Wazua
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Kplc restructure plan out
Rank: Member Joined: 11/21/2007 Posts: 152 Location: Nairobi
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I had bought 100 rights @ 2 bob.
Yesterday, I applied for an extra 900 shares.
hopeful I ll get the 1000 allocation
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Rank: Elder Joined: 7/22/2009 Posts: 7,561
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Sufficiently Philanga....thropic wrote:I'm picturing a guy who had like, say, 10,001 rights then sold 10K rights in the market at, say, 3 bob, then uses the 1 share remaining to apply for additional shares! Actually, one could have sold all his rights and still apply for additional rights because he is still a shareholder! Two people who each qualify for 100,000 rights. Person 1:Simply exercises his rights and pays at the rate of 19.50/= Person 2:Sells his rights at 3/= making a cool 300,000/= Applies for an 'additional' [100,000] rights and pays at the rate 19.50/= Person 2 ends up 300,000/= richer than for using his brain!
Person 2 can even apply for more than 100,000 rights if he believes they will they will be oversubscribed so that after the pro-rata allocation he still gets 100,000. If he gets allocated more than he needed, he can simply sell the [extra] shares for 19.50/= + commissions [minimum] to get his money back! Playing the market 101. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 6/2/2010 Posts: 1,075
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MaichBlack wrote:Sufficiently Philanga....thropic wrote:I'm picturing a guy who had like, say, 10,001 rights then sold 10K rights in the market at, say, 3 bob, then uses the 1 share remaining to apply for additional shares! Actually, one could have sold all his rights and still apply for additional rights because he is still a shareholder! Two people who each qualify for 100,000 rights. Person 1:Simply exercises his rights and pays at the rate of 19.50/= Person 2:Sells his rights at 3/= making a cool 300,000/= Applies for an 'additional' [100,000] rights and pays at the rate 19.50/= Person 2 ends up 300,000/= richer than for using his brain!
Person 2 can even apply for more than 100,000 rights if he believes they will they will be oversubscribed so that after the pro-rata allocation he still gets 100,000. If he gets allocated more than he needed, he can simply sell the [extra] shares for 19.50/= + commissions [minimum] to get his money back! Playing the market 101. You fail to mention that the investor who has 100,000 rights must have had an investment of 57 Million in KPLC before split. To such an investor 300k is chump change and would not merit such investment acrobatics!
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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My 2 cents wrote:You fail to mention that the investor who has 100,000 rights must have had an investment of 57 Million in KPLC before split. To such an investor 300k is chump change and would not merit such investment acrobatics! Ha ha... very true. And I don't see why such a person would forgo taking up these rights to settle for a mere 300k
BBI will solve it :)
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Rank: Elder Joined: 7/22/2009 Posts: 7,561
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My 2 cents wrote:MaichBlack wrote:Sufficiently Philanga....thropic wrote:I'm picturing a guy who had like, say, 10,001 rights then sold 10K rights in the market at, say, 3 bob, then uses the 1 share remaining to apply for additional shares! Actually, one could have sold all his rights and still apply for additional rights because he is still a shareholder! Two people who each qualify for 100,000 rights. Person 1:Simply exercises his rights and pays at the rate of 19.50/= Person 2:Sells his rights at 3/= making a cool 300,000/= Applies for an 'additional' [100,000] rights and pays at the rate 19.50/= Person 2 ends up 300,000/= richer than for using his brain!
Person 2 can even apply for more than 100,000 rights if he believes they will they will be oversubscribed so that after the pro-rata allocation he still gets 100,000. If he gets allocated more than he needed, he can simply sell the [extra] shares for 19.50/= + commissions [minimum] to get his money back! Playing the market 101. You fail to mention that the investor who has 100,000 rights must have had an investment of 57 Million in KPLC before split. To such an investor 300k is chump change and would not merit such investment acrobatics! @My 2 Cents - You need to come with your maths teacher for a thorough canning!!! Your maths is totally messed up! Somebody with 255,000 shares qualified for 100,000 rights. The current value of 255,000 shares is approx 5.6m [NOT 57m]. The purchase price could have been much lower depending on when the shares were bought but we don't want to complicate calculations for you, do we? Now to my second point: There is no 'investment acrobatics' here. You simply call or email your broker. 3 minutes tops. 300,000/= cash. That is 100,000/= per minute! And you still don't forgo the rights. Let me put it in percentage form - hoping the point will finally sinks in. We are talking about making 13.6% in 3 minutes - literally. 13.6% in 3 minutes is huge to anyone! Even pyramid schemes can't offer you this!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 11/5/2010 Posts: 131 Location: kenya
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MaichBlack wrote:Sufficiently Philanga....thropic wrote:I'm picturing a guy who had like, say, 10,001 rights then sold 10K rights in the market at, say, 3 bob, then uses the 1 share remaining to apply for additional shares! Actually, one could have sold all his rights and still apply for additional rights because he is still a shareholder! Two people who each qualify for 100,000 rights. Person 1:Simply exercises his rights and pays at the rate of 19.50/= Person 2:Sells his rights at 3/= making a cool 300,000/= Applies for an 'additional' [100,000] rights and pays at the rate 19.50/= Person 2 ends up 300,000/= richer than for using his brain!
