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Kenol Kobil deal off!
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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mwekez@ji wrote:c95% of KK shares are held in the hands of 'non-wanjikus'. ... the other c5% is very welcomed to capitulate  That 5% of wanjikus can wipe billions off KKs market capitalization with sell orders! Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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guru267 wrote:mwekez@ji wrote:c95% of KK shares are held in the hands of 'non-wanjikus'. ... the other c5% is very welcomed to capitulate That 5% of wanjikus can wipe billions off KKs market capitalization with sell orders! Its sad that the deal is off. We are just about to see our gains disappear just like that poof! Time to sell (will be lucky to get 12) and wait for 8 bob. On the other hand i expect the annoying cases to be settled. Life is short. Live passionately.
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Rank: Member Joined: 1/1/2010 Posts: 511 Location: kandara, Murang'a
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the deal wrote:Interesting now no one on Wazua owns Kenol Kobil apart from me and @VVS and others...Overall the news came at the right time...its a Friday and by the time the market opens next week...it will be either in a foul or in a euphoric state because of the elections...I expect the FY results to be better than the interim report...I dont expect the stock to get a severe beating...downside from the current price is 15-20%. I got off at 14 cos of liquidity problems that ended up not being and it now feels like a very clever move :)) Foresight..
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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I dont own kk but selling at 10bob will be hard with the losses made,no dividend,million cases,puma pullout,staff mngmt bad blood,this thing is not good there are better stress free counters but money can still be made in kk,may be they give bonus shares. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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The deal was terminated by mutual agreement...Puma was dragging its feet...Kenol had to move on probably new suitors around the corner.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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guru267 wrote:mwekez@ji wrote:c95% of KK shares are held in the hands of 'non-wanjikus'. ... the other c5% is very welcomed to capitulate That 5% of wanjikus can wipe billions off KKs market capitalization with sell orders! Loss of market cap on fume volumes will always be regained as easily #MakingMoney2013
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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guru267 wrote:mwekez@ji wrote:c95% of KK shares are held in the hands of 'non-wanjikus'. ... the other c5% is very welcomed to capitulate That 5% of wanjikus can wipe billions off KKs market capitalization with sell orders! Obviously, you do not read Warren Buffett. Does the market cap matter? The market cap has nothing to do with the 'business' and when the 5% are bought out, the biz will hum along. Ironically, the 5% will return to buy back the shares later! Diageo patiently bought shares in EABL [the Rights price a decade or so ago was HIGHER than the shares on the market] including any Rights shares 'wanjiku' didn't buy. Now it has more than 50%. Stanbic SA just did the same with CFC Stanbic. They underwrote the Rights Issue. Sanlam is doing the same with Pan Africa to get to 60%. KK's market cap [important for shareholders who want to sell] is irrelevant to the business of selling fuel. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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VituVingiSana wrote:guru267 wrote:mwekez@ji wrote:c95% of KK shares are held in the hands of 'non-wanjikus'. ... the other c5% is very welcomed to capitulate That 5% of wanjikus can wipe billions off KKs market capitalization with sell orders! Obviously, you do not read Warren Buffett. Does the market cap matter? The market cap has nothing to do with the 'business' and when the 5% are bought out, the biz will hum along. Ironically, the 5% will return to buy back the shares later! Diageo patiently bought shares in EABL [the Rights price a decade or so ago was HIGHER than the shares on the market] including any Rights shares 'wanjiku' didn't buy. Now it has more than 50%. Stanbic SA just did the same with CFC Stanbic. They underwrote the Rights Issue. Sanlam is doing the same with Pan Africa to get to 60%. KK's market cap [important for shareholders who want to sell] is irrelevant to the business of selling fuel. Again... we cannot compare pan Africa, stanbic or EABL to Kenol Kobil... Every stock has an entry point.. And for KK it is 7-8bob! Hope to see you there Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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VituVingiSana wrote:KK's market cap [important for shareholders who want to sell] is irrelevant to the business of selling fuel.
  Doesn't market capitalization affect the company's ability to raise capital for the business through a rights issue? Isn't capital central to a business operation! Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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guru267 wrote:VituVingiSana wrote:KK's market cap [important for shareholders who want to sell] is [b[irrelevant to the business of selling fuel.[/b]
 Doesn't market capitalization affect the company's ability to raise capital for the business through a rights issue? Isn't capital central to a business operation! Rights Issues are but one way of raising funds. Smart 'owners' like James Mwangi (Equity), Bharat Thakrar (ScanGroup), Pradeep Paunrana (ARM), Gideon Muriuki (Coop) raised funds without diluting the shareholders like non-owner (pure salary based) Titus Naikuni (KQ) did. In any event, does KK need more capital? I doubt they need to raise cash via a Rights Issue but have other sources like long-term debt [at cheaper rates than what shareholders can borrow at] & selling excess assets. Firms can still raise cash via a Rights Issue even if the Market Cap is lower. It's a question of pricing. NIC Bank went for a Rights Issue at 21/- when the price of the shares were 30/-. What they did was not issue too many shares [see 1:13 for SCBK] at the low price. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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hii mambo ya mafuta sielewi sana therefore I cant invest. its highly similar to airlines in that its prone to many macroeconomic variables that change by the minute! very unattractive..
