Steppe Cement Share Discussion Threads

[eggbaconandbubble] 13/4/2021 12:57

I'm a bit surprised that some heavy hitter or fund hasn't stepped in (excuse the pun!)here and offered to buy SEB out.

Anyone want to go 95:5 with me? ;-)

[mattjos] 13/4/2021 10:44

Thanks Aleman.
I agree and 5p pencilled in as an absolute minimum for this year & distinct possibility of the FY20 divi being 4p (in addition to the 1p Interim).
2022 onwards & they could likely afford more like 7-8p, imo which really makes a total mockery of current buy price.

[aleman] 13/4/2021 10:25

I'd be surprised if the 4p dividend does not increase. Volumes are up and local prices look strong. A quick scan of exchange rates - check them yourself rather than quote me - suggests revenue up about 7% in sterling and maybe about 12% in dollars. Surely such numbers suggest better cashflow and bottom line than last year unless costs have somehow gone through the roof?

[mattjos] 13/4/2021 09:44

It's only SEB (who are clearly selling through Cantor) that is holding back the price.
Since their last Holdings statement they look to have got shot of circa 3m so, down to 5.5m'ish to shift, assuming they intend to exit completely.

I suspect a lot of the stock is going into investors ISA's and SIPP's and will likely have dividend re-invest option associated with those holdings.

I doubt the overhang will persist beyond this next round of dividends.

At 40p to buy, that is 10%+ Yield …. sufficiently attractive to ensure the buying continues and hastens SEB's exit.

[wilo101] 13/4/2021 09:11

Millions of dollars of cash in the Bank on deposit

[elpirata] 13/4/2021 08:57

thats a very robust Q1 market report, you cant build infrastructure without a lot of cement! prelims next

[wilo101] 13/4/2021 08:56

No debt save for the Government subsidised DAMU Loan which knowone could not take, being long-term and in KZT at 6% per annum, unsecured.....normal commercial bank rates are 14-25%, secured.....one can get 9% interest for US$ cash on deposit, so is a no-brainer

[mattjos] 13/4/2021 08:45

As wilo says, snow is melting, Spring has arrived & there will be a national enthusiasm to get the economy & construction back into full-swing so, pleased top hear they are running the plant at max. You don't want to be caught out of stock.

[mattjos] 13/4/2021 08:36

Fantastic start to the year.

As expected:

"The Company estimates Kazakhstan's cement market demand will increase due to infrastructure and housing projects initiated by the Government."
So infrastructure stimulus one of the govt targets to aid recovery from the pandemic."

[return_of_the_apeman] 13/4/2021 08:18

Very nice update

Stock seems tight with only 12.5k available to buy at 39.9p

[eggbaconandbubble] 13/4/2021 07:15

The only issue as far as I can see is the inexorable weakening of Tenge against the Pound.

[miti 1000] 13/4/2021 07:03

That looks pretty good.

[elpirata] 12/4/2021 16:03

this months prelims/divi announcement should be the catalyst

[mattjos] 12/4/2021 15:58

Looks very much to me that it has broken out & then re-tested the red line of resistance & finally, finally, now setting off.
Been a long wait but, I believe it will prove worthwhile

[mattjos] 12/4/2021 14:35

pretty incredible that we can still buy under 40p but, that window seems to be gradually closing

[miti 1000] 08/4/2021 14:15

Hi Matt,

No, still invested here. With that dividend , seems pointless to sell .Value will out one day or as you say, it will get bid for. I'll just keeping adding in the meantime.

[mattjos] 08/4/2021 13:15

hi miti … long time no speak. Trust you are keeping well
Wasn't sure if you had remained invested here or not.
Clearly not a high growth company but, management have repeatedly stated it is their intention to return the majority of free cash to investors via dividends & with the tangible assets worth far in excess of market cap & the strategic value of the company obvious to other corporates in the sector, the downside appears to be limited.
STCM a great candidate for ISA/SIPP inclusion to make sure the taxman does not erode the value of the divis.

[mattjos] 08/4/2021 12:51

I believe its only because SEB are a seller that price is so artificially low.
Once they're gone or sold down to size, this should move

[elpirata] 08/4/2021 12:01

it should be a complete no brainer if you can get in under 40p (or maybe 50p after confirmation of prelims/divi!)

[miti 1000] 08/4/2021 11:48

Added some more today.
Interesting they bought results forward from June.

[king suarez] 07/4/2021 17:52

Hi all, I was invited on to a private investor podcast to talk about some small cap stock picks - I have covered Alpha Growth, Steppe Cement and Supply@me Capital:

[wilo101] 07/4/2021 12:01

Preliminary final results will be next week as soon as the wider market data is available hopefully 12.03.21, no debt save FOF Kz Government Damu Long term loan in KZT at an incredible 6% per annum heavily subsidized rate with inflation and devaluation a steal and bargain knowone could ever refuse

[eggbaconandbubble] 06/4/2021 16:48

Mattjos, it certainly does seem a very positive shift in policy.

[11_percent] 06/4/2021 13:29

Ok....should have thought of that.

[wilo101] 06/4/2021 13:26

Its so cheap and compelling at these levels, yield is extraordinary, snow is melting and season already underway, will be better this year, for sure