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KPLC rights issue 2011 VERRY STRONG BUY
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jerry
#41 Posted : Thursday, June 16, 2011 3:19:13 PM
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Joined: 9/29/2006
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The Merchant wrote:
@mwenza...not received mine.... Sad

=>still waiting also.
The opposite of courage is not cowardice, it's conformity.
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mozenrat
#42 Posted : Thursday, June 16, 2011 3:22:25 PM
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Joined: 5/18/2008
Posts: 796
VituVingiSana wrote:


2) Makes sense to use the 9bn first before you go borrow [the Rights cash is interest-free]


@VVS Rights cash does have a cost (although it may not be called interest) - The additional dividends the company has to pay in perpetuity. With a dividend yield of only 4% its still cheaper than the bank interest which is a peculiarity of the Kenyan market where equity is cheaper than debt.
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Genghis Khan
#43 Posted : Thursday, June 16, 2011 4:34:30 PM
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Joined: 8/5/2010
Posts: 335
Location: Nairobi
mozenrat wrote:
... With a dividend yield of only 4% its still cheaper than the bank interest which is a peculiarity of the Kenyan market where equity is cheaper than debt.


Shame on you
CapitalGain + DividendYield > CostOfDebt

Equity is less risky for KPLC hence it is DEARER than debt.

Debt is riskier for KPLC hence it is CHEAPER than Equity (Rights).

The inverse is true for the INVESTOR / LENDER.

This is what (I hope) we expect from the market. KenyaMarket is not peculiar in this respect.
"I'd rather be lucky than clever... every time!" - ME
"The problem is not what we don't know... it's what we know for sure that just ain't!" - MARK TWAIN
"Space we can recover... time never!" - NAPOLEON BONAPARTE
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VituVingiSana
#44 Posted : Thursday, June 16, 2011 6:32:44 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,103
Location: Nairobi
mozenrat wrote:
VituVingiSana wrote:


2) Makes sense to use the 9bn first before you go borrow [the Rights cash is interest-free]


@VVS Rights cash does have a cost (although it may not be called interest) - The additional dividends the company has to pay in perpetuity. With a dividend yield of only 4% its still cheaper than the bank interest which is a peculiarity of the Kenyan market where equity is cheaper than debt.

Careful! KPLC already HAVE THE CASH... they are not obligated to pay dividends! Note that during Rights Issues firms say all the right stuff but AFTER the Rights...

See Uchumi or KCB or a host of other Rights Issues... Dividends, wapi?

Dividend Yield is a cheaper form for KPLC than Debt. Why? 4% vs 14% [No tax shield though]

As for the Perpetuity aspect...
KPLC can borrow debt in perpetuity [borrow from Peter to pay Paul] so what's your point about 'dividends' in perpetuity?

In the future when KPLC is cash rich & CMA allows buybacks... they can always redeem the shares aka buy back the shares!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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mkonomtupu
#45 Posted : Tuesday, March 18, 2014 2:40:22 PM
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Joined: 2/10/2010
Posts: 1,001
Location: River Road
2012 wrote:
VituVingiSana wrote:
mkonomtupu wrote:
I am selling half of KPLC portfolio today, this company needs too much capital and is not good in utilizing capital it's like an airline. i'm looking for better bargains now that the market is looking down
Does it need capital? Yes, but that's what it raised in Dec 2010.


My thoughts exactly. I was wondering what mkonombaya is talking about.


3 years down the line looking at the share price, KPLC, there were better bargains. I think it's now time to start cautiously accumulating KPLC
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Aguytrying
#46 Posted : Tuesday, March 18, 2014 3:36:29 PM
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Joined: 7/11/2010
Posts: 5,040
mkonomtupu wrote:
2012 wrote:
VituVingiSana wrote:
mkonomtupu wrote:
I am selling half of KPLC portfolio today, this company needs too much capital and is not good in utilizing capital it's like an airline. i'm looking for better bargains now that the market is looking down
Does it need capital? Yes, but that's what it raised in Dec 2010.


My thoughts exactly. I was wondering what mkonombaya is talking about.


