The fundementals are in place, the price seems right!!!(although i was hoping to get more below kshs 210 )

All good things come to those who are patient and anytime between tomorrow & february restructuring plans will be made public & with it the much awaited bag of goodies viz Bonus, rights & split.

This will truly be a historic and unprecedented opportunity, a jackpot if you like.

Pay heed & partake my Brethern else thou shalt only have thyselves to blame if thou missed the Bus!!!!

It matters little what the 'entry point' is... the question is...

Is it worth buying at TODAY's price?

I think it is a good deal as Kenya's economy grows & more customers come online...

Do I like KPLC at 240/-? Yes
Did I like KPLC much more at 180/-? 200/- [Yes]

@alikuja - I agree with you... I am AGAINST the so-called Capital Restructuring that excites people here!

Split - I support [Makes very little difference to the Capital Structure]
Bonus - I support [Makes very little difference to the Capital Structure]
Rights - I am ambivalent unless it is at a huge discount [180/-] Plus I would need to find some cash!
Conversion - I oppose it unless it is at 300/- or higher. I would rather convert the Preference Shares to Debt & pay GoK.

Debt - I am disappointed KPLC is not taking on more debt to fund expansion. KPLC has a strong balance sheet. Plenty of cashflow. Ring-fence the cashflow & issue low-priced medium to long-term debt!

@VVS and @charming soul i'm in this one for 10 years minimum... I got in at a very good price so the dividend yield is (6.6%) and will continue growing.... I just wish i hadn't sold a Few at 195

@VVS why should they take on more debt when they are coming to us for 10billion in capital???

[quote=guru267]@VVS and @charming soul i'm in this one for 10 years minimum... I got in at a very good price so the dividend yield is (6.6%) and will continue growing.... I just wish i hadn't sold a Few at 195

@guru I agree with you, long term is the way to go with kpl. You were wise to get in at the right time and at the right price earning you a lucrative yield.

In my opinion even if one enters at the current market price, with the growing economy & increasing client base, intime to come the yield will be handsome making kpl a wise and sound Investment in ones portfolio.

Besides its not everyday that a company of such a stature will restructure & reward its shareholders..

Over 17,000 shares of offer from 240-250...

GoK can guarantee loans even if it does not have a controlling interest in a firm. I do not like the thought of GoK having 50% control though even at 48% they do have effective control...

@hisah this counter is very strongly held by institutions and thats what i like about it....

Can someone answer this question.

What is the real value of KPLC?

Try and respond to this question with respect to the EPS (both undiluted and diluted) and expected conversion values for the government prefs under different scenarios e.g. at Kshs 180, 210 and 240. Extropolate using expected growth in profits and dividends.

Now justify current and/or expected price. Is still reasonable to expect the counter to hit 300?

SHOW ALL WORKINGS.

20 MARKS.

Wow. This is getting better and better.