Steppe Cement Share Discussion Threads

[cheshire man] 10/12/2019 08:52

I took some last week excellent divi and the chart looking good too :-)

[mattjos] 10/12/2019 08:28

Few more for me also

[jbe81] 10/12/2019 08:16

Am amazed these are still this cheap, bought some, doesn’t seem to be much supply about

[mattjos] 09/12/2019 11:11

27.6 v 28.6 for 30k either way. Max available to buy online is 31k but, can sell more than that

[king suarez] 27/11/2019 19:58

I think 4p should be the conservative minimum dividend for 2019. I'm really hoping for 5p+ for 2019 and 6p+ for 2020.

Share price has to be doubling from here at least. I keep saying it! :)

[mattjos] 27/11/2019 18:26

At less than 30p to buy, I will be delighted with 4p+ … that's a 13% Yield

4p+ divi and the stock should be trading more in the 60-120p range, afaiac

[king suarez] 27/11/2019 17:35

Matt,

Yes, the 2018 dividend was paid in 2019, but I think there is confusion over your comment below:

"The FY 2019 results.... As compared to FY17 the company will be $1.8m better off in cash (reduced interest costs). That's more than 50% of the 2018 dividend costs covered in that metric alone."

If we are calling the 2018 dividend 3p, which cost STCM $8.2m, then a reduction in interest costs of $1.8m (comparing FY 2017 to predicted FY 2019 results) is not more than 50% of $8.2m - that's why I highlighted it. I think you meant to say the 2018 payout of 1p (c$3m) i.e the 2017 dividend? - since your comment is trying to compare the position over 2 consecutive accounting years, not one?

Anyway - do you agree we could/should be looking at a 5 - 6p dividend in the near future?

[mattjos] 27/11/2019 17:23

2018 divi was 3p surely? … admittedly paid to shareholders in 2019 but, was based on company financials for the FY 18

Anyway, other than that point, I agree .. the company FCF is accelerating and will take another big leap forward once the remaining LT debt is cleared off - I assume they will simply pay per the schedule.

Once the debt has gone, the company will be in an enviable position & the 'inside' shareholders are all well positioned to reap handsome returns. I'd like to be one of those, albeit to rather smaller degree :-)

I'd rather the divi was split, say 35% interim & 65% final but, maybe we'll have to wait for long term debt clearance before that is instigated.

Whichever way I look at this company, I keep concluding that it is too cheaply valued & 10%+ divi in these times is to be embraced with both arms.

[king suarez] 27/11/2019 16:39

Matt,

Good post - but can I make a few corrections/observations?

1) 2018 dividend was 1p, which cost STCM $3m, not 3p - that is the 2019 dividend, which cost STCM $8.3m.

2) "Long term loans were reduced from USD9.8 million to USD 6.6 million as we continued to repay principals to Halyk Bank" - not only that, but STCM also paid down short-term borrowings significantly. In fact...

3) In 2018 - STCM paid down total borrowings by $7.4m, paid a dividend costing $3m AND also increased the cash at bank position by $2.7m AND incurred a loss of $0.7m due to foreign exchange rate movements.

4) If you take all (3) into account then free cash flow was c$13.8m.

5) Once all debt is paid off, then if this performance can be replicated FCF should be $15.4m (no more interest costs), which would support a dividend of around 5.5p a share.

6) Also consider that if you compare 2018 interims to 2019 interims you will note operating cash flow has increased from $4.9m to $7.0m (H1 being the weaker of the 2 periods) and you can see that, all else equal, (5) above could be considered a conservative forecast going forward?

KS

[mattjos] 27/11/2019 14:59

this has been oscillating around the 26.5p level now for nearly 18 months.
The drops below that price point have become of shorter duration and shallower as 2019 has progressed. We might finally be leaving this price behind us now:

[mattjos] 27/11/2019 11:57

It is being quietly picked up over last few weeks .. another 55k bought this am

[king suarez] 27/11/2019 10:03

Quiet everyone, I'm trying to sleep. Thank you.

[mattjos] 27/11/2019 09:38

i have been nibbling away over the last weeks

[brasso3] 27/11/2019 08:02

Very quiet on here.

Seems to be on sale again.

[fozzie] 20/11/2019 16:41

Coming back into top up territory again ;o)

[wanobi] 13/11/2019 20:47

thanx oakey,,, hope not :-) Cheers Wan :-)

[wanobi] 13/11/2019 11:02

not at all KS, no problem, I just thought I ought to explain my reasons and state that I still hold a lot and see nothing wrong with STCM etc etc :-) thanx,,, Cheers Wan :-)

[king suarez] 13/11/2019 10:59

Apols, Wan, if you didn't want me repeating on here what you posted on your AAZ thread!

[wanobi] 13/11/2019 10:19

many thanx KS, you are correct,,,, post 11073 on my thread, repeated here for completeness, apologies all, I should have done that on the day,,, GLA Cheers Wan :-)

jeanesy, that 150K STCM trade is mine and was indeed a sell,,, I still have 6 figures invested there, just had to take some off the table to take advantage of the dip in AAZ,,, if I can that is,,,, anyhow, main thing is that its not a reflection of STCM and I expect to buy more soon,,, great divi,,, just a slow burner at the moment.... but, the best-laid plans and all that.... I'll probably make a complete mess of it all :-) we shall see,,,, GLA Cheers Wan :-)

[king suarez] 13/11/2019 10:02

Appears the 150k was a sell (by Wanobi)..

[jeanesy] 12/11/2019 19:55

some larger trades today including 150k which i think was a sell ?

[king suarez] 08/11/2019 10:33

I still have a price target of at least 50-60p on this.

I think there should be an increase on the 3p dividend for 2020 - what do you guys reckon?

[mattjos] 08/11/2019 10:00

So now 5 MM's in the stock ... lets hope spread improves as a consequence