Opg Power Ventures Share Discussion Threads

[plasybryn] 20/10/2016 12:08

OPG presenting below at a pro------activ event
Dec 8th 2016, 6.00 pm - Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair

The presentations will start at 6:00pm and finish at approx 8:00pm. After the presentations are complete the directors will also be available to take questions during a free canapé and wine reception. Details on the presenting companies can be found below.

[andycapp1] 20/10/2016 10:44

Azalea I'm not talking about eps numb nuts. I'm talking intrinsic value per share. If you buy back equity worth 50p at 30p it is enhancing. Period! Granted Source's view is right inasmuch as by doing so they shouldn't add to their already high gearing. But they should signal intent at the least. An AGM resolution for 10% buyback powers would be a start.

[andycapp1] 20/10/2016 10:44

Azalea I'm not talking about eps numb nuts. I'm talking intrinsic value per share. If you buy back equity worth 50p at 30p it is enhancing. Period! Granted Source's view is right inasmuch as by doing so they should add to their already high gearing. But they should signal intent at the least. An AGM resolution for 10% buyback powers would be a start.

[piedro] 20/10/2016 10:19

jeffian,
I'll second that ...

... soon have everyone filtered

[hatey] 20/10/2016 09:36

Bit of action on here, if it turns from here it could do 10-15% short term

[jeffian] 20/10/2016 09:27

I wish you (both) would!

[source] 20/10/2016 09:24

Again, more Tosh. - OPG are far more adept at managing their image than me. The results of which are clearly in the shareprice. I rest my case.

Regards,
Source.

[azalea] 20/10/2016 09:03

Source
Posters here who hold shares in OPG, can make their own minds up as to who is playing a guessing game, rather than sticking to the facts. Discerning readers will see through your posts which are designed to weave together speculation and fiction with the ultimate intention of leaving a negative image of OPG performance to date; when in reality, the facts (not my guesswork ) speak for themselves. When the Interims are announced, we will shall see what sort of guessing game is being played and by whom.

[source] 20/10/2016 07:42

Your guessing again Azalea. And your record on guessing is just terrible. Fact. Regards,Source.

[azalea] 20/10/2016 06:36

The CEO who holds 177m shares is not going to shoot himself in the foot by entering into any deal that is not going to benefit his personal position and that of the company overall. It is a pointless and dubious exercise in speculating on what deals OPG may or may not put into effect. Instead, let us rely on hard data and statements made by the company in its official reports.

Returning to the issue of a company spending cash on buying in its shares,is it not the case that by doing so it effectively increases the Eps even when there is no material improvement in revenues and profits?

[source] 19/10/2016 18:32

Anything is possible chalky. And I'm not totally closed to any opportunity of OPG hooking up with Lanco if there is strong shareholder value and debt is wholly under control and if it doesn't dilute us as shareholders. But it needs to be compelling and controlled -- especially as there seem to be industry wide dislocations going on currently that can make any such opportunism look very foolish in very short order. But overall the uncertainty caused is not helping as people are (rightly) assuming the worst i.e. dilution and massive debt increases ALL on top of OPG's already large debt which itself people may be worried about given its low cashflow recently. The company continues to shoot itself in the foot unfortunately with a lot of this....Regards,Source.

[chalky] 19/10/2016 17:48

I can't see why opg would issue 15 percent of profits to dividends and then take on a lot more debt. I think that the Lanco business will be a separate company with opg as a holding company with a percentage of equity in that company with all relevant debt held within that company, also I can see opg project managing the construction of the remaining unfinished power stations within the lanco portfolio.

[andycapp1] 19/10/2016 16:37

Azalea again you don't understand what you are talking about. Buying back shares with an intrinsic value or NAV of say 50p at say 30p should be benchmarked against the return on an investment. Basic finance. If the share buy back gives a likely IRR of 25% v solar at 10% then you buy back shares. It is more enhancing. It doesn't matter whether you are growing or not. Makes no difference.

[andycapp1] 19/10/2016 15:25

Source yes that is spot on. I do think they should signal a shard buy back and indeed I'd rather they spent the equity they have hosed on their shares rather than 12% levered solar projects. That or reduce debt more quickly. But agree the Lanco stuff is unhelpful noise.

