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It is performing well in the market
since it is a production company the movement of their share price will depend on whether the they company is getting a better comment from the public or investors. But i see the share price dropping to around GHS14.40
reinvestment of FY2016 profits signals opportunities for growth and value creation. in addition, introduction of new products will help boost corporate revenue and bottom line.
Excess Demand Over supply, Resignation of Director, Introduction of new products
9.52
potential bad year for earnings
They have lost the monopoly power in the country which is then dragging them down
Fanmilk has been a great stock in the past due to good and efficient distribution systems, the leader in the spot on consumables and other costs efficient processes. But as competition in their sector, especially complementary products that have similar distribution and consumption channels have had wide acceptance than previous brands. we have witnessed the all-time high of Fanmilk as development, innovation, and market share are all on the downside.
Current stock price can only be justified at a projected growth rate of above 50% with significant cost cutting. This is extremely difficult and overly optimistic. I see the price coming to GHC 7.60 as the fair value.
