UCL vis-à-vis Trading Spread and Liquidity after Split

Was thinking about Uganda Clays Limited in the aftermath of its 2nd split on the 1st September 2008- and thought I would share with you guys (USE).

Accessibility & spread
In the recent past a trader ("investor") needed 1,000,000 ugx minimum to buy shares in this highly illiquid UCL stock, after split they shall need 10k (most likely 100k)!
If they come rushing for these shares, how r u gonna work the 30 shs spread?

Bill(also a regular at the mkt) & meself were deliberating on the psychology of UCL individual shareholders in relation to them selling: then at the AGM that year (I think 2006) we did separate observations which included:
-Most shareholders above 40yrs
-Conservative and very cautious in nature: dress, speak….
-majority were professionals at the time of IPO in 2000, who probably could comprehend
issues regarding stock mkts since they were exposed to them in say academics
-these observations were for only the individual shareholders, and they typify investors (buy for very long time unlike traders).

There is lots of small monies 100-800 Ks that is eagerly awaiting for a chance to get a stake of this crown jewel (I think it is the jewel amongst all USE stock). This takes us back to:
If they come rushing for these shares, how r u gonna work the 30 shs spread?

Reasons why they could come rushing:
- UCL has 2 or 3 more major announcements: Acquisition, commissioning at
Kamonkoli,…
- Re-branding of Co: new logo, regional outlook, They are re-born so to speak.

Gut feeling: Sooner than latter USE shall succumb to the % spread (like the brokers rightly complained), I mean 30 ugx spread applying to UCL at 11350 per share pre-split and UCL post split at 110 per share …… (?)


Liquidity : My foot
Atleast UCL has proved that there is no rhythm here in Kampala between: share splitting & Liquidity.
I think the best way to bring liquidity to UCL is to get the big boys (NSSF, Pension funds, Parent Cos…) to offload their shares on the market (unimaginable! haa) read Baroda.
Ironically after the split these same big boys shall come in to sweep any supply!*?

Gut feeling: for liquidity the market shall inevitably have to attract as many Speculators as it can- then we can talk of a Liquid Market.
Maybe also pre-IPO splitting so many shares can be on offer (eg if NIC were to offer a share 500ugx each, they could make them 10 instead at 50 ugx) coupled with preference to individual investors (which is the bedrock of speculators are).

WILL post split UCL price OVERTAKE SBU price? Your guess is as good as mine