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Its A Rights Issue From Kenya Airways!
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mkonomtupu
#21 Posted : Monday, September 19, 2011 12:14:04 PM
Rank: Veteran

Joined: 2/10/2010
Posts: 1,001
Location: River Road
@deal, giving capital to an airline is like feeding a glutton, hope you are patient to wait like 5-10 years for returns
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stocksmaster
#22 Posted : Monday, September 19, 2011 12:16:04 PM
Rank: Member

Joined: 9/26/2006
Posts: 463
Location: CENTRAL PROVINCE
the deal wrote:
KQ likely to do a 2 for every 1 held RI at Sh24 bring total issued shares to 1.38 Bln, at a PE of 5.8 KQ would still be cheap if you take up all your rights or buy from the market at that price!


A 2:1 Rights issue without a bonus component would dilute the current share price by a similar factor in order to maintain the same P/E. ie the 7.65 Earnings Per 1 Share (EPS)would now be shared by 3 shares (hence a new EPS post rights of Ksh 2.55). To maintain the same prevailing P/E of 4, the share price post rights would thus be (4 x 2.55)= Ksh 10.2.
A mixture of rights and bonus seems like the only logical option, as the bonus shares issued would cushion the dilution.

It may be prudent to await the rights details before any KQ purchase due to the size of the anticipated rights and the prevailing market conditions.

Happy hunting.
x handle: @stocksmaster79
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  | | Edit by user: Monday, September 19, 2011 12:19 PM | Reason: Not specified
the deal
#23 Posted : Monday, September 19, 2011 12:29:40 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
stocksmaster wrote:
the deal wrote:
KQ likely to do a 2 for every 1 held RI at Sh24 bring total issued shares to 1.38 Bln, at a PE of 5.8 KQ would still be cheap if you take up all your rights or buy from the market at that price!


A 2:1 Rights issue without a bonus component would dilute the current share price by a similar factor in order to maintain the same P/E. ie the 7.65 Earnings Per 1 Share (EPS)would now be shared by 3 shares (hence a new EPS post rights of Ksh 2.55). To maintain the same prevailing P/E of 4, the share price post rights would thus be (4 x 2.55)= Ksh 10.2.
A mixture of rights and bonus seems like the only logical option, as the bonus shares issued would cushion the dilution.

It may be prudent to await the rights details before any KQ purchase due to the size of the anticipated rights and the prevailing market conditions.

Happy hunting.

I'm looking it at this angle a 2:1 RI at a price of Sh24 will result in 1.38 Bln new shares remember theyre raising Sh22 Bln (920Mln shares X Sh24=Sh22Bln)..thus a PAT of 5800/1380 shares=4.2 EPS...thus a RI price of Sh24 trailing PE will be 5.7...thus at the current price of Sh31 all is factored in the price!
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the deal
#24 Posted : Monday, September 19, 2011 10:31:04 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
The RI kick off on 1st of November and theyre raising Sh22 Billion like I have stated above http://businessdailyafri...8/-/5pbk7oz/-/index.html
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Sober
#25 Posted : Tuesday, September 20, 2011 8:04:00 AM
Rank: Elder

Joined: 11/27/2007
Posts: 3,604
anyone going for the AGM that will give birth to the rights offer in November.
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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the deal
#26 Posted : Tuesday, September 20, 2011 8:16:53 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Sober wrote:
anyone going for the AGM that will give birth to the rights offer in November.

I will have to attend that AGM, for the mean time I will buy 200 shares only as we wait for the announcement...i have done my research on this one...God willing I will post my findings by the end of the week here http://contrarianinvestingkenya.info imagine the rights issue kick of before 1H results are announced thats how bullish theyre...me i'm also bullish...LOL.
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QW25081985
#27 Posted : Tuesday, September 20, 2011 9:01:07 AM
Rank: User

Joined: 8/29/2011
Posts: 1,045
Location: Mtaani
Any freebies in the AGM ,,lol !
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mlennyma
#28 Posted : Tuesday, September 20, 2011 9:23:07 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Tissue paper free and pain killers.
"Don't let the fear of losing be greater than the excitement of winning."
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mwekez@ji
#29 Posted : Tuesday, September 20, 2011 9:24:51 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121

Authorised share capital to be doubled to 2M shares at the AGM

http://www.reuters.com/article/...al-idUSL5E7KK04720110920
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mwekez@ji
#30 Posted : Tuesday, September 20, 2011 10:34:57 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
QW25081985 wrote:
Any freebies in the AGM ,,lol !


mlennyma wrote:
Tissue paper free and pain killers.


Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly
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