Compact Power Share Discussion Threads

[gnuoy] 29/3/2006 17:37

Best picks info here

[gnuoy] 29/3/2006 17:37

Best picks info here

[spiv 1] 29/3/2006 17:37

Fantastic news, only just found it as have been away for a few days. I should imagine Bristol council was simply waiting for cpo's finances to be secured and hence once they got the funding they signed the deal. I suspect the financial situation at cpo has held back many a deal and hence why now they are pouring in. I honestly believe we could be looking at 100p plus within 6 months. The market cap is still tiny. As for Rowan Dartington's forecasts I shouldn't take too much notice. I know the analyst covering them and he wrote the company off at 10p.... goes to show what he knows.

[k38] 29/3/2006 12:42

Here i said,

k38 - 19 Jan'06 - 12:13 - 12 of 37 edit
Still very early days but yes, good news for compact, i can see 80p end of 06.

(BGE)even better news,
Iam in now at 33p

[krishall] 28/3/2006 14:59

As far as I am aware then Rowan Dartington are the only ones doing forecasts. As of 17th March they were still forecasting a pre-tax loss of £1.3m for 2007.
However, with todays deal financing then I think that'll have to be revised.

Interesting that both EnviroResources and BGE were willing to accept premium on the existing share price for their future shares... and both those two companies must have had inside info on CPO to complete due diligence on the deals.

[mdchand] 28/3/2006 13:59

kh - a 1% stake doesnt necessarily mean a 1% liability but I agree, long term it could be a blue sky play. reminds me of alkane when it was circa 10p. agree, market is fixated with carbon plays, but waste recycling will have its day, especially when profits filter through (which i suspect will be a lot quicker then ceres et all). am trying to track down broker coverage and will revert here if i find anything.

[krishall] 28/3/2006 13:36

mdc... as you mentioned then will wait to see if further details filter out.... but as CPO only have a nominal 1% stake in the LLP then it seems any initial risk is being taken by BGE. Presumambly they are aware of the potential in their specialist region (Greece & Balkans) to justify the terms. From what I can see the terms seem stacked in CPO's favour - but as you've mentioned then we need to confirm this in the fine print. seems providing the plant goes ahead (which from the rns it would seem to be very soon), then CPO have a definte income without civil costs.
not ramping (as I'm a position trader and not in for any short term spikes) but I really think that after the last three deals then CPO have in place what they need to move forward fairly rapidly.
although alternative energy, carbon trading, and fuel cells are presently the hot tomato's then I think the waste & recyling companies will join them as a sector in favour soon.

[mdchand] 28/3/2006 12:57

From some perspectives, I can see where CPO are coming from - farming out development costs to concentrate on licencsing and operational issues is moving them up the value chain. I still however want to see what terms and conditions apply to the debt being borrowed by the llp - especially if they are recourse to the llp assets. No doubt smarter people then me have ok'd it.....but Im always wary of debt and default clauses. ie who pays for intial development cost over-runs, who pays for operational short falls once the plant is up and running..........etc etc. Will CPO have to give up its initial fee and ongoing fee should any of the above apply? No doubt time will flesh out these details.

[krishall] 28/3/2006 11:40

From what I can see then CPO have 'got rid of' financing aspect.The rns mentiones 'The LLP will be funded by BGE under arrangements with Firona Stiftung of Liechtenstein'. So it would seem that financing is down to BGE.

If CPO are providing leading technology solutions then it'd make sence for them to concentrate on licensing (and operating) and leave civil work on projects to 'partners'. It was the previous rns's concerning licensing via EnviroResources and the JV with TurboGenerator that led me to think that CPO have a great future.

[krishall] 28/3/2006 10:30

the item that interests me from todays release is 'Compact Power said it expects to receive fees in connection to the construction of the new plant of around 3.9 mln stg over the next 13 months'.
that's somewhat significant when the present market cap of the company is only just over £8m.
So even allowing £1.9m for costs/losses (a bit mre than last years figure) then profit on deal in the region of 25% of market cap. That's excluding the other annual fee's they'll get. I know the 3.9m is a one off but if further similar deals can be completed (and the release seems optimistic on that) then this company seems somewhat undervalued.
I know the above is a bit 'simplistic' - but am I mising something on why he market cap of this company shouldn't be higher.

