Steppe Cement Share Discussion Threads

[mattjos] 27/8/2021 11:09

Basically, everything I can unearth points towards a very strong H1 in the country with increased volumes and increased sales price

[mattjos] 27/8/2021 10:58

wilo …

Heidelberg H1 2021 Results had commentary as follows

" In Eastern Europe-Central Asia, the deliveries of the individual countries presented a mixed picture. While our sales volumes were down slightly in Romania and significantly in Greece, significant growth was achieved in Kazakhstan,
Bulgaria, and especially in Czechia and Russia."

[1hercule] 27/8/2021 10:33

There were periods yesterday when I was quoted for 150k Matt.

I managed to get 100k in one go ( which they never printed btw ) and a couple of 20k so there was stock available yesterday but I do think we are ready to move now.

edit - just seen they did print it after hours

[wilo101] 27/8/2021 10:31

Mattjos, did you locate what Heidelberg also say, as well as Vicat?

[mattjos] 27/8/2021 10:00

for years you've been able to pick these up in 100,000 chunks whenever you wanted, no problem whatsoever.
Not the case any more. 40k is tops

[mattjos] 26/8/2021 14:11

In the Vicat's H1 2021 Results they advised:

"In Kazakhstan the Group posted consolidated sales of €30 million in the first half of 2021, an increase of +13.9% at constant scope and exchange rates. This reflected further growth for the Group in the Kazakh domestic market, which offset the fall in exports. Given this favourable geographical mix and the dynamic trends in the domestic market, prices recorded a significant increase."

[wilo101] 26/8/2021 13:29

Some interesting bolt-on opportunities are arising and exist,too, STCM is the only London-listed cement producer focused on and in the Region, the rest are held inside such as Heidelberg, who are a seller with new management and all the old who liked the FSU gone, and Vicat. Consolidation opportunities abound.

[eggbaconandbubble] 26/8/2021 13:28

TWO SOBS!

"This time next year Rodders.....!"

[mattjos] 26/8/2021 13:16

the divi yield alone will get us more than half way towards that target, wilo.

Once they have the plant running at 100% capacity for most of the year into markets with strong demand and pricing, we'll finally get to see what this business is capable of & I believe it will be an eye-opener for many.

[wilo101] 26/8/2021 13:12

Should be GBP2 per share, no doubt.

[1hercule] 26/8/2021 13:05

bought a load this morning for my sipp. Looks to me primed to break out.

[mattjos] 26/8/2021 12:53

Any speculative Bid price of 65p would be instantly dismissed as grossly undervaluing the business and its assets. To warrant sensible discussion by the Board, it would have to be in excess of £2, imo

[eggbaconandbubble] 26/8/2021 12:42

70p! Better pop a magnum of Pol Roger in the fridge!

[farnesbarnes] 26/8/2021 12:02

Mattjos,

I'm seeing the ascending triangle breaking sooner than that, and hoping for good volume when it does. Triangle base suggesting a measured move to 70p.

[eggbaconandbubble] 26/8/2021 11:37

My birthday on the 19th. Looking forward to waking up to a Bid price of 65p.!!!

Well! apart from the fact that I usually wake up about 2 or 3 hours before the market opens!!!

[mattjos] 26/8/2021 11:36

The charts says it all really …. there is clear strengthening underlying support now rising near that 54p level so, I suppose we're going to hover around here for next 2-3 weeks until the Interims. The Interims will then cause the Broker to update his coverage and I expect him to move more towards the 65-70p region.
If Dividends come in at the forecast 5.67p for the FY & even if they then remain static through 22 & 23, it really should see us trading at least £1-£1.25 with a 4.5% Yield.

So, at least 100% upside from here in the next 12 months or so + the dividend to boot. & all the time the physical assets are still woefully undervalued by virtue of the KZT:USD over prior years.

There's a cracking business here that is way undervalued mainly due to SEB been selling down and lack of coverage

[mattjos] 26/8/2021 11:27

Yup. There's only one covering broker for STCM and he is very, very conservative.

The reason we are stuck at this level right now is his current forecast only gives a 54p price target, despite Pre-Tax Profit forecasts for 2022 being $24.6m and $27m for 2023.

The market just blindly following the sole broker and unwilling to come to an independent conclusion ahead of the facts.

[king suarez] 26/8/2021 11:07

SharePad looks like a handy tool - does that compile and aggregate broker forecasts etc then?

[mattjos] 26/8/2021 11:07

just sharing what I come across.

When these cycles in cement price swing from low profitability into periods of higher margins and profits, it's quite dramatic.
Steppe has been quietly building a decent base in its business with a robust Balance Sheet. Pricing has been gradually firming for a while now. Further pricing and margin improvement at this juncture would have an outsize impact of profits, imo.

I still believe there are real prospects for them to be on the end of a Bid, particularly once results come out and the opportunity becomes more recognised.

[eggbaconandbubble] 26/8/2021 11:01

Re Motley Fool article.

Begins well but as one reads down clearly the author takes one too many drags on his opium pipe! Likening STCM to the potential of Amazon back in the 90's Yeah Right!

[mattjos] 26/8/2021 10:57

KS, that's straight off SharePad as at this morning. Stocko shows same

[king suarez] 26/8/2021 10:50

That your forecast MJ? I like it..

[mattjos] 26/8/2021 10:50

should be trading more like 65-70p right now, imo

[mattjos] 26/8/2021 10:42

For you KS: