Steppe Cement Share Discussion Threads

[return_of_the_apeman] 10/11/2022 16:16

A lot of resistance at 45p being used up today (no idea why anyone is selling, but I guess they are profit takers from the last 6 months), I can't be bothered to go through all the trades but ADVFN has net circa. 12K in sells!!

There is much less resistance from 46p to 62p due to the sharpness of the fall in September last year, presumably due to fears over higher input costs negatively affecting margins which in hindsight has not happened

Still no press/tips/mention anywhere of this important news today, surely this will be picked up before this goes xdiv and generate some further interest

I'm sure there is only one broker here (VTB), but nothing from them yet

I see no significant reason for this not to test 62p before xdiv next week, except for profit takers, but would have thought they are getting exhausted on the run up to 46p, wouldn't expect many sellers in the 46p to 62p as SEB finished - A look at buy/sell volume over the last few months might help

[mattjos] 10/11/2022 12:12

STCM is just 'too boring' for most of the AIM market punters.
The company does not pump itself up with fluffy RNS every few weeks - just sticks to its knitting of making cement and selling it as profitably as it can.

AIM punters get excited about a 10-15% price move and try to skin a few £ off that in competition with others and the M&M's but, just do not have the patience to simply tie up the capital and await the dividend flow & capital growth.

[mattjos] 10/11/2022 12:08

IC already highlighted STCM:

https://www.investorschronicle.co.uk/alpha/2022/01/31/aim-s-reasonably-priced-growers/

https://www.investorschronicle.co.uk/news/2022/03/10/aiming-for-income/

[spawny100] 10/11/2022 12:00

Where else? Try SBLK - astronomical divends if they can maintain them.

[tigerbythetail] 10/11/2022 11:56

This was a backwater share until today. The company doesn't spend any money on hyping itself. So, IMO, news is still getting out.
Given the low free float, if Investors Chronicle or similar tip this share, the effect could be dramatic.
For now, IMO, it's just great value. Returns here actually beat today's inflation rate - where else can you get that?!?

[return_of_the_apeman] 10/11/2022 11:14

Zangdook,

Perhaps a fairer way to put it would be at 44p, 25% of your capital would be returned in circa 8 months in dividends and a forward yield of 13.6% then applies

The 11.4% I will receive from the 5p payment will be re-invested here immediately as I expect a lot of others will do (and why not). That should surely mean any drop from xdiv will be quickly made up or surpassed

I am not sure what to calculate as total volume for those re-investing the divi, however the total possible, if all did it, would be 219million shares x 5p / 44p = 4.8million shares being purchased

I think the directors take the divi for income? (although there has been significant insider buying here recently) so that may take a chunk out then a % of the other shareholders would re-invest

Whatever it is it surely must be dwarf than the net 60K shares reported by advfn as buys today!!!

[spawny100] 10/11/2022 11:04

Also added a few more by ditching some poorly performing ones. Nice long term addition here for a dividend portfolio for many years. Surprised to be able to buy here. Is market waiting for clarification on how issue has been resolved? Strange there was no explanation. A lot of buying coming in now so would expect a push up towards 50 once any stale bulls that wanted out have exited.

[wind dancer] 10/11/2022 09:45

Can’t quite believe I just topped up at 43.74p. What a bargain!

[wilo101] 10/11/2022 09:39

No WT save on the exit from Kz at 5%, DTT relieved to Holland, due the in-country tax paid.

[johnyee 7] 10/11/2022 09:37

What's the position on any withholding tax?

[constable ken] 10/11/2022 09:36

ok, let's ask Chevron and Engie about anonymous nut "wilo101" and his unparalleled record of desperate transparent lying on free bulletin boards. 🤣

[constable ken] 10/11/2022 09:32

quite a lot of upward pressure on the housing and infrastructure

To some extent that's true, and as Tiger says there's a lot of development going on anyway, but worth mentioning that Kazakhstan is not the final destination for many of the migrants, who were in a hurry to cross any border they could. Also, now the mobilisation is over, and as the war inevitably winds down, some will be planning to return home.

