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66 Pages«<63646566>
KCB buy buy buy
aemathenge
#1281 Posted : Friday, November 20, 2020 1:44:28 PM
Rank: Elder


Joined: 10/18/2008
Posts: 3,356
Location: Kerugoya
Ati What?

Quote:
Researchers at Citi expect that KCB will not pay a dividend in the current financial year, given the tough operating environment.

The analysts say, “[The bank’s] management have communicated that they do not believe [the dividend] will be forthcoming.”


Source: KCB Shares Trading at 40% Discount- Citi Research

By: Miriam Wangui November 20, 2020, in Kenyan News, Markets

Link: https://kenyanwallstreet...-discount-citi-research/
maka
#1282 Posted : Friday, November 20, 2020 2:15:21 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,368
Location: Nairobi
[quote=aemathenge]Ati What?

Quote:
Researchers at Citi expect that KCB will not pay a dividend in the current financial year, given the tough operating environment.

The analysts say, “[The bank’s] management have communicated that they do not believe [the dividend] will be forthcoming.”


Source: KCB Shares Trading at 40% Discount- Citi Research

By: Miriam Wangui November 20, 2020, in Kenyan News, Markets

Link: https://kenyanwallstreet...discount-citi-research/[/quote]


Ohh yes...
possunt quia posse videntur
Ericsson
#1283 Posted : Monday, November 23, 2020 10:01:12 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,137
Location: NAIROBI
maka wrote:
[quote=aemathenge]Ati What?

Quote:
Researchers at Citi expect that KCB will not pay a dividend in the current financial year, given the tough operating environment.

The analysts say, “[The bank’s] management have communicated that they do not believe [the dividend] will be forthcoming.”


Source: KCB Shares Trading at 40% Discount- Citi Research

By: Miriam Wangui November 20, 2020, in Kenyan News, Markets

Link: https://kenyanwallstreet...discount-citi-research/[/quote]


Ohh yes...


They might substitute with a bonus share issue
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
young
#1284 Posted : Monday, November 23, 2020 4:21:51 PM
Rank: Elder


Joined: 6/20/2007
Posts: 1,967
Location: Lagos, Nigeria
[/quote= Ericsson/]

They might substitute with a bonus share issue

Yep Bonus most likely

Best case:- 1:10
Worst case:-. 1:20
Base case:- Btw 1:10 & 1:20


http://www.wazua.co.ke/f...spx?g=posts&t=38084
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
Ericsson
#1285 Posted : Monday, November 23, 2020 10:54:52 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,137
Location: NAIROBI
young wrote:
[/quote= Ericsson/]

They might substitute with a bonus share issue

Yep Bonus most likely

Best case:- 1:10
Worst case:-. 1:20
Base case:- Btw 1:10 & 1:20


http://www.wazua.co.ke/f...spx?g=posts&t=38084


A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#1286 Posted : Monday, November 23, 2020 11:01:57 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,137
Location: NAIROBI
young wrote:
[/quote= Ericsson/]

They might substitute with a bonus share issue

Yep Bonus most likely

Best case:- 1:10
Worst case:-. 1:20
Base case:- Btw 1:10 & 1:20


http://www.wazua.co.ke/f...spx?g=posts&t=38084


There is also a potential acquisition in Ethiopia which has been paused by COVID-19 pandemic and the Tigray war
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
babashuge
#1287 Posted : Tuesday, November 24, 2020 6:56:34 AM
Rank: New-farer


Joined: 1/4/2019
Posts: 60
Location: Nairobi
Ericsson wrote:
young wrote:
[/quote= Ericsson/]

They might substitute with a bonus share issue

Yep Bonus most likely

Best case:- 1:10
Worst case:-. 1:20
Base case:- Btw 1:10 & 1:20


http://www.wazua.co.ke/f...spx?g=posts&t=38084


A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.


Heh, they better....
young
#1288 Posted : Tuesday, November 24, 2020 12:33:21 PM
Rank: Elder


Joined: 6/20/2007
Posts: 1,967
Location: Lagos, Nigeria
Ericsson wrote:


A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.



Please explain ? Thanks.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
Ericsson
#1289 Posted : Tuesday, November 24, 2020 8:35:57 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,137
Location: NAIROBI
young wrote:
Ericsson wrote:


A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.



