Econergy Share Discussion Threads

[david77] 23/2/2008 13:42

GDP2 "I'm still waiting for the certificate for shares I bought six months ago - 'shortage of stock' says the broker. So the recent drop in share price is hard to understand. The shares are called 'residual stock' - but what actually is that."

I bought 20,000 and 25,000 as spread-bets thru IGIndex - but closed that a/c when I got scared about markets and banks. I bought them from IG into a Hargreaves Lansdown share a/c in Sept 07. I have since transferred all of the HL shares to Fastrade.

HL and Fastrade are still waiting for the share certificate.

Most shares can be traded electronically on CREST - a few are not on CREST - they are residual stocks.

Some stockbrokers won't touch residual stocks for the reasons we are having.

[gdp2] 23/2/2008 13:11

David77 believe you're on the right track - this will deliver over the next 2-3 years, and very hansomely I believe

[gdp2] 23/2/2008 13:07

bobdouthwaite - 19 Dec'07 - 16:50 - 100 of 108


David,
I'm still waiting for the certificate for shares I bought six months ago - 'shortage of stock' says the broker. So the recent drop in share price is hard to understand. The shares are called 'residual stock' - but what actually is that

Also had this Problem, but I am not looking to sell, purely to get them onto my online account.

Re The partner dropping out this presents a great opportunity for Econergy to gain a much larger share of the PEG Project. If Saret default on the loan, which was secured on 6% of the PEG project ECG can take this share which would add 245GWh of generation, adding an estimated $25m to the group's
top line and $20m to EBITDA.

This share is an unbelievable buy at these prices. Am trying to bring together funds to increase my holding before the 12th of May (Final results out)
Other News Due;
Early 2008, News of a turbine order for the Mexican Wind projects Eolica Santa Catarina and Loreto Bay is expected to be released.
12 May 2008, Econergy's preliminary's.
4th quarter 2008, Areia Branca expected to enter commercial operations.
March 2008, turbine testing at Beberibe.
Q2 2008, Beberibe expected to enter commerical operations.
Early 2008, bids for the balance of Proyecto Eolico Guanacaste should be awarded.
Q1 2008, Cambria is expected to enter commercial operations.

Its my thinking that Cambria is already online since the Mwh figures on the website have been accelerating at a rapid pace over the last few days.

Dresdner Kleinwort in a research note gave Econergy a 155p price target. "We feel the recent share price move is unwarranted and we retain our buy recommendation on the stock" - 14 Jan 08.
"Its historic misclassification as a carbon trader has led to underperformance and presents an attractive entry point"
"Econergy would have a portfolio of gross installed capacity of 1.5GW by 2015" - this is 1.6% of Brazil's current total installed capacity or 6.3% of Argentina's.
"Potential Exit strategy, Econergy could position its Latin American Assets for sale in 3-4 years.... average acquistion multiples have been around $2.5M per MW, on that basis Econergy could expect to recieve around $1.2 Billion in proceeds from a sale at this time (2011)"

Looking at that 1.2$ billion, we can get an idea of potential returns. $2 to £1 = 700million proceeds. 30% Tax = 210million. Net Proceeds = 490million.
Assume 40million new shares are issued in the period, this gives us 127million shares.
490'000'000 (Sale proceeds) / 127'000'000 (No.of Shares in Issue, Current 87million)
= 3.85 = 385p per share.

Current share price = 39p, Potential upside = 887%


Another way of valuing ECG is the recent bid for Novera Energy,

That Bid values Novera at £111,564,000
3.2x The value of Econergy.
Novera was planning to generate 250MW by 2011, Econergy Plans to deliver 207MW by Jan 2010. The results will give us a better idea if ECG can beat this projection, assuming they do, both will have 250MW by 2011. Given comparable market Cap's - ECG 34.8M NVE 111.564M, divide them by 250 (MW) we arrive at a value per MW of
ECG - £139,200
NVE - £446,256. A Massive difference of £307,056 Per MW, suggesting ECG is heavily undervalued.

[gdp2] 23/2/2008 13:02

bobdouthwaite - 19 Dec'07 - 16:50 - 100 of 108

[bobdouthwaite] 25/1/2008 12:53

Goldman Sachs has reduced its stake in recent days, perhaps explaining the fall in sp, but Deutsche Bank now has a notifiable interest.

[david77] 16/1/2008 12:15

I thought that the trading statement a couple of days ago was pretty good. All going as expected so I was surprised to see the share price fall. I added yesterday at 40.5p - less than half the price I first paid so I am pleased to see the price creeping up today.

[david77] 27/12/2007 12:46

Miners share prices often sag a bit until they get into production and I see the same here. The current share price is well below the value of the assets so I am hoping for a real improvement when this company starts earning.

[bobdouthwaite] 27/12/2007 11:28

Is this the reason for the recent decline in sp? Econergy gains a controlling interest but loses a partner - is this good or bad news? There's also been some slippage in delivery date.

