NBK has released its 3Q results showing excellent liquidity. I need input on this bank but I fear if I buy into it, the pending squabbles between NSSF and the government might come to the fore.

Anyone out there with an idea of when and how restructuring of the bank would be done.

Am not happy with the way KPLC is being restructured. If a restructuring is not clear cut and open to the simplest investor, it always boils down to the retail investor being swindled.

Kenya Government has not been one of the best for so long I don't trust it with my piped water.

If the government screwed up KPLC upto 2002, then bailed it out, whose error was it, shareholders of KPLC or government appointees into KPLC? So, why is the government demanding conversion of its Pref shares into Ordinary at the rate of 1:1 instead of selling the pref shares to Ordinally shareholders in the open market and let market discovery take place? Just a thought.

Will NBK be subjected to a similar castration as KPLC is being taken through?

@surealligator - I am with you 100%

Surealligator,

I think people will maybe start talking about NBK when they keep their promise and start paying dividends at the end of this financial year.

The restructuring of NBK's share capital is meant to happen in the current fiscal year for the government (i.e. before 30 June 2011). Atwoli & Co (NSSF) will really mess it up for them big time...

For KPLC, the excuse the government is giving for the conversion is to reduce the amount of debt in the company - which is putting off many borrowers from funding the company.

But if you read between the lines, what the government is really aiming for is to be in a position to control the company as and when they wish to do so.

NBK is a joke... If anyone thinks KPLC 's restructuring (which i don't agree with) was bad then just wait for NBK's...

You will understand the true definition of dilution...

I have learned to avoid company's sorrounded by un-certain clouds.

@Scooby do and Scubi da

Are you guys kinsmen or kinsladies. I love the names and variation.

@guru267

Which means the spicing up with dividends is to make the share hit 60 bob, then they off load. Did you notice NBK liquidated 4 billion worth of bonds (Read assets).

And they have no huge expansion plan or 5 yr strategy plan yet. Profits and retained earnings will hit 1.5b by year end. 3 billion will go to morgage, the rest to be advanced as loans.

This is when I make a retreat to the island at the middle of lake Baringo and do serious analysis.

If I see something like 5.5b - 3 b = 2.5

You don't give all the retained cash and profits, so let it be 1 billion to be distributed as dividends.

But Marambii is a very mean man, don't expect more than that.

EPS last time was 4.50

Issued shares are 200,000,000

1,000,000,000 / 2,000,000,000 = 5 bob.

This is too simple to be true!

Preference shares is another problem. Why were the loan defaulters who made NBK and KPLC come down necessitating the creation of Pref shares eventually never apprehended, made to pay for the pref shares and told to take a walk in the bundu.

These pref shares were paid for from citizens money. Something is not right here.

@surealligator. Should the govt have let KPLC fall in 2002...KPLC's recent success is solely becoz of the govt loans and incentives. The govt seems to have got the open market value of its debt, or else how do you explain why 76 million shares are being introduced. The govt had the option to redeem the prefer shares, so why should they offer them to ordinary shareholders? Ordinary shareholders didn't bail KPLC out. They're partly offering there holding at a discount through the rights issue.

@scooby. So the govt can't do what they want in KPLC already...there's an obvious advantage for govt raising their stake above the current one.

Then it is not a good stock to buy

Scubidu,

Sometime in 2009, the government admitted that it made a mistake in giving up a majority stake in KPLC. As such, they had to form KETRACO to deal with the electricity transmission network.

For all the planned transmission projects, the government is partially funding them and the rest is funded by loans. KPLC will however manage the entire network on behalf of KETRACO.

What happened? it hit 17.05 something going on....