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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
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@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
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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.
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the deal
#23 Posted : Monday, September 19, 2011 12:29:40 PM
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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
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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
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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
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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
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Any freebies in the AGM ,,lol !
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mlennyma
#28 Posted : Tuesday, September 20, 2011 9:23:07 AM
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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
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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
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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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mwekez@ji
#31 Posted : Tuesday, September 20, 2011 5:19:47 PM
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mlennyma
#32 Posted : Tuesday, September 20, 2011 10:11:58 PM
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I offer myself for dilution,i wont pick any rights but i will get in below rights price which is a must come.
"Don't let the fear of losing be greater than the excitement of winning."
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sparkly
#33 Posted : Tuesday, September 20, 2011 10:46:52 PM
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mlennyma wrote:
I offer myself for dilution,i wont pick any rights but i will get in below rights price which is a must come.

I will buy 100 shares and then apply for your rights...
Life is short. Live passionately.
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mlennyma
#34 Posted : Tuesday, September 20, 2011 10:51:17 PM
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Why buy my rights and the share will fall below the rights price?
"Don't let the fear of losing be greater than the excitement of winning."
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Aguytrying
#35 Posted : Wednesday, September 21, 2011 8:10:12 AM
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I'm still deciding what to do with this. i'm definitely not applying for my rights. I think they will be oversubscribed. With 50 percent already catered for.
The investor's chief problem - and even his worst enemy - is likely to be himself
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StatMeister
#36 Posted : Wednesday, September 21, 2011 8:26:19 AM
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I guess its a 1:1, today's Daily Nation page 22, special business.

"That the authorized share capital . . . from 1,000m shares to 2,000m shares by creating 1,000m new ordinary shares

My assumption is that the additional shares in 8. will be financed by the rights issue in 9.
A bad day fishing is better than a good day at work
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mlennyma
#37 Posted : Wednesday, September 21, 2011 8:31:14 AM
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I will re-consider my stand only if an underwriter surfaces but with the big boys taking almost 50% there is some share stability hope.
"Don't let the fear of losing be greater than the excitement of winning."
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sparkly
#38 Posted : Wednesday, September 21, 2011 8:38:19 AM
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mlennyma wrote:
Why buy my rights and the share will fall below the rights price?


short term play.

Apply for extra rights, buy at rights price. Then sell.

15% profit will be enough for me. I am liquid!
Life is short. Live passionately.
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QW25081985
#39 Posted : Wednesday, September 21, 2011 9:10:40 AM
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mlennyma wrote:
Why buy my rights and the share will fall below the rights price?


we are fighting for only 50% of the rights ...Why in Gods name shld the rights price tank ?????
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QW25081985
#40 Posted : Wednesday, September 21, 2011 9:22:35 AM
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mlennyma wrote:
I offer myself for dilution,i wont pick any rights but i will get in below rights price which is a must come.


if you dnt take up ur rights you'll be in allot of problems coz the additional shares have already been factored in at the current price of 31. that i know ..
just using the efficient market theory ..
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