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which is the greatest bargain on NSE at the moment??
guru267
#21 Posted : Tuesday, June 22, 2010 1:27:49 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
Just a little speculation on KPLC share restructuring..

IMHO GOK will convert 17billion worth of preference shares at a rate of 1:1 at a 6month weighted average at a price adding 106,250,000shares making the total number of shares 185,378,000shares...

it will then carry a 10:1 share split creating 185,378,000,000 shares

a rights issue will then be carried out at 1:2 ratio at a price of 108shs which will lead to a further addition of 926million shares bringing the grand total to 2.8billion shares

last years EPS is now smashed from 40.16 to 11.4
Mark 12:29
Deuteronomy 4:16
the deal
#22 Posted : Tuesday, June 22, 2010 1:39:12 PM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
guru267 wrote:
Just a little speculation on KPLC share restructuring..

IMHO GOK will convert 17billion worth of preference shares at a rate of 1:1 at a 6month weighted average at a price adding 106,250,000shares making the total number of shares 185,378,000shares...

it will then carry a 10:1 share split creating 185,378,000,000 shares

a rights issue will then be carried out at 1:2 ratio at a price of 108shs which will lead to a further addition of 926million shares bringing the grand total to 2.8billion shares

last years EPS is now smashed from 40.16 to 11.4

Nice work there Prof...with such massive dilution...do we go in or sit on the fence? I'm of the later...sit on the fence n watch with eagle eyes or go in during rights issue...
VituVingiSana
#23 Posted : Tuesday, June 22, 2010 2:07:26 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,134
Location: Nairobi
KPLC: Excessive speculation but nice effort...

Let's wait then use the same format with new numbers...

I think the split should be 20:1 not 10:1 coz I expect higher EPS to drive the price higher...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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