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Monday, October 09, 2006

Sasini - Bonus? Rights? Acquisition? Or something we don't know?

Sasini announced an EGM on Nov 2 2006 under very low-profile circumstances....

I have not been a fan of Merali's listed firms but Sasini has done well (profit & stock price) considering their recent 1 month performance.

Nevertheless, there remain some intriguing questions:
  • Why did Sasini announce 3Q 2005-6 results whereas this has never been done in the past?
  • Traditionally, they used to announce only 1H & Final results. Will quarterly reporting become the norm? If not, why this one-off announcement?
  • The 3Q results were announced after a 3-month hiatus i.e. 3Q ended 30 June 2006 but results announced on 26 Sep 2006. Why not sooner?
  • The Final 2005-6 results are expected by 31 Dec 2006 when dividends are generally announced thus why the "sudden" 3Q dividend?
  • Why was the EGM announced as a separate item a few days later on 9 Oct 2006?
  • Why is the EGM being held at Kamundu Estate (Kiambu) rather than Nairobi?
  • Most EGMs are not held for the sole purpose of authorising an increase in Share Capital unless there is a pending Rights, Bonus or acquisition. So why this EGM?
  • There seems to have been some fore-knowledge on Sasini since there was a sudden increase in price from the 30/- to 50/- (in September 2006) and BEFORE the 3Q 2005-6 results were released!
There may be valid answers for the queries above. If you know, please let us know!

7 comments:

odeglenyanginv said...

I cant agree with you more. there is something going on really deep. even Sameer share went up suddenly with no proper explanation. in fact there was a week when the top 3 stocks were actually Merali linked stocks. However i still think merali firms are dangerous for small investors since Merali himself acts most times like a speculator and is quite mobile. again when you see one person spreading himself as thin as Merali has done then you get really afraid!

Kudrinketh said...

what's wrong with merali diversifying,we all do it.i think us small investors can swim with the big sharks,just make sure that when merali sells out that you do the same. remember how he sold outa uchumi before it tanked.

odeglenyanginv said...

you see thats where i have a problem. for an investor his size , i dont expect him to walk in walk out like that! that causes panic and price misbehaving. when he went to uchumi the price shot to 22 when indeed there was nothing in it. only for him to bolt out. does he do any research at all or he just a speculator like any other retail kenyan?

coldtusker said...

Kudri - This is not about speculation or diversification but the "sudden" price movements just BEFORE the announcement.

The NSE & CMA is ignoring (or are ignorant) about what looks like leaked info BEFORE the announcement.

Kudrinketh said...

Colds its a dog eat dog world out there. i figured that if i cannot beat them, i join them.

coldtusker said...

Seems like a Rights Issue soon!
Read EA Standard (13 Oct 2006)

Rookie said...

Coldtusker

So U reccomend a buy on this? Coz if u can smell something that aparently only the big boys can see ... then i wouldnt want to be left out....

What do you think??