Wazua
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Briatm, Britam, Britam sounds like sweet candy!
Rank: Member Joined: 5/21/2014 Posts: 184
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The whole matter of finding the person who will agree to pump in money and the resulting dilution or the Ts&Cs that come with external money is something KQ shareholders will also need to grapple with sooner rather than later. And sadly I think the share will rally even then! There are too many opportunities all around. Open your eyes and maybe you'll spot one
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Rank: Elder Joined: 6/23/2009 Posts: 13,549 Location: nairobi
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obiero wrote:Ebenyo wrote:alotoftalk wrote:My initial thought was Munga flipping his "Rawat" shares to IFC. But if these are newly created shares being subscribed for (j.mp/2i4HTa0) then my guess is that they ran into capital adequacy issues after resetting their FY reserves based on gross premium valuation methodology (which they adopted in the current year) plus mark-to-market of their portfolio and impairment of some of KES 3.2 Bn in deposits held with financial institutions a proportion of which must be at either Chase or Imperial.
The dilution by IFC therefore became a necessary evil.
The subscription date of 30/12/2016, a day just before the FY books close (31/12/2016) is also an interesting tidbit. They have played their game smart enough to hoodwink ignorant shareholders. When somebody hears 'world bank',feels like Jesus coming to your house physically to dine with u. This is massive dillution,and sooner or later there will be price correction. The firm is doing quite badly.. And getting out now will be difficult since float is concentrated around a few.. Massive supply expected today Down close to 8% today on the back of huge supply. Tomorrow there will be more blood in the street https://www.nse.co.ke/ma...tatistics&Itemid=190
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: 9/20/2015 Posts: 2,811 Location: Mombasa
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@hisah's market magicians, playing the share price, seeking low entry before a rocket rally hits sceptics by surprise ! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Things are thick here. Rawat's ponzi scheme still biting hard 2/3 years down the line. Wasn't britam the crown jewel in his portfolio? The big boys/majority shareholders couldn't pull a rabbit out of the hat this time around. The damaged inflicted by a severe funding squeeze will take some considerable time to undo. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Chief Joined: 1/3/2007 Posts: 18,121 Location: Nairobi
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A quality firm/management in this sector is Jubilee. Unfortunately for me it comes with a heavy price tag! Thus I buy KenyaRe at lower/cheaper price points. PER, PB, etc 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: 13,549 Location: nairobi
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lochaz-index wrote:Things are thick here. Rawat's ponzi scheme still biting hard 2/3 years down the line. Wasn't britam the crown jewel in his portfolio? The big boys/majority shareholders couldn't pull a rabbit out of the hat this time around. The damaged inflicted by a severe funding squeeze will take some considerable time to undo.
http://www.businessdaily...507616-t1axki/index.html
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: 1/3/2007 Posts: 18,121 Location: Nairobi
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Why would the IFC buy such an insignificant (non-controlling) stake in Britam? What's the logic? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Ebenyo wrote:alotoftalk wrote:My initial thought was Munga flipping his "Rawat" shares to IFC. But if these are newly created shares being subscribed for (j.mp/2i4HTa0) then my guess is that they ran into capital adequacy issues after resetting their FY reserves based on gross premium valuation methodology (which they adopted in the current year) plus mark-to-market of their portfolio and impairment of some of KES 3.2 Bn in deposits held with financial institutions a proportion of which must be at either Chase or Imperial.
The dilution by IFC therefore became a necessary evil.
The subscription date of 30/12/2016, a day just before the FY books close (31/12/2016) is also an interesting tidbit. They have played their game smart enough to hoodwink ignorant shareholders. When somebody hears 'world bank',feels like Jesus coming to your house physically to dine with u. This is massive dillution,and sooner or later there will be price correction. When KQ's MJ was joining the board, the market in its rendition perceived him as contemporary Jesus Christ of Nazareth. As a matter of fact the rally following the announcement afforded the likes of @Obiero to double their income. Equally traders are most likely to make a killing after IFC expressed interest in Britam stake. .. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 8/16/2011 Posts: 2,297
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Things are opening up. When a new partner chips in it means money have been brought and big minds in the system. Soon we shall see bigger things!!!
