Steppe Cement Share Discussion Threads

[thebull3] 21/9/2009 16:17

100p hopefully, chart looks very good, share price way down off its peak, short term 80p i reckon

[ssrmb] 21/9/2009 15:55

I am some of the 'chunky buying', prospects look good IMO.

[indalo] 21/9/2009 15:52

is no one else on to these? Still heading north on chunky buying. Chart is looking very nice.

[indalo] 21/9/2009 13:28

Ticking up nicely...

[indalo] 21/9/2009 12:32

Something happening here by the look of it. Big volume again at the offer price and MM on the bid. Closed above 50p Friday which is a significant breakout. Could motor towards 100p IMO

[jonny flame] 06/6/2009 09:56

But isn't the Kazakh economy in a very bad way? If they head into a severe recession won't that delay investments in infrastructure? Whereas the Chinese economy is looking strong, hence WCC looks the better investment.



Kazakhstan is headed for a "severe" recession with several corporate bonds "highly at risk of default," according to Paul Biszko, a senior emerging-market strategist at RBC Capital in Toronto.

Private-sector debt makes up $103 billion of the country's $105 billion in external borrowing, according to calculations by RBC Capital, which recommends investors buy protection through credit-default swaps on Kazakh government debt.

[kajshares] 16/5/2009 09:40

Hi Simon, you are right, WCC seems to be a better play. However I think I missed the boat on that one in terms of capital growth. I can't see more than 50% upside movement in respect of capital growth over the next year.

What I see in STCM is an undervalued company with a very strong domestic market base(when the domestic infrastructure development commences.) Furthermore, there is the potential for attrative capital growth in the short term (6 months). There is also the potential for income growth medium term (2-4 years).

I beleive that this is a company will pay attractive dividends from 2011 onwards.

In terms of the quarterly results, this has not come as a suprise. The dollar is very strong and the Khaz.. govt as with all the other countries in their region are all reshaping their encomony. A weaker dollar in 6-12 months would help.

The pressure in terms of settlement of short term debts is off. I really think we have a solid base to spring from. Furthermore, we are not far off the low at 32p:25%. whilst we are 90% off the highs.

My view, sure play. Please DYOR

[simon gordon] 15/5/2009 18:04

Hi Kaj,

How did you read the Quarterly Results?

Is not WCC a better cement play?

[kajshares] 15/5/2009 17:32

STCM has dipped 30% from last week. Worse than I anticipated. I also note that the spread is now very reasonable, so I do not expect further major retraction in the share price. However due to the sharp drop this week, I expect further dips until we get to 29-30p, about 20% of the placement/offer price.

I expect a move northwards from the third week in June. PLS DYOR

All reasonable views and corrections welcome.

[simon gordon] 09/5/2009 20:23

IC - 14/4/09:

Steppe Cement hit hard by devaluation

Devaluations are bad news for companies which have foreign currency debt - and not just in the UK. In February this year, the Kazakhstan government devalued the tenge by a quarter against the US dollar - and so immediately increased the cost to Steppe Cement of servicing its dollar-denominated bank loans. Following a kiln expansion programme Steppe's end-2008 net borrowings more than doubled to nearly $90m (£68m), of which $61m is medium- to long-term dollar debt.

So Steppe has launched an unusual underwritten offer for subscription to raise £10m at 25p a share. Only shareholders who can stump up at least £50,000 can apply and the money will be used to reduce borrowings and for working capital needs.

Steppe has cement works in eastern Kazakhstan and, until 2008, demand was outstripping supply. But, last year, Kazakh orders for cement fell by a quarter to 5.7m tonnes, as economic growth slowed from 10 per cent to 3 per cent. Steppe expects a similar contraction in demand this year but, as in 2008, (when cement sales only fell 2 per cent to 807,000 tonnes) it hopes to increase market share as imports fall from 30 per cent to 10 per cent of the market. But weaker demand usually means weaker prices and cement prices are expected to be flat in 2009 after declining 9 per cent last year. So, not surprisingly, Steppe is cutting costs and slowing kiln expansion.

SHARE TIP UPDATE
GoodValue Steppe's shares are modestly rated and attractive if Kazakh government projects to boost infrastructure spending get moving soon, and the company can control debt. Good value.

[qs9] 09/5/2009 20:13

Likewise, like the look of it following fund raise....agree re £1+, looks ludicrous value sub that....IMO!

[kajshares] 09/5/2009 15:05

I think this share will break out in 3-4 weeks.
The placing/rights issue took place last week. The new shares placed at 25p were oversubscribed at 200%. I expect some of the lucky buyers at 25p to take quick profit, so we are scheduled for a 20% dip from current levels over the next few weeks.

We now have enough money to pay off the hard currency debts, so that would not cause a cash drain anymore.