Person 2 can even apply for more than 100,000 rights if he believes they will they will be oversubscribed so that after the pro-rata allocation he still gets 100,000. If he gets allocated more than he needed, he can simply sell the [extra] shares for 19.50/= + commissions [minimum] to get his money back! Playing the market 101. I stand to corrected but from my reading of the PAL and i quote, "having accepted all the new shares in part 1A above I/We apply for new additional shares" end of quote. This means one can only apply for additional shares after taking all their rights. Having said that you can go the way of the Form E, and buy 100 rights and then apply for additional shares at the rights price.
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Rank: Elder Joined: 7/22/2009 Posts: 7,561
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2012 wrote:My 2 cents wrote:You fail to mention that the investor who has 100,000 rights must have had an investment of 57 Million in KPLC before split. To such an investor 300k is chump change and would not merit such investment acrobatics! Ha ha... very true. And I don't see why such a person would forgo taking up these rights to settle for a mere 300k The value is 5.6 mill - not 57 mill and no one is forgoing his/her rights. All you need is 3 minutes of your life [and a brain] and you make 300,000/= and forgo nothing! Get it? Of the the Wazuans with portfolios worth 5.6m and above, I wonder how many would turn their backs to a chance to make 300k in 3 minutes! No wonder you can pick two fellows [with the same 'education'], put them in the same business - same capital, environment, neighbourhood etc. One of them becomes a multimillionaire and the other one goes bankrupt! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 6/2/2010 Posts: 1,075
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@MB yes indeed I forgot to split the shares. Still a person with 5.7 Million in one counter will most likely have quite a sizeable portfolio overall. And 300k would still be chump change for that person, % or otherwise. If I had such a portfolio, I would not bother!
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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MaichBlack wrote:The value is 5.6 mill - not 57 mill and no one is forgoing his/her rights. All you need is 3 minutes of your life [and a brain] and you make 300,000/= and forgo nothing! Get it?
Of the the Wazuans with portfolios worth 5.6m and above, I wonder how many would turn their backs to a chance to make 300k in 3 minutes!
No wonder you can pick two fellows [with the same 'education'], put them in the same business - same capital, environment, neighbourhood etc. One of them becomes a multimillionaire and the other one goes bankrupt! Whichever way, on this one I'd still prefer the option of buying the rights @1.95m and I still can't see how that will be a dumb move. I also cannot dispute your theory because if they trade at the current price of 22/- then the 300k makes sense but I think mid next year this counter will be over 27/-
BBI will solve it :)
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Rank: Veteran Joined: 6/2/2010 Posts: 1,075
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2012 wrote:MaichBlack wrote:The value is 5.6 mill - not 57 mill and no one is forgoing his/her rights. All you need is 3 minutes of your life [and a brain] and you make 300,000/= and forgo nothing! Get it?
Of the the Wazuans with portfolios worth 5.6m and above, I wonder how many would turn their backs to a chance to make 300k in 3 minutes!
No wonder you can pick two fellows [with the same 'education'], put them in the same business - same capital, environment, neighbourhood etc. One of them becomes a multimillionaire and the other one goes bankrupt! Whichever way, on this one I'd still prefer the option of buying the rights @1.95m and I still can't see how that will be a dumb move. 2012, taking up your rights in KPLC was far from dumb. It was a wise choice.
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Rank: Elder Joined: 7/22/2009 Posts: 7,561
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There seems to be some perverse human characteristic that likes to make easy things difficult. Warren Buffett Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 6/2/2010 Posts: 1,075
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MaichBlack wrote:There seems to be some perverse human characteristic that likes to make easy things difficult.
Warren Buffett What you should be asking yourself is whether WB would take up his rights or go the acrobatics way. The answer is obvious to any WB fan 
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Rank: Elder Joined: 7/22/2009 Posts: 7,561
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My 2 cents wrote:MaichBlack wrote:There seems to be some perverse human characteristic that likes to make easy things difficult.