[poppa07] 27/12/2007 07:40

Econergy International Plc
27 December 2007



27 December 2007



Econergy International PLC


Proyeto Elico Guanacaste joint venture ("PEG") wind project Update


Econergy International PLC ("Econergy International" or the "Company"), a
renewable Independent Power Producer ("IPP") focused primarily in the Americas,
announces that it has executed a Power Purchase Agreement ("PPA") and has signed
a mandate letter with the Nord/LB Group for a debt facility for the PEG wind
project in Costa Rica.


As announced in Econergy International's press release dated 28 August 2007, the
Consortium signed an EPK (O&M) agreement with ENERCON to supply, install and
fully maintain fifty-five E-44/900 kW wind turbines at the PEG project site.


A 20 year PPA has been finalized with Instituto Costarricense de Electricidad,
the national electricity company of Costa Rica. Econergy and its partners in
the PEG project, Saret de Costa Rica, S.A. ("Saret") and Juwi GmbH (together the
"Consortium") will work with the Costa Rican government's Controlaria in the
first quarter of 2008 to approve the the PPA.


PEG has also signed a project financing mandate letter to provide non-recourse
long-term financing of up to US$75 million for the project.


Saret, currently a 44.1% shareholder in PEG, has informed Econergy that it does
not expect to be able to fund its share of capital contributions to PEG which
were expected to be US$13.5 million in aggregate.


Econergy International had previously entered into a loan with Saret for the
principal amount of approximately EUR 1.06 million to assist Saret in funding
its share of amounts required by PEG to meet payments under supplier agreements.
This loan is secured by a portion of Saret's shares in PEG representing 6% of
PEG but is now in default and Econergy International has the right to foreclose
on its security. Assuming foreclosure, the Company would become a 51.9%
shareholder of PEG which would give Econergy International a controlling
interest in PEG and require it to consolidate PEG's results in its consolidated
financial statements.


The total additional future capital contributions for the project expected to be
payable by Saret were to be US$12 million, which in the short term could be
funded by the Company, if so required. Econergy International is now in
preliminary discussions with potential investors who may be interested in
acquiring the remainder of Saret's ownership interests in PEG. PEG is expected
to be operational by the end of the first quarter of 2009.


--ENDS--



NOTES FOR EDITORS



Econergy International



Econergy International is a renewable Independent Power Producer (IPP) focused
primarily in the Americas. The Company's strategy is to develop, build, own and
operate renewable power plants as well as optimize clean energy assets that add
economic value. Econergy International's Latin American portfolio to date
includes the acquisition and development of hydroelectric and wind power
projects in Bolivia, Brazil, Mexico, Costa Rica and Chile. In the US, the
Company's focus is on generating renewable electricity from biomass resources
including agricultural wastes, dedicated energy crops, and municipal solid
waste. Other sources of renewable energy are explored according to the Company's
investment strategy which is built around delivering the optimal risk adjusted
rate of return to shareholders. The Company now has one coal mine methane
capture and use project under construction in the US. Econergy International has
more than 11,000 wind turbines installed in over 30 countries with total power
exceeding 12.1 GW.



In addition to developing renewable power projects, Econergy International is
also actively engaged in the carbon markets and provides advisory services, all
of which give Econergy International its unique ability to source projects in
its core markets.



For further information visit: www.econergy.com



Contacts:


Econergy International PLC
Tom Stoner, Chief Executive Tel: [phone]
Suzanna Rosenberg, Marketing & Communications Director Tel: [phone]

Dresdner Kleinwort Tel: [phone]
Angus Kerr

Pelham Public Relations

[david77] 21/12/2007 10:52

:-( Maybe a diamond ring would have been a better buy :-(

[david77] 21/12/2007 08:38

My wife wanted a diamond ring but I've just bt her a few of these for Christmas - shown as a sell.

[david77] 19/12/2007 20:03

Asparks - "much more to come IMO"

I think that that is true here also. We were told that ECG should have assets worth 200p/share by the end of 08. The price of wind turbines has been rising due to worldwide demand. This is now established technology so there should be little technical risk.

I do worry about the political situation in South America but that may be ignorance. I trust that the directors know what they are doing.

I had loads of these as spread-bets. IG were always reluctant to buy more which I think meant that they were up to their self-imposed limit of 2% of the company's shares. So have many been forced to sell to closed SB positions or to raise cash to meet margin calls? I don't have any spread-bet holdings - all of my shares are paid for, so falls are painful, but my kids would have wasted it anyway so it is not that serious if I lost the lot - but I reckon that the chances of these being up 50% over the next year is greater than the chance of the company going under.

We haven't had much news recently. Punters get impatient - I have sold a few other shares recently to pay my tax bill at the end of Jan. If I don't pay then I get charged interest at a reasonable rate and penalties only kick in after six months so I might be tempted to buy more but there are lots of bargains around right now so which do I choose? - or do I pay the tax?

