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Mumias Half Year Net Profits Up 4.5%
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Aguytrying
#11 Posted : Sunday, February 05, 2012 8:42:38 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
i'm not so excited about these results. What if they are unable to increase their sugar output and sugar prices continue falling? That said its trading at attractive metrics, but they need to get their act together Q2 going forward.
The investor's chief problem - and even his worst enemy - is likely to be himself
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Njung'e
#12 Posted : Sunday, February 05, 2012 11:45:32 AM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
mlennyma wrote:
If there were no negative minds,there could be no debate,i dont think mumias did bad considering the times,may be more cane will mature during q2 but mumias has started large scale cane farms at the coast.


Sure???Eh? Silenced ....I honestly hope you know the difference between MSC and TARDA
Nothing great was ever achieved without enthusiasm.
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Aguytrying
#13 Posted : Sunday, February 05, 2012 5:32:33 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Njung'e wrote:
mlennyma wrote:
If there were no negative minds,there could be no debate,i dont think mumias did bad considering the times,may be more cane will mature during q2 but mumias has started large scale cane farms at the coast.


Sure???Eh? Silenced ....I honestly hope you know the difference between MSC and TARDA

please do tell us, i also thought it was MSC's project.
The investor's chief problem - and even his worst enemy - is likely to be himself
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Cde Monomotapa
#14 Posted : Sunday, February 05, 2012 8:59:57 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
Aguytrying wrote:
Njung'e wrote:
mlennyma wrote:
If there were no negative minds,there could be no debate,i dont think mumias did bad considering the times,may be more cane will mature during q2 but mumias has started large scale cane farms at the coast.


Sure???Eh? Silenced ....I honestly hope you know the difference between MSC and TARDA

please do tell us, i also thought it was MSC's project.

Indeed. A JV. @njung'e do tell how it isn't.
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the deal
#15 Posted : Sunday, February 05, 2012 9:07:02 PM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Up to this point I took @Njunge's opinion on MSC seriously but his opinions above have made me to think otherwise...MSC can not produce 164K tonnes of sugar if there is no cane to be processed...it's as simple as that...and if there is no sugar in the market to meet the demand which is there, prices will go up simple supply/demand dynamics...I expect MSC to do well going forward on improving margins, cane supply and good local & global sugar prices.
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selah
#16 Posted : Monday, February 06, 2012 10:06:32 AM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
These results are poor and point to a very dangerous trend this are my reasons:

1. The company has reduced its marketing & distribution cost by more than half that explains the shortage of sugar we are experiencing...and cost cutting measures that made it register the profit.Reducing marketing expenses give rival companies opportunity to erode MSC market.

2.The company has a negative cash flow...How will it manage to pay us the dividend and invest in its future without borrowing heavily

3.Cash generated by operating activities has dropped so Low,obviously the issue of cane shortage will not go away anytime soon the competition is actually building up in western.

4.The company keeps on pushing forward the commissioning date of bottling and distiller thats shows how this company planing mechanism is a sham.

5.Every transition has its own Domes so be prepared for one once Kidero Resigns.

'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Njung'e
#17 Posted : Monday, February 06, 2012 10:09:45 AM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
@Cde,
TARDA as the name says,is an authority,which has invited investors from the sugar sector.Mumias and MAT are just but examples.Any venture between Tarda and MAT/Mumias or any other investor can only be joint.....Of course there is the wrong notion that the fields under cane are owned by MSC.Nope!Tarda was growing cane on trial basis long before this investors appeared on the horizon.The anticipated nucleus for the intended plant is far from being.

@the deal,
My opinions don't count really,so you should not take them seriously but with due respect,what you state is textbook theory while the dynamics out there are quite opposite.It's a loooong story for another day.Meanwhile and with respect,i beg to differ with you on way forward.Cane fires have already played havoc so far with no end anywhere near and as soon as this is over,expect the rains to take over.Local sugar prices are coming down (Nzoia,Westcol,Sony and Chemelil have already dropped prices and this has forced MSC to drop their prices too).Even then, much of their sugar is still stuck in godowns)......I will stop there for now.
Nothing great was ever achieved without enthusiasm.
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Gordon Gekko
#18 Posted : Monday, February 06, 2012 10:45:21 AM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
@Njung'e, talking of cane fires, I hear that 5 sirens were heard in Mumias town on Saturday alone...Sad Sad
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Njung'e
#19 Posted : Monday, February 06, 2012 11:39:43 AM
Rank: Elder

Joined: 2/7/2007
Posts: 11,935
Location: Nairobi
Gordon Gekko wrote:
@Njung'e, talking of cane fires, I hear that 5 sirens were heard in Mumias town on Saturday alone...Sad Sad


Possible and it's agonising when you imagine it's work of arsonistsSad .Burnt cane world over is disaster for milling machines and also makes processing quite difficulty.As such,i won't be surprised if production for Jan and Feb are way off targets.
Nothing great was ever achieved without enthusiasm.
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hisah
#20 Posted : Monday, February 06, 2012 11:47:44 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
And then there was a rights issue... KQ, CFC, Coop etc where will this rights issue cash come from in a money winter environ?

http://www.businessdaily...2/-/3foctxz/-/index.html
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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