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Gordon Gekko		#11 Posted : Friday, January 10, 2014 4:01:13 PM
Rank: Elder Joined: 5/27/2008 Posts: 3,760		Drew wrote: What are the chances of a share split this year ? BAT it touching 600 Kshs ! Why do companies split? 1. To encourage more public participation, when eyeing the market for more capital, 2. To unlock value for shareholders since the split stocks will be worth more than the unsplit one. None of these seem relevant to BAT, they don't need more capital and their healthy dividend give sufficient value to its shareholders. I would be surprised if they split. A bonus could be in the offing though, as it slightly reduces the price of the share.
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Drew		#12 Posted : Friday, January 10, 2014 5:39:58 PM
Rank: Member Joined: 1/13/2009 Posts: 36		Bonus of what ratio do you reckon ??
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sparkly		#13 Posted : Friday, January 10, 2014 8:15:36 PM
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi		Drew wrote: Bonus of what ratio do you reckon ?? No Bonus, never heard of any since the dividend payout is usually 100% or more. This was the first share i doubled my money on the nse (not counting Kengen IPO). Bought at 128 and rode it all the was to around 290. Life is short. Live passionately.
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BGL		#14 Posted : Friday, January 10, 2014 8:17:24 PM
Rank: Veteran Joined: 10/11/2009 Posts: 1,223		Drew wrote: Bonus of what ratio do you reckon ?? BAT distributes most of its net profit. You are day dreaming if you still expect a BONUS from BAT. History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
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guru267		#15 Posted : Saturday, January 11, 2014 12:25:16 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		BAT will only issue bonus shares if it needs to preserve profits for investment purposes! With regards to a share split... I don't see that happening any time soon! I mean google shares trade well over $1,000 with no split in sight.. Mark 12:29 Deuteronomy 4:16
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VituVingiSana		#16 Posted : Sunday, January 12, 2014 2:26:21 AM
Rank: Chief Joined: 1/3/2007 Posts: 18,356 Location: Nairobi		guru267 wrote: BAT will only issue bonus shares if it needs to preserve profits for investment purposes! With regards to a share split... I don't see that happening any time soon! I mean google shares trade well over $1,000 with no split in sight.. How does a bonus preserve profits for investment purposes? Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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guru267		#17 Posted : Sunday, January 12, 2014 6:56:19 AM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		VituVingiSana wrote: guru267 wrote: BAT will only issue bonus shares if it needs to preserve profits for investment purposes! With regards to a share split... I don't see that happening any time soon! I mean google shares trade well over $1,000 with no split in sight.. How does a bonus preserve profits for investment purposes? If the company needs to start retaining earnings for investment purposes they may issue bonus shares in lieu of cash dividends to keep shareholders happy! Jubilee, Centum have adopted this strategy in the past! Mark 12:29 Deuteronomy 4:16
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VituVingiSana		#18 Posted : Sunday, January 12, 2014 5:45:29 PM
Rank: Chief Joined: 1/3/2007 Posts: 18,356 Location: Nairobi		guru267 wrote: VituVingiSana wrote: guru267 wrote: BAT will only issue bonus shares if it needs to preserve profits for investment purposes! With regards to a share split... I don't see that happening any time soon! I mean google shares trade well over $1,000 with no split in sight.. How does a bonus preserve profits for investment purposes? If the company needs to start retaining earnings for investment purposes they may issue bonus shares in lieu of cash dividends to keep shareholders happy! Jubilee, Centum have adopted this strategy in the past! Isn't it easier to NOT pay a dividend then spend the effort, time & cost to issue bonuses? And give me numbers for BAT. What is the criteria used? If the dividend is Shsh 30 [2% Dividend Yield] so is the Bonus based on Par Value or on Current Price? Berkshire Hathaway doesn't give bonuses nor dividends. Please explain. Greedy when others are fearful. Very fearful when others are greedy - *to paraphrase Warren Buffett*
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BGL		#19 Posted : Sunday, January 12, 2014 6:46:43 PM
Rank: Veteran Joined: 10/11/2009 Posts: 1,223		BAT is still a darling of foreign investors. BAT foriegn threshold breach. — Please note BAT has already surpassed the 75% theshold. Please ensure no foreign investor buys from Locals. History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison
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guru267		#20 Posted : Sunday, January 12, 2014 8:23:17 PM
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi		VituVingiSana wrote: guru267 wrote: VituVingiSana wrote: guru267 wrote: BAT will only issue bonus shares if it needs to preserve profits for investment purposes! With regards to a share split... I don't see that happening any time soon! I mean google shares trade well over $1,000 with no split in sight.. How does a bonus preserve profits for investment purposes? If the company needs to start retaining earnings for investment purposes they may issue bonus shares in lieu of cash dividends to keep shareholders happy! Jubilee, Centum have adopted this strategy in the past! Isn't it easier to NOT pay a dividend then spend the effort, time & cost to issue bonuses? And give me numbers for BAT. What is the criteria used? If the dividend is Shsh 30 [2% Dividend Yield] so is the Bonus based on Par Value or on Current Price? Berkshire Hathaway doesn't give bonuses nor dividends. Please explain. When shareholders are used to something you do not take it away unless you do not care about the share price! I was merely pointing out that if BAT needed capital then they could replace the cash dividend with a bonus like plenty of companies have done in the past to keep shareholders happy! Warren Buffet might be an astute investor but his method has never been the only method of doing things! Mark 12:29 Deuteronomy 4:16
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