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32p?!? I hope you're right.
3p dividend should be confirmed at AGM on 8th July. I'd imagine the ex dividend date would be around a week later, by which time the share price will be at least 32p. If the share price falls again before then, I think I'll buy more.
I have to say that I like a company that is managing its debt well. Especially now.
Happy to park my money here.
http://www.steppecement.com/pdf/Annual-Results-2019.pdf
Can't see them not paying the Div, numbers were still very good from 2019 report.
"In 2019, Steppe Cement posted a net profit of USD 9.7 million."
AGM 8th July:
"Resolution 2
First and Final Dividend for the Financial Year ended 31 December 2019
To approve the payment of First and Final Dividend of GBP 0.03 per ordinary share of no par
value each in respect of the financial year ended 31 December 2019."
Fingers Crossed
Does anybody know why the spread on this share is so vast? I bought when the spread was only 1p down at 22p last week but ever since then. Looking at 2p+ spread or 10-15%. Seems odd.
Thanks folks. Nothing announced, which is why I can't find anything. Thought I'd missed something.
I was under the impression it went ex-div (20th June according to stockopedia) but I checked www.dividenddata.co.uk yesterday and Steppe have not announced anything upcoming.
Bugerov. I don't think they have announced anything as yet.
Sorry to ask but I can't find the information elsewhere; has STCM stated its intent to pay a dividend this year?
Cement is pretty poor with regard to embodied carbon but steel is worse. The civil/structural industry will always need both. Cement is much much cheaper and favoured in drier climates. There are a lot of additives or repalcements for concrete aggregates that can offset its carbon footprint. Namely PFA or pulverised fuel ash. many more research agreements with companies and universities around the world to attempt to make it a cleaner construction material. The demand for cement will never go away until there is a better composite alternative which is affordable.
Looking at the construction market for wood, its applicability is very limited so not fit for comparison.
This is my long term investment. Bought around Jan/Feb time so I have to be patient to get back to those levels, and beyond. My decision was based on the low debt level in the company. All the other fundamentals were solid too. It should be able to carry on its operations through tougher times. Let's see where Steppe is 5 years from now. The only concern I have at the moment are related to environmental aspects. Cement production is not the greenest of industries.... but until something better comes along, cement is always in demand.
I finally got into this yesterday, and off to a great start. Anyone know why this was up 10% today
I bought in last month, as this looks a solid company, strong profits with little debt. May see a drop off in demand for cement in the coming year, but this looks to offer great value over the medium term. It looks good value just for the dividend, in fact I will be buying more before the ex-divi date.
Judging by the lack of posts both here and on advfn, it could be a gem which is yet to be discovered, although this could partly be due to where their operations are located?
Thanks for the reply, very helpful. That is a lot of time before pulling the trigger - much respect
No position as of yet. It's high on my list though. I do like a lot of the fundamentals and the fact that the CEO is paid modestly. Liquidity in this security isn't great though (ie volume). That wouldn't stop me taking a position, but it's a consideration. Entry points are never well timed (when they are, it's luck). As long as I can see it trading below fair value and with a healthy margin of error accounted for, then it's a buy regardless of what I may think about optimal entry points. For what it's worth, it takes me about 6 months to actually pull the trigger.
Hi Luna, I've only just looked at this share so don't know much about it yet. Have you taken a position. i am interested but might wait a while as can see a bit more downside in the near future
Hi
I am increasingly interested in this business. But what is it's intrinsic value? Without digging further into the accounts I can run the Graham formula for this security with the following assumptions. A mere growth rate of 2.3% (cash flow growth), and a 20yr Bond rate of 4.60%.
This gives it a fair value (intrinsic value) of 52.65p. Applying a margin of safety of 50% makes this a buy under 25.83p.
Arguably, one can pick a much higher growth rate but consensus is low going forward. History is a bit 'lumpy' but it looks like one gets a rather good discount. Or is there something that eludes me?
How did you value this security? Do you agree with the growth rate assumptions or is there something I missed?
Welcome on board HermanusInclusus!
Based on the annual reports Steppe Cement does export outside Kazakhstan too. I really should get the world map out and see how far the factories are from China etc. I have been wondering if the recent unfortunate news re Corona virus are helping Steppe as China's production is not back to normal yet after the holidays.
I did the same MaryMoo and just bought in. We shall see.
I spent my Xmas holidays reading through the company's financial reports over many years and I felt this is a well-run company that has invested in its people (workforce) and factories. It has very little debt (if I'm not mistaken) and if there is a wider economic downturn it should be able to ride it out... The only factor I'm bit uncertain is how any CO2 regulations would affect the company. I've understood that cement factories are not the most climate-friendly in that aspect. However, have to put some trust in the management team is addressing the environmental side of the business too. I'm very new to investing so have been looking for well-managed companies with low debt ratio. Just finished listening to Peter Lynch's audiobook One Up On Wall Street and he advises to buy companies with boring names that produce boring products. Don't think that it can get any more boring than having a company called Steppe Cement making cement... My first two companies I bought last year were Michelmersh Brick Holdings Plc (MBH) and Ibstock Plc (IBST). From the outset, they do sound bit boring too and are manufacturing bricks and roof tiles. They have done fantastically for me so far. There are lots of roof on this small island we're living that are coming to an end of their lifecycle and will need replacing in the next 10-20 years, if not earlier.
Ive only just bought in and hoping to stay here for the long haul. Stockopedia has this share down as its top stock at the moment. The low salary of the CEO and the dividend are a big draw so I heeded the advice. Im surprised it doesn't get more interest from taders.
Not sure why it is looking rocky. Looks like a drop in sales price in q4, Maybe it is just some selling on the news. This was 28p not so long ago and investors who bought in then would be caught between a rock and a hard place in term,s of whether to sell.
I've been waiting for days to buy Steppe and was very excited to see the price drop a bit. Might have jumped in a bit too early for a long hold but could not take a risk it hikes up again. So shall be buying more if it drops more. I've read the financials, the company seems to be decreasing its debt and managing its books ok. Perhaps today's results were disappointing for big investors?
No bad news in the RNS. Still showing 8% growth but the share has dipped. What were the markets expectations?