12, 2010 10:37:30 PM
Rank: Elder Joined: 6/23/2009 Posts: 14,232 Location: nairobi		the half year results for KCB to be released tomorrow at 10 a.m will confirm this 110 year old's strength.
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