selah wrote:I thought all the preference shares from this company was converted to Ordinary shares..How Wrong was I.
So how can one value this company if par value of the preference shares is still 20/= with 2,150,000 shares.
The no. of preference shares is negligible when compared with the ordinary shares but if they were to be converted to ordinary shares there would be still some dilution.
Why didnt they just convert all preference shares?
That is only a very small part of the fuss that is Kenya Power. Initially, they were Kenya Power, they split into KenGen and kenyaPower. Assets were also split including the HQ on Kolobot rd. Why was it that KenGen inherited it's assets from KP but shareholders did not get a penny from the new outfit (think CFC bank and CFC insurance). Kengen actually issued an IPO to get new shareholders at the NSE. I never heard anyone complain.
Then came Kenya Transmission Company which was hived off KPLC. If someone hives off your land, you should have shares on the newly hived land equal to what the hived part was worth.
Then came Geothermal Development Authority and etc Whose assets do they use?
Wisdom to detect when share prices hit rock bottom.
When interest on bonds keep going up, you know the bear run is on high street. When interest on bonds start leveling, the bear has met the bull and they have hit rock bottom. When the interest rates on bonds start coming down, the bull has overpowered the bear and you better be riding the bull.