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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obiero wrote:hii mambo ya mafuta sielewi sana therefore I cant invest. its highly similar to airlines in that its prone to many macroeconomic variables that change by the minute! very unattractive.. You are in Financials (KCB and HFCK). Where else? Diversification is important
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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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mwekez@ji wrote:obiero wrote:hii mambo ya mafuta sielewi sana therefore I cant invest. its highly similar to airlines in that its prone to many macroeconomic variables that change by the minute! very unattractive.. You are in Financials (KCB and HFCK). Where else? Diversification is important ARM, SCOM, BRALIRWA.. form part of my portfolio. i diversify minimally and most importantly, seasonally. market experience across EA has taught me that the african exchanges tend to favour financials
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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mwekez@ji wrote:obiero wrote:hii mambo ya mafuta sielewi sana therefore I cant invest. its highly similar to airlines in that its prone to many macroeconomic variables that change by the minute! very unattractive.. You are in Financials (KCB and HFCK). Where else? Diversification is important QUESTION: Would I ever diversify into an expensive crappy stock just for the sake of diversifying?? ANSWER: I think not!! Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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guru267 wrote:mwekez@ji wrote:obiero wrote:hii mambo ya mafuta sielewi sana therefore I cant invest. its highly similar to airlines in that its prone to many macroeconomic variables that change by the minute! very unattractive.. You are in Financials (KCB and HFCK). Where else? Diversification is important QUESTION: Would I ever diversify into an expensive crappy stock just for the sake of diversifying?? ANSWER: I think not!! @Guru, Diversification ni muhimu. Am sure we agree on this front To stocks that one understands and are well priced. @obiero doesnt understand biashara ya KK thats why he even thinks its comparable to KQ which is outrightly incorrect. I would therefore not try to woe him to diversify in KK .... Am curious to know which counters he has put his money. DO YOU WANT TO ANSWER THAT FOR HIM!!!
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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obiero wrote:mwekez@ji wrote:obiero wrote:hii mambo ya mafuta sielewi sana therefore I cant invest. its highly similar to airlines in that its prone to many macroeconomic variables that change by the minute! very unattractive.. You are in Financials (KCB and HFCK). Where else? Diversification is important ARM, SCOM, BRALIRWA.. form part of my portfolio. i diversify minimally and most importantly, seasonally. market experience across EA has taught me that the african exchanges tend to favour financials Cheers Obiero. Am with you in the financials
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Any transfer of assets involving both exploratory and marketing oil companies will be subject to the new withholding tax, the Kenya Revenue Authority (KRA) has stated. The taxman’s statement, which came on a day when KenolKobil announced that buy-out negotiations with Swiss-based Puma Energy had collapsed, was met with sharp reaction by experts who argued that it contradicts intention of the new tax. http://www.businessdaily...8/-/n4webg/-/index.html
GOD BLESS YOUR LIFE
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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life continues... possunt quia posse videntur
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Rank: Elder Joined: 6/23/2009 Posts: 13,555 Location: nairobi
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mwekez@ji wrote:guru267 wrote:mwekez@ji wrote:obiero wrote:hii mambo ya mafuta sielewi sana therefore I cant invest. its highly similar to airlines in that its prone to many macroeconomic variables that change by the minute! very unattractive.. You are in Financials (KCB and HFCK). Where else? Diversification is important QUESTION: Would I ever diversify into an expensive crappy stock just for the sake of diversifying?? ANSWER: I think not!! @Guru, Diversification ni muhimu. Am sure we agree on this front To stocks that one understands and are well priced. @obiero doesnt understand biashara ya KK thats why he even thinks its comparable to KQ which is outrightly incorrect. I would therefore not try to woe him to diversify in KK .... Am curious to know which counters he has put his money. DO YOU WANT TO ANSWER THAT FOR HIM!!! KQ and KK are officially twins! The two seem to be competing on how to make a bigger loss. Who's smarter now? :)
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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obiero wrote:mwekez@ji wrote:guru267 wrote:mwekez@ji wrote:obiero wrote:hii mambo ya mafuta sielewi sana therefore I cant invest. its highly similar to airlines in that its prone to many macroeconomic variables that change by the minute! very unattractive.. You are in Financials (KCB and HFCK). Where else? Diversification is important QUESTION: Would I ever diversify into an expensive crappy stock just for the sake of diversifying?? ANSWER: I think not!! @Guru, Diversification ni muhimu. Am sure we agree on this front To stocks that one understands and are well priced. @obiero doesnt understand biashara ya KK thats why he even thinks its comparable to KQ which is outrightly incorrect. I would therefore not try to woe him to diversify in KK .... Am curious to know which counters he has put his money. DO YOU WANT TO ANSWER THAT FOR HIM!!! KQ and KK are officially twins! The two seem to be competing on how to make a bigger loss. Who's smarter now? :) @obiero, you are in KQ, right? Am currently neither in KQ nor KK. I, i have thrown these counters to speculation/trading corner. They will make me money #Speculation #Trading #Who's smarter now
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Kenol Kobil deal off!
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