Warren Buffett What you should be asking yourself is whether WB would take up his rights or go the acrobatics way. The answer is obvious to any WB fan Can you explain this 'acrobatic way' you talk about! Warren Buffett has two rules: Rule no 1: Don't lose money. Rule no 2: Don't forget rule no 1. None of these rules would be broken here! Warren Buffett is also on record as having said: "What doesn't work is when you start doing things that you don't understand or because they worked last week for somebody else". Don't try to be a Warren Buffett clone! Learn from him [and others] but don't clone him! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 6/2/2010 Posts: 1,075
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MaichBlack wrote:My 2 cents wrote:MaichBlack wrote:There seems to be some perverse human characteristic that likes to make easy things difficult.
Warren Buffett What you should be asking yourself is whether WB would take up his rights or go the acrobatics way. The answer is obvious to any WB fan Can you explain this 'acrobatic way' you talk about! Warren Buffett has two rules: Rule no 1: Don't loose money. Rule no 2: Don't forget rule no 1. None of these rules would be broken here! Warren Buffett is also on record as having said: "What doesn't work is when you start doing things that you don't understand or because they worked last week for somebody else". Don't try to be a Warren Buffett clone! Learn from him [and others] but don't clone him! I see I have touched a nerve. By the way it is spelt lose. Not Loose. You and your grammar teacher need a thorough whipping!
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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@maichblack i remember saying that G.O.K not making its rights readily available on the market was the best thing they could've done for shareholders... Now they are guaranteed additional rights... I applied for a HUGE chunk which I know I'll get because shareholders get first priority..  Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 12/8/2009 Posts: 274 Location: Ltktk
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guru267 wrote:@maichblack i remember saying that G.O.K not making its rights readily available on the market was the best thing they could've done for shareholders... Now they are guaranteed additional rights... I applied for a HUGE chunk which I know I'll get because shareholders get first priority.. @guru what do you mean 'shareholders get first priority?' kwani none shareholders will have applied for extra rights? ama ni wale walinunua rights kwa exchange? and is that written anywhere in the info memorandum? ...things fall apart...the centre cannot hold..mere anarchy is loosed upon the world...w b yeats
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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@TUPAC before centum, equity and non shareholders the shareholders who bought or owned cum rights are given first priority when alotting extra rights... Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 12/8/2009 Posts: 274 Location: Ltktk
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guru267 wrote:@TUPAC before centum, equity and non shareholders the shareholders who bought or owned cum rights are given first priority when alotting extra rights...
ok guru.thats an advantage to us coz like me i was ready to buy extra rights at nse but couldnt since they were too expe before they became cheap for a few hours of the last day. but it looks like an oversubscription is imminent! ...things fall apart...the centre cannot hold..mere anarchy is loosed upon the world...w b yeats
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Rank: Elder Joined: 7/22/2009 Posts: 7,561
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guru267 wrote:@maichblack i remember saying that G.O.K not making its rights readily available on the market was the best thing they could've done for shareholders... Now they are guaranteed additional rights... I applied for a HUGE chunk which I know I'll get because shareholders get first priority.. I also applied for my additional rights a few hours ago. Now lets wait and see how it goes. This is a share I'm ready to hold for a long long time, so I really don't care how the price behaves in the short term - unless I'm buying some more of course. By the way, where in the memorandum does it say that the 'original' shareholders will have priority over the investor who bought the rights in the market. For Centum and Equity it's obvious they take what remains but I'd like a specific reference on the former. From the information I have, you are guaranteed 1000 extra rights with the rest allocated on a pro-rata basis. I haven't seen any distinction between the two categories. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,561
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TUPAC wrote:
ok guru.thats an advantage to us coz like me i was ready to buy extra rights at nse but couldnt since they were too expe before they became cheap for a few hours of the last day.
but it looks like an oversubscription is imminent!
qw25041985 wrote:Here's a sweet deal no one can refuse. If the kplc rights are OVERsubscribed i am buying all the wazua gurus free drinks at a venue of their choice.
Coz basically the capital markets are beign squeezd allot making kplc rights issue over-subscription miraculous. @TUPAC - I share your sentiments. I see @qw buying a lot of drinks. @qw - Time to be more specific. 1) What do you mean by 'drinks'? I hope it's not legal chang'aa 2) How many 'drinks' are you buying per 'wazua guru'? 3) Who qualifies to be called a 'wazua guru'. I want you to address this issues a soon as possible coz I see you changing the story in a couple of weeks. You will be like "I meant all people called guru something e.g. guru267 and by drink I meant one [plastic] bottle of some keroche froth... Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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