[bobdouthwaite] 19/12/2007 16:50

David,
I'm still waiting for the certificate for shares I bought six months ago - 'shortage of stock' says the broker. So the recent drop in share price is hard to understand. The shares are called 'residual stock' - but what actually is that?

[asparks] 19/12/2007 14:11

david I think you would be far better off selling your holding here and putting it in TERsus energy. Refinancing agree and its up 122% in less than 30mins - much more to come IMO

[david77] 19/12/2007 12:36

I've got nearly 85,000 of these so really don't want to add. There are loads of bargains around but, unfortunately, I don't have loads of cash - otherwise I don't think that it would stay as cash for long.

I had 45,000 as a spread-bet with IG. I have emptied that a/c by buying the underlying shares. Fastrade wouldn't do broker-to-broker deals so I used Hargreaves Lansdown. I've now transfered all of my H-L shares to Fastrade. All have gone thru ok except ECG.

I had an email from Fastrade saying that H-L hadn't got the stock from the market - so I guess IG didn't buy the underlying shares and H-L didn't tell me when they bt the shares from IG.

I expect it to be resolved sometime - but it indicates to me that there isn't much stock around - so why has the share price fallen when I would have expected it to rise to encourage sellers?

I intend to hold onto my shares. I expect good news in due course so, if I am right, this latest fall is an excellent buying op - but I've got enough and no cash.

[bobdouthwaite] 19/12/2007 11:02

Nothing specific, but we are due news on the Cambria project:

(From the last results)

Cambria, USA

Econergy International has signed an agreement to acquire a 50 per cent interest
in the Cambria project for $2.7 million. The project is a joint venture with
Vessels Coal Gas Inc. to capture and use methane emissions from a retired coal
mine near Pittsburgh, Pennsylvania. This project should generate near-term
revenues from both gas sales (300 million cubic feet per year) as well as the
sales of about 700,000 carbon credits (Verified Emission Reductions or VERs
which are sold in the U.S. voluntary market) over the lifetime of the project.
The project is expected to be in commercial operations by the fourth quarter of
2007.

[kirtonmp] 18/12/2007 20:33

Anyone know why the big falls over the last week or so?

Cheers

[david77] 01/12/2007 17:14

I've still got maybe more than I should have but as the FT says, if their projects perform as they expect, then the share price could double in a couple of years.

[bobdouthwaite] 01/12/2007 16:54

Brief mention in FT Money Guide Green Investing, along with Camco International, Climate Exchange, EcoSecurities and Trading Emissions.

"...it has targeted the US as its next potential growth market in anticipation of the establishment of a federal carbon trading scheme before the end of the decade. The business model makes it more of a development risk than Trading Emissions and Camco but, should it prove its ability as a project developer, it could offer long-term value."

[bobdouthwaite] 31/10/2007 11:05

I've just added a few too - the Cambria coal mine methane project should come on stream in the next couple of months, which may spark some interest.

[david77] 29/10/2007 10:05

Friday's RNS

A holder of 5,846,812 shares = 6.72% buys another 126,916 @ 0.76p

I've bought some more today.

[david77] 21/8/2007 11:08

From today's RNS: "61,000 MWh per year and that the capital cost will be approximately $50 million. A Power Purchase Agreement is already in place with Eletrobras, Brazil's government-owned electric company, for a 20-year term at a starting tariff of approximately $114 per MWh."

I make that about $7 million for a "capital cost will be approximately $50 million" or about 14% return on investment.

"the Company remains on target to deliver 1.4 million gross megawatt hours in 2009."

If they get $100/MWh then revenue will be $140 million or £70m. That is about the same as the company's market cap. Costs? Profit?

They can also sell carbon credits for their projects so looks promising.

[bobdouthwaite] 08/8/2007 11:44

Interesting. The settlement date was 2 July so the broker/mm has incurred a significant penalty in terms of the value of the shares. I shall work on the broker a bit harder if there's no resolution to-day.

[david77] 08/8/2007 09:25

If the share price goes up as we both hope and expect once there is some positive news, then you get your shares at the contract price. I think that someone (broker or market maker) will be paying a penalty (was £10/day ten years ago) to the LSE for every day that they delay settling this contract, so they won't want to delay for long.

Talk to your broker if you are concerned, but the MM will increase the price if he can't get stock.

[bobdouthwaite] 08/8/2007 09:11

David,
yes, I'm buying with the intention of holding to obtain taper relief. What I don't understand though is why the broker should claim there is a shortage of stock when, for example, £53k worth of shares was traded yesterday. Why didn't the mm sell a measly few to my broker?

In practice the lack of a certificate may not matter but there is a point of principle: the contract note from the broker says the shares have been bought, when in fact they have been ordered, not bought. In this case they were not bought by the settlement date which I think is a breach of contract and one it now appears could disadvantage me in the future - as it did you.