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Its A Rights Issue From Kenya Airways!
underweight
#121 Posted : Friday, March 09, 2012 7:12:12 PM
Rank: Member


Joined: 1/25/2009
Posts: 184
Location: For now El-Fashier - Darfur
On a simple calculation that gives an average of KShs 14 per right that translates to 3:1 wat a dilution????. I wonder why the price increased today!!!!!!
"A bad decision made now is beta that a good one made later!!"
hisah
#122 Posted : Friday, March 09, 2012 8:38:03 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
underweight wrote:
On a simple calculation that gives an average of KShs 14 per right that translates to 3:1 wat a dilution????. I wonder why the price increased today!!!!!!

Bad news priced in. This plane has been on negative extreme sentiments for too long. Mr Market now seeks to move against the mass...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
the deal
#123 Posted : Saturday, March 10, 2012 4:51:47 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
The smart guy is the one who sold his shares on Friday!!! The dilution here is unthinkable...what with the airline seeking to raise an amount which is almost 3X it's current market cap!!!!Sad Sad
QW25091985
#124 Posted : Saturday, March 10, 2012 5:19:19 PM
Rank: User


Joined: 1/24/2012
Posts: 1,675
Location: In Da Hood
the deal wrote:
The smart guy is the one who sold his shares on Friday!!! The dilution here is unthinkable...what with the airline seeking to raise an amount which is almost 3X it's current market cap!!!!Sad Sad


and you forgot 50% of the rights is already taken . and this arenot people who will buy today sell tomorrow or when theirs the slightest spook of a recession !...! it will be a scramble for the few remaining ones !
guru267
#125 Posted : Saturday, March 10, 2012 7:49:13 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
1.94 billion shares outstanding after this rights issue...

The P/E ratio will only be 7.5 after the rights issue.. Thats below the market P/E of 8.75..

It will still be trading way below NAV..

My worry is whether KQ will grow or even manage to maintain a PAT of 4billion with oil prices and the increasing low cost competition on its back...

You have to REALLY get it right to grow and maintain profits and NAV in the airline business.. Its just like insurance business (ask Jubilee & CIC) smile then in the same breath look at (Britank and Pan Africa Sad ) ..

You either get BURNED really badly or filfthy RICH...



Mark 12:29
Deuteronomy 4:16
mlennyma
#126 Posted : Saturday, March 10, 2012 8:06:50 PM
Rank: Elder


Joined: 7/21/2010
Posts: 6,192
Location: nairobi
If you decide not to take your rights,you offer yourself for dilution.
"Don't let the fear of losing be greater than the excitement of winning."
Aguytrying
#127 Posted : Sunday, March 11, 2012 10:29:56 PM
Rank: Elder


Joined: 7/11/2010
Posts: 5,040
Buyer beware. Know what you are buying, because you will hold it for a long long time before adequate return on investment.
The investor's chief problem - and even his worst enemy - is likely to be himself
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