Camco International Share Discussion Threads

[mj19] 07/6/2011 11:35

are there lots of sells today, who has level 2 and can confirm the buys and sells?

[battlebus2] 06/6/2011 17:40

Yes Proactive investors have done a few good articles on Camco. A steady penny a day at the moment.

[rivaldo] 06/6/2011 14:55

Thx balliej, excellent article - it seems to have provoked further interest in CAO today.

[bailliej] 06/6/2011 11:19

Camco International (LON: CAO), the diversified green energy group, has had a busy few months since it announced its full-year results back in February.

Back then, the firm reported that it had moved back into the black. It has made further progress since.

After announcing the beginning of the construction of the biggest dairy biogas project in North America last month and its largest-ever carbon development agreement in March – not to mention reporting growth in both pre-2012 and post-2012 carbon project portfolio volumes in April – Camco today announced it "is seeing tangible benefit from the high rate of registration of emission reduction projects" by the Clean Development Mechanism (CDM) Executive Board.

A Kyoto Protocol 'flexibility mechanism', the CDM's purpose is to promote projects aimed at reducing carbon emissions in developing countries, as well as oversee the market for carbon offset credits generated from these projects. Carbon offset credits can be bought by companies and organisations in order to balance the emissions they produce in the developed world.

"We work with companies to develop these emissions reductions projects," said Shirona Partem, Camco's business development director, who explained to Proactive Investors that the process of creating carbon offset credits has been accelerated for two reasons. "Firstly, there's been a general improvement in the CDM Executive Board's system, but they have also now decided that when you submit the project for registration you can start counting the credits straight away."

This has proved greatly beneficial to Camco because the company itself benefits when clients start generating carbon offset credits, pointed out Partem. "From the moment the project is registered – and a big part of that project's risk is removed – we start receiving the benefit," she said. "And it's better for our clients. They can more easily predict how they will finance their projects."

Indeed, Camco said last Thursday that four of its wind farm projects in China have reached registration in less than six months from the 'Global Stakeholder Consultation' stage. Only a year or so previously, the same exercise would have taken 17 months, according to the company.

The firm reckons that the rate of increase in registrations of CDM projects will only continue to accelerate.

The North American dairy biogas project announced last month will be the biggest scheme of its kind on the continent. Wholly owned by Camco, but operated by AgPower Group, the US$25 million Idaho-based project will see the installation of anaerobic digesters to convert cow manure into enough biogas to fuel 4.5 megawatts of generation capacity.

Previous to that, in March, the firm signed its largest-ever carbon development agreement, with Huaneng Renewables Corporation. The deal covers 20 of Huaneng's wind power installations across China, which together have more than one gigawatt of generating capacity.

Last year saw Camco swing into profit, with pre-tax earnings coming in at €9.6 million (2009: €10.7 million loss) on revenue that increased 7.9 percent to €30 million. This turnaround was achieved partly through cost cutting but also because of an increasingly positive regulatory environment.

The firm's results suffered in 2009 due to the adverse effect on low-carbon projects of the economic downturn.

More recently, in April, Camco said it had achieved an "excellent" start to 2011. "Camco has seen an excellent start to the new year with growth in both our pre-2012 and post-2012 portfolio volumes, a remarkable success for our origination business," the firm's CEO Scott McGregor. "The increasing forward price curve provides good prospects."

Camco could release further good news later in the summer. Last July, the company released a trading statement ahead of its September interim results.

[olivercromwell] 06/6/2011 11:09

It's under the 'Trend spotting -chartist' section of Shares

this is a summation and not verbatim:

lengthy sideways consolidation approaching its conclusion. i expect CAO to offer risk-tolerant small cap punters potentially substantial gains. price target is 51p..

resistance 17p ,support 13p (at time of publication)

breakout then 28p, then 51p, then 94p, based on Fibonacci analysis

end

-

no reference to fundamentals but analysis based on the chart using Fibonacci analysis..obviously going to plan so far

[mj19] 06/6/2011 10:42

i could email someone image if they know how to load it up...

[rivaldo] 06/6/2011 10:10

Thx MJ19. I'm no good at that stuff myself - hopefully someone else can help (or the HTML thread will tell you directly).

[mj19] 06/6/2011 09:12

tipped in the shares magazine in whsmith to go to 51p, took a picture of the article of my iphone, but dont know how to post a image here.

[rivaldo] 06/6/2011 09:08

Nice start to the week.