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Realtreaty wrote:Things are opening up. When a new partner chips in it means money have been brought and big minds in the system. Soon we shall see bigger things!!! BRITAM=UAP Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Realtreaty wrote:Things are opening up. When a new partner chips in it means money have been brought and big minds in the system. Soon we shall see bigger things!!! Very unfair to current shareholders when a new monied shareholder comes in and buys shares at less than the NAV. They are diluted without an opt out. Life is short. Live passionately.
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Rank: Member Joined: 2/8/2007 Posts: 808
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sparkly wrote:Realtreaty wrote:Things are opening up. When a new partner chips in it means money have been brought and big minds in the system. Soon we shall see bigger things!!! Very unfair to current shareholders when a new monied shareholder comes in and buys shares at less than the NAV. They are diluted without an opt out. IFC paid a huge premium to the market price. The dilution to NAV when they are paying a premium to market price isn't that negative to me. I highly suspect there is more corporate activity on this counter.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Kausha wrote:sparkly wrote:Realtreaty wrote:Things are opening up. When a new partner chips in it means money have been brought and big minds in the system. Soon we shall see bigger things!!! Very unfair to current shareholders when a new monied shareholder comes in and buys shares at less than the NAV. They are diluted without an opt out. IFC paid a huge premium to the market price. The dilution to NAV when they are paying a premium to market price isn't that negative to me. I highly suspect there is more corporate activity on this counter. Market price in a bear market is not a good benchmark. 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:Realtreaty wrote:Things are opening up. When a new partner chips in it means money have been brought and big minds in the system. Soon we shall see bigger things!!! Very unfair to current shareholders when a new monied shareholder comes in and buys shares at less than the NAV. They are diluted without an opt out. If you feel britam is undervalued then run out and buy more from those who are selling. I did that with KK. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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IFC investing is good news...current majority shareholders need to be minority shareholders before I invest in this chip!
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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[quote=the deal]IFC investing is good news...current majority shareholders need to be minority shareholders before I invest in this chip![/quote This is not good news,its massive dillution.They took a loan from world bank which was converted into equity by creation of new shares. Towards the goal of financial freedom
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Rank: Elder Joined: 6/23/2009 Posts: 13,549 Location: nairobi
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the deal wrote:IFC investing is good news...current majority shareholders need to be minority shareholders before I invest in this chip! I had missed you @thedeal
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: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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VituVingiSana wrote:sparkly wrote:Realtreaty wrote:Things are opening up. When a new partner chips in it means money have been brought and big minds in the system. Soon we shall see bigger things!!! Very unfair to current shareholders when a new monied shareholder comes in and buys shares at less than the NAV. They are diluted without an opt out. If you feel britam is undervalued then run out and buy more from those who are selling. I did that with KK. Issue is not undervaluation and buying more. Issue is when you hold undervalued share waiting to rise then someone comes and dilutes you. Life is short. Live passionately.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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VituVingiSana wrote:sparkly wrote:Realtreaty wrote:Things are opening up. When a new partner chips in it means money have been brought and big minds in the system. Soon we shall see bigger things!!! Very unfair to current shareholders when a new monied shareholder comes in and buys shares at less than the NAV. They are diluted without an opt out. If you feel britam is undervalued then run out and buy more from those who are selling. I did that with KK. Issue is not undervaluation and buying more. Issue is when you hold undervalued share waiting to rise then the company issues new shares effectively diluting you without option to avoid dilution. Life is short. Live passionately.
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Ebenyo wrote:[quote=the deal]IFC investing is good news...current majority shareholders need to be minority shareholders before I invest in this chip![/quote
This is not good news,its massive dillution.They took a loan from world bank which was converted into equity by creation of new shares. Which ever way you look at it this is better than a rights issue in a bear market or a bond in a high yield environment...I think this is the cheapest & quickest way they could have raised money...this is a bailout...you should be happy IFC rescued this struggling company...remember Chase Bank...someone recently came out & spoke about Housing Finance...I don't trust Housing Finances books
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Wazua
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Briatm, Britam, Britam sounds like sweet candy!
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