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The Bull has Arrived
Rank: Elder Joined: 7/11/2010 Posts: 5,040
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alikujia wrote:@Aguy,
I think bonussses do not necessarily increase intrinsic share value, infact it should have zero effect on immediate value. but yes, psychologically it can cause some misguided interpretation and affect share price value. i meant the entity that got 200k shares, if there's a bonus of 1:4. They sell the new shares how much is that in cash! Even if the price stays where it is. 50K bonus share multiplied by 150 bob. Thats a cool 7.5m. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 1/31/2007 Posts: 303
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Aguytrying wrote:alikujia wrote:@Aguy,
I think bonussses do not necessarily increase intrinsic share value, infact it should have zero effect on immediate value. but yes, psychologically it can cause some misguided interpretation and affect share price value. i meant the entity that got 200k shares, if there's a bonus of 1:4. They sell the new shares how much is that in cash! Even if the price stays where it is. 50K bonus share multiplied by 150 bob. Thats a cool 7.5m. The market price of the shares at the time of the bonus will come down by a factor of the bonus issue once the share start selling ex bonus Ideally a bonus issue does not change a companys valuation.. Therefore that profit of 7.5M can only be a mirage in the immediate aftermath of a bonus issue
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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moneydust, I was looking at Centum on the Wazua NSE Performance Calculator. It issued bonus shares last year. When they started trading, the prices didn't move too much. In fact, it was fairly stable. I think a drop in share prices after a bonus issue will depend on if demand will continue to be sustained as a result of the improving fortunes of a business. It is not a given that the price will drop by a factor of the bonus GOD BLESS YOUR LIFE
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Rank: Member Joined: 1/31/2007 Posts: 303
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youcan'tstopusnow wrote:moneydust, I was looking at Centum on the Wazua NSE Performance Calculator. It issued bonus shares last year. When they started trading, the prices didn't move too much. In fact, it was fairly stable. I think a drop in share prices after a bonus issue will depend on if demand will continue to be sustained as a result of the improving fortunes of a business. It is not a given that the price will drop by a factor of the bonus
I agree...in centum, though the price dropped slightly after the share went ex bonus..the bonus shares issued were few and coupled with the increased demand resulted in the share surpassing its pre bonus price..
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Rank: Elder Joined: 7/21/2010 Posts: 6,175 Location: nairobi
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And thats why what i got from centum as bonus is worth more than if they declared a dividend.am waiting for more mpaka 2014 "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 4/14/2010 Posts: 806 Location: Nairobi
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mlennyma wrote:And thats why what i got from centum as bonus is worth more than if they declared a dividend.am waiting for more mpaka 2014 Niko na wewe!
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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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Reads like a novel..with fictitious characters! Humbling this thread is.  ..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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Rank: Veteran Joined: 3/25/2011 Posts: 946
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@ proverb. If you think you can spot accuratly bulls and bear market ,our local n.s.e is to small for you. You can try the nasdaq ,n.y.s.e
not only that start ur own brokerage firm and we'll come flockin there.
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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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QW25071985 wrote:@ proverb. If you think you can spot accuratly bulls and bear market ,our local n.s.e is to small for you. You can try the nasdaq ,n.y.s.e
not only that start ur own brokerage firm and we'll come flockin there. AAAwwwwwawwwww!! so sweeet! Thanx.  ..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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What interesting reading. Wazua does get mad at times it feels like reading the south sea bubble burst. I must nominate the best from the posts in order of merit ProverB, Pkoli, erifloss, vvs
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Rank: Elder Joined: 8/10/2010 Posts: 2,264
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Rank: Veteran Joined: 3/25/2011 Posts: 946
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Now some wazuas want to come out and say that they foresaw the bear ..... .. btw this isnt a bear a such but a slight interruption of the bull that begun last year.
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Rank: Member Joined: 7/22/2008 Posts: 851 Location: nairobi
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YEP!the foreigners opted for an early pullout, and are not comming back till 2013. The next bull will ocurre around 2014 to 2015. In the meanwhile, I will start buying stocks @ 20K per month from early next year. Centum, safaricom, scan group, coop bank, or bbk ate on my radar
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Rank: Member Joined: 8/5/2010 Posts: 335 Location: Nairobi
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murenj wrote:YEP!the foreigners opted for an early pullout, and are not comming back till 2013. The next bull will ocurre around 2014 to 2015. In the meanwhile, I will start buying stocks @ 20K per month from early next year. Centum, safaricom, scan group, coop bank, or bbk ate on my radar  Really? I was thinking several weeks... July at worst!!!  "I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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QW25071985 wrote:Now some wazuas want to come out and say that they foresaw the bear ..... .. btw this isnt a bear a such but a slight interruption of the bull that begun last year. I still would not call this a bear, there are no fundamentals supporting a bear market at this time. What we're experiencing are jitters caused by our peculiar politics. This is worse than a bear because it's very unpredictable.
BBI will solve it :)
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Rank: Member Joined: 7/22/2008 Posts: 851 Location: nairobi
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Genghis Khan wrote:murenj wrote:YEP!the foreigners opted for an early pullout, and are not comming back till 2013. The next bull will ocurre around 2014 to 2015. In the meanwhile, I will start buying stocks @ 20K per month from early next year. Centum, safaricom, scan group, coop bank, or bbk ate on my radar Really? I was thinking several weeks... July at worst!!! temporal relief maybe. But with Kenyans preparing to slaughter each other, several IPO's on line, the market is bound to remain flat.
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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murenj wrote:But with Kenyans preparing to slaughter each other Do you know something we don't? Should we send Waki, Ocampo, Scotland Yard and FBI your way?
BBI will solve it :)
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Rank: Elder Joined: 9/23/2010 Posts: 2,218 Location: Sundowner,Amboseli
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2012 wrote:murenj wrote:But with Kenyans preparing to slaughter each other Do you know something we don't? Should we send Waki, Ocampo, Scotland Yard and FBI your way? A reckless statement this is! Remember u can change the world around you, that's what we were created to be. Be positive brother, and you shall live! @SufficientlyP
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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2012 wrote:I still would not call this a bear, there are no fundamentals supporting a bear market at this time. What we're experiencing are jitters caused by our peculiar politics. This is worse than a bear because it's very unpredictable.
I agree with you to some extent. A proper bear market requires a confluence of events that are not all present (as yet) in our market. While I admit some of the conditions have indeed been met, the economy itself seems to be fairly resilient e.g. I saw a report to in today's paper talking about the improvement of credit quality in Jan & Feb 2011 relative to Dec 2010. Whereas the NSE will continue to be volatile, I just can't see it going one way i.e. downhill all the way to the election. Even if the trend overall may be downwards, there will still be those spikes when one can make money and I for one will be there to try and take advantage.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Im just waiting for anyone to start shouting here that "the bull has returned"! I will smack them so hard across the mouth. mara bull, mara bear aaaaaaaaaaaaaaaaaaaaaaah! shut up! The investor's chief problem - and even his worst enemy - is likely to be himself
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