[rivaldo] 05/6/2011 09:15

Thx battlebus - 30p or 34p doesn't make much difference :o))

From today's Sunday Times, good news for CAO:



"Green index will help investors to punish dirty firms

A new environmental tracking index may force companies to clean up their act by naming the heavy polluters as well as praising the good guys
Iain Dey Published: 5 June 2011

A green pressure group has devised a new set of stock market indexes that it claims could force Europe's biggest polluters to clean up their act. The Environmental Tracking index series will go live on traders' Bloomberg terminals tomorrow at 11am.

It will rank Europe's companies according to their level of emissions rather than their size. Big companies with high levels of pollution, or those that fail to disclose enough information about their impact on the environment, will drop to the bottom of the rankings.

The new index is the latest attempt to tap demand for socially responsible investing. It is estimated that in Europe alone there is now €5 trillion (£4.4 trillion) invested in funds that have explicit environmental or social targets......

......"This is the kind of innovative project that will help us to tackle the environmental challenge that lies ahead," said Gill. "Carbon risk management will have to come high up the list of priorities for businesses. At the same time, the opportunities are real for those who help to effect a shift towards a low-carbon economy.""

[gerryjames] 03/6/2011 18:16

0.212% dilution. These are heading for a quid over time and a nice divi, so big woop.........

Boatdrinks
G.

[napoleon 14th] 03/6/2011 17:58

Nice one. I should add...

[battlebus2] 03/6/2011 16:51

Sorry Rivaldo the 34p was an old Peel target i was looking at . I mistakenly took it to be the latest because it was higher LOL! No doubt Peel will raise their forecasts to around 40p after recent trading. Anyhows a great week and serious volume again today.

[aishah] 03/6/2011 10:24

Its only gone past the 20p investment Khazanah Nasional made in 9.2m CAO shares Sept last year. Plenty to go here imho.

[rivaldo] 03/6/2011 08:26

Cheers battlebus, more encoraging stuff there.

The last broker note I got was from Peel Hunt dated 18th April, with a 30p target price - where do you get your 34p broker valuation from?

[battlebus2] 03/6/2011 07:54

Rivaldo broker target is for 34p with carbon price at 11 euros!

Surprise spike in new CDM projects
Carbon News and Info > Carbon trading prices > CER market reports
Carbon News and Info > Climate change news > Carbon finance, emissions trading & offsets

Friday, 3 June 2011
The rate of new Clean Development Mechanism (CDM) project proposals in May was at its highest in more than three years, according to figures collected by the UNEP Risoe Centre. Its monitoring of the project pipeline finds 141 new CDM projects entered the pipeline last month. The Centre says these levels have only been exceeded four times, back in 2007-08. It suggests that emission-reduction project developers may be in a hurry to get projects fully registered before the end of 2012, the end of the first, and so far only, Kyoto Protocol commitment period which enables the CDM market.

There were 19 million CERs issued in May, continuing high rates of issuance with projections for the number of CERs issued until the end of 2012 now standing at 1.08 billion CERs. The total amount of CERs now issued is now 624 million. The average issuance success is 95.6 per cent.

UNEP Risoe says the CDM Pipeline now contains 6,292 CDM projects while the number wide-scale Programmes of Activity (PoAs) has reached 92, 22 per cent of which are in Africa. In May, 6 new Joint Implementation (JI) projects were submitted, five in Russia and one in Poland. The JI Pipeline now contains 437 projects. A total of 36.4 million ERUs have been issued for 134 projects (28.3 million in track 1 and 8.6 million in track 2). The total issuance in April was 500,000 ERUs.

[rivaldo] 03/6/2011 06:52

Excellent news battlebus, thx. The brokers have target prices of around 30p-32p, but these would still look cheap on those EPS figures.

I particularly like the news item about the "Accelerated rate of approval for Camco's projects" in your post 761.

