VituVingiSana wrote:MadDoc wrote:I still don't get why this share is so darn pricey. Especially, when there's better choices like WTK and Kapchorua. Even Kakuzi.
Where is Limuru Tea's farm located?
Where is WTK & Kapchorua farms located? [Where did PEV 2008 happen? Whose stronghold are these farms in? How close are they to large towns?]
Where is Kakuzi's farm located? Does Kakuzi have any drama about their leases?
I am not so much into agric stocks -I've never owned one - but
comparatively I still think this stock is punching above its weight on many counts.
Sure, their land is prime vs the rest of the competition. The last I checked their total land holding was about 776 acres (correct me if I wrong). Putting aside WTK and Kapchorua, the others have land holdings running into the thousands of acres (but have more shares I believe) and are not far from the CBD either.
If we ignore all other assets and only look at land as the basis for the premium the market places on this stock would its price be justified vs the rest? Total land value/total issued shares = land value per share.
Placed toe to toe with say eaagads or kakuzi or sasini (ignoring merali's antics) which of these would have the highest land value per share? Further to, would its PER or PBV merit to be that high either vis a vis the land value per share or ROE numbers? Or am I missing something?
The main purpose of the stock market is to make fools of as many people as possible.