Following the second round of sale of shares in this company, the share price has taken a dip as those who bought at the offer price of Sh.49.50 started selling their shares. With sellers exceeding buyers the price sunk all the way to Sh.41.75 yesterday. It would seem that recent negative sentiments expressed by professional money managers on valuation have also cooled the market somewhat. I'd expect over the next 2 weeks the price will remain under pressure as those looking for a quick profit scamper. Thereafter the share will start to look attractive to investors.
In my view the current selling is opening a window of opportunity, particularly for those with a desire to hold large blocks. With a sugar deficit in the country, coupled with efficiency improvements on the cards for Mumias and low per capita consumption levels this company is still in an attractive position. The share price may now be getting into the zone where the serious buyers should come in.
Snealing back to Kenya without even telling me??? LOL... See you soon... e-mail me some time... Found a job or what are you up to?
I agree on Mumias but PE is not "cheap" though reasonable esp if they can hit the projected growth over next 2 years!
Posted by: coldtusker | Feb 09, 2007 at 03:33 AM