The Mumias Sugar Company stock is a very interesting one, no offence to the Kenya Orchards share (see Kenya Orchards’ 2011 results here). The share has been pretty active lately. Interestingly, the share picked up steam at the Nairobi Securities Exchange right after the company announced the exit of former CEO Mr Evans Kidero. The share has risen from KES 4.65 to KES 5.55 in the last month, peaking temporarily at KES 6.30. The share closed at KES 5.55 yesterday, a 5 cent drop compared to the previous day’s close. 1.05 million shares were traded yesterday in 111 bids.
Below is a graph on it’s activity in the last month:
The share is grossly undervalued, trading at about KES 60 shillings before its 4-for-1 share split. Loosely speaking then, the share should be in the KES 12 – KES 17 region while its hovering around KES 5.30. That, and with the projects the company has in the works, the share has massive potential.
Buy!
{The above does not constitute investor advice and it remains the opinion of the writer}