Econergy Share Discussion Threads

[bobdouthwaite] 10/4/2008 11:26

David, your buy yesterday was well-timed! The other institutions bought in at well over 40p and in view of 'a number of approaches' (TFNF), a bidding war may develop. I need substantially more than 40p to break even but have already risked too much on this one. I hope the company as is will be given time to develop its assets.

[david77] 10/4/2008 10:26

My worry is price - I would offer 40p - a pretty substantial improvement on the pre-bid price (24p) but way under the value of the business - but I don't have £35 million spare just at the moment.

[dewi141] 10/4/2008 08:31

hi

news today about possible takeover - I hope at a much higher price!!!!!!

"
Econergy International Plc has confirmed that it has received a number of preliminary approaches which could lead to an offer for the company.

The renewable power producer was reacting to a statement from Consensus Business Group which said that it was reviewing its options for Econergy.

Consensus currently holds a 18.3 percent interest in Econergy. "

cheers

[david77] 10/4/2008 08:19

I've added a few more @ 30p - I've now run out of cash.

[gdp2] 09/4/2008 13:21

Need a few more buys to stop the gradual decline in the share price Glad to hear you're increasing your holding David77, I am sure its your first suggestion

[david77] 09/4/2008 10:59

The 13,291 @ 24p is my buy so I guess that the other deals are buys.
These shares are either a screaming bargain or a waste of money.

[dewi141] 04/4/2008 11:41

hi

i suppose my broader point was that in dec the lake was not full (merely higher than historical average), and so even in the worst case, whereby too much rain fell in a short period in Jan thus causing teh dam to overflow, we would still in the position where the dam would have been full at some stage in Jan (which cant be bad), and if the dam did not overflow, (due to there being a large buffer available), then I guess it would still be fuller than the average now.

FWIW - It is stil raining in Cochabamba tho not as hard.

THe point about Cambria is well made. How much effort would it take them to post an RNS to update the shareholders?

cheers

[gdp2] 04/4/2008 00:36

Judging from 2 things on the site and a lot of guess work. The Gallery shows all the req'd equipment in place at the site, suggesting that getting it up and running to me could have happened recently. The rate, IMO, of clean emmissions generated and Co2 prevented measures on the website appear to have speeded up around a month ago.
I do agree that news could give the shares a much needed buffer and would like to see Econergy confirm my hopes but we shall see. Regarding your holding imo it would be best to sit tight until 12th of May and see the progress ECG has made.

[bobdouthwaite] 03/4/2008 20:23

dewi141/GDP2
The heavy rains may not benefit hydropower production greatly. Clearly Corani should meet its 'firm' energy commitment, but the dam will be operated to a 'rule curve' so that the integrity of the structure is not endangered by any floods. Too much water, and the floodgates will be opened or will pass over the spillway. However there will probably be some - probably less valuable - 'secondary energy' generated.

GDP2, the delay in commissioning Cambria during Q4 2007 was put down to bad weather, but I was unaware that this was also the reason for the present delay. Given the steady decline in sp, why would they wait another month to pass on any good news? Why do you suspect Cambria is already online? I'm holding - but getting increasingly nervous.

[gdp2] 03/4/2008 17:25

dewi141
I agree the heavy rain and extra infows into Corani should help increase output and subsequently Econergy's revenue/dividend from the plant as the amount of energy created by a hydroelectric plant can increase as the volume of water increases in the reservoir and the height between the water source and outflow increases.
Would also like to see the directors buying shares at these levels, could be that they are being more careful with their cash, like most in the current conditions, and so avoiding any further investments in 'risky' ventures. Or it could simply a big vote of no confidience in the company but I dont think so.
I believe that any investment in Econergy at these levels will prove a great investment in the long run. I am sure you have your own reasons for investing in ECG.... Ive listed many of mine over the last few pages and will continue to invest.

Yes bobdouthwaite it is dissapointing but the delay was explained, severe cold weather in the region meant they could not install or transport the necessary components at the site leading to a 1-3 month delay. I suspect it may already be online and Econergy may announce this along with the pre-lims in May and state that it entered operations fairly recently.

[bobdouthwaite] 31/3/2008 09:38

In September 2007 the company said Cambria would be on-line by the end of Q4 2007 but this was then put back to the end of Q1 2008. There's been no RNS and we're pretty much out of Q1. I'm not impressed.

[dewi141] 29/3/2008 14:05

hi

Econergy's biggest currently producing asset is the 50% owned Corani hydroelectric reservoir/plant in Cochabamba, Bolivia (see link)



The report says that as 'At December 2007 the reservoir capacity was higher than the historical average with good inflows as the rainy season continued'.

I dont wish disasterous flooding on anyone, but in jan BBC reported massive rainfall and flooding in the Cochabamba area:



THis rainfall seems to be continuing



This has to be good news regarding the quantity of electricity Corani produces this year, together with a good effect on profitability and quantity of renewable energy certs generated for 2008.

