EABL has said generous dividends to its shareholders will be a thing of the past as the company has and is going to spend most of its retained earnings on buying half of and revamping Serengeti Brewery. The reduced earnings will go on till 2014 if not 2016
Another key factor will be the re-entry of SAB Castle Brewery into Kenya, this time in a sure footed manner after previous harassment by EABL. SAB is harassing EABL in Southern Sudan and doing a good mash work on EABL in Uganda.
Add Mututho laws to the equation and EABL shareholders will have a low return on their investment in the medium term.
Recommendation: Sell now, buy in 2013.
Go overdrive in purchasing the goods when there's blood on the streets, expecially if the blood is your own