Sawas@GG, I even thought you would say 15 not 12.50, which is but a modest increase.

But I am in no doubt you do NOT want to be the guy buying at the higher end of the range, post results. Knowing you, I am sure you will be biding your time - to sell to the guy who will bid up to 12.50 (15?), having already bought your fill earlier.

But since most guys have wised up that we are in a bear market, they will not be too happy to push the price up, atakama wanajua KK ndiyo kiboko yao!

PAT at half year is 2.157 billion,EPS at half year of 1.32,factoring in a 10% ESOP dilution!.And .57cents dividend to be paid on 2nd September.Not so bad.

my friend you buy and hold. Are you seeing any capital gains anywhere of late? This is an assured earning, with the possibility of capital retention or appreciation.

@Qw. You may be right to laugh at those buying now, though they'll make some cash. The ones who'll make a kill are us who bought sub-ten bob.

GG, Precisly what I thought not about the h**d-on, but on what action you will be taking from tomorrow onwards. You will be a seller if the opportunity presents itself.

@Iborian. Worse still would be for International oil prices to tumble at a time like this with 20 billion in stocks. It happened to them before and they made quite a loss. Hope they learnt a good lesson.

WooW i'm blown away...i cried for an interim dividend KK...JIS gave me Sh0.57....amazing...i have been in the dark the whoke day cos of this damn cold...congrats to JIS...he is a true Cpt of the industry.

Super!! (not the fuel @mwanahisa et.all. Been mis-quoted & harassed too often, )

cnn, I remember you saying you wish you had more cash you would buy up to 13. Talk about being proven right

I must say that the half year results are beyond my wildest expectations.

A net profit of Ksh 2.157B means a half year EPS of Ksh 1.34 after the 140M shares ESOP (hope Wazuans can now appreciate the power of employee motivation and impact of making employees stakeholders in a business).

Management has indicated that projected 2nd half 2011 will be stronger than 2nd half 2010. This means an EPS of > Ksh 0.41 for second half; and hence an EPS of > Ksh 1.75 for 2011.

Even if the market continues valuing the share at a P/E of 9, this points to a target price of (Ksh 1.75 x 9)= Ksh 15.75 for March 2012.

By paying an interim dividend of Ksh 0.57 (for 6 months trading)which is almost 10% higher than the 12 months trading dividend (Ksh 0.52) for last year; the company is demonstrating that it has confidence of a very good 2nd half 2011.

I forsee a bonus issue of 1:5 with final year results and a final dividend of Ksh 0.43 to bring the 2011 dividend payment to Ksh 1.00. Remember the reason for increasing the number of shares was given as both for the ESOP and to increase the trading of KK shares(Increase market Liquidity). After the ESOP allocation of 140M, the total issued shares becomes abt 1.612B,thus 388M shares are left. This makes a 1:5 bonus feasible.

Having bought a huge holding (in the hundreds of thousands)of KK for my long term portfolio in early this year at average of about Ksh 10, i am impressed by the return on investment. In less than six months of holding, the share is returning a dividend of Ksh 0.52 + Ksh 0.57 = Ksh 1.09 and a further capital gain of at least Ksh 1.00.

It therefore begs the question 'What do those people shooting KK down have in their portfolio?'

It will be interesting to see what this share will be trading at Early 2013 after the elections are done and dusted and if this growth momentum is maintained, I wouldn't be surprised if it will be in the Ksh 20s.

I rarely give a Strong Buy recommendation to a share, but thats exactly how i rate KK at a price below Ksh 12.50.

Happy hunting.