Steppe Cement Share Discussion Threads

[mattjos] 25/4/2019 16:44

the longer they go sideways, the more powerful the resultant move

[ilostthelot] 25/4/2019 16:36

Thanks Celeritas. I'm a bit lazy at researching, sometimes, admittedly. Familiar names from the AAZ board gives me confidence.

[sportbilly1976] 25/4/2019 16:26

seller continuing....125k just printed to offset the buys today

FFs I hope they're not exiting, we'll be at 33.5p for months!

anyone have a spare £3.6mln to clear them out? :)

[celeritas] 25/4/2019 16:02

The only reason this isn't higher in my mind is purely because next to no investors are aware of it. What did change with WCC is more investors did start to notice it over time, so I guess the hard bit or easy in some investors minds is sitting on your hands. WCC seemed to take an age to get going but once it was noticed it really motored.

[celeritas] 25/4/2019 15:58

Well worth reading the last update.

[ilostthelot] 25/4/2019 15:40

Nice post Matt.
I'm tempted to dip my toe in the water!
What is the dividend policy?

[mattjos] 25/4/2019 14:26

mkt cap is just £73m … a fraction of what a new cement plant would cost to build.
Steppe is a well-established producer and brand in the region with the rail fleet to distribute over long distances. They can supply to both national & export markets.
Debt is fast diminishing, the dividend policy has already been introduced and very likely to rise this year and into the future.
It may not be the most exciting of businesses & therefore virtually invisible to usual AIM-trader brigade but, it is profitable and well set to reward those with patience.
I am very comfortable salting them away in ISA & SIPP for the long-term.

Experience & research into the sector from the days of West China Cement highlighted how this sector goes through periods of new builds and then consolidation as new-build sites become less attractive as compared to acquisition of existing plants in the hunt for market share. No idea when that consolidation phase will occur in Kazakhstan but, it definitely will do so at some future point in time. Between now and then shareholders will reap a growing dividend stream.

[goldrush] 25/4/2019 14:04

I have been gently topping up as well.Had to pay full ask for 17,500.

As Mattjos says the availability of shares wont last forever.

[jailbird] 25/4/2019 13:39

Well Mattjos,You called AAZ right and it went through a very similar scenario As as long as this is paying a dividend I will continue to hold these for as long as I will review these next year ... See the impact of new plant(s) coming online which may put pressure on supply and prices In meantime let's hope a suitor comes in for this Co

[mattjos] 25/4/2019 12:37

you just have to see this for what it is .. a terrific buying opportunity at an artificially low price due to SEB.
We cannot know why they have decided to sell but, in selling the opportunity is created and should be embraced, afaiac. They'll look to get out for an 'average' price so, stock will be made available at varying price points during an inevitable re-rating of the company's valuation.
The improving sales volumes and margins + the growing dividend stream & the value of the underlying assets will cause the mkt cap to rise.
Am continuing to pick these up at this level … it wont persist for ever.

[jailbird] 24/4/2019 13:54

Is that 64k offered in auction ?

[sportbilly1976] 23/4/2019 11:51

Are they selling down to zero though?Generally you'd get a rns once they've cleared a batch....hopefully they can wait some time before selling any more

[mattjos] 23/4/2019 09:26

curious as to why SEB are selling down but, you can never second guess these things.
Cleary will take a while if they are dribbled out in to the open market unless A N Other takes them on in one lump.
Just have to see it for the opportunity that it is

[miti 1000] 23/4/2019 08:48

They have another 10.8 million to sell .Is that enough stock for you ?

[sportbilly1976] 23/4/2019 07:53

What source now then for the stock to satisfy the buying?

[jailbird] 23/4/2019 07:30

RNS

SEB reduced by approx 500k..so those 100k were sells after all.

[jailbird] 22/4/2019 05:51

I do wonder how the broker came to a 40p target .?

[wilo101] 22/4/2019 04:32

It must move soon to GBP1, minimum

[mattjos] 18/4/2019 17:39

seller has been indicating 89k at 35p in all the auctions here for some days so, i do not think that 25k UT has cleared him just yet + Cantor seem to have a shedload to shift just now. Still, cannot persist ad infinitum & building up a good level of buying now at the 34.5 - 35p so, should become good support level once breached.

[sportbilly1976] 18/4/2019 16:41

35p UT - hopefully seller cleared in the auction

[celeritas] 18/4/2019 15:25

Yep just noticed that after a small addition. Full ask now with stock definitely tighter to buy.

[sportbilly1976] 18/4/2019 15:23

Discount gone on the buys now...tick up coming?

[celeritas] 18/4/2019 12:33

Yeah it could be Seb
Seb had 15.3m in Dec 16. Reduced to 11,375,668 by June 18. No holdings statement from them since.
Apollo started buying Dec 17 with 11,241,766.
Then again July 18 with 8,649,054 added, then again in oct 18 with 4,042,969 added.
Perez bought 2.5m Feb 19

By 23 Oct 18 Apollo had 23,933,789, this is more than enough to clear Seb out.
With Perez, buying has numbered 26,233,787, circa 11m more than Seb had in Dec 16.

15,192,023 have been bought since July 18, again enough to clear Seb out (barring 100k) if Apollo had acquired the initial 11m from elsewhere.

What I do know is 64.04% is currently held by investors who all have links.
I also think funds are currently doing a deal at this this level.

Where is it going, with the top four holders all having links, I'd say it's going to be sold or set up for a great dividend.

[mattjos] 18/4/2019 10:42

Courtesy of Bumpa:"Mattjos - STCM. Cantors are making their price two way in a 100k. They're in touch with a couple of sellers, in this instance won't divulge size, and they rarely/never divulge name(s). One is off for the easter weekend, the other apparently wants slightly higher up. With the other mm's they seem well bid at the moment, 75's, 100's etc."