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Got hit 7% maybe people taking gains but defiantly a buy
I guess because STCM didn't produce any bitcoins yet this year - you can construct roads and buildings from the, you know? Not like with worthless cement..
Unsure why the market didn't like the results down 5%
Yet another cracking set of results and hardly on anyone's radar!
Nice set of results and a nice divi at 2.5 p can’t complain a solid company gla
Very creditable set of results considering Covid circumstances imo.
The net cash change was almost zero if you exclude the effect of FX revaluation on bank deposits.
Net operating cash flow was $22.7m, from which $2.2m net of borrowings were paid down and $2m of lease liabilities. The company also paid $2.9m in income tax in 2020, with the tax charge only being $2.0m - presumably paying 2019 taxes, so next year might be lower. Dividends of 4p were paid in the calendar year (though only 3p related to the accounting year - 1p was the 2020 interim) costing $11.5m, $1.2m paid in financing costs and c$3m spent on Capex.
Due to the expansion of Capex for next year, which sounds promising, and should help improve/maintain margins, I now don't expect a dividend increase in the short-term.
Sooner or later, with borrowings completely done, there will be an additional c$3.5m freed up, maybe more, if these additional rail wagons reduce lease costs? That is based on 2020 numbers, where production was down a little due to unplanned maintenance.
4p dividend cost $11.5m, so there will be room to grow it to 5p per annum fairly comfortably within the next year or two, maybe higher depending on the impact of the capex spending on efficiencies and output .
No worries. Understandable you missed the subtle humour as it appeared I was being a bit of a dick with you.
Hhhaha apologies Bugerov. I see it now :)
Fallingknife I hope you spotted my attempt at humour - first letter of each sentence.
Yes bugerov cos if we make no jokes the SP will dramatically improve. FWIW I think it is oversold and the yield is good here. The slight recovery from the large fall today has hardened my opinion that it is worth holding on here despite the temptation to sell.
Clearly you think it is funny to make jokes of the current situation
Everyone is entitled to their opinion.
My own is that it isn't funny.
Each to their own as I say.
Now...
Time to buy more STCM at these discounted prices.
Thanks folks, I'm here all week ;)
Investors are going to need more concrete evidence of a revival if today's sell-off is not to set in. I know the management will leave no stone unturned in finding a solution but it could be a long road out of this.. Been round the block myself a few times so I might sell half to cement my position here against a downturn.
"Shareholders' funds decreased to USD57.9 million from USD62.9 million due to currency devaluation and after dividend distribution to shareholders."... last year's dividend not sustainable, reduced dividend I guess not surprising.
"Volumes exported to Uzbekistan by Kazakh operators will be reduced once the new factories built in Uzbekistan become operational, most likely in late 2021."
-Concerning forecast of reduced export revenue moving forward?...
I've sold.
Plus if I'm reading correct a proposed dividend of 2.5p. I suspect many anticipated higher.
Only a modest increase in profits so a fairly unremarkable set of results. I expect this to fall back significantly, maybe into the 30ps again, where it would be much more interesting to buy.
44p tested yesterday, there was your chance for a decent entry, obviously with the spread it wasn't possible to get 44p but near enough. Todays open and close prices signal the bears backing off. Close at 49p or above tomorrow and it's all good.
@KingSuarez, I agree that the divi will be paid and probably rise it's just that it's sailing close to the wind with regards to dividend cover. I've held shares before where a company uses debt to pay the divi (not likely here) and the market doesn't like it.
Ta KS. I may put some of my SAVE profits in here. If only I'd kept them in SAVE though after today's RNS. Suspect I'll rue that one!
Nope, it is 100% yours/ours :)
Apologies if this question has been answered 1000 times before. I'm looking to buy in here. Is the divi subject to withholding tax in the UK? Thanks in advance.
Please read my posts under the thread title 'Momentum' here recently. Sites like Stocokpedia etc are not entirely accurate for forecasting cashflows etc. The company is generating more than enough free cash flow to increase the dividend, not cut it - and no requirement to spend on capital since the newer cement lines have been refurbished recently - all cash flow has been put towards paying down debt (now practically zero) with the rest returning to shareholders. I forecast a 5p FY dividend for 2021 and 6p 2022 onwards.
Such pullbacks aren't unusual with small stocks? It has had a good run up from low levels so at some point there was going to be some consolidation.
Checking the 2 websites I look at - Marketscreener and Barchart the charts are still bullish:
https://www.barchart.com/stocks/quotes/STCM.LN/overview
Agree it is a quality business. It is is classed as a superstock by Stockopedia and Investors Chronicle recently did a feature on the "dream company" setting out a number of screening tests that needed to be passed from 9 such as high operating margin, high return on equity, positive free cash flow etc. A few companies passed all 9, STCM came in the top 10 at a price of 53 of all the small company stocks on LSE.
I just wonder if it'll test 43p area, if that didn't hold then potentially 40.5p (old support). The drop has been quite dramatic the last couple of weeks. Dividend cover is estimated to be less than 1 going forward. When less than 1.5 it may indicate a danger of a dividend cut while more than 2 is viewed as healthy. Could be the reason for the drop, I don't know. I need to go back and do some more research as things may have changed here. Still looks like a great company overall.
Now is as good a time as any, given the pull-back and yield on offer?
Anyone on the sidelines here awaiting entry? What price are you considering good value?
Ideally they would move to quarterly dividends, now that debt is fully repaid, though due to seasonality of demand I am not sure if they will do that due to uneven cash flows?