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Centum upcoming bonus
Rank: Member Joined: 8/16/2008 Posts: 5
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Am more of a long term investor but I wonder when corporate announcement says centum bonus is subject to approval, when does the approval set in. I want to buy another stock soonest. Have 100,000ksh which I want to get into kapchorua tea strictly for the divindends but time is running out.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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I would advise you to buy Centum as you can sell the bonus and you will get more than what you will get in dividends from Kapchorua tea.
At current prices you will get 700 shares of Kapchorua tea from which you will be entitled to 700*7.5=5,5250/- as dividends.
At current prices you will get 4,200 shares of centum out of which you will be entitled to a bonus of 420 shares. Assume after the bonus shares have been credited the price falls to 20/- still you can sell the 420*20 and earn 8,400/-.
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Rank: Member Joined: 8/16/2008 Posts: 5
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Thanks alot. Am currently in college so don't really have much knowledge in stocks.. Bought my first stocks in stannic ug, coop ipo was a good one, satcom a nightmare but the journey continues. Want to deal heavy in stocks after Colle. To be on the safe side, also have another 100,000ksh in a money market earning me peanuts though at 6 percent per annum. But that's a safety net.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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You made a wise decision by investing in Stanbic Uganda and CO-OP..Also safaricom was a good investment but only if you would have sold soon after the IPO but now you have no choice but either to sell it at a loss or just eat the peanut dividends. As for now get in Centum now it has lot of bright prospects ahead.
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Did i hear someone say CENTUM? Excuse me! If you buy ICDC today at 23, you will require to sell it at atleast 21.70 so as you can even recoup your investment after the bonus!{This assumes that you bought shares worth 100K and above (1.9% or 2.1% commission during purchase and disposal)}. And trust you me, 3 days after the bonus, am not seeing this stock above 20. But if you are in to long term, BUY BUY BUY BUY, short term AVOID AVOID AVOID. I did the same blunder with E.A Cables, i bought it for quick cash, but i have ended changing my game plan to LONG TERM! Anyone help me, when can CABLES clock 14.7? after the half year results? SOMEONE HELP ME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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EA Cables- possibly has had its best (Kibz/Mugo era) days behind it. Unless the newly listed TransCentury ups its game. Centum-one needs to have a 3yr view to buy. Its as close to a very good NSE stock as you'll get. Imho Sehemu ndio nyumba
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Rank: Member Joined: 8/16/2008 Posts: 5
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I would like to hold centum for one yr.. Is that a long term view? Anyway that is my long term.how long does it take for bonus shares to be credited to your CDs accnt? Anyone whose done bonuses before?
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Rank: New-farer Joined: 6/24/2011 Posts: 49
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centum is turning out to be tricky. am wondering what to do with the odd number of bonus shares like if you get 420 can you sell the 20 in the market Proverbs 4:23
[23]Keep thy heart with all diligence; for out of it are the issues of life.
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Rank: Member Joined: 8/16/2008 Posts: 5
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To the best of my knowledge you can't sell shares less than 100 I.e in multiples so one can't sell 20 shares
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Rank: Veteran Joined: 12/23/2010 Posts: 1,229
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upendoeva wrote:To the best of my knowledge you can't sell shares less than 100 I.e in multiples so one can't sell 20 shares You can. They're referred to as odd lots. http://www.nse.co.ke/pub...on/faqs/faqs.html?id=40
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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btw, is the process disposing the odds easy or tiring? Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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Young ones-in the game., it is good to ask so you can learn. If you buy centum now for the bonus. You will get your bonus shares. After which, the share price will fall. If you dont sell your entire centum holding, just after book closure, you'll be locked in or be forced to sell at a loss or meagre gains, before the price can come back to where it was. But you could always sell the new bonus shares, which are credited normally at the same date as the dividend payment. Immediately after the creditathon of the bonus shares you wont be the only one with odd lots, during this time, you will get time to sell or buy odd lots, as many ppl will be selling and buying them. Thereafter, you can still sell odd lots, but it will be harder as there wont be many buyers. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 8/16/2008 Posts: 5
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thanks alot for the info...will make an informed decision..let me watch carefully.. Wanawake.. Twende kazi..
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Just take tea at the table, avoid it on NSE. Looking for higher dividends? Get KCB.
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Rank: Member Joined: 6/25/2010 Posts: 176
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Aguytrying wrote:Young ones-in the game., it is good to ask so you can learn. If you buy centum now for the bonus. You will get your bonus shares. After which, the share price will fall. If you dont sell your entire centum holding, just after book closure, you'll be locked in or be forced to sell at a loss or meagre gains, before the price can come back to where it was. But you could always sell the new bonus shares, which are credited normally at the same date as the dividend payment. Immediately after the creditathon of the bonus shares you wont be the only one with odd lots, during this time, you will get time to sell or buy odd lots, as many ppl will be selling and buying them. Thereafter, you can still sell odd lots, but it will be harder as there wont be many buyers. Aguy, the bonus issue is on 7th and books close on 22nd. So ur suggestion is buy before 7th and hold until past 22nd?? Rule No.1 is never lose money. Rule No.2 is never forget rule number one
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Rank: Member Joined: 10/25/2010 Posts: 519 Location: nairobi
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There's money to be made here, cant wait to see how much Ill make in two weeks time...watch this space...!!!
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Rank: New-farer Joined: 3/29/2011 Posts: 56 Location: Kenya
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lovely2010 wrote:There's money to be made here, cant wait to see how much Ill make in two weeks time...watch this space...!!! I fear that a rally, if any, will not be as pronounced as the DTB rally in the run up to books closure, as only a 1:10 bonus is being offered. With the current downtrodden market outlook, how will the share price behave after books closure? On long term outlook though, this still remains a brilliant company, in my opinion.
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Rank: Member Joined: 10/25/2010 Posts: 519 Location: nairobi
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kenyainvesting.blogspot.com wrote:lovely2010 wrote:There's money to be made here, cant wait to see how much Ill make in two weeks time...watch this space...!!! I fear that a rally, if any, will not be as pronounced as the DTB rally in the run up to books closure, as only a 1:10 bonus is being offered. With the current downtrodden market outlook, how will the share price behave after books closure? On long term outlook though, this still remains a brilliant company, in my opinion. After book closure it will definately go down, but Im planning to exit some of my shares b4 22nd although I dont think it will go below 20bod after 22nd
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Rank: Member Joined: 1/25/2009 Posts: 184 Location: For now El-Fashier - Darfur
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@ lovely2010 count on me the price will tumble more than 10% below book closure price especially in this bear market plus the IPOs being hawkered around. Just sell off before bookclosure and wait at around 15 bob ex bonus! Target date before 5th Aug! "A bad decision made now is beta that a good one made later!!"
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Rank: New-farer Joined: 3/29/2011 Posts: 56 Location: Kenya
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underweight wrote:@ lovely2010 count on me the price will tumble more than 10% below book closure price especially in this bear market plus the IPOs being hawkered around. Just sell off before bookclosure and wait at around 15 bob ex bonus! Target date before 5th Aug! It would be a great shock to see it go this low. But then,if it happens, I would be falling over myself to get my hands on it.
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