More people are leaving Kazakhstan now (around 10,000-11,000 per day), than coming in (8,000-9,000 per day). From numerous interviews with fleeing Russians, it is evident that many view Kazakhstan as the first stop in a long-term move toward countries like Georgia, Turkey, elsewhere in Central Asia or further onward to Europe.

thediplomat.com/2022/11/whats-next-for-russians-who-fled-to-kazakhstan/

[tigerbythetail] 10/11/2022 09:29

Hi Mattjos!
I go to Kazakhstan every couple of years on business. The amount of new construction there, both in Almaty and Astana, is incredible. New tower blocks. New roads. New suburbs. Everything.
I think also the recent change in the law allowing people to take money from their pensions to build themselves a new house has made a difference.
This company is very much in the right place at the right time.

[wilo101] 10/11/2022 09:29

5p capital return in form, and will be more for FY2022, CK is a clueless uneducated moron, some of us founded this company from scratch, and built and got it to where it is today, underwriting 4x rights issues to get US$125m down to zero and fighting off all the local crooks who tried to steal it for years,and time and time again, my record in this Region is without parallel and I did all of the big deals, ask Lakshmi Mittal, Len Blavatnik, Robert Friedland, Chevron, Engie, etc etc

[mattjos] 10/11/2022 09:22

Folk will, of course, fixate on the dividend but most will completely miss the fact that the business and it's assets are trading at ridiculously low levels.

There is a cracking company here is that is throwing off cash and growing nicely.
The Kazakh economy is going to do very, very well in the years ahead.
As wilo has pointed out, a large influx of predominantly male Russians has recently arrived and their family members will soon follow. This is going to put quite a lot of upward pressure on the housing and infrastructure of the country and those two sectors are voracious users of concrete.

[zangdook] 10/11/2022 09:19

5p/47p/22days*365days = 176% equivalent annual yield

Or since you only need to hold until ex-dividend,
5p/47p/7days*365days = 554% equivalent annual yield

I don't think it's very meaningful to calculate an annual yield based on adding two years' dividends together, just before it goes ex for the first.

[tigerbythetail] 10/11/2022 09:12

Well, a bird in the hand is worth more than two in the bush.
And a dividend declared is worth a lot more than a dividend promised but delayed and snared up in corporate tax niceties.
So what is STCM worth this morning? Company is stable and well-run. Current trading and outlook is good. Other than this year's delayed dividend (5p), we should be looking at another 5p - 6p dividend next July.
Based on the numbers, I'd expect the share price to rerate into the low 60s on this news. But the free float here is very low, and AIM is unpredictable, so if this "runs", it could go much higher.

[return_of_the_apeman] 10/11/2022 09:11

Bluemango

I calculate it as 10p/47p/8months*12months = 32% equivalent annual yield
Expect 11p though as fundamentals are improving here


Can't believe this is still totally under the radar

2nd on the top riser's leader board, no press coverage today and no new posters here

What time do tipsters sharpen their pencils these days??

If there are any new lurkers frantically doing research and wanting to ask a few questions, fire away, we are a friendly bunch

[bluemango] 10/11/2022 09:00

Edit: Got my sums wrong! 10p dividend (possibly more) within just 8 months at 47p buying price, is equivalent to an annualised yield of 32%.

In a reliable, successful and likely revenue-growing business.

[bluemango] 10/11/2022 08:42

#5095

"Still over 10% Yield in 8 days time at full Offer price"

And likely to be the same dividend or more, just 8 months after that! Absolute no-brainer, firm hold.

[return_of_the_apeman] 10/11/2022 08:41

The resistance on the chart at approx. 62p has to be the first short term target here

At 62p the equivalent annual yield would be 23.7% and the forward yield from July next year being 9.7% for this very fundamentally solid but boring business

I expect the fundamentals can support a higher price than 62p, we shall see

hTTps://uk.advfn.com/stock-market/london/steppe-cement-STCM/share-news/Steppe-Cement-Limited-Half-year-Report/89137294

hTTps://uk.advfn.com/stock-market/london/steppe-cement-STCM/share-news/Steppe-Cement-Limited-3rd-Quarter-Market-Update/89243056

[11_percent] 10/11/2022 08:36

Bought a few more.......better late than never......is what happens when you have a long lie.

[mattjos] 10/11/2022 08:35

Still over 10% Yield in 8 days time at full Offer price. Some folk are truly stupid

[return_of_the_apeman] 10/11/2022 08:27

11_percent

Correct, if it was taxed the 24% tax would have to be deducted before it is paid so they would have declared 3.8p

[mattjos] 10/11/2022 08:27

Do please keep selling, whoever it is