[battlebus2] 02/6/2011 17:16

All the pieces of the puzzle are beginning to fit. Here's an old Fool article which is coming to fruition. Shares in this asset-rich, green company are up, but not enough to reflect its true value.
Any company whose cash accounts for a third of its valuation and whose net working capital actually outstrips that valuation is worthy of closer inspection in my book.
When that company is both profitable and growing quickly, you have either the proverbial no-brainer of an investment -- or you don't understand the wider picture.
And that picture is indeed a difficult one to see clearly with AIM-listed carbon credits specialist Camco International (LSE: CAO).
The mere mention of carbon credits is enough to have many investors leaving the room. Seen as something of a nebulous concept, the credits seem to be an invention out of thin air that enables ethereal value to be created -- but which has no true meaning in practice.
Proven performance
The truth though is that Camco has two decades' worth of experience in working with companies and governments in China, US, UK, Africa, Russia and Southeast Asia in developing emission reduction and clean energy projects. And also that carbon credits have true value.
Camco's client list is impressive and includes household names in the UK such as Shell (LSE: RDSB), HSBC (LSE: HSBA), and Aviva (LSE: AV), as well as the EU Commission, United Nations, and governments and public bodies.
The company also invests its capital directly in green energy projects via a $30m specialist energy fund in the USA, and through a $30m joint venture with the investment holding arm of the Government of Malaysia.
Why the value?
The fact that Camco's business is difficult to get to grips with may be the reason that the shares present such good value.
When I wrote about Camco a year ago, I thought the shares looked "inexplicably cheap".
At the time, the share price was 12.75p. It's now 17.5p, which is pretty close to its high point over the year, valuing the green group at just over £33m.
The company has net asset value of €61.2m (currently equivalent to £53.4m), and net tangible assets of £51m of which £27.6m is net accrued income from carbon projects. The carbon projects are registered and operational and expected to deliver cash in the next two and a half years.
Meanwhile, cash amounted to £10.8m at the end of the year, whilst net working capital was £38.2m -- outstripping the overall valuation by some 15%.
Where there's Idaho manure, there's brass
On Monday, the shares moved a little higher on what seems to be an excellent deal concerning American cow manure.
What Camco appears to have done is to get Uncle Sam to pay 30% of the costs of the deal, and to guarantee the future market -- and the company will benefit from the resulting carbon credits.
The project, which is wholly-owned by Camco and operated by the Camco-led consortium AgPower Group LLC, involves the installation of anaerobic digesters to convert cow manure into enough biogas to fuel 4.5MW of generation capacity. We're told that proven anaerobic digesters of a type already installed in over 50 farms across the US will convert cow manure from a dairy farm in Idaho into clean electricity.
The work is fully financed for an estimated total construction cost of less than $25m, which will come from a combination of construction financing and debt financing. It also qualifies a federal grant programme, under which 30% of eligible construction costs are reimbursed.
A 20-year power purchase agreement is also in place, and the renewable energy certificates and emission credits will qualify under California's new renewable energy and greenhouse gas regulations -- so adding further to the carbon credits portfolio.
The house broker anticipates earnings per share of 2.28p this year, rising to 4.54p next.
If these forecasts are anything like correct, the shares deserve a much higher rating given the asset base, which the company looks to be shrewdly augmenting. A totally different company from the one 6kenny dealt in.

[bailliej] 02/6/2011 16:20

New press release.

Accelerated rate of approval for Camco's projects
Camco International Limited ('Camco', AIM:CAO), a global developer of emission reductions and clean energy projects, announces today that it is seeing tangible benefit from the high rate of registration of emission reduction projects by the CDM Executive Board to date in 2011. Four wind farm projects developed by Camco in China have reached registration in less than 6 months from the Global Stakeholder Consultation stage compared to an average of 17 months for the equivalent process last year. This is due to a combination of Camco's ongoing project development capabilities and an acceleration of the UNFCCC process in the last year.The projects are located in the Autonomous Region of Ningxia Hui and are expected to reduce emissions by 90,000t and 95,000t CO2 annually. Yariv Cohen, President of Camco commented, "The increase in the rate of registrations of CDM projects is the result of a long process of improvement by the UN. We believe the process will continue to accelerate as more measures are put into place. The record registration time enables more projects to be approved by the UN before 2013 and provides a strong boost the development of clean energy projects worldwide."

[rivaldo] 02/6/2011 15:02

Thx shauney2 - 51p would do for starters :o))

All coming together nicely - institutional interest and investor roadshows, press tips, good RNS's, Germany's abandonment of nuclear power etc etc....

[shauney2] 02/6/2011 14:14

Nice positive article from the chartist in todays Shares Magazine.
Target of 51p

[6kenny] 02/6/2011 13:41

no,

more, debt riddled (huge credit facility) and the promise of jam tomorrow....

[rivaldo] 02/6/2011 13:37

Exactly balliej.

I see Henderson Global Investors have been one of the recent buyers - they're just disclosed they're now above 5% with 9.8m shares:

[bailliej] 02/6/2011 13:32

were they highly cash generative, free of debt, well managed and fully funded?

[6kenny] 02/6/2011 13:04

the share I owned...the name escapes me, they were based in Ireland, were into Carbon Credits....converting pooh and waste into Carbon efficent energy etc,etc...they too had large trades going through all the time, as did Woolies and Meldex...