In this funny sequel to the popular Francis the Talking Mule, the talkative Mule and his pal Peter get a job working on a horse-breeder's ranch. They end up saving it from financial ruin when Francis, who has the inside track with the racehorses, provides Peter with names of the winners before the races are run. Sure enough Peter finds himself with a fistful of cash and uses it to buy a racehorse for the farm. Unfortunately, the horse he chooses is suffering from a debilitating lack of confidence. When not dealing with the mare, Peter finds time to court the horse breeder's niece and trying to avoid the gangsters who want in on the winnings.

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