Current list of second-tier stocks for 2021

What are second-tier shares in simple words?

These are securities that have a moderate ability to be quickly sold at close to market prices.
They are issued by companies with lower capital and stability than blue chips. These companies are quite large, but are not world famous and in demand. It is not typical for organizations to have a noticeable difference between their purchase and sale prices. This state of affairs reduces the interest of speculators in them, because it is difficult to quickly make money on second-tier shares. However, the potential profitability of such shares is an order of magnitude greater in the long term than that of blue chips, which personally appeals to me.

The dynamics of the value of secondary securities, despite their moderate liquidity, is usually characterized by significant fluctuations. Thus, deviations of 5% per day are considered normal.

JSC Belon

OJSC Belon

created in Novosibirsk in May 1991. The first most important tasks of the company: reconstruction of coal mining and coal processing enterprises in Kuzbass, formation of new technological chains, establishment of current production connections that meet the requirements of the new economy.

Since October 15, 2009, OJSC Belon has been part of the group of enterprises of OJSC Magnitogorsk Iron and Steel Works. OJSC Belon is a stable, actively developing company whose field of activity is the production of coal and its processed products.

Today Belon is among the socially responsible coal companies in Russia. Over 19 years of operation, the company has become widely known both in Russia and in other countries as a reliable coal partner. The fact that Belon OJSC entered the MMK OJSC Group means new prospects for the coal company, and new opportunities for the provision of raw materials for the world-class metallurgical company OJSC MMK, and therefore stability in the production of high-quality rolled products.

The company's central office is located in Belovo.

known as a conscientious partner who flawlessly fulfills all contractual obligations. Proof of this is the high assessment of government agencies, private business and public organizations, as well as strong domestic and foreign economic ties.

The purpose of society

The company's goal is to ensure MMK's raw material security. The company achieves this goal using various tools: it increases investment and financial attractiveness, strengthens market positions, and strives to develop human resources. The focus of the company's activities is the production system, management systems and resource provision.

Main activities

The Belon Group enterprises form a single technological complex. The production system is interconnected, geographically compact and has a developed infrastructure. Financial, economic, raw materials, and investment policies are aimed at achieving the most effective results from the use of production and intellectual resources and technological capacities. The company carries out constant technical modernization and introduces environmentally friendly and energy-saving technologies.

The coal direction is a priority in the company's business structure.

Belon Group enterprises mine and process coking coal. Coal concentrate from coking coal is supplied to MMK and the country's largest metallurgical enterprises.

Product range, types of services

Coking coals

The raw material for the production of coking concentrate is coking coal of the Zh, KS and KO grades. Raw materials are extracted at the enterprises of the Belon Group: Chertinskaya-Koksovaya, Kostromovskaya, and the Novobachatsky open-pit mine. Processing of raw materials is carried out at the Belovskaya processing plant. The factory produces kon, which contains 80% Zh and 20% KS grade coals. This concentrate is supplied to the largest metallurgical enterprises in Russia. The main share goes to the Magnitogorsk Iron and Steel Works, and part of the concentrate goes to the Novolipetsk Iron and Steel Works.

Characteristics of coking coal concentrate

Services for enterprises

The Belon Group includes service organizations that provide services to the Group's production enterprises and third-party companies.

Major achievements of the society

The highest public recognition for Belon was the Russian National Olympus award. An honorary diploma and a Golden Olympus statuette were awarded in 2005. The award was a confirmation of his contribution to the development of the country's economy. By the decision of the Patrons of the Century Foundation, the name .

Contact details

Address: Kemerovo region, Belovo, st.
Lenina, 12 Tel. reception (8 35452) 2-83-57, 2-33-27 e-mail Tel. Reception Directorate for Personnel (8 35452) 2-98-64 e-mailTel. Department of Information and Public Relations (8 35452) 2-86-08 e-mail www.belon.ru

List of Russian second-tier shares

List of organizations whose shares are classified as the second echelon of PJSC:

What to look for when choosing 2nd tier stocks

If you want to buy securities, take into account:

1. Financial indicators of the enterprise. When purchasing second-tier shares, I become a co-owner of the organization, interested in the prosperity of the business. Therefore, performance results should be assessed in terms of revenue, profitability and net profit. Market multiples are used to assess the attractiveness of an organization, its potential for growth or decline in shares.
2. News about the issuer. There may be an information delay when prices have not yet had time to react to unpleasant messages.
3. Liquidity. This indicator determines how much time you will have to spend on a purchase and sale transaction and the likelihood of losses.
4. Dividends. Regular payments of a portion of a company's profits to shareholders. Their size directly depends on the income received. These funds play an important role in payback and profit making. You should study the payment history, the company's policy towards them, and dividend yield.

Risks and features of trading

It was difficult to decide to purchase second-tier shares. There are several reasons:

1. Little-known issuers. Representatives of this group can be seriously underestimated or, conversely, overestimated.
2. No news. The delay in information leads to the fact that the revision of a personal position on shares is delayed in time and sometimes results in financial losses.
3. Liquidity problems. An order to sell or buy securities may await execution for several days or even weeks.

The following work features will help minimize risks:

1. Diversify your portfolio. Do not invest all your capital in the securities of one company, despite all their attractiveness - this is a basis that cannot be ignored.
2. Find sources of information that keep you up to date.

