Wazua
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Banks & Rights issues
Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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First KCB, then Stanchart...only difference is KCB's rights was mammoth, whereas, stanchart's is miniscual.
I predict Stanchart rights will be at 68Bob a piece.
I doubt stanchart will take a turn and hit the rocks like KCB to reflect the rights as the issue is a mere 10%, most of which will be picked up by PLC(about 22.8M shares), while the remaining 7.2M or so will be picked up by the rest.
Thoughts? comments?
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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i will gladly take mine in stanchart and bid for more as i see them being offered cheaply.
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Rank: Member Joined: 3/24/2010 Posts: 101 Location: Nairobi
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Horton wrote:
I predict Stanchart rights will be at 68Bob a piece.
Thoughts? comments?
How did you come to this price???quite cheap!!!
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Rank: Chief Joined: 1/3/2007 Posts: 18,136 Location: Nairobi
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Wow... 68/- would be very cheap... I think it will be between 150 - 175 thus a 20-30% 'discount'... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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VituVingiSana wrote:Wow... 68/- would be very cheap... I think it will be between 150 - 175 thus a 20-30% 'discount'... IM SORRY, MY BAD, ITS 93BOB!!! They want to raise Kshs2.5B, with a new creation of 27M shares, that give u 92.569 or something of the sort...
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Look at this guy go!! 16bob up already...no supply!!
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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I have tempted fate with half of my holding at 270,the rest is history.Cash is not a position to be at the moment,so tomorrow i have to find a home for the proceeds.
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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cnn wrote:I have tempted fate with half of my holding at 270,the rest is history.Cash is not a position to be at the moment,so tomorrow i have to find a home for the proceeds. Well done!! However I would still hold on, still at +5% Div yield (future), trailing at 4.45%. Growth rate is similar to Equity's but is much cheaper. I thin 300 levels should be about right(pe 15 at estimated 2010 eps of 21 after rights)
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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@ Horton:
I agree with your assessment.
The bank is about to announce the Half year results (last year it was on August 5th). I expect the announcement to include the following:
I)Details of the rights issue - A price of Ksh 93 and a rights issue of 1:10 is what you arrive at if the bank still aims to raise Ksh 2.5B from 27M new shares.
II)The half year results with at least above 30% growth y-o-y. This would make its growth trajectory almost similar to equity bank with much better per share pricing at current market price.
III)A half year dividend as is the tradition of the bank.
If all the above expectations come to pass, then the SCBK share will be trading at the Ksh 300-320 range as investors rush to buy the share so as to qualify for the rights issue.
It is the share to watch post referendum, especially for the month of August 2010.
Happy hunting.
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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@horton and stocksmaster,i am in agreement.I saw the potential in this counter immediately they announced first quarter results and got in at 200.I felt having come up 31% net of commissions at 270 i could as well take profits of half the shares ,that way any downward risk if any will not be a concern.I will hold the other half to the rights announcement.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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cnn wrote:@horton and stocksmaster,i am in agreement.I saw the potential in this counter immediately they announced first quarter results and got in at 200.I felt having come up 31% net of commissions at 270 i could as well take profits of half the shares ,that way any downward risk if any will not be a concern.I will hold the other half to the rights announcement. @cnn isn't it a bit too early to sell HALF... I mean considering u've made the money so fast and the down side risk is low... I think you should stay put for a bit longer... Think about this.. Fund managers are raiding the counter at 270 meaning it still has value in it right!? Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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i got in at 202 on average and i was complaining it was too HIGH LOL LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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@guru,we all have our different ways,the half is already gone today,i will live with what i got.If in my view there are counters i see more upward traction than SCBK,why not put my money there.
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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These guys should be announcing today I believe as they did last year
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Rank: Member Joined: 9/26/2006 Posts: 410 Location: CENTRAL PROVINCE
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@ Horton:
True, the Mother company announced yesterday and they usually announce either on the same day or one day after.
Happy hunting
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Rank: Member Joined: 4/30/2007 Posts: 92
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Can one participate in the rights issue with a share certificate?Not yet immobilized n am told it may take a while.
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Rank: Chief Joined: 1/3/2007 Posts: 18,136 Location: Nairobi
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mycool wrote:Can one participate in the rights issue with a share certificate?Not yet immobilized n am told it may take a while. Yes Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 4/30/2007 Posts: 92
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@VituVingiSana,passed the same question to my broker n says i have to immobilize.Please lemme know how i can do it.
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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4 posts in 4 years? A post for every year... GOD BLESS YOUR LIFE
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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mycool wrote:@VituVingiSana,passed the same question to my broker n says i have to immobilize.Please lemme know how i can do it. 1.get a new broker 2. Buy the allocated number of shares as per the allotment letter u will receive by post from Stanchart N dude where u been all these years?
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