Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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S.Mutaga III wrote:mkonomtupu wrote:S.Mutaga III wrote:141 billion rights issue may not be implemented at once as earlier stated. I am having a look at this counter and the profit growth in last two-three years is the best in NSE. The share has a forward PE of around 2. It is probably the cheapest stock currently at NSE. Evaluating the current economic conditions, I suspect that the government lacks their share of 100Billion that they must invest. If the rights are implemented in phases, the dilution may be manageable (which is the most likely scenario). I am beginning to personally think that even with the huge rights issue (as long as the capital is raised in five or more phases), the share may have some serious upside. If only I knew how they plan to implement the rights. What do you have to say if I add this piece of information Quote:“Our revenue moved from Sh8 billion to Sh11 billion, and that was mainly contributor of that was about the three months of full running of the geothermal. We expect the other half year, when that geothermal plant will half run at the 280MW capacity, the results will even be better,” The only bad thing about Kengen is the huge rights issue and the huge government shareholding. I am learning to avoid government owned businesses so I am in a rather confused state right now. Here comes a very good chance to own a great company at a great price...but the majority-owner is an issue. I guess I will stick to my KPLC shares. The reason Kengen is able to carry out these projects, get GoK to guarantee its international borrowings, get an assured market for power is because Kengen is majority owned by GoK! As a small share holder, I am happy that Kengen's balance sheet is built by the taxpayers mobey, as long as I can defend my rights when the time comes. Consider it leverage.BTW KPLC is also majority GoK owned. Life is short. Live passionately.
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