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Kenya airways Right Issue
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mkeiy
#121 Posted : Wednesday, March 21, 2012 3:41:31 PM
Rank: Member

Joined: 1/27/2012
Posts: 851
Location: Nairobi
jerry wrote:
Should they stop the rights altogether and cite non-approval by UG&TZ?smile


Do the capital market authorities in UG and TZ have to approve? I've never thought of it.
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the deal
#122 Posted : Wednesday, March 21, 2012 3:48:53 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
mkeiy wrote:
the deal wrote:
Talking is a waste of time, what you should be doing is looking for an entry point...they're not raising cash to eat...they're raising cash to buy assets.


What are you saying? People should stop discussing KQ? I got a good shave on them before i bounced but that's not reason to make me bitter.

Let people talk, it breaks no bone and it ain't profanity.

It's good to talk but why celebrate someones loss?Sad Sad
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mkeiy
#123 Posted : Wednesday, March 21, 2012 4:05:17 PM
Rank: Member

Joined: 1/27/2012
Posts: 851
Location: Nairobi
@ the deal

I lost,so did others.
People are not celebrating at anyone's loss in particular,not from what i have read. It's the whole thing.
It's something that happened beyond the control of majority of us.
A good company bedeviled by its sector.

The swahilis say "kifo cha wengi ni harusi".
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  | | Edit by user: Wednesday, March 21, 2012 4:06 PM | Reason: Not specified
VituVingiSana
#124 Posted : Thursday, March 22, 2012 12:37:04 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,376
Location: Nairobi
hisah wrote:
I don't envy citibank as the underwriter with the share price currently on a nosedive ready to dip below 14. If the rights are under-subscribed heavily (most likely esp wanjikus) it won't be funny. At this point PPT should be stick saving the price plunge. This is quite an interesting scenario for the KQ rights. I can't recall a share that dipped below the rights price before on NSE - @vvs, @mukiha, @njunge - anyone recall this...
Kijana, this happened when I was a young man to EABL so Diageo bought the Rights the Kenyans did not. Of course, EABL has returned 10x to Diageo since the 'failed' Rights Issue. I did not exercise my Rights but I was lucky I bought them from the market [at a discount to the Rights price]. One of my best performers over the years. Then I unwisely sold out ;-( too early!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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  | | Edit by user: Thursday, March 22, 2012 12:43 AM | Reason: Not specified
chaimani
#125 Posted : Thursday, March 22, 2012 6:22:08 AM
Rank: New-farer

Joined: 2/26/2012
Posts: 25
Location: moscow na muranga
mwekez@ji wrote:
chaimani wrote:
...wait in june the price might be 6 bob or below due to dilution


Shame on you Shame on you Shame on you

Do you know what is dilution?

Dilution cannot lead to the price falling below KES 15.10

This is how you calculate the "diluted share price":

Price just before the rights issue news; 18.6 (and it could have absorbed some of rights news because the share fell from 50+ partly because of the rights issue expectations)


{(16*14)+(5*18.6)}/(16+5) = 15.10


Your arithmetics are not working share close @14.25 yesterday far below your mathematics. I may not know exactly how dilution is calculated but would wish u to calculate the share price when the new shares will be trading in June.I will trust your calculationsSad Sad
chasing after the wind
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jerry
#126 Posted : Thursday, March 22, 2012 7:27:59 AM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
mkeiy wrote:
jerry wrote:
Should they stop the rights altogether and cite non-approval by UG&TZ?smile


Do the capital market authorities in UG and TZ have to approve? I've never thought of it.

Just my 2cents. Let's see if we can get it below 14 2day.
The opposite of courage is not cowardice, it's conformity.
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sparkly
#127 Posted : Thursday, March 22, 2012 7:59:05 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
VituVingiSana wrote:
hisah wrote:
I don't envy citibank as the underwriter with the share price currently on a nosedive ready to dip below 14. If the rights are under-subscribed heavily (most likely esp wanjikus) it won't be funny. At this point PPT should be stick saving the price plunge. This is quite an interesting scenario for the KQ rights. I can't recall a share that dipped below the rights price before on NSE - @vvs, @mukiha, @njunge - anyone recall this...
Kijana, this happened when I was a young man to EABL so Diageo bought the Rights the Kenyans did not. Of course, EABL has returned 10x to Diageo since the 'failed' Rights Issue. I did not exercise my Rights but I was lucky I bought them from the market [at a discount to the Rights price].

@VVS a likely scenario might play out. Air France KLM might take the opportunity to increase their holding. Me thinks the other international might shy away because of the EuroZone crisis. Either way we will have a rights issue.
Life is short. Live passionately.
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mwekez@ji
#128 Posted : Thursday, March 22, 2012 8:31:00 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
chaimani wrote:
mwekez@ji wrote:
chaimani wrote:
...wait in june the price might be 6 bob or below due to dilution


Shame on you Shame on you Shame on you

Do you know what is dilution?

Dilution cannot lead to the price falling below KES 15.10

This is how you calculate the "diluted share price":

Price just before the rights issue news; 18.6 (and it could have absorbed some of rights news because the share fell from 50+ partly because of the rights issue expectations)


{(16*14)+(5*18.6)}/(16+5) = 15.10


Your arithmetics are not working share close @14.25 yesterday far below your mathematics. I may not know exactly how dilution is calculated but would wish u to calculate the share price when the new shares will be trading in June.I will trust your calculationsSad Sad


@chaimani, lemmi help by pointing the following to you:

1. The diluted share price will not change from 15.10 in June, July, Aug, ...

2. Take your time to understand what is dilution

3. Take your time to understand the other factors that are driving the share price to levels below the diluted share price

4. Read @the deal advice in post 118 and take heed if you intend to play this counter
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  | | Edit by user: Thursday, March 22, 2012 9:41 AM | Reason: Not specified
Cde Monomotapa
#129 Posted : Thursday, March 22, 2012 9:02:51 AM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
SMH kampuni ya ma genius.
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mwekez@ji
#130 Posted : Thursday, March 22, 2012 9:23:20 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
guru267 wrote:
Citibank must be now PRAYING for an oversubscription so that they only have to take their underwriting fees and bounce...


Looks like they will just have to take the underwriting fees, undersubscription and then wait to make good returns from the holding if KQ proves itself
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