Please explain ? Thanks.


Assume you have 10,000 KCB shares.
You are to get a dividend of ksh.3.50 per share.
The total dividend you are to get is (35,00-1750)=33250.

But instead KCB decides to give you a bonus share issue of 1:10.
Means you will get an additional 1,000 shares.Current share price of KCB is 37.
Adjusting the share price to cater for the dividends means you will get 1,000 shares worth ksh.33.3 per share.
Total value of shares allocated is ksh.33,300.

The ksh.33,300 is equal to the dividend you would have received.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
VituVingiSana
#1290 Posted : Tuesday, November 24, 2020 8:58:26 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,328
Location: Nairobi
Ericsson wrote:
young wrote:
Ericsson wrote:


A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.



Please explain ? Thanks.


Assume you have 10,000 KCB shares.
You are to get a dividend of ksh.3.50 per share.
The total dividend you are to get is (35,00-1750)=33250.

But instead KCB decides to give you a bonus share issue of 1:10.
Means you will get an additional 1,000 shares.Current share price of KCB is 37.
Adjusting the share price to cater for the dividends means you will get 1,000 shares worth ksh.33.3 per share.
Total value of shares allocated is ksh.33,300.

The ksh.33,300 is equal to the dividend you would have received.

So you start with 37,000 of value. And end up with 37,000 of value. And zero cash. d'oh! d'oh! d'oh!

Bonuses are just slicing the same cake into more pieces. 11 instead of 10. Same size cake.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#1291 Posted : Tuesday, November 24, 2020 9:48:37 PM
Rank: Elder


Joined: 12/4/2009
Posts: 9,137
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
young wrote:
Ericsson wrote:


A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.



Please explain ? Thanks.


Assume you have 10,000 KCB shares.
You are to get a dividend of ksh.3.50 per share.
The total dividend you are to get is (35,00-1750)=33250.

But instead KCB decides to give you a bonus share issue of 1:10.
Means you will get an additional 1,000 shares.Current share price of KCB is 37.
Adjusting the share price to cater for the dividends means you will get 1,000 shares worth ksh.33.3 per share.
Total value of shares allocated is ksh.33,300.

The ksh.33,300 is equal to the dividend you would have received.

So you start with 37,000 of value. And end up with 37,000 of value. And zero cash. d'oh! d'oh! d'oh!

Bonuses are just slicing the same cake into more pieces. 11 instead of 10. Same size cake.



Same scenario when a counter trades cum dividend and ex dividend. That's why some people sell their shares rather than wait for the dividend e.g those who sold their centum shares when it was trading cum dividend at 22.


Disclaimer:Some counters the share price may hold at the same level or trade at a higher price post bonus issue.
Same scenario maybe witnessed with cum dividend and ex dividend.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
young
#1292 Posted : Tuesday, November 24, 2020 10:11:43 PM
Rank: Elder


Joined: 6/20/2007
Posts: 1,967
Location: Lagos, Nigeria
Ericsson wrote:
young wrote:
Ericsson wrote:


A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.



Please explain ? Thanks.


Assume you have 10,000 KCB shares.
You are to get a dividend of ksh.3.50 per share.
The total dividend you are to get is (35,00-1750)=33250.

But instead KCB decides to give you a bonus share issue of 1:10.
Means you will get an additional 1,000 shares.Current share price of KCB is 37.
Adjusting the share price to cater for the dividends means you will get 1,000 shares worth ksh.33.3 per share.
Total value of shares allocated is ksh.33,300.

The ksh.33,300 is equal to the dividend you would have received.




Thanks Bwana Prof @Ericsson for the clarification .

If that is the case it is a fair deal for income investors because if price is adjusted to say 33.33 bob post bonus issue, for KCB over time the price will recover to 40+ .

I personally benefited in FY 2019 from SCBK 1:10 bonus , though they were generous enough to give 7.50 bob dividend in addition.


Asante Sana.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
VituVingiSana
#1293 Posted : Wednesday, November 25, 2020 12:15:05 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,328
Location: Nairobi
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
young wrote:
Ericsson wrote:


A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.



Please explain ? Thanks.


Assume you have 10,000 KCB shares.
You are to get a dividend of ksh.3.50 per share.
The total dividend you are to get is (35,00-1750)=33250.

