In the last year, Kenya Orchards (ORCH) share price has gone from Kshs 4.75 to Kshs 175, a 3,500% gain via small trading volumes of about 1,000 per day (The company has 12.8 million shares issued). 100 is the minimum number of shares that can ordinarily be exchanged in a single transaction at the Nairobi Securities Exchange (NSE).
There seems to be little news driving these gallant share gains which have only been slowed by the 10% daily share price change limits. The daily limits prevent a share from changing its price by over 10% compared to the previous day’s close. However it only applies in absence of material information on the company involved. The only news from the Nakuru-based firm is that it has set up a manufacturing plant with a capacity to churn out 12 tonnes of spices per day. It plans to diversify its revenue by availing to the market spices, herbs and seasoning products starting this November. The company’s core activity is currently fruit and vegetable processing and canning.
Orchards in its 2013 Financial results (PDF summary) shows revenues of KES 47 million (~$540,000) up from KES 29 million, and a pre-tax profit of KES 966,022 (~$11,450) up from 757,201 the year. The company has assets of KES 58 million, of which 56 million is debt and 2 million is equity, with KES 55 million of accumulated losses.
In past years, the NSE has seen similar mystery gains from CitiTrust (now part of I&M bank), ICDCI (now Centum) and EA Cables.
This article first appeared on bankelele.co.ke. You can read the full article here. The share price of Kenya Orchards had since risen from KES 175 when the article was first written to KES 182 as at 11.50 am on Monday, 27th October, 2014.