[mdchand] 28/3/2006 09:47

intersting structure to be moving forward with. slight reservations why CPO are using a Greek based company rather then a UK one, but nothing that should affect earnings. Need to do some more work on Balkan General and see how big they are locally.

[spiv 1] 23/3/2006 12:06

Hi Md. Got a good feeling about this one. Was tempted to pile in when the funding was announced but didn't. Saw the tie up with Turbo Genset though and that swung it for me.

[mdchand] 22/3/2006 13:21

hi spiv - nice to see you here.

[spiv 1] 22/3/2006 08:22

Picked up a few of these this morning. This company is starting to turn the corner at last. I first held these years ago and sold out but with a bit of luck I think these could really run now.

[mdchand] 15/3/2006 12:42

i admit was very lucky to jump in at 22p. wouldnt chase it now as i can see it coming back to 24-25. that said, the extra finance, the fund raising premium, and the new distribution opportunities, mean it should be well underpinned at that lvl.

[clangor2] 15/3/2006 12:34

Caution appears to be the order of the day now. MMs pushing the price up on very little recorded volume so far. Maybe they have very no stock on board but I've decided to stand back and admire for the time being...

Number 2 on the 'gainers', amazing!

[hectorp] 15/3/2006 11:14

the rise is phallic. Missed it.

[clangor2] 15/3/2006 11:06

Number 3 on the 'Gainers' list, that's a bit of a turnup!

Couldn't get through to my online broker straight after the announcement - wanted to buy a few more at what appeared to be a give-away price compared to 30.9p. Have eventually logged on only to find the price has surged to 24.75p with a maximum buy limit of 2.5k shares.

What to do?

[mdchand] 15/3/2006 10:35

Its a great rns - to get someone to subscribe for additional shares at a 50% premium to the underlying share price is nav enhancing in the short term for existing share holders and gives the market a short term price target. this share should be nearer 25-30p now, although how long that will take is another issue.
nibbled some this am.

[clangor2] 15/3/2006 10:06

This effectively takes care of the threatened fund raising by the end of March:

Equity investment and international collaboration

Compact Power is pleased to announce that EnviroResources has agreed to invest
£1 million to subscribe for 3,240,106 new ordinary shares in Compact Power,
equivalent to approximately 30.9p per share. The new shares represent
approximately 10% of the company's current issued share capital and will be
issued under the company's existing cash placing authority. Payment for the
shares will be received in tranches ending on 1st May 2006 when the shares will
be issued. Upon issue of the shares EnviroResources will be entitled to nominate a non-executive director to the Company's board.

EnviroResources is an international supplier of pollution control solutions and
developer and operator of green energy facilities.

Compact Power has granted exclusive licences to EnviroResources for the
promotion and distribution of the technology in Scandinavia, Hong Kong, and
South Korea. Also distribution rights in other territories ranging from the
Americas, to the Far East, Middle East and Europe.

Nic Cooper the Chairman of Compact Power states:

"This is exactly the sort of collaboration Compact Power needs to realise our
potential throughout the world. With the current concern about both global
warming and energy supply our technology has never been more relevant.
EnviroResources has built up a reputation and has extensive contacts in all the
territories they will operate in and this will at a stroke give us the presence in these markets that we need to expand our business."

David Weaver the Chairman of EnviroResources states:

"In these days of ever increasing realisation that man's development is causing
potentially harmful pollution to our world, it is refreshing and encouraging to
see a company like Compact Power emerge with technology that fulfils a critical
need. Not only does it destroy waste and pollution, but it also makes a
contribution to our dwindling energy resources. We at EnviroResources are
committed to making this available to all our markets worldwide. This is a
powerful addition to our business."

[asparks] 15/3/2006 09:38

when are next results due?