But instead KCB decides to give you a bonus share issue of 1:10.
Means you will get an additional 1,000 shares.Current share price of KCB is 37.
Adjusting the share price to cater for the dividends means you will get 1,000 shares worth ksh.33.3 per share.
Total value of shares allocated is ksh.33,300.

The ksh.33,300 is equal to the dividend you would have received.

So you start with 37,000 of value. And end up with 37,000 of value. And zero cash. d'oh! d'oh! d'oh!

Bonuses are just slicing the same cake into more pieces. 11 instead of 10. Same size cake.



Same scenario when a counter trades cum dividend and ex dividend. That's why some people sell their shares rather than wait for the dividend e.g those who sold their centum shares when it was trading cum dividend at 22.


Disclaimer:Some counters the share price may hold at the same level or trade at a higher price post bonus issue.
Same scenario maybe witnessed with cum dividend and ex dividend.

Yes but often the shares go ex-div on the day of the AGM. Not always but often. The AGM may provide additional (+ or -) insights that may "maintain" the share price.

I prefer the cash since it's cheaper for me. Also it's defined vs varying prices on the sale of shares.

I have to sell shares [commissions] vs getting a cash dividend [W/Tax].
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Monk
#1294 Posted : Wednesday, November 25, 2020 7:26:11 AM
Rank: Member


Joined: 7/1/2009
Posts: 193
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
young wrote:
Ericsson wrote:


A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.



Please explain ? Thanks.


Assume you have 10,000 KCB shares.
You are to get a dividend of ksh.3.50 per share.
The total dividend you are to get is (35,00-1750)=33250.

But instead KCB decides to give you a bonus share issue of 1:10.
Means you will get an additional 1,000 shares.Current share price of KCB is 37.
Adjusting the share price to cater for the dividends means you will get 1,000 shares worth ksh.33.3 per share.
Total value of shares allocated is ksh.33,300.

The ksh.33,300 is equal to the dividend you would have received.

So you start with 37,000 of value. And end up with 37,000 of value. And zero cash. d'oh! d'oh! d'oh!

Bonuses are just slicing the same cake into more pieces. 11 instead of 10. Same size cake.



Same scenario when a counter trades cum dividend and ex dividend. That's why some people sell their shares rather than wait for the dividend e.g those who sold their centum shares when it was trading cum dividend at 22.


Disclaimer:Some counters the share price may hold at the same level or trade at a higher price post bonus issue.
Same scenario maybe witnessed with cum dividend and ex dividend.

Yes but often the shares go ex-div on the day of the AGM. Not always but often. The AGM may provide additional (+ or -) insights that may "maintain" the share price.

I prefer the cash since it's cheaper for me. Also it's defined vs varying prices on the sale of shares.

I have to sell shares [commissions] vs getting a cash dividend [W/Tax].


2% (commissions) vs 5% (W/Tax)
- assuming it's a liquid stock
VituVingiSana
#1295 Posted : Wednesday, November 25, 2020 8:02:44 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,328
Location: Nairobi
Monk wrote:
VituVingiSana wrote:
Ericsson wrote:
VituVingiSana wrote:
Ericsson wrote:
young wrote:
Ericsson wrote:


A bonus share issue of 1:10 would perfectly compensate shareholders a dividend of ksh.3.50 per share based on the current prevailing share price.



Please explain ? Thanks.


Assume you have 10,000 KCB shares.
You are to get a dividend of ksh.3.50 per share.
The total dividend you are to get is (35,00-1750)=33250.

But instead KCB decides to give you a bonus share issue of 1:10.
Means you will get an additional 1,000 shares.Current share price of KCB is 37.
Adjusting the share price to cater for the dividends means you will get 1,000 shares worth ksh.33.3 per share.
Total value of shares allocated is ksh.33,300.

The ksh.33,300 is equal to the dividend you would have received.

So you start with 37,000 of value. And end up with 37,000 of value. And zero cash. d'oh! d'oh! d'oh!

Bonuses are just slicing the same cake into more pieces. 11 instead of 10. Same size cake.



Same scenario when a counter trades cum dividend and ex dividend. That's why some people sell their shares rather than wait for the dividend e.g those who sold their centum shares when it was trading cum dividend at 22.