I will be shocked if this share is not at 75p-£1 by August 2009.
Good luck everyone. Please DYOR

[qs9] 08/5/2009 20:27

Anyone else in here...looks a fascinating and undervalued IMO play.....anyone out there>>>??

[gambler99] 23/2/2009 19:20

any news anyone on steppe :(

[gambler99] 08/1/2009 13:45

anyone following this?

[chitchat] 27/12/2007 12:14

Well done you boys who have been here forever. Brought to my attention by a friend who works in KZ who knows the company well and I bought in today. He is very bullish. We'll see.....

[bicc] 05/11/2007 15:50

There has been no trading today, yet the price has dipped. If the mm's are concerned enough to warrant opening with a downturn, either they or the company or its broker need to advise what fears they have.

I have emailed the company for an update on current performance, but no reply to date.

[wassapper] 23/8/2007 16:47

You may be interested in a piece written to highlight the next Commodity Watch radio show (which can be found on Minesite)

Hedge Funds Aren't the Problem; They are Part of the Solution

During the market turmoil of the last month there have been many siren voices, some even suggesting that the situation faced by global financial markets is akin to a 1929 crash, with investors encouraged to sell everything. In an exclusive interview for Commodity Watch Radio, it was reassuring to hear from John Mauldin that he believes such comments to be "excessive, and pandering to people's fears."

John is President of Millennium Wave Advisors, LLC a US based investment advisory firm that is focussed on the hedge fund sector. Through a network of partners in places such as the UK, Denmark and South Africa, John Mauldin is probably closer to what is happening in the hedge fund industry than most. Whilst his name may be unfamiliar to some, John is very well known to a broad section of the global investment community through his weekly newsletter which is free and read by over one million recipients. "I've been writing this every Friday night for some years now. It helps me to collect my thoughts and at the same time helps others."

The subject of sub-prime mortgages has been concerning John for the best part of a year now as evidenced in his letters. His principal concern is that the fallout from this sector will affect the US housing market to the extent that it causes a mild recession in the US and he still thinks that we shall see this. A US recession will have perhaps a more significant effect on global markets with "a further 10% downside at least for US equities." It is the reset effect of sub-primes that should cause concern. Most of these 'exploding ARMs' are due to start their resets (to higher rates) over the coming months with the peak being seen through to the end of the first quarter 2008.

When asked if the current liquidity crunch was caused by hedge fund speculation in CDOs that were clearly mis-priced and given AAA ratings by the ratings agencies his answer is an emphatic no. "We have seen a few funds blow up. If there were many more we would probably have seen them by now. I have been calling dozens of people in the industry over the last two weeks and asking them if they have seen major redemptions. They have not." So where does the problem lie? "It is Asian and European institutions that were buying these securities. The major problems have been seen in Europe with the ECB pumping in liquidity and German banks in particular experiencing problems."

John has some pretty radical views of how this crisis might pan-out, anticipating more normal markets by October. Very soon he expects the lawyers to get active and have the ratings agencies such as Moody's and Fitch in their sights. "The ratings agencies will have to answer some tough questions. " As he said in his last letter, "Credit markets function because there is the belief that if you lend money you will get it back. Ratings are the grease for those markets. Now they have become the sand in the gears." His view is that these agencies need to restore credibility and he makes the serious suggestion that Warren Buffet should step in and takeover Moody's. He already owns 19%. He should "put his not inconsiderable credibility on the line for all the future ratings and the inevitable re-ratings that are going to be done."

But how do the markets start to unfreeze? He thinks hedge funds will be a major part of the answer. "Savvy distressed-debt hedge fund managers will look at the paper, and buy it for a discount." The key point here is that whilst significant losses may occur for the owners of this paper, they will at least be able to put a value on it (which they can't at present) and move on. Much of the debt will be redeemable giving the funds that step in a healthy profit, even with modest gearing.

He sees the process as being gradual. Traders have to be very careful in this market. They could easily make career ending decisions if they make the wrong move. "They don't want to put themselves in the sub-prime category!" he says with a grin.

We talked a lot more about the markets, the dramatic unwinding of the Yen carry trade (see chart below), gold, oil and the dollar. To hear more from John Mauldin look out for the next edition of Commodity Watch Radio.

Meanwhile, if you would like to read more of John's thoughts you can subscribe to his free weekly newsletter here.

[gardenboy] 14/2/2007 09:02

speed,

still here :~)

nice reversal this morning

[kishandesai] 13/2/2007 16:02

i'm riding this one for atleast 3 more years... At which point, I will expect it has grown tenfold! Loving the ride...

[speed camera] 13/2/2007 15:47

still in there gardenboy?

[gardenboy] 12/2/2007 11:55

150k @ 285 just gone through

[kishandesai] 06/2/2007 17:56

You never know! I nearly sh@t myself when I saw the 10p jump today!!! What is going on! Hoo-ray!