[quote=HaMaina]Could this be the reason why this stock has taken such a beating over the past 2 days?
Court halts privatization of sugar factories for 2 monthshttp://www.capitalfm.co....gar-factories-2-months/[/quote]
This is not the reason. Let me help you.
1. Deputy President went to MSC incognito and made remarks which suggested no bailout. He said the government has challenges rolling out rights issue.
2. Another news in the EastAfrican newspaper said CMA has stopped rights issue at MSC. CMA has commissioned a team of auditors to scrutinize the true financial position of the company.
3. MSC board chairman Dan Ameyo said the market is pessimistic for a cash call.
4. CS Henry Rotich said MSC has not written to Treasury to request for rights issue participation by government.
5. Dan Ameyo said they will seek funds elsewhere. Is not clear whether the board will go for a bank loan or strategic investor.
All those points above and half raw material crushing at MSC of 3500 tons per day down from 7000 tons full capacity adds to the beating you are witnessing. Privatisation for now is immaterial to cause a tilt in share price.
John 5:17 But Jesus replied, “My Father is always working, and so am I.”