Opg Power Ventures Share Discussion Threads

[gm8218] 28/9/2016 09:47

OLD ARTICLE - Lanco - So not just bad management.

A former Indian power secretary, requesting anonymity, confirmed that the change in the merchant power policy had an impact on many private generation firms, including Lanco.


hxxp://www.livemint.com/Companies/3MJwTroXN1TQEvQyKPesNL/The-lessons-of-Lanco-Infratech.html

[source] 28/9/2016 09:24

Hmm - looks like OPG will be selling some of the Lanco asset to pay for the rest...certainly a transformative deal to say the least, but will increase debt further and will it dilute us all?Regards,Source.

[source] 27/9/2016 22:13

Hmmm didn't think that Lanco thing was completely off the table!...can't tell if this is good or bad though...getting involved in this certainly isn't my preferred way of OPG maximising shareholder returns. Regards,Source.

[gm8218] 27/9/2016 21:52

LANCO latest - Info hxxp://www.moneycontrol.com/news/business/lanco-may-sell-majority-stakecoal-projects-to-pare-debt_7529801.html

[eddie1980] 27/9/2016 12:07

I am surprised Azalea is not listed as a majority shareholder the amount of times he has been fortunate enough to buy on the drops from his £1 plus pumpings.

[jailbird] 27/9/2016 10:45

Luckily anyone with any sense will not listen to Azalea's desperate advice...broken record.

[source] 23/9/2016 15:02

Thanks Ballychan - too right too! :)As I also noticed I think the resident wally's comments may be driving me to be a bit more negative than I normally would. However also seeing OPG lurch back down to these levels again after the recent spike is particularly disappointing as well. -- Just had a laugh at Azaleas recent delusional post where he thinks his posts have made OPG's price falls today recover to bring less negative than would have been the case otherwise! - pure comedy! :)Regards,Source.

[azalea] 23/9/2016 14:15

Has the tide turned, on a Friday, of all days. Perhaps buyers are taking more notice of the numbers being highlighted in recent posts. When they see the numbers in the Interims, others will regret not buying at this temporary dip.

[ballychan] 23/9/2016 13:30

Source, they're mature assets did bring in more cash, £16m more. The -£3.04 net cash has already improved by £7m as late payments been received as confirmed by the MD, and the remainder £19m coming within 12 months.Worth noting Net cash at FY15 was -£56m. So YoY a huge improvement.The article was out on 20th July, clearly published by numerous media, but all sources indicating CNBC. So tbh it's not an ongoing story over many months.I appreciate your glass is very much half empty with regards to OPG so I'm just adding some balance :-)

[ballychan] 23/9/2016 12:33

Oldboffy thanks for the update.I did find their presentation (available on website) very good.Did they mention anything to do with the main listing, perhaps in the Q+A?

[oldboffy1] 23/9/2016 12:02

Source.

I attended the presentation last week (I couldn't spot your red tie and blue cuffs)and feel very comfortable with the Company. Arvin Gupta sees OPG as a gradual money maker and the overall impression I got from the day was - caution, sweat the assets, create cash and don't do anything too risky.

The FD was very clear that they had had several refinancing discussions in the past but that every time they got close to signing something base rates dropped and OPG's credit rating improves. When they do refinance the terms could be very much better.

The FD also said that the debt with TANGEDCO was not impaired just late. I wasn't sure whether payment of the remaining balance was going to be gradual over the next 12 months or whether it would be paid in one go once UDAY was confirmed.

[source] 23/9/2016 11:42

It'll get eaten alive on the main market if it doesn't smarten up its market communications and shareholder picture on the main market. The Gujarat delays being but one example. (Just realising the more that plonker Azalea posts the more negative sides I am seeing!). Lol. Regards,Source.

[azalea] 23/9/2016 10:41

If after its ongoing examination of the merits, the BoD decide to move to the Main Market, it would make itself open to wider recognition and investments by institutions whose constitutions bar them from investing in Aim listed companies.

[source] 23/9/2016 10:18

Just noted I can't sell these on Hargreaves site...odd. Says I can only leave limit orders or fill or kill orders. Regards,Source.

[azalea] 23/9/2016 10:01

chalky, good to know you are on board. I believe the Interims this year will highlight the progress we have been waiting for. The 480 MW uplift from the three latest plants about to be realised, with the maiden div provide an added boost. With prospects so positive I can only assume the dribble of sells are by distressed sellers, looking to cover there losses from elsewhere.

[source] 23/9/2016 09:59

Hi Ballychan- was just looking at OPG's annual accounts 2016 which shows very low free cashflow. (Due to large late payments by a major customer and also a large tax payment, both of which took many by surprise). Their accounts show a negative total cash change before borrowing of -£3.04m. Appreciate it has been shelling a lot of cash out on investments but it's more mature assets should really have bought in more cash. I think some/all of that missing cash should have also come in by now? Hopefully!

Again this poor cash backdrop only makes the rumours about buying more distressed assets etc a worry rather than an opportunity I think.

And yes I refer to the recent 10 or so newspaper reports that OPG may be in the frame to buy some significant distressed assets (& again risks further overstretching) from June, July and August of this year. Not seen anything newer other than others unsubstantiated rumours on this board that this may lead to a fund raising or placing.

I only mention this now as some web services I use are now flagging its low cashflow (& hence this got my alarm bells ringing wrt my wholly separate recollections on Globo - unrelated I know, but poor cashflow is a poor connection between the two)

Drops again today I see. Looking like it does want revisit the recent mid-50 p lows unfortunately:(

Regards,
Source.

[ballychan] 23/9/2016 08:35

Source do you have any numbers to back up your comment 'OPG has taken large hits to its cashflow'? The 'worrying noises' about buying distressed assets was a news article back in July. Or have you found more sources?

[source] 22/9/2016 21:52

Like others here I think at this point the priority for OPG should be to generate strong cash and pay down lots of their debt, before going too headlong to further heavy investments as has been rumoured/reported...Unfortunately OPG has taken large hits to its recent cash flows though, and there are quite worrying noises about it looking to spend what little it has on further very large purchases of distressed & poor assets rather than paying down its own existing high debt (which are both completely in the wrong direction in my view). The shareprice seems to reflecting that fear and highlights risks that the company could be overstretching. Throw in as well that (as some here have suggested) the rumours of a capital raising also, which may be scaring people with dilution risk too. May just be bluster but such sustained weakness in shareprice when other shares have been motoring is not just easy to waive away as before I think. Regards,Source.

[jeffian] 22/9/2016 19:54

I must say, marvel man, I like dividends or anything that puts available cash back into shareholders hands. The trouble with "capital appreciation" is that, much though they'd like to, Boards of Directors don't control the share price. They need to focus on the things they can control which is growing revenues, making profits and paying dividends and if they do that successfully the share price will look after itself.

[marvelman] 22/9/2016 19:30

Spot on jeffian...this is not Vodafone for Gods sake. Re-invest or pay down debt. Its capital appreciation shareholders want from this early stage company not macho micro dividend pay outs either.

[jeffian] 22/9/2016 18:33

God forbid! Share buybacks take real cash and p*ss it away trying to support the share price by artificially enhancing earnings per share and net asset value. It is called 'financial engineering'. If the company has surplus cash to distribute, the only way to get it into shareholders' hands is via a dividend, return of capital or by paying down debt.