We Rate Mumias Sugar a Speculative Buy on Increased Sugar Output

Check our report here http://contrarianinvesti...-speculative-buy-on.html

I have looked at projections as posted by the Deal and i must say i have serious reservations although i stand "collected".

1.2010/2011 sugar output will not surpass 245MT but then,this will be on the back of good sales.
2.Power generation will not come anywhere near 35MW.I project 15-18 MW for next half year.
3.300,000MT for next FY is a pipe dream.The drawback remains thinning farms and poor cane husbandry.My projection for next FY is a set target of 260,000-270,000MT but the overall again,will be in the region of 240-250,000 riding on low cane age thus low sucrose content.The only way,300,000MT will be achieved if ever,is when and only when,MSC acquires Nzoia.

@the deal,
I didn't see the 300K MT projected for next FY but not to worry.It's possible we will have the actual figures in a fortnight.

The 300K MT for 2012 is on their website.

@njunge is mumias a speculative buy at 7.35 in your opinion??