3 years down the line looking at the share price, KPLC, there were better bargains. I think it's now time to start cautiously accumulating KPLC


You are one of the greats of wazua even though you arent as celebrated as the others. and you are a fundie and believe in balancing with bonds..... what i want to be when I grow up
The investor's chief problem - and even his worst enemy - is likely to be himself
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wukan
#47 Posted : Tuesday, December 08, 2020 4:58:06 PM
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Joined: 11/13/2015
Posts: 1,590
Quite an interesting thread. Hindsight is 20/20.
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Fyatu
#48 Posted : Tuesday, December 08, 2020 6:03:29 PM
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Joined: 1/20/2011
Posts: 1,820
Location: Nakuru
wukan wrote:
Quite an interesting thread. Hindsight is 20/20.


hehehehe...I am waiting for this monkey at 80 cents where i will go hard at it. Thanks to Jubilee/UhuRuto government entrenched corruption, and state-capture by Dynasties a.k.a independent power producers (IPP's), this cash cow(mali ya umma) has been milked dry and is now on its knees.

Dumb money becomes dumb only when it listens to smart money
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murchr
#49 Posted : Tuesday, December 08, 2020 7:36:34 PM
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Joined: 2/26/2012
Posts: 15,980
Fyatu wrote:
wukan wrote:
Quite an interesting thread. Hindsight is 20/20.


hehehehe...I am waiting for this monkey at 80 cents where i will go hard at it. Thanks to Jubilee/UhuRuto government entrenched corruption, and state-capture by Dynasties a.k.a independent power producers (IPP's), this cash cow(mali ya umma) has been milked dry and is now on its knees.



Am telling you Uhuru did not care that the mother is a major shareholder here, capital erosion at its best
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
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VituVingiSana
#50 Posted : Tuesday, December 08, 2020 9:56:33 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,103
Location: Nairobi
murchr wrote:
Fyatu wrote:
wukan wrote:
Quite an interesting thread. Hindsight is 20/20.


hehehehe...I am waiting for this monkey at 80 cents where i will go hard at it. Thanks to Jubilee/UhuRuto government entrenched corruption, and state-capture by Dynasties a.k.a independent power producers (IPP's), this cash cow(mali ya umma) has been milked dry and is now on its knees.



Am telling you Uhuru did not care that the mother is a major shareholder here, capital erosion at its best
There was a lot more to be made from tenders.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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HaMaina
#51 Posted : Thursday, December 10, 2020 3:48:43 PM
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Joined: 4/23/2014
Posts: 909
murchr wrote:
Fyatu wrote:
wukan wrote:
Quite an interesting thread. Hindsight is 20/20.


hehehehe...I am waiting for this monkey at 80 cents where i will go hard at it. Thanks to Jubilee/UhuRuto government entrenched corruption, and state-capture by Dynasties a.k.a independent power producers (IPP's), this cash cow(mali ya umma) has been milked dry and is now on its knees.



Am telling you Uhuru did not care that the mother is a major shareholder here, capital erosion at its best


Maybe that's the plan cause a panic, then buy at low prices. Then claim to have come to save KPLC with some new plan and funds which cause the family wealth to multiply itself 200%.
“You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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sparkly
#52 Posted : Friday, December 11, 2020 9:54:03 PM
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Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
HaMaina wrote:
murchr wrote:
Fyatu wrote:
wukan wrote:
Quite an interesting thread. Hindsight is 20/20.


hehehehe...I am waiting for this monkey at 80 cents where i will go hard at it. Thanks to Jubilee/UhuRuto government entrenched corruption, and state-capture by Dynasties a.k.a independent power producers (IPP's), this cash cow(mali ya umma) has been milked dry and is now on its knees.



Am telling you Uhuru did not care that the mother is a major shareholder here, capital erosion at its best


Maybe that's the plan cause a panic, then buy at low prices. Then claim to have come to save KPLC with some new plan and funds which cause the family wealth to multiply itself 200%.


Dynasties cream off the top, don't wait for residual dividends and such. That's the reason why KPLC is in losses.
Life is short. Live passionately.
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VituVingiSana
#53 Posted : Saturday, December 12, 2020 12:16:22 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,103
Location: Nairobi
sparkly wrote:
HaMaina wrote:
murchr wrote:
Fyatu wrote:
wukan wrote:
Quite an interesting thread. Hindsight is 20/20.


hehehehe...I am waiting for this monkey at 80 cents where i will go hard at it. Thanks to Jubilee/UhuRuto government entrenched corruption, and state-capture by Dynasties a.k.a independent power producers (IPP's), this cash cow(mali ya umma) has been milked dry and is now on its knees.



Am telling you Uhuru did not care that the mother is a major shareholder here, capital erosion at its best


Maybe that's the plan cause a panic, then buy at low prices. Then claim to have come to save KPLC with some new plan and funds which cause the family wealth to multiply itself 200%.

Dynasties cream off the top, don't wait for residual dividends and such. That's the reason why KPLC is in losses.
TRUTH
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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