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NIC Bank - Another profitable Rights coming up!
Rank: Member Joined: 8/17/2010 Posts: 116
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NIC GROUP SHARE CAPITAL
Share capital as on 31.03.2014 was 2,714,921,000
Share Capital as on 30.06.2014 are 3,257,905,000
Share Capital went up by 20%.
It should go up by 10% as Bonus Share issued only 10%.
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Rank: Member Joined: 8/17/2010 Posts: 116
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RECD RESPONSE FROM NIC
I trust you are keeping well.
Sir, kindly accept our sincere apologies for the delayed response.
The 20% increase in share capital appears to be an error in the reallocation of share premium to paid up share capital for the bonus issue. There was a double counting of the KES 271,492,000 ( 54,298,414 bonus shares * KES 5 par) in the process. Share premium therefore reduced by twice that amount to KES 665,084,000 instead of KES 936,576,000. On a net basis therefore, shareholders equity is as it should be. We hope the slight error will be corrected in future financial statements.
Thank you.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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KIRTI wrote:RECD RESPONSE FROM NIC
I trust you are keeping well.
Sir, kindly accept our sincere apologies for the delayed response.
The 20% increase in share capital appears to be an error in the reallocation of share premium to paid up share capital for the bonus issue. There was a double counting of the KES 271,492,000 ( 54,298,414 bonus shares * KES 5 par) in the process. Share premium therefore reduced by twice that amount to KES 665,084,000 instead of KES 936,576,000. On a net basis therefore, shareholders equity is as it should be. We hope the slight error will be corrected in future financial statements.
Thank you. These 'errors' by NIC are interesting. They had issued 2 releases after the last Rights Issue. Different numbers. The second 'corrected' release had issued Ndegwas more shares! When is 'hope' a criteria? One should not "hope" to correct an error. Make the correction! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: User Joined: 1/20/2014 Posts: 3,528
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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me too. 75? The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Aguytrying wrote:@sparkly. the price is unlikely to even go down! see how DTK rallied to 280. I'm for seeing a similar pattern here. may rally to 75 cum rights. then rights will be in short supply. and Will go for a premium.
Time to buy is now at 60.00. cum rights sell half at a profit. take up rights sell the other half towards dec at a higher price than 60.00
this is assuming not very dilutive rights like DTK one month later 10% up, you're welcome followers The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: User Joined: 1/20/2014 Posts: 3,528
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I have had this counter for some time now. However when you posted where you computed a likely of RP being 45 bob and knowing Kenyans i bought some speculative chunk at 60.25 bob (inclusive of comm). I am targeting to exit at 75 next week at a net of 20%! Either way i am not losing in this one! My non speculative portfolio still intact build over time from the days of 160+ bob!  Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Aguytrying wrote:After an afternoon brainstorming session I came up with the following predictions.
rights issue of 1 share for every 6 held.
rights price of 45.00 a 25% discount from average price of last 6 months of 60.00. (indeed even 1year!)
88-91 million shares to be issued. to raise 4.02bn kshs.
let's wait for 30th july to see where my elderly(ness) has reached. the bond changed this prediction, now they want to raise 2.01. they could go for 1:10 and a Rights price of about 45 -+. there's a time it dipped to 55 about 2 -4 weeks ago. what a steal that was The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 1/25/2010 Posts: 344
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so much renewed interest in this counter. rights? bond? who can give us the FI buys n sell ratios for the past 2 weeks or so?
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Aguytrying wrote:@sparkly. the price is unlikely to even go down! see how DTK rallied to 280. I'm for seeing a similar pattern here. may rally to 75 cum rights. then rights will be in short supply. and Will go for a premium.
Time to buy is now at 60.00. cum rights sell half at a profit. take up rights sell the other half towards dec at a higher price than 60.00
this is assuming not very dilutive rights like DTK this was on 7th July 2014. I exited today at 75.00. a cool 20%. and I see this one going to the 80's. will await for another profitable rights issue/or listing. this one felt good The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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a bulb just lit up. when rights start trading the share will dip, ex rights. time to buy again and ride it back to subscription announcement! see DTB going back to 280! if bear comes in, all bets are off The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Aguytrying wrote:Aguytrying wrote:@sparkly. the price is unlikely to even go down! see how DTK rallied to 280. I'm for seeing a similar pattern here. may rally to 75 cum rights. then rights will be in short supply. and Will go for a premium.
Time to buy is now at 60.00. cum rights sell half at a profit. take up rights sell the other half towards dec at a higher price than 60.00
this is assuming not very dilutive rights like DTK this was on 7th July 2014. I exited today at 75.00. a cool 20%. and I see this one going to the 80's. will await for another profitable rights issue/or listing. this one felt good Well done @Aguy. NIC is on steroids. Life is short. Live passionately.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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Aguytrying wrote:a bulb just lit up. when rights start trading the share will dip, ex rights. time to buy again and ride it back to subscription announcement! see DTB going back to 280!
if bear comes in, all bets are off DTB HY EPS was 12 and that's without the potential gains from the extra cash in 2H. I expect FY EPS even after the 10% dilution to be 24/-. Now the potential for 2015 is even higher as DTB looks at (almost) virgin markets like Mozambique & DRC. Lots of money to be made for a first mover. And Serena (Polana Maputo) has already scoped Mozambique out for DTB. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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you sell a share and the next trading day its up by almost 10%. inexplicable pain since I made my cash. I'm seeing 90's here. pure madness The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 5/14/2014 Posts: 288 Location: nairobi
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Aguytrying wrote:you sell a share and the next trading day its up by almost 10%. inexplicable pain since I made my cash. I'm seeing 90's here. pure madness trade less often! I find satisfaction in owning great business,not trading them
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Rank: Member Joined: 9/16/2006 Posts: 229
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http://www.businessdaily...32/-/phkaqy/-/index.html“I don’t regret the things I’ve done, I regret the things I didn’t do when I had the chance.”
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Aguytrying wrote:you sell a share and the next trading day its up by almost 10%. inexplicable pain since I made my cash. I'm seeing 90's here. pure madness Happens in a bull market. Where rising prices lead to higher prices. George Soros calls it reflexity in "the alchemy of finance" Life is short. Live passionately.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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sparkly wrote:Aguytrying wrote:you sell a share and the next trading day its up by almost 10%. inexplicable pain since I made my cash. I'm seeing 90's here. pure madness Happens in a bull market. Where rising prices lead to higher prices. George Soros calls it reflexity in "the alchemy of finance" Until it all comes crashing down! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: User Joined: 9/6/2013 Posts: 1,446 Location: In a house
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Aguytrying wrote:you sell a share and the next trading day its up by almost 10%. inexplicable pain since I made my cash. I'm seeing 90's here. pure madness Don't say that. I sold BAT at 730 then the next day it is at 800! Following day, 825!!
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Rank: Member Joined: 1/25/2010 Posts: 344
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