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Advice: CMA approves NIC Bank’s Sh2 billion Rights Issue .
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sparkly
#11 Posted : Wednesday, July 25, 2012 1:43:12 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
guru267 wrote:
sparkly wrote:
Do both. Sell the shares that you have now, remaining with 100 shares. Apply for additional rights at 21.


This is the most dangerous advice for any rights issue that will be surely oversubscribed..

This move would only work for ambitious or poorly valued rights issues eg. KPLC(ambitious) , KCB(ambitious) , KQ(poorly valued)..

This move completely failed in the Stanchart issue and all previous DTB rights issues due to generous valuations and tiny capital reqirements..

The NIC and DTB issues will be highly oversubscribed so if you remain with 100 shares do not expect more than 25 additional shares from NIC..

My strategy would be to sell all my shares in NIC and buy ex rights below 30.. Then when the rights begin trading scoop them up at 25-27bob..

Less ambitious but more realistic!!



@guru i don't see the difference between your strategy and mine. If i fail to get an extra allocation at 21, i will just buy the shares when the rights start trading.

Either way, if NIC hits 40 CR i will sell whatever i have, remaining with 100 and apply for additional rights. Upside from 40 IMO is 15% or thereabouts.
Life is short. Live passionately.
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gesowan
#12 Posted : Tuesday, July 31, 2012 5:21:03 AM
Rank: Member

Joined: 11/6/2010
Posts: 289
@sparkly it has hit 40 and heading north have u sold??
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mlennyma
#13 Posted : Tuesday, July 31, 2012 8:19:54 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Books close.may dip today.
"Don't let the fear of losing be greater than the excitement of winning."
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King G
#14 Posted : Tuesday, July 31, 2012 9:16:45 AM
Rank: Elder

Joined: 6/20/2012
Posts: 3,855
Location: Othumo
accelriskconsult wrote:
mkonomtupu wrote:
At that discount i'm all set to throw my uchumi capital gains into the NIC rights. I like the management, the business plan and I trust the Ndegwa family their firms are well managed and stable. This is the only bank I have bought at almost book value, my two cents take up the rights and be patient just like KCB



I was very pleased when they appointed Joseph Mutugu as the finance director http://www.nic-bank.com/about/management/.

Man going places for a bank going places



I have worked with 4 guys in that squad and i fully trust them and they have come along way with the Ndegwe boys. I know not many know that the boys worked for sometime at Citibank when dad was Governor. Strong financial management foundation.
Thieves
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guru267
#15 Posted : Tuesday, July 31, 2012 11:27:07 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
sparkly wrote:
@guru i don't see the difference between your strategy and mine. If i fail to get an extra allocation at 21, i will just buy the shares when the rights start trading.

Either way, if NIC hits 40 CR i will sell whatever i have, remaining with 100 and apply for additional rights ...


@sparkly how will you know how many rights yout have been allocated before the official announcement??

I repeat that NO INVESTOR will receive any additional rights whatsoever on the current NIC rights issue!!
Mark 12:29
Deuteronomy 4:16
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gesowan
#16 Posted : Saturday, August 11, 2012 5:06:25 PM
Rank: Member

Joined: 11/6/2010
Posts: 289
how is the uptake of the rights ?
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mwekez@ji
#17 Posted : Saturday, August 11, 2012 6:17:56 PM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
@gesowan, relax. rights issue will open on 27th August.
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gesowan
#18 Posted : Tuesday, October 16, 2012 2:05:47 AM
Rank: Member

Joined: 11/6/2010
Posts: 289
@youcantstopusnow,
what my bird told me is that you will definately get ur entitled shares meaning if u had 4000 you got 1000 which you fullypaid for,but if u decided to get an extra 100,000,to BAD,they will culculate the 29.58% on RIGHTS ENTITLEMENT that is 1000 and not 100k,hope we are clear now, so u get 295....not 29,500(which i guess is what Wazuans r hoping for)
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Hunderwear
#19 Posted : Sunday, December 30, 2012 8:42:47 AM
Rank: Member

Joined: 4/14/2011
Posts: 639
mkonomtupu wrote:
At that discount i'm all set to throw my uchumi capital gains into the NIC rights. I like the management, the business plan and I trust the Ndegwa family their firms are well managed and stable. This is the only bank I have bought at almost book value, my two cents take up the rights and be patient just like KCB


What an advice mkono!!!!You were dead-on here
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sparkly
#20 Posted : Sunday, December 30, 2012 8:48:44 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
gesowan wrote:
@sparkly it has hit 40 and heading north have u sold??


@gesowan, Didn't sell. Sense prevailed and i took part in the rights, plus the bonus have been downloaded into the CDS account.

Stock is cheap IMO, the downside risk is low. I will hold out till Mr. Market gives me PER of 15.

Am a buyer at 30 or below.
Life is short. Live passionately.
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