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nini mbaya na cables
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bartum
#1 Posted : Monday, March 21, 2011 2:03:32 PM
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Joined: 8/11/2010
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Location: nairobi
fellows are getting a bitting at EA cables whats going on guys
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xxxxx
#2 Posted : Monday, March 21, 2011 2:27:39 PM
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Joined: 3/20/2008
Posts: 503
bartum wrote:
fellows are getting a bitting at EA cables whats going on guys


I suppose it is reasonable for book closure on a 1 share for every 4 shares bonus split to result in a 25% share price drop.............especially given that it is E.A cables
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The Merchant
#3 Posted : Monday, March 21, 2011 2:29:54 PM
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Joined: 5/24/2010
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Location: KENYA
Isn't there a rule that stops a stocks from falling by more than 10% in a day? What a blood bath!!
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xxxxx
#4 Posted : Monday, March 21, 2011 2:45:32 PM
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Joined: 3/20/2008
Posts: 503
The Merchant wrote:
Isn't there a rule that stops a stocks from falling by more than 10% in a day? What a blood bath!!


Hypothetically and ignoring taxes, before the bonus, an investor with 10,000 shares was worth (10,000 * 19.95)= Kshs199,500

On book closure, and adjusting for the bonus, the same investor would have 12,500 shares hence (12,500*15.95) = Kshs 199,375.

Moreover the same investor has a dividend of Kshs 10,000.

I shall assume that the market is just pricing in the bonus. Those in trouble are the ones who intend to cash out ASAP whereas the bonus shares have not been uploaded and hence may not be transferred.

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jerry
#5 Posted : Monday, March 21, 2011 3:05:20 PM
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Joined: 9/29/2006
Posts: 2,570
The Merchant wrote:
Isn't there a rule that stops a stocks from falling by more than 10% in a day? What a blood bath!!

>>>As has been said this is expected and allowed after bk clsr on 18th. It's likely to lose one fifth or 4/={4*20/(4+1)} due to bonus alone. That is 20% drop assuming it closed at 20/= on Friday. Factor in the ex-dividend etc and you will have to wait for the share at below 15!
The opposite of courage is not cowardice, it's conformity.
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mlennyma
#6 Posted : Monday, March 21, 2011 3:33:00 PM
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Joined: 7/21/2010
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Location: nairobi
I quit last week and can only be tempted at 10bob
"Don't let the fear of losing be greater than the excitement of winning."
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slykat
#7 Posted : Wednesday, May 11, 2011 2:32:10 PM
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Joined: 2/20/2007
Posts: 359
jerry wrote:
The Merchant wrote:
Isn't there a rule that stops a stocks from falling by more than 10% in a day? What a blood bath!!

>>>As has been said this is expected and allowed after bk clsr on 18th. It's likely to lose one fifth or 4/={4*20/(4+1)} due to bonus alone. That is 20% drop assuming it closed at 20/= on Friday. Factor in the ex-dividend etc and you will have to wait for the share at below 15!


@Jerry,

18th came and went but still no bonus reflected in my cds... when exactly did they/will they credit the bonus?
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Renegade
#8 Posted : Wednesday, May 11, 2011 4:43:48 PM
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Joined: 4/18/2009
Posts: 118
Don't quote me on this but I think that Cables is bound to be pumped up before Trans Century lists. E A Cables is their biggest investment.

We have just seen how scarcity of supply can help drive up price in the case of CFC Insurance Holdings.
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2012
#9 Posted : Wednesday, May 11, 2011 5:15:56 PM
Rank: Elder


Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
Renegade wrote:
Don't quote me on this but I think that Cables is bound to be pumped up before Trans Century lists. E A Cables is their biggest investment. .


It's going to be a challenging year for them with high fuel cost (transport and manufacture), the weakening shilling, 80% increase of their product prices and they don't seem to be doing well in the other countries. I would not touch this counter yet.

BBI will solve it :)
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