I have been trying to figure out whether stocks on the NSE that have in the past split are more likely to split in the future and that those that have issued rights are likely to issue other rights in the future. Are these 'bankable' stock habits?

@guru - Thanks.

From history KCB seems to prefer raising capital through rights issue now being its third one. As an investor, should I assume that this preference will manifest itself whenever they need funds? Should I basing on history expect it to have another rights issue in 3-4 years time?


As for the split, the effect is to increase liquidity and affordability of the shares. And maybe capital gains that were previously hindered by high price.

While centum was not a split but a bonus issue. Am wondering that now that their MD was quoted saying that they are conserving cash should an investor be expecting bonus shares every year till 2014?

While I appreciate that decisions on splits/rights/bonuses will depend on a number of things, I am wondering whether individual stocks tend to have their own peculiar habits? If so, then an investor having determined this peculiar habits can 'bank' on them.

Splits do not raise capital... while Rights raise capital...

Bonuses do not raise capital BUT are often used in lieu of paying dividends so they fall in between...

Bonuses do not raise capital but they CONSERVE it... I actually am a huge supporter of bonuses especially when the conserved money is put to good use like in centums case meaning they will grow shareholder value and hence i wont feel the pinch of dilution even if i sell my bonus shares..

For example my average Buy price of JHL after the bonus is 160bob so if the H2 announcement is good will be selling my bonus shares at 190 which is a cool 11% return and no loss of capital

Rationally, yes... but rational isnt what often happens...