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Kenya airways Right Issue
Rank: Chief Joined: 5/31/2011 Posts: 5,121
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ITS 14 BOB A SHARE!!! Kenya Airways prices rights issue at 14 shillings http://af.reuters.com/article/c...ws/idAFL5E8EC08220120312mwekez@ji attached the following image(s):  investor.jpg (3kb) downloaded 6 time(s).
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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The offer opens on April 2
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Rank: New-farer Joined: 2/26/2012 Posts: 25 Location: moscow na muranga
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16 new share for every 5 held @ 14.00. What do you think? is it a good bet..  chasing after the wind
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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Leave it and dilute yourself big time.
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Rank: Veteran Joined: 11/4/2008 Posts: 1,289 Location: Nairobi
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As a frequent traveler, am so disappointed with their service. I have avoided them for the last 1 year. Surely, how do I invest in KQ when they have left us really disappointed?
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Rank: User Joined: 1/24/2012 Posts: 1,675 Location: In Da Hood
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Gordon Gekko wrote:Leave it and dilute yourself big time. thats in itself will make it a success !
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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chaimani wrote:16 new share for every 5 held @ 14.00. What do you think? is it a good bet.. How an I make money out of this rights? Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: New-farer Joined: 2/26/2012 Posts: 25 Location: moscow na muranga
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Impunity wrote:chaimani wrote:16 new share for every 5 held @ 14.00. What do you think? is it a good bet.. How an I make money out of this rights? With the current market we might see the Market price falling below 14 in few weeks time,am foreseeing the under subscription of this issue...wait in june the price might be 6 bob or below due to dilution  chasing after the wind
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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DILUTION EXPECTED: Around 1.48 billion new shares will be created. Add the current 496m shares, lets call it 0.5m shares. Total 1.98 billion shares. Profit after tax last year 2011 was 3.54 billion shillings. Expected to drop by more than 25 percent. 70 percent of 3.54 billion shillings is 2.478 billion shillings. Diluted eps will be 2.478/1.98=1.25. Current market average pe is 7.5. 7.5*1.25=9.40. At a pe of 7.5 kq will be trading at 9.40 shillings post rights. Enjoy. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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this is how: the share will fall drastically to approach the rights issue price. It shouldn't go below ideally. There will be a panic as to whether it will be fully subscribed, at height of this the share will be lowest, this is the time to buy the shares from the market. During the run up to announcement of subscription, the share will rally-if its good news, this is the time to sell. Buying the rights will lock you in and by the time you can sell them they will be way below 14.00. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: New-farer Joined: 7/3/2011 Posts: 30 Location: Nairobi
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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@Aguytrying.I am NOT fascinated by your
accurate calculations. You have made the assumption that there will be no increase in earnings.
KQ have stated their target is 100 planes. They must have done some logical analysis to arrive at this figure. Please remember that KQ have consistently had a load factor of 69%, a number I'm confident they will maintain even with the 100 planes.
The risk to KQ in my books are staff costs. Fuel spikes, hedges, crashes can be mitigated but they need to somehow resolve the HR riddle.
I expect a depression in price, ksh 10 is not far fetched, but I have previously bought at ksh 6.75 and got out in the 100s.
For sure, this is not for the faint hearted but the rewards are worth it.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Will pple afford this thing?lets assume you have 5000k shares, divide by 5=1000*16=16000*14=224,000 am i right guys? "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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I will sell this thing kesho and assume i was conned. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 2/22/2010 Posts: 510 Location: De egg
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Why get the rights @ 14 . Jump out wait for it at sub 10. That is if you survive the crash . Peace be with you
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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@maligumu i think so and i wont dare "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 5/23/2010 Posts: 868 Location: La Islas Galápagos
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Gordon Gekko wrote:@Aguytrying.I am NOT fascinated by your
accurate calculations. You have made the assumption that there will be no increase in earnings.
KQ have stated their target is 100 planes. They must have done some logical analysis to arrive at this figure. Please remember that KQ have consistently had a load factor of 69%, a number I'm confident they will maintain even with the 100 planes.
The risk to KQ in my books are staff costs. Fuel spikes, hedges, crashes can be mitigated but they need to somehow resolve the HR riddle.
I expect a depression in price, ksh 10 is not far fetched, but I have previously bought at ksh 6.75 and got out in the 100s.
For sure, this is not for the faint hearted but the rewards are worth it. @GG, did not KQ issue a profit warning? A bad day fishing is better than a good day at work
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Rank: User Joined: 1/24/2012 Posts: 1,675 Location: In Da Hood
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okay you guys keep panicking am down there waiting for you sell orders !
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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QW25091985 wrote:okay you guys keep panicking am down there waiting for you sell orders ! What happens when @qw endorses a stock?? (ak, paka & britank)  Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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