ManufacturingHub.co.za, a South African food, pharmaceutical, chemical and cosmetic manufacturing industry publication and research company confirms that it is preparing to upgrade listed ice cream manufacturer Milkworx.
The AltX exchange listed ice cream manufacturer has been under enormous pressure over the last 18 months due to poor operational performance and cash flow constraints. The share price has been beaten down to 2c and there appears to be few buyers for the counter. “We have turned cautiously optimistic on its prospects” confirmed managing editor Marc Ashton.
“We are currently assessing the 2009 prospects for many of the players in the regulated manufacturing space in preparation for our SA Manufacturing Assessed 2008 report release” he said. This annual industrial report aims to become the benchmark for industry professionals looking to assess the prospects of companies operating in the SA Food, Pharmaceutical, Chemical and Cosmetic manufacturing space. Factors leading to the upgrade on Milkworx are: - Improved management and intellectual capital - Improved corporate governance prospects - Improved working cash flows While operating prospects may have improved there remains serious questions marks over the company having sufficient critical mass to be a credible player in the list food industry.
Upgrade and disclosure Upgrade from NEGATIVE to SPECULATIVE BUY (High risk category). “Should operational cash flows on the company be strong when the company reports at the end of September, we will upgrade to a firm buy” confirmed Ashton.
ManufacturingHub.co.za and its associates do not hold any stock of Milkworx at present and will disclose should this change.About ManufacturingHub.co.za
ManufacturingHub.co.za (www.manufacturinghub.co.za) is a South African Food, Pharmaceutical, Chemical and Cosmetic manufacturing industry publication and research company.
The company covers day to day news in the industry as well as reviews operational and market conditions for companies operating in this space.
Contact Information:
ManufacturingHub.co.za
Tel: 082-561-1585
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Web: www.manufacturinghub.co.za
