@vituVingiSana - I hope as Mumias takes over Nzoia it does not bring on board the Nzoia management and the politics that have been frustrating their own farmers at times holding mature cane in the farms for more than three years yet they have no capacity to mill it and wont let others buy it.If its for the cane its all good.

IMHO, MSC should and must concentrate its financial power on TARDA. The sugarcane variety grown in Western province takes 18months to mature compared to 9 months for the variety to grown at TARDA.
PS:I understand there is also a project to start growing sugar at the Coast. Lakini they may have to encourage watu wa bara to move down their given their love of leisure...

With the Mumias Half year results in, a re-analysis of the share is in order.

The earnings per share for the half year results are Ksh 0.68.

The company has indicated that it is yet to fully reap the benefits of power export and expect improved revenue from the power segment in second half of the year.Assuming a conservative 10% increase in the EPS compared to 1st half for the second half of the year, the second half EPS should be about 0.75. This would lead to an annualized EPS of about Ksh 1.43.

At the current share price of about Ksh 9, the share is thus trading at a forward P/E of about 6.

The fair value of this share should be a forward P/E of at least 12, thus the share is currently priced at half of its true value.

The realistic price for Mumias should be about Ksh 18. However, i anticipate a huge supply at prices that approximate the rights issue price of Ksh 16.50. By the end of the year, this share should stabilise at the price of Ksh 16-18.

Thus any price below Ksh 15 is a good buy.

Happy hunting.

@stocksmaster - why do you pick a PE of 12?

Coz at (forward) 12x PE... there are many other stocks much cheaper... and with decent growth as prospects as well...