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Could the recent fall in the NSE be because of KPLC rights issue??
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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I'm just interested in this one... Whenever there is a huge bond issue with a great coupon rate investors tend blame a fall in stocks on the removal of cash for the issue... Could this be the case with the KPLC rights issue? with the company offering 8.795 billion worth of shares with at least a 50% return packed in them I'm pretty sure investors would dump their non performing shares to get a piece of the pie and hence causing the index to fall... I personally sold a few KCB to pay for these rights since I failed to mobilise a quick loan... I pray the rights are issued at 148(18.5) and not 168(20.4)...  Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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20.4 would be terrible! I've also sold all other counters including my beloved Kenya Re with the exception of KK and KPLC. Managed to increased on KK today @10.50 and KPLC @205 (Don't you just love that sms alert from CDSC?) I'll still get back to Kenya Re as I saw an ad in last Friday's paper for a new MD.
BBI will solve it :)
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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I doubt whether KPLC rights are the main cause, although they could be contributing. The market has not really sold off that much. The index is less than 5% off our previous highs.
50% gain on the rights at 148 - maybe, but not that soon. Dilution will be quite a bit especially if the rights are at 148!
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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mwanahisa wrote:50% gain on the rights at 148 - maybe, but not that soon. Dilution will be quite a bit especially if the rights are at 148!
@mwanahisa how will the price affect the level of dilution??? the number of new shares being issued is constant the only thing that will affect the price is the amount to be raised. 10 BILLION= 168
8.795 BILLION= 149so it is more advantageous to shareholders if it is 149 rather than 168... And trust me the share will act much the same as TPS, STANCHART and KCB.. TPS rights= 48 today's closing price 68STANCHART rights= 165 today's closing price 270KCB rights= 17 today's closing price 21.75
Get in while you can Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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2012 wrote:20.4 would be terrible!
I've also sold all other counters including my beloved Kenya Re with the exception of KK and KPLC. Managed to increased on KK today @10.50 and KPLC @205 (Don't you just love that sms alert from CDSC?)
I'll still get back to Kenya Re as I saw an ad in last Friday's paper for a new MD. what sms? I only get a monthly statement from CDSC. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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g267. Yes, you are right on the amount of dilution not being different whether the amount being raised is 7, 8.795 or 10 billion. But there will be dilution no doubt about it.
TPS and Stanchart rights are not the right comparators (is there any such word?) because the degree of dilution was much lower. So, I would think KCB is more apt for comparison. I got 30% NET upside on the rights, so I will obviously be getting into KPLC but I am still looking at the best approach to get in.
I shed off 70% of my holding when the counter started going south (between 235-230) and I will be looking at reclaiming it. I just trust that my strategy will work.
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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g267. Yes, you are right on the amount of dilution not being different whether the amount being raised is 7, 8.795 or 10 billion. But there will be dilution no doubt about it.
TPS and Stanchart rights are not the right comparators (is there any such word?) because the degree of dilution was much lower. So, I would think KCB is more apt for comparison. I got 30% NET upside on the rights, so I will obviously be getting into KPLC but I am still looking at the best approach to get in.
I shed off 70% of my holding when the counter started going south (between 235-230) and I will be looking at reclaiming it. I just trust that my strategy will work.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Wazua herd mentality has started again...
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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Aguytrying wrote:
what sms? I only get a monthly statement from CDSC.
What? I always get on sale or purchase, same day! You need to reapply.
BBI will solve it :)
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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the deal wrote:Wazua herd mentality has started again... @the deal please understand that there is no herd mentality here because most of us are already KPLC shareholders wanting a larger piece of the pie or rather maintain our piece of the pie... Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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guru267 wrote:the deal wrote:Wazua herd mentality has started again... @the deal please understand that there is no herd mentality here because most of us are already KPLC shareholders wanting a larger piece of the pie or rather maintain our piece of the pie... and besides a good deal is a good deal. Get it? The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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guru267 wrote:I'm just interested in this one... Whenever there is a huge bond issue with a great coupon rate investors tend blame a fall in stocks on the removal of cash for the issue...
