@All - Doesn't the 10% rule apply to rights? The KCB-R was at one point trading at -20% yesterday. As I write this, it is currently trading at -42%!

What happens when the price of the rights gets to 0/=? Will we say the price is now "in a stable condition"?

hehehe theres someone with a 1.5 mil buy order at 18.20 on the normal board...

@vvs, Exim Bank offers very competitive (subsidized by the US Govt?) interest rates to promote American business. Local banks can't compete.

@MaichBlack,

I still stand by my word, KCB will not go below 17. The moment the shares starting trading at 17, the fund managers will make such huge orders that you will daily volumes of 100m! You will not compete with them. I will not worry so much about a bob or 50 cents. I have convinved myself KCB is cheap at any price below 19, so I buy.

Two months ago, I told people about CFC. I bought at any price below 50 bob and I will soon offload half my holdings after making a cool 90% return in just two months!

What am I missing- Rights @0.70 and the share trading at 18.25 + comishon. Surely doesn't it make sense to buy rights.

I am very curious to see how this price will go after rights. The bank better have magnificent results for the first half else there was will be a fracas on the selling side.

Dumped my rights today at 0.70, so a post rights price of 16.20 ceteris paribus will be OK for me. Lower will be a gain.

Chief,

The problem is there is no business plan here. Mortgages and sending money to flog Tz and Ug operations don't amount to a meaningful business plan.

MJ would have gotten money then, ARM and Kengen easily raised money because they had tangible business plans. All investors want is a sound business plan, not the size of the balance sheet and regional presence.

@Kausha,

That's not what i get from the posts above its more like most wazuarians don't doubt the future of KCB they just don't want to provide the capital but will jump in once the capital has been provided. That's where i have a problem.

As for KCB you have to throw money into mortgages not for retail buyers but the big property developers who then resell to retail buyers. I think that where KCB is headed looking at what they have done with GOSS in juba. For the record am not endorsing their business plan as solid but KCB took in too much deposits straining its ratios so there is a lot of funds to free up for onward lending.

As ARM this share was a measly 11-16/- before the Actis put in funds to clean its processes. Kengen got capital because they offered a high rate of return for the bond 12.5%(very expensive if you ask me) I don't think they would have done better if they had done equity.
As for MJ remember a SIM card in that year was almost 2500/-

Say you have 1000 rights. Sell 900 rights. In your PAL, purchase the 100 shares remaining in your rights (partial acceptance of new shares). Then also purchase 900 additional shares together with the 100. Am I missing something or is this a cow waiting to be milked?

@qw... Actually fund managers have entered into KCB quarter way and are waiting for the results... There is no way they can sit fully on the sidelines with a fair chance of an oversubscription