"In just two months, the share price of Zambian foods business LSE:ZAM:Zambeef has more-than-doubled. With its store roll-out on track, the Zambian economy stabilising and a number of headwinds evaporating, management now thinks this year's ..."
"For FY2017E we increase PBT by 45%, Debt to Equity falls from 60% to 23% while free cash flow increases by c100%. Critically, this will enable Zambeef to proceed with confidence in growing its core growth cold-chain food products and retail businesses."
Nice to see somone on the Zambeef discussion board.
The RNS article this-morning certainly took some reading, but it seems to me CDC (Commonwealth Development Corporation, part of the British Government) take a 17 1/2% stake in the company for an investment of 65m USD. This enables Zambeef to take full controll of it's Chicken operations, and leave plenty of cash for investment.
I only bought a small investment in the company last week, but have followed it for 18 months. I am impressed by their web presence, and videos on Utube (search Zambeef), you really feel you are involved in a worthwile and exciting company. I like to think the shares are undervalued, even with this-mornings hike, and plan to stay onboard long term.
They clear up the outstanding option problem by selling shares at a huge premium to the current share price , take on a major excellent partner with deep pockets and go debt free at the same time , all of a sudden the management are shown to be very smart and the crazy low price looks totally wrong , off the back of this deal we should be at 25p
"Just three days before Christmas, a non-executive director at LSE:ZAM:Zambeef Products spent almost half-a-million pounds on a stake in the agri-business which operates in Zambia, Nigeria and Ghana. If previous share-dealing is anything to go by, ..."
So it looks like the company is doing all it should operationally and if the currency situation is resolved, and they seem to be doing what they can about that too, hopefully there is a gradual improvement from here. I am not though a finance expert so it would be interesting to hear what other holders of this stock are thinking.
Although nursing a bit of a loss I feel more comfortable sitting on these now. Am I wrong?
Just bought into this ,
I think things are not as bad as the share price would indicate , now that Invesco have finished pounding shares out I think we will see a convergence back to the onshore share price where they are now trading at around 15p
The tax situation is a very good outcome and combined with the debt reduction means the risk of default on the debt has largely passed
I also own cresud the Argentinian farmer who face a very similar currency in freefall + usd debt issue and they are able to trade well in this environment despite posting what looks like large losses due to fx swings , if the underlying businesses can cover debt payments and produce free cashflow there is no problem,
Taking a medium term view 2-5 years , this company can recover to the old share prices, there are real assets, a growing company and it has been around for a long time, I am not planning to be out for a long time, I think the selling at invesco has created a bargain opportunity , the IC just called it two years early !!
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