Could this be the case with the KPLC rights issue? with the company offering 8.795 billion worth of shares with at least a 50% return packed in them I'm pretty sure investors would dump their non performing shares to get a piece of the pie and hence causing the index to fall... consider too.. http://www.businessdaily...8/-/angqmj/-/index.html
..if TATU is anything to go by..it is not off the mark to think a greater proportion of institutional investors are increasingly finding coziness in going real estate as well as bond trading..learning from likes of DTK n Stanchart ..Moral of the story.. less uncertainty..even lesser political effects..( people still have to live in houses and Government still has to raise cash from debt..and by law MUST PAY) ...better prediction of outcome at end of year..less noisy shareholders..justified pay/salary hikes.  ..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: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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To me KPLC is Long term But...its inefficient...it largely depends on power hikes to report mega profits...the 1H results might be just there but not spectacular...theyre also entering new territory with their pre paid meter system its good but those meters can be vandalised....
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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the deal wrote:To me KPLC is Long term But...its inefficient...it largely depends on power hikes to report mega profits...the 1H results might be just there but not spectacular...theyre also entering new territory with their pre paid meter system its good but those meters can be vandalised.... @the deal I had no idea you were a KPLC hater How are the pre paid meters more susceptible to vandalism than the current ones??? about their inefficiencies this is being dealt with and is evident in their financial statements how they are have began controlling costs... The share is a long term stock but there are short term gains to be made on the rights issue.. Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 11/27/2007 Posts: 3,604
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Aguytrying wrote:2012 wrote:20.4 would be terrible!
I've also sold all other counters including my beloved Kenya Re with the exception of KK and KPLC. Managed to increased on KK today @10.50 and KPLC @205 (Don't you just love that sms alert from CDSC?)
I'll still get back to Kenya Re as I saw an ad in last Friday's paper for a new MD. what sms? I only get a monthly statement from CDSC. CDSC is trying to move away from the paper junk they keep posting every month. i got my statement for the month of October via e-mail. there is also a text message sent to update the account holder on the transactions. way cheaper. African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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Rank: Elder Joined: 11/27/2007 Posts: 3,604
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the deal wrote:To me KPLC is Long term But...its inefficient...it largely depends on power hikes to report mega profits...the 1H results might be just there but not spectacular...theyre also entering new territory with their pre paid meter system its good but those meters can be vandalised.... the prepaid metres are more safe in terms of pilferage as compared to the 'ancient' ones where one would 'bridge' the circuit and the only time KPLC will know is if they get there physically. so the results are opposite of what you are saying, it's a strong point. African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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Rank: Veteran Joined: 3/12/2010 Posts: 1,199 Location: Eastlander
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Sober wrote:the deal wrote:To me KPLC is Long term But...its inefficient...it largely depends on power hikes to report mega profits...the 1H results might be just there but not spectacular...theyre also entering new territory with their pre paid meter system its good but those meters can be vandalised.... the prepaid metres are more safe in terms of pilferage as compared to the 'ancient' ones where one would 'bridge' the circuit and the only time KPLC will know is if they get there physically. so the results are opposite of what you are saying, it's a strong point. plus now no need for all those staff going round kata-ing power coz u haven't paid up.. your units run out and it is blackout saa hio hio! Giza PaP!!..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: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Sober wrote:the deal wrote:To me KPLC is Long term But...its inefficient...it largely depends on power hikes to report mega profits...the 1H results might be just there but not spectacular...theyre also entering new territory with their pre paid meter system its good but those meters can be vandalised.... the prepaid metres are more safe in terms of pilferage as compared to the 'ancient' ones where one would 'bridge' the circuit and the only time KPLC will know is if they get there physically. so the results are opposite of what you are saying, it's a strong point.  While those prepaid metets are new here in other countries theyre the norm n believe me they can be vandalised....@guru i used to be a KPLC shareholder i sold at 240-250...
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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can anyone get in if he is not a shareholder? When do books close? LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Elder Joined: 11/27/2007 Posts: 3,604
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by the time they know how to vandalise them, we would be out of the woods in the introduction of the prepaid metres. believe me, the vandalisation fee is already factored in and whenever it happens it is another consumer paying for it. if it doesnt happen, then it is a reduced cost. African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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Could the recent fall in the NSE be because of KPLC rights issue??
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