The best brokers for buying and investing in shares

Pay attention to the following brokers:

• VTB;
• Sberbank;
• LLC "BC Region";
• Univer Capital LLC;
• JSC Alfa Bank;
• FG BKS;
• JSC "Finam";
• Aton LLC;
• ALOR BROKER;
• JSC Bank GPB.

MMK absorbed Belon's assets

History of M&A transformations.

By analogy with Sistema-Bashneft in the form of our proprietary schemes.

The first time I read about Belon was in a review by Entanta Capital in the summer of 2007.

The review was called “Belon Coal Venture”.

The shares cost 10 rubles (1000 before the split) and there was a rather interesting story.

An ambitious increase in production was expected, plus it was the last independent coal miner (before that, they were all snapped up by metallurgists in 2002-2007).

In the fall of 2007, the media wrote that MMK bought a 10.75% stake in Belon. Here is a short essay from the Entente review.

However, 10.75% of shares in MMK were not officially registered. The deal became more complicated. MMK bought a 50% stake in an offshore company that held 82.% of the shares.

In March 2008, the Group acquired a 50% stake in Onarbay Enterprises Ltd, a Cypriot company which owns an 82.6% stake in OJSC Belon, a coal producer located in the Russian Federation, for a cash consideration of US$234 million.

The new shareholder put forward an offer of 36.6 rubles (3,660 rubles before the split). But none of the naive minority shareholders brought paper for redemption))

https://www.kommersant.ru/doc/914121

According to the management of Belon, which was reported by the group’s press service, “this fact indicates a high degree of interest in the company on the part of shareholders, as well as their confidence in the further growth of the value of the company’s shares and the implementation of Belon’s announced plans to increase production and basic financial indicators." MMK also approved the decision of the board of directors of the coal company and the position of the minority shareholders. “We can agree with the recommendation of the board of directors that Belon’s shares have not yet reached their historical maximum,” noted Vladimir Rashnikov’s press secretary Elena Azovtseva. At the same time, she said, “whether the shares of minority shareholders will be sold or not is not important for MMK from the point of view of control and management of the company.”

In fact, the offer was set at the average, and MMK itself bought at approximately 12.4 rubles per share.

In Belon, a share split of 1 to 100 took place, an IPO was planned! But plans changed due to the 2008 crisis.

Then, at the end of 2009, after the crisis, MMK bought the second half of Onarbay from Dobrov, for about 19 rubles in terms of Belon’s share.

In 2010, MMK decided to make Belon its own coal division. Belon also produced thermal coal, so the energy mines were sold.

The buyer was SDS-coal. Belon only had metallurgical coal left.

The transaction amount is very important here.

That is, MMK spent 234 + 309 million dollars, a total of $543 million.

Then the energy part of Belon was sold (by Belon himself) for $280 million.

In 2011, MMK itself was revealed in Belon’s shareholder structure with a share of 5.1% of shares.

MMK created a subsidiary, MMK-Mining, where it transferred control in Belon and an Australian iron ore subsidiary, Flinders Mining. Maybe not everyone remembers, but MMK bought this startup for $537 million and went bankrupt. It was planned to invest $1 billion and obtain a mining and processing plant with a production of 15 million tons of ore.

“I am confident that Flinders will become the leading iron ore producer in Australia,” said Viktor Rashnikov, chairman of the board of directors and majority owner of MMK.

Analysts agree that MMK is paying a very high price for the Australian company, but the acquisition is worth it: now Magnitogorsk only meets 30% of its ore needs and purchases it from Kazakhstan’s ENRC, Metalloinvest and Severstal.

. “In a few years, MMK can supply ore from Australia to Magnitogorsk and be 100% self-sufficient in ore,” says Oleg Petropavlovsky from BKS. True, the cost of transporting a ton of raw materials will be $65-70. Therefore, this option is relevant only if the domestic Russian price of ore reaches $150-160 per ton, the analyst calculates. Now the price is lower - $100-110 per ton.

But the company also has another promising market, experts say. “MMK will be able to sell ore from the deposit to China, where its price, due to high demand, is already $150-160,” says Vadim Astapovich from VTB Capital.

An idea emerged that MMK was preparing for a squeeze-out in Belon.

That is, it was so, only then MMK for some reason changed its mind.

Further, MMK's strategy regarding Belon is changing again.

In 2013, the company sold the Novobochatovsky open-pit mine.

https://www.kommersant.ru/doc/2360276

MMK increased its share to 95%. Paid decent money. 9.53 rubles per share.

The scheme took this form

My friend called MMK and they said something like “wait for an offer, do not sell the shares.”

He sat in them and only recently sold them.

I also read that MMK CFO Sergei Sulimov said that the company was considering selling Belon, but the buyer never decided.

In 2015, MMK changes plans again. Kostromovskaya Mine buys out additional share issue, eroding Belon.

That is, Belon’s share was estimated at 20 million rubles!!!

What happens next is this.

The Belovskaya enrichment plant is renamed MMK-Ugol.

At the same time, MMK transfers all Belon shares to the balance sheet of MMK-Mining.

And the most interesting thing. There is an additional issue of MMK-Ugol, to which MMK and Belon contribute their shares in three mines.

That is, Belon lost almost all his assets. All coal enterprises are now under the direct control of MMK.

This affected financial indicators. Now they simply don’t exist, Belon is just a company that has a minority stake in MMK-Ugol.

I feel sorry for the shareholders. Is it possible to buy back at normal prices? It's hard to say, in theory everything is possible.

Previously, they wrote many, many times that you need to stay away from Belon.