By the way, why would sugar imported from other COMESA countries be cheaper? Mumias can't complain about electricity cost like all other industries. So is it because of the cost of cane from farmers or is it inferior technology?

@Ephy MSC is a very good long term buy long term for a number of reasons..

1. they have $300million or 25billion shillings set aside for acquisitions around east africa

2. they are planning to diversify their income into bottled water and ethanol production..

3. they are planning to increase their extremely high margin co generation (around 80%) from 38MW to 50MW by next year...

4. they have a major aim of increasing their sugar production and reducing costs...

5. from an economic point of view as the population shoots up around EA demand for sugar follows suit..

the major reason people view this share as expensive is because it was at 3bob last year.. but i have this to say... this stock can easily rally to 20bob this year if all goes to plan...

ja thats the thing a 40% growth in profits for 2010...probably a 0.50 dividend...@ the current prices MSC is fully priced...probably a 10% rally on the announcement of the results...if MSC is to reach 20 bob maybe Jan 2011 depending on 1H results...anyways Prof how far is the TARDA project coz Comesa is 2012....

i expect a 0.6 dividend not 0.5 and 40% growth will give a P/E of around 8... i'm in this stock for the long term but i do expect more than a 10% rally after results

A widely held stock so the ups & downs are limited due to buying + selling competition... Unfortunately, the route of sugar passes thru RV which is a prime area for Referendoom violence... See PEV 2008...