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Maybe ZamBlockChain? After all, they trade in meat, which is cut up in blocks and delivered through a supply chain.
That’s a very big trade that’s just gone through, anyone know if it’s a buy or a sell?
Yes, good point about copper.............Zambeef is in an unfashionable sector.
I wouldn't expect any dividends until debt is much lower. That's the priority
Maybe a name change might get the market excited about this company?
Anyway, I'm looking forward to my dividends that were promised a while back.......
I was pleased with the RNS and also feel that the share price should be higher.
Yes, a good RNS with improved macroeconomic landscape. I was impressed with how positive they were about H2 too. The only I would prefer is if debt was reduced to a lower level as that’s still a bit of a chain around us, given its in USD.
Overall very pleasing and we should see the SP reflect it. It should be significantly higher than this
All lining up nicely for a change!
ZAM typically release trading updates shortly before results. Last year it was 4th May, so we shouldn't have to wait too long.
I agree that it's gone deathly quiet here...........but similarly it doesn't take much to move the SP. I remain hopeful. Their assets are many multiples of the MCAP for starters!
No regular half year update as yet.
Was beginning to wonder what would happen if we had a few sales here as there doesn’t appear to be any appetite.
Last time I sold a few to fund a uk house purchase, the share tanked which tanked the Zambian stock market. If I sold a few this July would that again tank the sp, tank the ZSE , and tank the government? It really surprised me last time how little could influence a small market.
interesting post yesterday on BOD changes?
No trades following g a 10% dip. Quiet back waters again.
Expect this will liven up towards the end off March as we might expect a trading update. Not aware of any new downsides other than Covid although not sure that would have been as significant in Zambia. Dollar debt should have improved through farm sale. Hoping for solid results across the board.
After that, batten down the hatches as all the fun of the elections are coming next!
That’s a chunky buy this morning!!
I have checked a few valuation ratios.
They indicate that ZAM is good value.
There is much to suggest this is significantly undervalued.
I haven’t checked recently but I bought in when I realised the company could buy itself with just the amount of cash coining in over the tills each month
A sale of one of the farms could buy the company....
Lack of profits but no major losses with growth suggests careful management developing the company
Plenty of potential disasters eg foot/mouth weather locusts load-shedding but diversified so good areas make up for bad ones
The skeleton I missed was the chicken farm terms that were highlighted when it looked like we would be gobbled up by South Africa but CDC came in saving the bacon ( and beef and chicken) but then the preference shares came in
So let's say they convert the shares in around 3/4 years' time and it doubles the number of shares in issue, the market cap would double, or less if the price is lower. Surely still not 1/7th of it? Of course, if they redeem them then they'd need a large sum of cash!
conversion of prefs wd alter nav/share
Looking at the difference between the net assets and the market cap, is there anything else major to take into account other than the geopolitics and preference shares please? A price at around 1/7th of net assets seems a bit low?
A few mins extra thought and am doubling down on my theory of ex-director putting shares in UK pension. Looks about right for current year plus 3 year carry-forward. So help drift the sp down over a few months with gentle selling, then buy/sell them into uk pension pot set up when planning retirement a few years ago.
Now let the shares roar upwards protected from the taxman.
Ever hopeful!
Big transactions for Zam.
Not indicated as buy/sell so let’s speculate!
Option:-
1. Someone looked at the business and saw potential and just bought on open market. I think the market makers don’t carry that much stock in this backwater with even a few grand worth forcing the sp out of its band.
2. Seller that has been keeping this low, offloads last chunk to a newbie. Could that be one of the recently retired directors.....properly retiring? No RNS as yet would suggest it’s not one of the bigger institutions
3. Less than 1% so could be one or more institutions kicking this about in their band to get this share livened up - livening up should help reset this higher?
4. Retired director putting a maxed out chunk into pension - that’s my best guess as looks like a controlled buy/sell
There is definitely more wealth to the south (Botswana, Namibia, RSA) but also more competition. More dangerous to the North? Hadn't thought about further East and Mozambique....Useful to get ideas chipped in as we are probably all biassed towards our own experience.
For myself, a generation ago it was 'don't go to RSA' it's all 'riot and revolution' but reality was a great first world country that was dumping apartheid.
In RSA I was told 'don't go to Zimbabwe' it's all 'riot and revolution' but reality was a first world country with first signs of confetti money on horizon
They'll shoot you in Zambia! Missed out
Mazambecans were happy to run through the Kruger park dodging lions rather than stay - again I missed out!
Opportunities: I would like to add Mozambique.
Interesting comment on national branding..............does it really hurt the business outside Zambia? I'd be interested to know from people on the ground. It would be easy to change the brand for retail purposes in other markets. They also have the tie up with Shoprite so I don't see it being a significant hindrance.
Palm oil is certainly an interesting opportunity
With the retirement of Grogan and Irwin, we have definitely moved on from the sentimental family business. My re-analysis of company
Strengths:-
We have a strong brand closely linked to national pride (football, Zam* branding)
We are vertically integrated but happy to take product at any stage from others at commodity prices (e.g. Rabb and Grogan supplying cows) and sell through others (1 day chicks, feed, Shoprite). But always with the option for in-house to ensure security of supply and sales.
Looks like an excellent strategy that should be printing money so why no proper profits?
Weaknesses:-
Still mainly tied to the success of a poorly performing nation.
National branding not helpful developing business elsewhere in West Africa
Opportunities:-
Building the same African style supply chain elsewhere e.g. Nigeria
Zimbabwe on the doorstep that could do with regenerating its historically successful 'bread basket of Africa' status
Sale of farms and other non-essential assets for model
Huge farms for Palm Oil quietly maturing
Threats:-
Political Instability
Global push to reject beef consumption (but Zambeef covering off other animal meats)
CDC having agenda beyond that of ordinary shareholders
Rising copper prices should help the Kwacha and Zambia's overall position..............which should support ZAM