Essar Energy Share Discussion Threads

[bobsidian] 25/11/2013 10:20

Note 10 makes for alarming reading. ESSR are already seeking the waiver of debt covenants whilst also being committed to yet further capital expenditure over the course of the next couple of years even after the deferral of significant capital commitments. And in the midst of this the margins of profitability on its gigantic turnover appear wafer thin relative to needs.

It will be interesting to see just how ESSR extricates itself from such financial jeopardy.

As hvs suggests, how did such an entity receive the go ahead to list on the LSE ?

[undervaluedassets] 25/11/2013 08:35

Those that bought on friday must feel thoroughly idiotic.

As I said at the time - bull trap.

[salpara111] 25/11/2013 08:31

Big pile of poo!

[undervaluedassets] 25/11/2013 07:59

Right. Well I think the numbers speak for themselves.

[gbb483] 24/11/2013 17:38

Sparky, you're assuming someone will take the stock.

[undervaluedassets] 22/11/2013 12:25

Well today's action looks like a bull trap to me.

Those that bought after the open today are starting out on their adventure with Essar with a nice loss.

[sparky333] 22/11/2013 12:12

So you assume the Person that takes the stock will

1. Sell immediately, why would they do that for no proft ?
2. Who says they will just flood the market ? Doubtful several will take up the offer.

I think you will be surprised Monday. Let's see shall we

[undervaluedassets] 22/11/2013 11:30

Not going to be profitable on Monday. You watch. And need to sell circa 40 million shares to someone to fulfil ftse requirements.

[undervaluedassets] 22/11/2013 10:57

This will surely tank if so. today's price action is a subtle bull trap. Caveat emptor.

[undervaluedassets] 22/11/2013 10:56

So Essar global fund set to sell huge amount of stock? how can that be good for the share price?

[sparky333] 22/11/2013 08:56

Market disagrees

I think you will find the results will be good as all brokers are expect 11p eps for 2014.

Turnover also significantly higher at around 27b I think for full year.

[gbb483] 22/11/2013 07:47

Market about to be flooded with stock from a major fund holder.

[muffinhead] 21/11/2013 16:40

bankers could be potential winners

Someone elses money to take the development risks in a foreign country and forex issues. When the risks are minimised, depreciation and intangible write down, cash run out, covenant breach, pull the rug, banker fees to renegotiate debt, debt for equity swap, old shareholders wiped out and bankers take control with new management, delisting

bankers don't want any stinking 25% float...they want it all

[sparky333] 21/11/2013 14:17

We shall see Monday as half year and forecast eps of 11p full year. That that is the average of 6 brokers

[salpara111] 21/11/2013 09:55

There is absolutely no chance of them paying a divi in the next 18 months.
They struggle just to service their debt mountain.
There is little intrinsic value in the equity of this business someone just went out and acquired a bag of assets on the back of a mountain of debt...that is not a business it is just a mechanism for a small number of people to acquire large salaries.
This is a trading stock and clearly this level normally sees support but I have little confidence as the support has no fundamentals behind it.

[undervaluedassets] 21/11/2013 08:45

As far as I can see they do not earn enough to cover the interest on their bonds and debt.

[sparky333] 20/11/2013 18:25

Look at broker forecasts eps 11p for 2014 and 2014 half year next week 25th I think.

4. Strong buys and 2 hold recommendations.


Looks very tempting at these levels if they hit the numbers for h2 and half year for 2014.

Look up essar on digital look

2015 eps 20p and maiden dividend

[undervaluedassets] 20/11/2013 15:56

why profitable 2014 and says who?

[rajaster] 20/11/2013 13:37

100p. looks enticing now.

[s_sahota] 19/11/2013 09:53

Mid 2014 with the possibility of a div in 2015, who knows, it is Essar.

[undervaluedassets] 19/11/2013 08:52

Profitable when? That's the question.

[s_sahota] 18/11/2013 21:27

I'll be watching the 97 mark very closely, which is where I've highlighted 2nd level support. There could be a bounce here like before but if 97 is breached then there is a possibility this could fall sub 90, bottoming out at around 88, let's hope that's not the case. (An opinion based on my tech analysis)