Unga Group: a smart investment today?

Unga group has been trading at between 14 - 20 for 12 months now. The low share price is a reflection of the financial situation; the company has been undergoing some restructuring since 2001. Last year, they posted 73m in profits after several years of loss making. However, they suffered a blow this year when they put up a profit warning in March. Apparently, they expected their current year earnings to be hit but as much as 35m largely because of the collapse of uchumi and the draught in the 3rd quarter of the year ending 30th June.

Uchumi having been revived and the honored part of the debt, Unga should be firmly on the recovery path started in 2005. Thier earnings are expected not be much affected by the Uchumi saga as al the debt will be recovered in cash or uchumi preference shares. the share price is likely to apreaciate from the current 15 to 22-25 once the results are out in a feew weeks time.

I considere this to be a good stock for short term capital gain. putting my money where my mouth is!!