[azalea] 19/10/2016 15:23

Any company spending cash to buy back equity in the hope of boosting the share price, is an admission of failure in its ability to increase its revenues and earnings' A situation totally alien to OPG with a proven unbroken record to that effect,reinforced by the announcement of paying a notable maiden dividend this calendar year.

[source] 19/10/2016 15:22

They'd be far better of if they just drastically increased their ROCE , not worry about ROE gimmicks in my view. By upping cashflow properly and paying down its huge accumulated debts would also be the most help in getting this very low shareprice normalised somewhat. All these further expansion rumours just provide more worry/uncertainty and suggest they may be going in the exact opposite direction though. Regards,Source.

[the original goldbug] 19/10/2016 15:03

I think they are obligated to try and do the 'right thing', hence the solar projects, which wouldn't have been on the cards at IPO.

If OPG can refinance to the extent Andycapp suggested a couple of months ago it also clearly makes sense to evaluate the possibly company changing opportunities that are arising due to the restructuring of overly leveraged power companies.

Buying back equity, while a textbook manoeuvre to increase ROE, would be a most unusual move for a young and growing company that already has a tiny free float and is more likely than not to tap the market again for possible growth opportunities.

We all know this is essentially a private company in the guise of a public company and that fact has not changed since Day 1. While shareholders are to be applauded for encouraging greater levels of accountability, we are by the same token hard pressed to make a case that governance has worsened since the share price started falling 18 months ago.

It is indeed unfortunate and frustrating that smaller companies and emerging markets remain in the grip of a long bear. Patience is the name of the game, as they say in Spanish 'La paciencia es la madre de la ciencia'!

[andycapp1] 19/10/2016 14:23

Hiya. All good comments however I'd make the point that if they bought back shares at this level then, pari passu, it would permanently enhance roe. But it's not even required. They should signal intent at least and when Gatto blithely says "oh no we won't do that" it's frankly a preposterous answer. He simply doesn't understand the business if he believes that.

[ballychan] 19/10/2016 14:01

Andy, we may well see a decent dividend trajectory, time will tell, as debt is repaid over the years I'm anticipating a high yield. Starting at 15% payout is good imo.Of £45m they're spending on solar, we don't know how much is cash and how much is debt. The solar venture will be cash generative in 8 months time and has a 25yr contract. Clearly this is more profitable than spending cash on a one off special dividend or buying shares to artificially increase EPS.They're thinking of long term growth, not quick wins to spike the share up. Imo.

[azalea] 19/10/2016 13:27

The presentation was not about releasing any price sensitive info. However that will change when the Interims are announced.

[source] 19/10/2016 12:32

Did any of the questions posted above get asked/answered at OPG's investor presentation?Doesn't look like it's had any positive effect on the shareprice unfortunately. I was hoping it might of helped clear up any misunderstanding there might be in the market. Hey ho. Regards,Source.

[andycapp1] 19/10/2016 11:46

Azalea you spout utter tosh! You have just explained my frustration which is exactly that. MWs have almost trebled yet the share price is down 44%! So have they built good MWs or bad MWs. I run a generation company that builds power plants so I know about good and bad MWs. Given the poor net cash flow one could say they have added bad plant with low capacity utilisation and hence poor IRRs. The case is not proven yet but the net results to shareholders must improve. As for dividend, they have used our capital and I'd like to see a trajectory to a decent payout ratio. 15% is fine now given debt but rather than spinning money on solar either use the capital to return to us via dividends else buy back equity.

[andycapp1] 19/10/2016 11:45

Azalea you spout utter tosh! You have just explained my frustration which is exactly that. MWs have almost trebled yet the share price is down 44%! So have they built good MWs or bad MWs. I run a generation company that builds power plants so I know about good and bad MWs. Given the poor net cash flow one could say they have added bad plant with low capacity utilisation and hence poor IRRs. The case is not proven yet but the net results to shareholders must improve. As for dividend, they have used our capital and I'd like to see a trajectory to a decent payout ratio. 15% is fine now given debt but rather than spinning money on solar either use the capital to return to us via dividends else but back equity.

[azalea] 19/10/2016 11:31

From a high of 107p when capacity was 270MW, share price now down 44% whilst capacity is 750MW and about to announce Interims with Q2 revenues the highest ever. What a nonsense.

[hatey] 19/10/2016 11:22

Upto 60.4p to buy, once it hits full offer to buy this will turn