Surealligator wrote: You did not mention the prospects they have stated. They lost automated harvesters due to arson attacks and vandalism. Union leaders are still calling for more strikes. A 20% wage bill will be added to the books by 2011, tea prices are declining etc. Not a good prospect. Thus the two will continue hoodwinking profits.
What do you mean by the phrase "hoodwinking profits"?
I have noted that WTK and KAPCHORUA have always had dour predictions of their future propects even when things are good. If you read their 2010 Annual statements you may have seen that they had already alluded to do this. It has become an art form for them. At one point, I even thought they were doing it deliberately so that they could do a UNILEVER TEA on us. I even raised this issue at an AGM, which they skillfully avoided.
I acknowldged that the prospects may not be so rosy, especially due to rising costs but this will also apply to other tea companies such as Kakuzi as well, and Sasini to some extent.
I have been a shareholder in WTK (and a nominal one in KAPC and Kakuzi) for some time now. I have learnt that the best time to buy agricultural stocks is when their prospects are at their worst and the price is heavily discounted. We are not there YET and hence, I am not rushing to buy any of the agriculturals for my long term portfolio but I am now actively speculating on Sasini. I believe that it presents the best chance for short term gains. Risky though.