The huge dollar denominated debt that was made worse by the weak shilling is bound to get a boost from the potential incoming Indian cement manufacturer, although the use of preference shares to accommodate the Indians will certainly cause worries for dilution. The counter is trading at the bottom of its 52-week threshold, the RSI is indicating a share price that's riding into undervaluation....what is your opinion NSE gurus? Is it time to board or there is a lot of weariness from the looming dilution also considering the general market is still bleeding?

I also think so, although Indian companies lack xenophobic appeal in Kenya, with the 2017 general elections in sight, I feel imminent devaluation might be underway.

Because the market is still bleeding, it is best to see the terms of the preference shares, it's like a bond, but dilutes from shareholders side. Without dilution I would say 30.00 is a good entry price. So let's revalue after the preference shares

As a long term play would xenophobic sentiments really have any impact on the company? I doubt the xenophobic levels in Kenya can get to such crazy levels like in S.A. We have more or less accepted Asians based on their business acumen and how they create opportunities around here and so weighing in the pros and cons shows we socially gain more from them as a country. Basing on the same as an investor, my focus would be the return on my shilling invested, xenophobia or not. For as long as there is potential of a good ROI, I wouldn't get deep into the social sentiments bit. The link for the planned Indian cement maker is here:

http://allafrica.com/stories/201512300861.html

Waiting to see the deal offered to ARM first. It could be a red herring too. Paunrana could pull a Merali on UltraTech & sell it to another party for a better price.

As long as they get a good value of their money then they are good and set

@VVS you always wanted a piece of this stock. Are you considering pulling the trigger?

Seems the "dilution" could be 50%
http://www.businessdaily...1/-/j1ws8u/-/index.html
Please note that it is a not a true 'dilution' in that ARM gets 14bn & 7bn of that accrues to existing shareholders. The repayment of debt will be a huge boon to ARM going forward.

*I am still staying away until I see the Annual Report and Recapitalization Plan*

Yes. The expansion plan was over-ambitious in hindsight but unlike KQ, the majority shareholders [Paunrana family] are not asking for a bailout from the taxpayers but are fixing the problem themselves.

I want to read the IM then make a decision as to what is an attractive entry point. It's not for the lack of opportunities but the lack of cash. I&M is at a sub-6 PER. KK is a 7 forward PER. Unga if it can 2x 1H profits is at 7 PER. And so on.