Disclaimer:Some counters the share price may hold at the same level or trade at a higher price post bonus issue.
Same scenario maybe witnessed with cum dividend and ex dividend.

Yes but often the shares go ex-div on the day of the AGM. Not always but often. The AGM may provide additional (+ or -) insights that may "maintain" the share price.

I prefer the cash since it's cheaper for me. Also it's defined vs varying prices on the sale of shares.

I have to sell shares [commissions] vs getting a cash dividend [W/Tax].


2% (commissions) vs 5% (W/Tax)
- assuming it's a liquid stock
That's the catch. It assumes you can get the same price and can sell all the "bonus" shares. As you say, it can vary for counters. Safaricom, KCB, etc might be OK but not most others.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#1296 Posted : Thursday, November 26, 2020 7:56:31 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,137
Location: NAIROBI
KCB managed to auction the former Nakumatt HQ property in Industrial Area.
It recovered ksh.1.04bn out of the 2.06bn Nakumatt Holdings owed it.
The property was taken by furniture palace.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
obiero
#1297 Posted : Thursday, November 26, 2020 8:14:46 AM
Rank: Elder


Joined: 6/23/2009
Posts: 12,854
Location: nairobi
TZBancABC
RWBPR
I speak in code
COOP 5,500 ABP12.6; HF 30,000 ABP 5.90; KCB 7,500 ABP 36; KQ 414,100 ABP 7.92
Ericsson
#1298 Posted : Thursday, November 26, 2020 8:42:44 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,137
Location: NAIROBI
KCB set to acquire Atlas Mara banking business in Rwanda and Tanzania
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#1299 Posted : Thursday, November 26, 2020 8:52:34 AM
Rank: Elder


Joined: 12/4/2009
Posts: 9,137
Location: NAIROBI
Ericsson wrote:
Ericsson wrote:
https://www.bloomberg.com/news/articles/2020-11-12/biggest-kenyan-bank-pauses-ethiopian-entry-on-virus-uncertainty

Biggest Kenyan Bank Pauses Ethiopian Entry on Virus Uncertainty

Kenya’s biggest bank put on hold plans to expand into Ethiopia where fighting between the federal government and a dissident region has resulted in hundreds of deaths and caused thousands to flee.

KCB Group Ltd. is waiting for the uncertainty caused by the coronavirus to settle before pursuing an entry into its northerly neighbor, Chief Executive Officer Joshua Oigara said. The Nairobi-based lender, which was looking to partner with an Ethiopian bank, will instead focus on the six markets it currently operates in, he said.

“The conversations for Ethiopia are not continuing for now,” the CEO said in an interview, without referring to the incursion. “It will have to happen once we are clear about how the pandemic goes.”
The lender’s profit in the nine months through September declined 43% compared with a year-earlier after provisions surged amid the economic fallout of the coronavirus. Going into next year, the company is projecting some recovery in East Africa as the countries adapt to living with Covid-19. KCB will still be on the look out for opportunities for its existing businesses.

“We remain very optimistic in markets like Rwanda, where we have always been very interested in increasing our presence,” Oigara said. “We are very much interested in enhancing capability in Tanzania, and obviously also in Uganda,” he said. “So we are on standby.”

The company will need to cut staff, which accounts for almost 45% of total expenses, the CEO said, without providing more details. It will further reduce costs such as leases, meals and travel by December.

“We are also looking very strongly at our own technology investments as we migrate transactions in those areas,” Oigara said. “That will also reduce any additional staff costs.”



They are looking at a probable acquisition in Rwanda, they could go for the Atlas Mara operation now that Atlas Mara has decided to sell in piecemeal.
Add that to a possible Ethiopia acquisition post covid-19.



As predicted, it has come to pass.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Horton
#1300 Posted : Thursday, November 26, 2020 2:35:30 PM
Rank: Veteran


Joined: 8/30/2007
Posts: 1,558
Location: Nairobi
Ericsson wrote:
KCB managed to auction the former Nakumatt HQ property in Industrial Area.
It recovered ksh.1.04bn out of the 2.06bn Nakumatt Holdings owed it.
The property was taken by furniture palace.


Good info. Asante.

Should work out well seeing their acquisition acumen in the past 😀
https://www.google.com/a...tlas-maras-2-banks/amp/
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