I bought econergy at much higher levels and would like to buy more as it seems cheap - but i wonder why teh directors are not buyign if it is as cheap as it seems....

cheers

[gdp2] 29/3/2008 13:18

Some more serious players taking interests in Econergy since last year, such as HSBC (14.23%), ABN Amro (5.95%) and Merril (4.25%)

[david77] 26/3/2008 20:03

Thanks GDP2

[david77] 26/3/2008 08:27

I added a few yesterday - down again today :-(

I hope I am wrong but this does remind my of Biofuels BFC. I believed the story and kept buying as the share price fell. Fortunately there were bigger idiots than me around so I was able to sell before the shares were suspended :-(

BFC failed 'cos they were squeezed between two commodities - the price of palm oil shipped from the Far East and the price of oil that their product replaced. Seemed a good idea at the time, but the price of palm oil and shipping rocketted.

ECG have some wind turbines both installed and on order. They are getting more valuable all the time. Most of the countries in South America seem to be going great guns so their electricity demands should increase. ECG seem to be well placed to benefit from the world-wide increase in energy costs - so why does the share price keep falling?

We had a trading statement in the middle of Jan - does that mean that the next will be in the middle of July?

[gdp2] 20/3/2008 22:01

Halbis Capital Management - 4,295,266 (4.94%)
Think Halbis already had this holding and HSBC have simply assumed it and then added around 8 million shares.
SP has shed a few p in response, but long term their holding will prove to be very valuable. Pre-Lims 12th May,
Expect news of,

Cambria having entered commercial operations and begun to generate revenue and Carbon Credits
Beberibe nearing commerical operations, turbine testing completed.
Areia Branca moving towards commercial operations with a view to operational status in Late Q4 08 or early Q1 09.
News of Saret´s share of the PEG Project and whether Econergy had decided to take up this share as it is contractually permitted (A decision to do so would be very favourbale for ECG´s future IMO)
News of a turbine order for the Mexican Wind projects Eolica Santa Catarina and Loreto Bay should be released.
Revenues should be higher, admin costs similar if not slightly higher and a re-confirmation of their 1,200,000 net MwH undewr management by the end of 2009.

[david77] 19/3/2008 20:51

Pretty substantial vote of confidence - nothing to over 12 million shares:


HSBC Holdings Plc

4. Full name of shareholder(s) (if different from 3.)

HSBC Bank Plc
Halbis Capital Management (UK) Ltd

5. Date of the transaction (and date on which the threshold is crossed or
reached if different):

18th March 2008

6. Date on which issuer notified:

19th March 2008

7. Threshold(s) that is/are crossed or reached:

14%


8. Notified details:


A. Voting rights attached to shares


Class/type of shares (if possible using the ISIN code)

ISIN:

GB00B0WV7V
Situation previous to Resulting situation after the triggering transaction
the triggering
transaction
Number Number of Voting Number of Number of voting rights % of voting
of Rights shares rights
Shares
Direct Direct Indirect Direct Indirect

N/A N/A 6,530,000 6,530,000 5,846,812 7.51% 6.72%

B. Financial Instruments

Resulting situation after the triggering transaction

Type of Expiration Exercise/ Number of voting rights that may % of
financial date Conversion be acquired if the instrument is voting
instrument Period/Date exercised/ converted rights

Total (A+B)

Number of voting rights % of voting rights

12,376,812 14.23

9. Chain of controlled undertakings through which the voting rights and/
or the financial instruments are effectively held, if applicable:

HSBC Bank Plc

[gdp2] 05/3/2008 17:30

Topped up today

[gdp2] 25/2/2008 11:45

USA would be attractive for more small projects like Cambria. Not sure having a new advisor would give them a worthwhile advantage moving into the US, but not really any idea.
bobdouthwaite - Solid news will be 12th of May - should be a lot of good news re. growing revenues, Cambria online, Areia Branca and Beberibe moving much closer to commercial operation and hopefully confirmation that ecg have bought Saret's share of the PEG project.
Brazil is also very close to achieving investment grade status after recent upgrades by Fitch, "Fitch anticipates that Brazil can, with sustained economic stability, gain Investment Grade status in the medium Term (Recently upgraded to BB+ from BB, just one notch below investment grade"
Investment grade should imply lower borrowing costs, greater credit flows, lower capital flight risk and ultimately greater investment stability. Which will benefit ECG's current and new projects in Brazil

[armand traore] 25/2/2008 10:22

piper jaffray could be a prelude to something happening in the USA imo dyor.

[bobdouthwaite] 25/2/2008 09:44

GDP2,
thanks for the interesting analyses - I am tempted to add as the shares look undervalued, but I mistimed my earlier purchases and I may now wait for solid news. I doubt the increase in 'clean energy generated' posted on the website reflects commissioning of Cambria it will increase as time goes on as it is MWh.

All my certificates finally arrived - those from HL faster than those from Barclays (Saga.

Do you read anything into the appointment of Piper Jaffray as new advisers?

[gdp2] 23/2/2008 16:43

They'll be back up and considerably higher in 1-2 years

[david77] 23/2/2008 14:09

IG wouldn't let me buy many - but that's just as well considering the price now - but I don't have any cash to buy more.

[gdp2] 23/2/2008 13:52

Thanks for that, frustrating but I am holding them for the long term so waiting a few months wont cause me too much of a problem. Still though, due to reasons I mention above think topping up before 12th of May could be a good idea.
Also didnt realise you could spread bet of ECG? I use CMC Markets separate to my TD share account, but cannot find ECG.