Yes. If I had the cash. Land Value = 200. EPS will be over 40/-.

Oops, I meant NAV. Pole sana! [I think the NAV would jump if they did a proper valuation based on current Tea prices as well as prices for land in Kenya.

[BTW, this land is in Nandi so not as valuable as Kakuzi coz far, far away from major urban centers + the 'tribal' factor i.e. the possibility of destruction of the tea, buildings, assets for political factors]

@VVS, Did you have the guts or foresight to sell off by 2012?[/quote]
Of course not. I have a weakness for firms that have good management and trade at low P/B. That said, these were not bought with specific price objectives though I do look at their prices! Should I have sold? Yes. Did I sell? No. Heck, I bought more!

Prices are rising in KES as 1) the drought bites and reduces production 2) Surplus stocks get used up 3) KES depreciates vs USD

http://www.businessdaily...1/-/suars4z/-/index.html

Do not assume a firm's share price moves lock-step with sales/profits. BTW, the higher tea prices are offset by lower production due to the drought.

It does not matter if tea prices are $10/kg if you have only 1,000 kgs to sell vs 1,000,000 kgs at $3/kg. The latter is much better for the firm/farm/factory.

Agricultural stocks, I learnt many years ago, is about patience and quality management sprinkled with a lot of luck. That is why many agricultural firms' shares trade a discount to NAV. Unfortunately, it is this 'variable' performance that leads to farms being sub-divided for real estate.

Sasini will go the 'real estate' way in a few years but I do not trust Merali to share the goodies. Kakuzi is more complicated.

@murchr - Here...
http://www.businessdaily...0/-/10j0han/-/index.html