Zambeef Products Share Discussion Threads

[tenapen] 20/11/2018 17:00

They will have money to pay now !.

[tenapen] 20/11/2018 12:57

Could it be, ZAM are 'finaly' going to make me eat my 'negative' words !

It as been a long time coming :-)

[joecase] 20/11/2018 11:30

Revenue up bottom line up

[cjohn] 29/9/2018 17:26

Profit before taz to be $5m - ie about 3.9m sterling. (Adjusted for foreign Exchange gains/losses and asset disposals.)


debt to come in at $59m, somewhat down on the year, after rollout of Macro stores and sale of the palm oil división.


Overall, a solid performance, with price supported by the heavy discount to tangible asset value.

[jhan66] 27/9/2018 10:30

The Company expects to announce a trading update for the year ending 30 September 2018 in the week commencing 24 September 2018.

So tomorrow then?

[catsick] 26/7/2018 08:53

Interesting to see this new cdc non exec appointment, very experienced guy joining and he has already bought 375k shares with his own money, very encouraging....

[callumross] 18/6/2018 16:02

Bought an initial 25k at 10.3p and will buy more if the research justifies it.

[callumross] 18/6/2018 09:24

Any chance you could provide a link to the broker note, catsick? Been considering an investment in this one for a while but would like to research in a bit more detail first.

[catsick] 12/6/2018 09:07

Bullish write up out by fincap, they have a 20p target and say they are using very conservative assumptions, wont need much to get this moving, results are very good despite all sorts of one off issues .

[cjohn] 06/6/2018 10:53

yes, the f and m outbreak has cost them around $800k. Cholera negligible costs.

The 90% sale of the palm business has reduced debt $16m post period. And the huge discount to asset value provides downside protection. If they get a couple of decent trading periods, these will fly.

[catsick] 06/6/2018 07:29

These zam results are pretty good, especially given what looked like a profit warning, in the half they generated good profits despite dealing with cholera, foot and mouth , collapsing global crop prices and managed to crank out good growth and improved margins, they seem set up for a blazing second half and at some point this retail business will be throwing off huge cashflow ...

[cjohn] 15/4/2018 09:14

So foot and mouth will have a one-off impact on one part of the business. The dairy business accounts for around $14m out of ZAM's total $200m turnover.

It's pushed the share price down 10%, but there is clear value on asset and trading grounds at this bargain level. Trading at around 0.16 PTBV.

[catsick] 10/4/2018 01:11

I think a re rate is going to have to wait until there is clarity on the foot and mouth spread, it sounds like the retail side is going gangbusters, cobalt and copper prices will create a boom in the region which should be very strong for the retail side, also the trade war with the us may firm up some crop prices, maybe planting more soybeans may be the way forward?

[imjustdandy] 09/4/2018 07:40

This should re rate now

[imjustdandy] 07/4/2018 08:49

Didn't think disposal would have gone through but $16m in the bank now as well.

[imjustdandy] 07/4/2018 08:42

Political situation now clear, co now focussed on core business. 20p easy

[catsick] 20/11/2017 23:05

Wonder how the turmoil in zim will effect them, new leadership who can stabilize and bring in investment would be a bonus but you never can tell what chaos could also ensue

[catsick] 15/11/2017 07:12

Results out and as expected pretty so so, the retail business doing well and growing but all the profits wiped out by the poor soft comod pricing and disease, we have to hope that at some point both sides of the business are doing will in sync, I will hold out for that day as the business seems very well supported by cdc given the staff exchanges going on ...

[cjohn] 13/9/2017 11:17

Having said that, they have made very scant return for the money invested in palm oil.

[cjohn] 11/9/2017 09:51

Thankyou Valhamos for your clarificiation. This puts a better shine on the deal. I forgot it might be a gross assets figure.

The positive from the deal is that - bar the loss of the second loan - they have escaped a huge drain on cash.

[valhamos] 07/9/2017 15:17

Agreed about the inter company loan, but the $19m on 30/09/16 balance sheet for Zamplam quoted in the announcement is for gross assets not net book value (the announcement is rather misleading in this respect). From the accounts (note 15) we know net assets were US$8.3m at 30/09/16 ($19m less $10.7) however inter company loans had increased to $14.3m as at 1 June 2017 so net book value could be even lower now. Against that although there is a possible extra $2m consideration there is also the requirement for Zambeef to write off the second inter company loan of $2.5m to the extent required by shareholder contributions for the next 3 years.

[cjohn] 07/9/2017 12:05

Correct me if I'm wrong, catsick, but BEFORE the deal goes through, Zambeef converts its ZMW104.6m/$11.8m intra-company loan to Zampalm into Zampalm shares. These shares are then included in the sale.

So for assets valued on the balance sheet at $17.1m (90% of $19m) Zambeef receives $16m - $11.8m = $4.2m, with another possible $2m to come.



I am not currently tempted here. I don't trust the book values for the land and biological assets. And it seems to me that any cash generated is going to be used up in capex.


Be very grateful to hear your views.

[aleman] 06/9/2017 14:46

Over 20k hectares sold at around $800 per hectare or £300 per acre. Is land that cheap out there?

[catsick] 06/9/2017 14:41

But it does gain the award for my biggest losing position this year out of the over 100 shares/bonds i hold ....

[catsick] 06/9/2017 14:36

Actually not so terrible, selling a non income producing business for half the market cap and close to book while the shares are at a big discount to book is bearable, the growth part if the business is doing well and poor crop prices are creating a short term problem ... given the current share price I dont think its that bad ....